Australia’s Migration System is Undergoing Major Reforms!

The Australian Government has unveiled its plans to implement significant changes to the migration system, which will have a huge impact on prospective students and education agents.

The underlying intent is to redesign the migration system to help get the skills needed to support Australia’s growing workforce demands. Australia's temporary migrant cohort has doubled in size since 2007 to 1.8 million people while permanent places have remained stable.

A comprehensive review, led by former public service chief Martin Parkinson, has labelled Australia's migration system as "broken." The review warned that "tinkering" around the edges will not work and calls for substantial reforms to attract top-tier workers, drive economic growth, and safeguard against exploitation.

In a 200-page report, the review highlights the need for comprehensive overhauls to the skilled migration program, student visas, and employer-sponsored visas. It outlines the necessary measures to ensure that Australia can "reap the opportunities and navigate the challenges" that will arise in the next two decades, striving to prevent the country from becoming a nation of "permanently temporary" residents.

Home Affairs Minister Clare O'Neil commissioned the review last year, and in a speech to the National Press Club on Thursday outlined how the government will respond to the structural problems it identified.

The review acknowledged that while skilled migration has helped fill skills gaps and contribute to productivity growth, it is "not effectively targeted to either current or future needs". Significantly, the review found that the points test used to select skilled migrants fails to identify the best applicants and describes the skilled occupation list as "outdated" and lacking a "strong evidence base".

In her speech, Minister O’Neill noted “International students are the largest component of our temporary migration program, and the single biggest feeder into our permanent program.” It is clear in the Minister’s speech that international students are in focus due to their contribution to Australia’s permanent migrant population.

The Government has turned its attention to several areas of reform including the Department of Home Affairs and their outdated IT systems and improving the link to the newly formed Department of Jobs and Skills Australia.

"Our migration system is broken. It is failing our businesses; it is failing migrants themselves. And most importantly, it is failing Australians. That cannot continue," Home Affairs Minister Clare O'Neil said in her milestone speech at the National Press Club.

Some of the points the Government will be implementing include:

  1. The current system used to select skilled migrants - the points test - will be modified to identify people with the correct skill sets the Australian economy needs going forward
  2. The visa process for high-skilled professionals will be made quicker and easier, while steps would be taken to retain international students
  3. Temporary skilled visa holders, who had been denied even the opportunity to apply for permanent residency, will be able to do that by the end of this year
  4. From July 1, the migrant wage threshold of temporary skilled workers will be raised to A$70,000 ($46,250) from A$53,900, stuck at the same level since 2013

The Australian Government will be making more announcements in the next few months regarding international students. The following are under review to be implemented soon:

  1. The Government will consider tighter entry requirements for study in Australia
  2. Measures ensuring students are here to study and not here primarily to work will be implemented
  3. The Government will consider improving the systems that monitor students post arrival

To know more about how you can make the most of the upcoming reforms, contact an MWT Education Consultancy counsellor now!