Business

Getting migration working for the nation For workers. For businesses. For all Australians.

Migration Strategy

Getting migration working for the nation For workers. For businesses. For all Australians.

Migration Strategy

Migration Strategy December 2023

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MINISTERS’ FOREWORD 6

• Building the Australian nation 19

• Challenges and opportunities ahead 22

• Why we need reform 31

• Objectives to guide the migration system 37

• Policy roadmap and the path forward 41

• Targeting temporary skilled migration to address skills needs and promote worker mobility 42

• Reshaping permanent skilled migration to drive long-term prosperity 54

• Strengthening the integrity and quality of international education 60

• Tackling worker exploitation and the misuse of the visa system 72

• Planning migration to get the right skills in the right places 78

• Tailoring regional visas and the Working Holiday Maker program to support regional Australia and its workers 84

• Deepening our people-to-people ties in the Indo-Pacific 90

• Simplifying the migration system to improve the experience for migrants and employers 94

CONTENTS

REALISING OUR VISION 40

VISION FOR THE MIGRATION SYSTEM 18

EXECUTIVE SUMMARY 8

MINISTERS’ FOREWORD

Australia is a nation shaped and invigorated by the diverse cultures and talents of

millions of migrants. Coupled with the profound history of our First Nations peoples,

multiculturalism is the bedrock of our unique national identity.

Our country stands at a pivotal point. We face a converging set of challenges. We need

to get wages and productivity growth moving. We need to build our skilled workforce to

help us transition to a net zero economy. We need to manage the pressures of an ageing

population. Migration is not the full answer to any of these problems. But it is part answer

to all of them.

Migration should be helping us solve these national problems, and creating a prosperous

and secure future. But the current migration system is broken: it is not delivering for

workers, not delivering for businesses, not delivering for all Australians. We see too many

instances of migrant worker exploitation. There are too many back doors and side doors

into the system, undermining the system’s integrity. There is insufficient regard for

pressures on housing and infrastructure. And the skilled people we need are turned off by

a complex, unworkable system.

Ultimately, the success of a migration program relies on the backing of the Australian

people. This has been a hallmark of successful migration models throughout our history,

like those put in motion by the Chifley and Whitlam Governments.

Our task is to get migration working for the nation. Reorienting the program to address our

national challenges. Rebuilding social license by returning migration levels back to normal.

And building better planning in the system so we can get the skills we need, where we

need them.

Fixing the current system is a big task, and it will require business, unions and government

to work together. The Albanese Government has embarked on an extensive consultation

process with Australians from all walks of life to build our plan for reform. This strategy is

not just about overcoming short-term skills shortages or managing migration levels. It is

about laying the groundwork for generational change. To avoid doing so would be to fail

those who elected us to build a better future.

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The outcome of these consultations is laid out in the following pages. It is the first time

Australia has had a written strategy for its migration program. This document articulates

a clear vision, and explains how we will deliver that vision through eight actions and

numerous policy commitments. Our thanks go to Dr Martin Parkinson AC PSM, Professor

Joanna Howe, and Mr John Azarias for their invaluable contributions to this effort.

The Migration Strategy is a commitment to getting our system back on track and to

returning migration levels back to normal. If you are a worker, whether local or migrant,

this strategy means stronger protections of your wages and conditions. For businesses, it

means getting the skills you need to grow and be more productive, particularly in critical

areas like healthcare, the net zero transition, and the digital economy. For all Australians, it

means a better-planned migration system, aiming to strengthen the community you live in

and to improve your living standards.

This strategy sets Australia on a course to confidently tackle future challenges. It’s about

building a more prosperous and secure Australia for our citizens, and laying a strong

foundation for the generations to follow.

It’s about getting migration working for the nation.

For workers. For businesses. For all Australians.

The Hon Andrew Giles MP Minister for Immigration, Citizenship and Multicultural Affairs

The Hon Clare O’Neil MP Minister for Home Affairs Minister for Cyber Security

 7 MIGRATION STRATEGY

share of skilled migrants more than doubled.

This ushered in a new era of modernity and

prosperity, and an even more diverse migrant

population as Australia accepted migrants

from every continent.2

At each of these generational junctures,

migration has been underpinned by the

backing of the Australian people. The focus

was on arriving here and contributing to

national endeavours, with migrants paid

the going wage rate and accepted into the

community. The migration system and the

national interest were intertwined.

Australia can seize the opportunities of the coming decades The decades ahead are ripe with opportunity

for Australia. There are also major challenges:

as the population ages, the participation rate

is expected to gradually decline. This will

test our ability to provide goods, services and

support to all who need them. We need to

get productivity growth and wages moving,

but both of these have stagnated in the past

decade. There are pressures coming from

the wider world—economic, technological,

strategic and environmental—that will fully test

our capabilities.

