Coalition MPs have acknowledged that the party’s newly released immigration policy has not been fully costed by the Parliamentary Budget Office (PBO), even though Minister Angus Taylor has described the plan as budget neutral.
The policy, announced on Tuesday, aims to reduce net overseas migration to 100,000 for two years, then 130,000 in the third year and 160,000 in the fourth. Taylor and deputy Liberal leader Jane Hume said the Coalition had worked closely with the PBO on the plan, but sources revealed the watchdog had not conducted a full analysis before the policy’s release. The party said it would cost the policy before the next federal election, using internal analysis and existing costings during design.
Business groups and university representatives have warned that the cuts are arbitrary, pose risks to the economy, and could worsen shortages in key sectors such as health and aged care. The Australian Chamber of Commerce and Industry chief Andrew McKellar dismissed the cuts, arguing that Australia faces a housing supply problem rather than an immigration problem.
Taylor defended the package in media, claiming it was budget neutral and that the Coalition had done what the government does, while accusing Labor of not releasing modelling. In a Channel Nine interview, he reiterated that the outcomes of the budget analysis had been released. The PBO declined to comment, noting its staff cannot discuss costings for MPs but may correct media misrepresentations.
Acting Prime Minister Richard Marles warned that the Coalition plan could hurt vital sectors, including defence, and accused the Liberal party of chasing One Nation rather than pursuing national interest. Labor and One Nation also seek to reduce international arrivals, reflecting growing anti‑migration sentiment and pressure on housing and essential services.
