The Federal Government says Australia's net migration level has dropped by 20 per cent over the past year.
In the 12 months to June last year just over 300,000 permanent and long-term temporary migrants settled in Australia.
By June this year the Government expects the number will have dropped to below 250,000.
Immigration Minister Chris Evans says the Government's changes to the visa program for temporary overseas workers has contributed to the drop in numbers.
"There's been quite a large drop in the number of students and that's starting to be reflected in the net overseas migration figures," he said.
"We think better integrity in the student visa areas and the crackdown on shonky colleges and inappropriate applications has seen a big improvement there."
Senator Evans says the downturn in the global economy and the publicity over attacks on Indian students in Australia also contributed to the drop.
"There are a number of contributing factors, the economy, the reporting of concerns about violence," he said.