Migration is central to Australia’s national story Migrants are and will always be an essential

part of Australia’s economic and social fabric.

They have helped build Australia’s modern

dynamism and diversity, contributing their

skills, experiences and cultures to the making

of a nation that is both outward-facing and

internally cohesive. Migrants make our country

financially, culturally and spiritually richer.

Their story is central to our national story, the

making of a modern economy and society, and

the forming of our nation’s identity.

Migrants have been a bridge to the wider

world: in commerce, culture and citizenship.

Today, more than half of all Australians are

either born overseas or have a parent born

overseas. Migrants and their children are a

presence in almost every aspect of our

national life.1

In times of change, migration has helped

Australia tackle national challenges and

build long periods of prosperity and security

for our citizens. Following the Second World

War, political leaders looked to our migration

system to help strengthen national security.

Australians quickly came to recognise

that migrants could also increase national

prosperity at a time when their labour and

skills were desperately needed for post-war

reconstruction.

With the end of racial discrimination in

migration policy in the 1970s, Australia

emerged as a vibrant and multicultural nation

with new migrants connecting the nation to

an increasingly dynamic Asia. In the 1990s, the

EXECUTIVE SUMMARY

Australia’s economy is again being reshaped by profound demographic and global forces.

Employment White Paper3

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Australia is ideally placed to lift productivity,

exports and living standards. We have a highly

skilled and adaptable workforce. We have a

world-class education system that builds the

expertise of both Australian and international

students. Our environment and resources set

us up to take full advantage of the transition to

a net zero economy, while our location places

us in the world’s most dynamic region, the

Indo-Pacific. A better targeted migration

system focused on getting the right skills in the

right places can help support these ambitions.

Australia also has a highly developed social

system that elevates fairness in the workplace

and the community. We have institutions

that have evolved to secure fair treatment of

workers. Rapid developments in technology,

climate change, environmental pressures and

geostrategic shifts will make these aspirations

especially important.

This Migration Strategy is designed to ensure

that migrants fully enjoy the benefits of

living and working in Australia and are not

vulnerable to exploitation. It is also designed to

give Australian workers confidence that their

own wages and conditions are protected, and

to give employers confidence that they will be

supported if they do the right thing.

Tackling these challenges will require us

to build stronger communities and further

strengthen social cohesion. We have a strong

history of well-managed migration that

supports, rather than runs counter to, our

housing and infrastructure needs.

This is essential to strengthening public

confidence in our migration system, especially

in the face of the formidable global and

national challenges in the decades ahead.

We also continue to build our positive

reputation as a nation committed to both our

responsibility to good international citizenship

and our partnership in the prosperity and

security of the Indo-Pacific region. Most of our

migrants come from that region, and they

are among the very best ambassadors for

Australia.

The task we have confronted in this Migration

Strategy is to design a system that will

maximise Australia’s ability to respond

effectively to present and future challenges

and opportunities, and to ensure Australians

back this approach at each step of the way.

It is time for Australia to once again adapt

its migration policy to the nation’s changing

needs and to reconnect migration with the

aspirations of Australians.

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Our task of reconnecting migration policy to nation building Australia’s migration system is not the nation building engine it once was. It often fails to identify and attract those people who are best placed to help build the skills base of Australia’s workforce, boost exports and raise living standards. Complex and outdated occupation lists fail to reflect current or anticipated skilled labour needs. Our permanent program could be better targeted towards lifting Australia’s long-term economic productivity and workforce participation.

International education is a new engine of economic growth for Australia and an important part of our social fabric. However, growth in the sector needs to be promoted through integrity and quality, and students and graduates need to be better supported to realise their economic potential in the labour market.

Australia’s historic commitment to a fair go in the workplace is not well served by the current migration system. Existing temporary skilled migration arrangements provide too many opportunities for migrants to be exploited in the workplace. Tying a migrant worker’s visa to a single employer creates a power imbalance that an unscrupulous minority of employers abuse. The current approach to determining labour market need is also insufficient to ensure skilled migration is addressing genuine

skills shortages.

Creating a fit for purpose system will require major reform.

Review of the Migration System4

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More can be done to ensure our migration system is better managed and builds stronger communities. We have not had a long-term planning process that links with the levers that make migration successful, such as planning for housing, infrastructure and services.

Migration also works best when it ensures the right skills get to the right places. However, regional Australia is often locked out from the migration system because of the system’s complexity and detachment from regional development planning.

