Chief Minister Andrew Barr is calling on the Albanese government to fix the migration system to help the territory fill skills gaps and keep infrastructure projects on schedule, as Home Affairs Minister Tony Burke prepares to reveal Labor's revamped policy.
The territory needed "clear pathways for talented people to contribute to Australia," Mr Barr said, calling on the federal government to give states and territories "the flexibility to respond to local workforce needs."
Mr Burke is expected to use his speech to the National Press Club in Canberra on Thursday to announce new plans to achieve Labor's existing target to slash Australia's net overseas migration to 225,000 from 305,000 over two years from 2024-25, with Nine newspapers reporting this would include cuts to temporary migrants.
"We do need to get net overseas migration down," he told Parliament on Wednesday.
"We need to make sure that we deal with the numbers overall, and do so in a sensible, targeted way that provides the easiest pathway through for the Australian economy."
Highlighting the importance of international students - who contribute $1.4 billion a year to the ACT economy - Mr Barr said maintaining Australia's attractiveness as a top university destination was "important for Canberra's future prosperity."
"International education is the ACT's largest export industry and one of our greatest economic success stories," he said, describing the influx of overseas students as "essential."
A "well-designed migration system" that better supported skilled workers to come to, and remain in the ACT was needed to address local workforce shortages, support major infrastructure delivery and meet growing demand in sectors including health, education, construction and technology, the chief minister said.
"Canberra demonstrates the benefits that skilled migration brings to Australia. People come here from around the world to study, work, start businesses and build their lives, strengthening our economy and enriching our community," he said.
Mr Burke on Wednesday hinted at a more targeted approach, saying that, for decades, Australia's immigration system "has been demand-driven".
"A whole lot of our immigration system simply functions virtually by applications being made, and processing speeds is one of the only things with planning levels that we currently have available," he said.
"The more tools that are available, the better we can target the system. The best form of outcome there will be if we are able to sort our way through for a legislative option. In the absence of that, there are still more levers that the government will be able to use."
In its submission to the joint parliamentary inquiry into the value of skilled migration to Australia, the ACT government also flagged concerns about worsening public perceptions and heated political debate about immigration harming ACT universities' intake of international students.
"There is a risk that Australia's reputation as an attractive study destination could be diminished," it said.
Public messaging needed to be clearer and more consistent, the submission said, establishing migration "as an economic and social asset while highlighting ongoing efforts to ensure it remains sustainable".
The ACT government was able to sponsor just 1600 skilled workers annually under class 190 and 491 visas in 2025-26 - down from 1800 the previous financial year.
The federal government should investigate expanding migration planning levels for visa classes that allow states and territories to sponsor key workers, the ACT submission said.
Hanging in the balance were net zero and housing targets, infrastructure projects like the Woden light rail, the new North Canberra Hospital and redevelopment of the Canberra Theatre Centre.
Construction, education, healthcare and advanced technology workers remained in high demand in the ACT, the submission said, especially more experienced candidates able to pass on international best practice to junior colleagues and apprentices.
"Access to an appropriately skilled workforce will be critical to delivery of [the ACT government's] strategic priorities," the submission said, noting at least 75 per cent of nominated visa holders stayed in the ACT for at least two years.
The federal government also needed to work with industry to improve awareness of international workers' accreditations and licenses, and reform duplicative processes that slowed workers from getting jobs matching their skills or diverted them to lower value jobs.
