On 27 April 2023, the Australian Government released a comprehensive and consultative report of Australia’s migration system that ultimately revealed a flawed process and the need for extensive reforms. The Minister for Home Affairs, The Honourable Clare O’Neill, described Australia’s current migration system as fundamentally “broken and failing businesses and migrants.” This article explores the report’s evaluation of the Australian migration system, including areas for improvement.
Overview
One of the most significant issues the report highlights is the increasing demand for skilled labour. Australia’s economic growth is heavily dependent on skilled migration, and there is a need to ensure that the migration program is responsive to changes in the labour market. There has been a historical emphasis on temporary migration over permanent migration. As a result, Australia has become a less attractive destination for highly skilled workers due to the complexity of the migration system.
Concerns were also raised about the inherent exploitation of migrant workers, particularly in low-skilled and low-paid positions and the desire to adequately address these issues and introduce effective monitoring and compliance processes to protect these vulnerable cohorts.
Another key issue highlighted is the importance of family migration. Family migration has been an integral part of Australia’s migration program, and there is a need to ensure that the program remains family-friendly. The report recommends that the Government streamline the family migration process and improve access to services for families post-settlement in Australia.
Why Migration Reform is Necessary
Some of the key challenges contributing to the skills shortage and the need to reform the migration system are:
- aging population resulting in decreasing productivity growth;
- barriers to workforce participation, for example, single women with children or people with disabilities;
- climate change driving the need for innovative skillsets;
- the emergence of different industries driving the demand for innovative skillsets; and
- the overall attraction of higher-skilled workers.
Fundamental Principles for Migration Strategy
A cohesive, transparent, and achievable strategy should be based on fundamental principles grounded in multiculturalism, equity and trust. The six principles advanced are as follows:
- First and foremost, migration should support Australians and Australia’s social and economic well-being.
- Australia recognises and celebrates migration’s role in shaping who we are as a multicultural, cohesive, democratic nation rich in opportunity.
- Australia’s migration system is non-discriminatory regarding race, religion, and ethnicity.
- Migrants are treated equally before the law and have meaningful access to legal remedies.
- Effective and proportionate compliance and border control measures and the orderly and efficient movement of people across our borders underpin Australia’s migration system.
- Australia’s migration system is transparent, easy to navigate, and decisions are made quickly.
The following are some of the recommended vital strategies to adopt:
- migration should build Australia’s prosperity;
- support expert services concerning students and visitor programs that bring millions in revenue to Australia;
- sustainable population growth;
- build a cohesive multicultural community;
- reunification of families;
- encourage citizenship;
- protect Australia’s regional and global interests;
- build and maintain trust and confidence in Australia’s migration system; and
- provide a fast, efficient and fair system – new ICT systems, simplifying the migration legislation.
Areas for Migration Reform
The report presented the following possible areas of reform:
- Permanent residency pathway for all temporary skilled visa holders from the end of 2023.
- TSMIT (temporary skilled migration income threshold) will increase to $70,000 from 1 July 2023.
- Adopt a risk-based assessment for temporary skilled migration:
- light touch high salary cohort;
- mid-touch (salary between cohort 1 and new TSMIT); and
- lower wage cohort where there is persistent shortage and risk of worker exploitation.
- Review and reform the skilled occupation list and its correlation to the archaic ANZSCO directory.
- Remove the requirement for labour market testing (LMT).
- Allow sponsored workers/employees to change employers and increase the timeframe to 6 months.
- Monthly payment of Government fees to process applications instead of upfront payment.
- Reassess Working Holiday Visa (WHV) objectives and purposes, specifically concerning the requirement for visa holders to engage in regional/specified work.
- Introducing a Parent visa lottery to address the long processing times.
- Complete overhaul of student visas (including graduate visas) and allow specific cohorts to access longer-term visas and transition to permanent residence.
- Improve monitoring and compliance to prevent migrant worker exploitation, which may include migrant workers receiving training about their rights as employees and coordination with other Government agencies such as the ATO.
- Revision of the Business Innovation and Investor Program and Global Talent Visa Program.
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Result of the Report
The report has revealed fundamental flaws in the system, including the:
- need to address the skilled labour shortage;
- exploitation of migrant workers;
- disparities in economic growth across regional areas; and
- importance of family migration.
The report suggests that the Government should streamline the migration process and improve access to Government services. It also emphasises the need for a cohesive, transparent, achievable strategy based on multiculturalism, equity, and trust. Possible reforms include creating a permanent residency pathway for all temporary skilled visa holders, adopting a risk-based assessment of temporary skilled migration, and improving monitoring and compliance to prevent migrant worker exploitation.
Significantly, these possible reforms could increase opportunities for skilled workers to migrate to Australia permanently, improving their job security and having greater freedom to make decisions about their employment whilst being treated fairly. Furthermore, concerning businesses and the Australian economy, the reforms could address the labour shortage, the need for innovative skills in addressing global issues, and support sustainable population growth, leading to economic prosperity for Australia. Ultimately, the recent report provides hopeful changes beneficial to migrants, businesses, and the economy.
Key Takeaways
The Australian Government’s recent report on the country’s migration system highlights the need for extensive reforms. Specifically, it highlights fundamental flaws in the system and areas to improve transparency and access to Government services.
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Frequently Asked Questions
Key challenges include the aging population resulting in decreasing productivity growth; barriers to workforce participation such as single women with children or people with disabilities; climate change driving the need for innovative skillsets; the emergence of different industries driving the demand for innovative skillsets; and the overall attraction of higher-skilled workers.
The report is purely consultative. Accordingly, while it offers worthwhile strategies and recommendations, it will ultimately be up to the Australian Government to implement and incorporate such reforms into legislation.
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