Furthermore, while Australians don’t want a nation of ‘permanently temporary’ residents, migration settings have led to a reliance on temporary migration over our traditional emphasis on permanent migration. This is not a recipe for building stronger communities or maintaining social cohesion, and it is not a pathway to strengthening the confidence Australians have in our migration system.

Australia’s 50-year history of multiculturalism presents a positive image to our own region and the world. However, the many cumbersome features of our visa system detract from the ability of migration to act as a bridge to other peoples, places and cultures. Complaints about the system’s lack of efficiency and fairness undermine our performance and reputation as a good neighbour in our region and a good international citizen in the wider world.

Nor is the present system suited to the increasingly competitive global race for talent in which Australia finds itself. It is too complex for migrants and employers, visa waiting times are often excessive and there is a perception among migrants and employers that the system lacks fairness and transparency. ICT systems don’t always deliver a simple and friendly experience. There is a danger that migrants with the skills we most need are likely to turn their attention to other countries with better managed systems.

At the same time we need to ensure the integrity of the migration system is maintained. This means having a well-managed system with strong compliance so the actions of unscrupulous actors are not left unchecked.

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The Government has developed a policy roadmap with 8 key actions to realise this vision To realise the new vision and objectives of Australia’s migration system, an ambitious roadmap for migration reform is needed. As the Migration Review noted, ‘successive governments and policymakers have responded to challenges through piecemeal reforms which have not addressed fundamental underlying issues’.6 A more comprehensive approach is now needed.

The 8 key actions in the Government’s Migration Strategy roadmap have been developed through extensive consultation with business, unions, civil, international education, civil society and many Australians. This draws on the key findings of the Migration Review, and the 483 public submissions it received.i These actions are supported by existing commitments, over 25 new commitments and

areas for future reform.

i The report and submissions are available at A Migration System for Australia’s Future (homeaffairs.gov.au)

The Government’s vision is to get migration working for the nation

The first comprehensive review of the migration system in a generation, the 2023 Review of the Migration System (the Migration Review), found ‘a lack of clarity on what Australia has been trying to achieve through migration is at the heart of the problems the system faces today’.5

Five core objectives will underpin Australia’s migration system, getting migration working for the nation and helping build a prosperous and secure Australia. These are:

Raising living standards by boosting productivity, meeting skills shortages and supporting exports

Ensuring a fair go in the workplace by complementing the jobs, wages and

conditions of all workers and preventing migrant worker exploitation

Building stronger Australian communities by better planning the migration intake,

and giving migrants the opportunity to invest in their lives in Australia through

permanent residence and citizenship

Strengthening international relationships by building stronger economic and

social connections with our region and international partners

Making the system work by being fast, efficient and fair for migrants and employers

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7

8

The 8 key actions in the Migration Strategy are:

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The policy roadmap will be delivered across three stages of reform Across these actions, a phased approach will ensure strong delivery of existing commitments,

new commitments to build a system for the future, and areas for future reform requiring tripartite

consultation. As part of this next phase of consultation, the Government will publish discussion

papers on permanent skilled migration and regional migration, including the evaluation of the

Working Holiday Maker program, early in 2024.

Existing commitments to seize immediate

opportunities

These existing commitments have already or are soon

to be implemented

These commitments will be implemented by

the end of 2024

These areas will be consulted on throughout

2024

New commitments to build a system

for the future

Areas for future reform requiring tripartite

consultation

• restore integrity to the

migration system and

reduce the visa backlog

• use skilled migration to

help meet Australia’s skills

needs

• introduce measures to

combat migrant worker

exploitation

• strengthen our

people-to-people ties

in the Indo-Pacific.

• build a targeted

temporary skilled

migration system

• strengthen the

integrity and quality of

international education

• better plan the migration

intake

• begin the initial

simplification of the

migration system.

• reshaping the permanent

skilled migration system

to drive long-term

prosperity

• tailoring regional visas

and the Working Holiday

Maker program to support

Australia’s regions and its

workers

• additional measures

outlined throughout the

Migration Strategy where

future reform is needed.

Further details on the implementation and timing of these actions can be found at homeaffairs.gov.au/migrationstrategy

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The Migration Strategy is expected to help return migration to near pre-pandemic levels by next financial year

During the COVID-19 pandemic, migration levels (sometimes referred to as net overseas migration or ‘NOM’) were negative for the first time since the Second World War. As borders have reopened, temporary and permanent migrants have returned to Australia, leading to a temporary rebound in the number of people arriving in Australia, and fewer departures from Australia.

For example, this has included first, second and third-year international students returning to Australia, and fewer international students departing because of the flow-on impacts of fewer arrivals during the pandemic.

This temporary catch-up will largely offset the loss of migrants Australia experienced during the pandemic.

