The Morrison government has introduced a reduced annual cap on migration of 160,000 over the next four years and initiatives to attract more international students to regional areas. 

The measures, which came into effect on Monday, involve incentives for overseas students to choose locations outside the big capital cities, such as a $94 million program offering 4,720 scholarships to study in the regions. 

International students studying at regional universities will also be given access to an extra year in Australia on a post-study work visa. 

Currently, 80 per cent of international students study in Melbourne, Sydney or Brisbane. 

Meanwhile, the new 160,000 cap on migration will include 23,000 places for permanent residents who decide to live outside the big capital cities, with this component coming into effect on 1 November. 

The government said cutting the migration cap by 15 per cent, down from 190,000, will reduce the maximum intake by a cumulative 120,000 over four years. 

Last year, permanent migration fell to its lowest point in a decade due to a tightening of skilled and sponsored visas.  

Changes to the working holiday maker programs have also come into effect, with visa holders on their second working holiday now eligible to stay an extra year if they work in regional areas for six months. 

Minister for Immigration, Citizenship and Multicultural Affairs David Coleman said the changes to migration intake will help promote economic growth in regional parts of Australia. 

“This is about encouraging more people out of our major cities and into our regions, helping regional communities to fill employment gaps and grow their economies,” Mr Coleman said.

“The four Designated Area Migration Agreements (DAMA) launching across Victoria, South Australia and Western Australia will help employers find the labour and skills they need,” he added. 

The DAMA enables employers to sponsor skilled overseas workers for positions that they cannot fill with local workers.