A sharp reduction in temporary migration proposed by Australia’s opposition Coalition could reduce the supply of rideshare drivers and couriers, putting pressure on fares and wait times, business representatives say.
Coalition leader Angus Taylor proposes reducing net migration to 100,000 and cutting the number of temporary migrants by about 650,000. The plan would tighten rules for international students who work in delivery and rideshare services in breach of visa work limits.
Rideshare company DiDi warned that proposed immigration and visa changes could reduce driver supply, increase wait times and affect passengers. Jeff Borland, an economist at the University of Melbourne, said a tighter labour pool could push up wages and operating costs, with possible price increases for customers. The scale of any effect is difficult to predict because there is not enough data on how many gig workers hold temporary visas.
The productivity effect could cut both ways. Borland said businesses might invest in technology and equipment in response to labour shortages, potentially lifting productivity. But sectors that rely on temporary migrants, including tourism, hospitality and food services, could also face staffing gaps.
The Coalition has not published a full independent costing of the plan. Taylor has said the party is working with the Parliamentary Budget Office on an analysis. The government has called for the calculations to be released so the policy’s budget and economic effects can be assessed. Industry groups have also warned of possible worker shortages, including in aged care.