In addition to the actions taken by the Government to date, the actions in the Migration Strategy deliver a better managed migration system and are expected to help return migration to near pre-pandemic levels by next financial year, through:

• closing COVID concessions, including through ending the Pandemic Event visa and

uncapped working hours for international students

• strengthening integrity and lifting the standards in international education, including

through increasing minimum English language requirements for student and graduate

visas, applying additional scrutiny to high-risk student applications and cracking down on

unscrupulous education providers

• ending settings that drive long-term temporary stays (known as ‘permanent

temporariness’), including through shortening graduate visas and ending settings that

allow graduates to prolong their stay in Australia when they have fewer prospects of

becoming permanent residents

• tackling exploitation of the visa system, including through investing in more immigration

compliance officers and restoring integrity in the protection visa system to break the

business model of unmeritorious protection visa claims

• targeting skilled migration to genuine shortages, including through increasing and

annually indexing the minimum salary threshold for temporary skilled migrants (the

‘TSMIT’) and leveraging Jobs and Skills Australia’s advice for where genuine shortages exist.

These actions are strongly aligned with the objectives of the Migration Strategy and help

strengthen the confidence Australians have in the migration system. These actions also

complement the Government’s new approach to planning migration to get the right skills in

the right places, including better migration planning, stronger integration with housing and

infrastructure planning, and further support for regional Australia to ensure it continues to get

the support it needs.

 15 MIGRATION STRATEGY

The Government also recognises that the migration system serves purposes beyond those set out in this roadmap, including family, humanitarian and social roles.

No human connection is more important than family. Families play a foundational role in Australia’s migration system.

In an interconnected world, the ability to spend time with our families is a strength for our society. The pandemic and period of closed borders demonstrated how important these family connections are, with so many Australians experiencing intense isolation and loneliness as family members were unable to visit and stay in Australia. Preventing these

connections harms us all. As the Migration

Review identified, visa options are not working

for many Australian families, including for the

partners, parents and children of Australian

citizens.

The Government is exploring what family

visa settings are appropriate. This work is

being progressed separately from the actions

outlined in the roadmap.

Australia also has a role in responding to

the global humanitarian crisis. More than

100 million people are forcibly displaced

and more than two million people are in

urgent need of resettlement worldwide.

The Government is delivering a humanitarian

program that provides refugees and others in

situations of humanitarian need with certainty

and security as they rebuild their lives in

Australia and contribute to our economy and

society.

In August 2023, the Government announced

that the number of people resettled in

Australia’s Humanitarian Program will

increase from 17,875 to 20,000 per year.7 The

Government has also created a pathway for

permanency for around 20,000 people who

were living in limbo in our country for more

than a decade.

Our renewed migration system will also

reinforce our focus on embracing migrants’

inclusion into our multicultural society

by building community connections and

encouraging participation in civic life.

This will be furthered by the Multicultural

Framework Review, which is looking at ways

for government and the community to work

together to support a cohesive multicultural

society and advance Australia’s future

prosperity.

We are investing in support to communities

—locally and nationally, to nurture and

strengthen Australia’s cohesion. We

understand that social cohesion is a foundation

for social harmony, social justice and equity,

participation in democracy, acceptance

and belonging. Migrants deserve to live

peacefully, free from experiences of racism,

discrimination or violence. The responsibility

to strengthen and foster social cohesion lies

with Government and every Australian. We

are committed to building and empowering

resilient communities to prevent racial,

ethnic and religious intolerance and social

exclusion. We welcome and support migrants

to participate equally in our diverse and

multicultural society.

 16 MIGRATION STRATEGY

Australia’s migration program is multifaceted

and connected with a wide array of national

policy goals. Yet, while directed by a clear

vision and well-defined objectives, the

approach in the Migration Startegy is not set-

and-forget. Migration must adapt to changing

circumstances and needs. The Government is

committed to consulting with business, unions,

the international education sector, civil society

and governments through the reform process

to ensure the system works for all who use it.

The result will be a migration system that

benefits not only those who participate most

directly in it, such as migrant workers and their

employers, but one that will serve the common

good by building capacity and restoring

migration policy’s place in nation building.

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VISION FOR THE MIGRATION SYSTEM

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Building the Australian nation

The British who arrived in a land then known

to them as New Holland from 1788 were often

‘unwilling emigrants’;10 160,000 convicts

(1788–1868) literally built many of the

foundations of the nation.

From 1831, Australia began to more consciously

evolve a migration system designed to boost

the population and serve the country’s

economic needs. Colonial governments of the

19th century assisted many migrants from

Britain and Ireland to come to our distant land

by paying for their passage with the funds

derived from land sales.

