One Nation proposes cutting Australia's temporary migrants by 750,000 over three years

One Nation says it will cut the number of temporary migrants in Australia by more than 750,000 over three years, targeting international students and the family members of skilled migrants in a “net-negative” plan.

But Labor has said it would cause sweeping damage to construction, health care, aged care and disability sectors, and the Liberals have cast doubt about whether any modelling underpinned the figure.

One Nation leader Pauline Hanson said the new policy, announced on Monday, would “reset” Australia’s immigration system and help ease pressure on housing and public services.

Temporary visa numbers would be returned to 2017 levels, under what Hanson says would represent a net-negative arrivals rate for the first three years. That would mean the negative overseas migration total would be 130,000 under the One Nation plan.

The announcement comes as both Labor and the Coalition consider new cuts to overseas arrivals, in an increasingly charged contest ahead of the next federal election. Hanson will hope her plan plays well ahead of the Victorian state election, due in November.

“I know Australians are doing it tough,” Hanson said in a statement.

“Families are competing with hundreds of people for rental accommodation. Patients are stuck in ambulances because there are not enough hospital beds. Young Australians are being locked out of home ownership while wages and infrastructure fail to keep up.”

The policy also drive division within One Nation, with lower house MP David Farley previously expressing concern that big cuts to immigration could deny his electorate of Farrer the workers needed to care for elderly people and work on farms.

Hanson said One Nation would give “illegal migrants” three months to leave, with those who depart voluntarily given the ability to apply for visas in the future.

“Those who remain unlawfully after this period will be subject to immigration enforcement and a lifetime ban from re-entering Australia,” she said.

The Pacific Labour Mobility Scheme for agriculture would remain in place under One Nation’s plan, but temporary skilled migrants would lose the ability to apply for visas for family members.

“We will take back control of who comes here and how many we accept, train more Australians, restore living standards and put the safety and security of Australians first.”

Prime Minister Anthony Albanese and the opposition leader, Angus Taylor, have held talks on Labor’s delayed migration package in recent days. It is expected to further drive down net overseas migration.

But Labor has struggled to finalise the plan and delayed its announcement by more than a month.

Deputy Liberal leader, Jane Hume told News 24 Hanson had plucked the number out of nowhere and has no modelling to back it up.

“Simply saying we’re going to have negative migration for a number of years, negative Nom, well, that would be a real shock to the economy, and it would make all Australians poorer,” she said.

“It’s so important to get this right, because sending the country into recession means that all Australians pay the price. It simply can’t be a slogan, you have to do the work behind it.”

The health minister, Mark Butler, warned One Nation’s cuts would kill critical industries.

“Pauline Hanson said a few weeks ago, she didn’t care what the impact of her migration policy would be on business, but this is just another level entirely.

“This is going to smash industries like construction. It would devastate the health sector and aged care and disability.”