The Coalition blames the influx of international students for contributing to the housing crisis, with Dutton's plan aiming to cut foreign student commencements by over 80,000 annually.

As part of this plan, Dutton also proposes increasing student visa application fees significantly, raising them to $5,000 at Group of Eight universities.

The ongoing discussion around migration comes amidst debates about the impact of population growth on housing and resources in Australia, complicating efforts to manage housing availability.

The Labor government has already committed to decreasing overseas net migration, which has been falling from its post-COVID peaks, and criticizes Dutton's proposal as 'savage cuts' that would negatively impact skilled workers.

Former immigration official Abul Rizvi cautions that the proposed cuts could lead to conflicts with industries reliant on migrant labor, such as agriculture and tourism.

Opposition Leader Peter Dutton has announced a plan to cut Australia's net overseas migration by 100,000 annually, reducing it from 260,000 to approximately 160,000 if the Coalition wins the federal election.

Dutton attributes rising housing costs to record migration levels, proposing a 25% reduction in net overseas migration and blaming a surge of a million people in the last two years for escalating housing prices.

Despite potential backlash from businesses, Dutton insists that his priority is to ensure young Australians have access to housing.

However, Andrew McKellar, chief of the Australian Chamber of Commerce and Industry, warns that such cuts could severely impact the economy, particularly due to the demand for skilled workers and international students.

Business groups, including the Business Council of Australia, express concern that significant cuts to migration could exacerbate existing skills shortages and hinder economic growth.

He argues that the current ratio of international students to building approvals is unsustainable amid a housing crisis, which has prompted his proposed caps on international student numbers.

Current federal budget forecasts indicate a drop in net overseas migration to 260,000 for the upcoming financial year, which Labor claims is already a significant decrease.