What Businesses can Expect from the Redesign of Australia’s Migration System

Posted by Rebecca Berkovic on
australian-visa-changes-2023

The Australian Minister for Home Affairs, the Hon Clare O’Neil, released a final report last week entitled ‘Review of the Migration System’ (the ‘Review’) which features 190 pages of analysis of the current operation of the Australian visa system. The Review provides recommendations and suggestions for migration reform and redesign, some of which will be introduced over the next several months.

What can Australian businesses employing overseas workers expect from the Review, redesign and anticipated reforms?

Here is a summary of the proposed reforms highlighted by the Minister for Home Affairs:

 Proposed Reforms: Work Visas

  • Remove the requirement for labour market testing from Temporary Skill Shortage (TSS)(subclass 482) visas. The Review recognises that labour market testing is an ineffective tool for identifying true labour market need; and the cause of unnecessary delays in recruitment in genuine areas of skills shortage that have already been identified by Jobs and Skills Australia (JSA).
  • Increase the Temporary Skilled Migration Income Threshold (TSMIT), index it to the Wage Price Index, and consider the adoption of age adjusted thresholds.
  • Temporary Skilled Migration: Adopt risk-based regulation of temporary labour migration, with three tiers:

         1. a ‘light touch’ high salary cohort;

         2. a ‘mid-level cohort’ (above the TSMIT, below the high-salary threshold of cohort 1); and

         3. subject to further consideration across government, a lower wage cohort in sectors experiencing  persistent shortages and who are most at risk of exploitation and displacing Australian workers with similar skills.

  • Plan migration based on net overseas migration (which accounts for both permanent and temporary residents), rather than simply relying on permanent migration caps. The Review states that Australia does not want to become a nation of ‘permanently temporary’ residents and therefore proposes to enable temporary work visa holders with occupations on the short-term list to apply for permanent residency.
  • Allow temporary migrant workers to move from their current employment to find work with another employer within the same sector or job family. Migrants could have up to 6 months to find new employment as opposed to the current 60 days.
  • Require employer fees and charges to be paid monthly, rather than up-front, to facilitate mobility between employers and increase access for small business by reducing up-front costs.
  • The Review recognises that the Skilled Occupation Lists underpinning the Employer Sponsorship programs are outdated and lack a strong evidence base. The Review states that the occupation lists do not reflect current or anticipated skilled labour needs, including to support the transition to a net-zero economy or to build critical and sovereign capabilities.
  • Provide migrant workers with targeted training on workplace laws and conditions based on the Pacific Australia Labour Mobility (PALM) scheme model.
  • Improve post-arrival monitoring and compliance including through coordination with the tax system, using tax file numbers (TFN) and single-touch payroll.

 Proposed Reforms: Global Talent & Skilled Visas

  • The Review proposes to consider changes to the existing Global Talent visa to improve clarity in the selection criteria and remove the need for a nomination. The review recognises that there is growing international competition for highly skilled migrants and Australia risks falling behind without more innovative and attractive visa products and service delivery in this space.
  • Recalibrate the points test for Skilled visas to select migrants with high human capital who will make the greatest long-term economic contribution.
  • A new permanent visa open to lower skilled workers, the Pacific Engagement Visa, will commence in July 2023 with 3,000 places available. Primarily intended to build Australia’s ties with our Pacific neighbours, entrants must meet English language and age requirements and have a job waiting on arrival in Australia.

 Proposed Reforms: Business & Investment Visas

  • Reconsider the size and role of the Business Innovation and Investment Program (BIIP), noting more positive outcomes from the Significant Investor Visa.
  • The Review suggests consideration be given to whether the BIIP is retained as a substantial program. The Government notes that outcomes for the small Significant Investor stream have been stronger than for the remainder of the BIIP.
  • If there is a desire to retain some element of the BIIP, consideration could be given to drawing on the relative strength of this stream in designing a niche investment visa product, much more sharply targeted to select migrants able to drive innovative investments or play a valuable role in the venture capital industry.

 Proposed Reforms: Working Holiday Visas

  • Ensure the primary focus of the Working Holiday Maker program is cultural exchange and does not operate to tie migration outcomes to the performance of work.
  • Subject to Australia’s obligations under trade and other international agreements, consider limiting Working Holiday Maker (WHM) visas to one year.

 Proposed Reforms: Student Visas

  • Review the Student visa working hours cap, including whether unpaid work-integrated-learning, internships and work experience are counted towards the cap.
  • Provide a Temporary Graduate visa which will be automatically granted upon study completion without the need to apply for certain Student visa holders.

Proposed Reforms: Regional Visas

  • The Review states that regional visa programs, and the migration system more broadly, have not been effective in encouraging migrants to settle in regional Australia.
  • Migration should be part of a holistic approach to addressing regional population and labour needs. Better planning, housing, infrastructure and service provision will make regions more attractive to both Australians and migrants.

Proposed Reforms: Internal Departmental Systems

  • Proposed improvement of Department of Home Affairs’ technology system: the Review states that current ICT systems lack flexibility and responsiveness, and new technology has not been adopted.
  • Improving visa processing times across the board will be given priority.

The Minister of Home Affairs has recognised that “There is growing international competition for highly skilled migrants and Australia will need to sharpen its approach to attract migrants able to meet our future needs.”

We will continue to update our clients as the above-mentioned reforms are introduced to the Australian migration system and as an overhaul of Australian visas is rolled out over the next several months.

For advice regarding Australian visas, please do not hesitate to contact us at info@hartmanimmigration.com.au for Australian immigration assistance.

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.