Australia was far from these migration sources

and suffered a disadvantage compared with

the United States and Canada, to which British

and European migrants could travel much

more cheaply and easily.

The efforts of many generations of migrants

and their descendants in building our

multicultural nation have been established

on the achievements of First Nations peoples,

who made this land a home teeming with life,

story and song. Australia’s future depends on

our common commitment to living together

in accordance with the principles of respect,

justice and fairness.

The human history of this country has been a

story of great achievement despite personal

risk and challenges. First Nations people from

the north of the continent, the Yolŋu people,

were pioneers in connecting their economies,

societies and cultures with the wider region.

Indonesian traders came to Australia from

at least 1700 AD to collect sea cucumbers—a

trade that would continue until the early years

of the 20th century.9

VISION FOR THE MIGRATION SYSTEM

To imagine a better life for you and your family and to make the leap of faith required to leave behind all that is familiar calls for a special kind of courage.

Frank Lowy, Speech to the Australian Multicultural Council, 20128

Australian officials travelled to Europe,

including to displaced persons camps, to find

the migrants who would build Australia’s

post-war development and security.13

Those who answered the call set the

foundation for a post-war boom that delivered

life-changing prosperity for Australian families.

Men and women who had not imagined that

they might ever own a home or a car now

found themselves with both.

It was new migrants who were often in the

mines and foundries, on the assembly lines

and building sites, and in the shops and

offices to meet the burgeoning demand for

goods and services. Migrants also created

successful businesses and helped rebuild

industry to meet the needs of post-war society.

It was this connection between migration

and the country’s national endeavours that

led to growing public support for Australia’s

migration system.

Migration had again become a vehicle for

nation building. Over 100,000 workers from

more than 30 different countries, including

thousands of newly arrived migrants, were

employed to work on the Snowy Mountains

Hydro-Electric Scheme—the largest and most

ambitious infrastructure project in Australian

history. It helped spark Australia’s quest for

industrial and agricultural development and

national security. The power the Scheme

generated helped run the factories that made

possible ‘the Australian way of life’.14 Migrants,

in turn, came to share in the nation’s rising

prosperity.

While Australia’s disadvantage declined

with the discovery of better routes and

improvements in technology, competition

for migrants has continued to be a driver of

innovation in our migration systems for almost

two centuries. We must still ensure today that

our migration policy responds effectively to a

competitive global environment for the people

we need to build our nation.

In the second half of the 19th century, Australia

had among the highest living standards in the

world. Migration was the foundation of the

remarkable prosperity of what has been called

‘the long boom’.11 The gold rushes of the 1850s

drew migrants from various corners of the

world, including the United Kingdom, Europe,

North America and China.

While the migrant population of Australia was

overwhelmingly British and Irish in the years

following the gold rushes, there were also

significant minorities of European and Asian

people. By the late 19th century, migrants had

helped build an Australian economy based

on exports such as wool and gold, and on

construction, manufacturing and services,

which fuelled the growth and prosperity of

cities and towns.

Migration has proven essential in allowing us

to respond effectively to national challenges.

In 1945, Prime Minister Ben Chifley created the

Department of Immigration and appointed

Arthur Calwell as the nation’s first Minister

for Immigration, one of the first immigration

ministers globally.12 It was a decisive moment

in the history of modern Australia.

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From 1991, Australia enjoyed the longest

running period of continuous economic

growth on record anywhere in the world.

The nation’s openness to immigration, now

increasingly from Australia’s region, was a key

to this story of economic success.16

In each of these instances, the government

of the day recognised the challenges facing

Australia and designed a migration system

to meet them, anchored on the support of

the Australian people. Multiculturalism is still

central to our self-image 50 years later, working

as both a description of our remarkable cultural

diversity and our aspiration towards greater

social cohesion and mutual respect.

Today, Australia is a proud migrant nation.

Nearly every other country is represented in our

community.17

In the 1970s, the White Australia policy that

began in 1901 came to an end under the

Whitlam Government. Australia welcomed

migrants from around the world, including

from our neighbours in the region. Despite

often tough economic times, Australia

continued to accept migrants, now on a non-

discriminatory basis. Multiculturalism was the

term we adopted to describe our immigration

and settlement policy but also, increasingly,

our identity as a nation.

Prime Minister Malcolm Fraser continued

this multicultural tradition, drawing in some

200,000 migrants from Asian countries

between 1975 and 1982.15 In the 1990s, the

Keating Government used skilled migration

to revive Australia’s economy, helping deliver

greater productivity and prosperity to the

country.

Workers employed as part of the Snowy Mountains Hydro Electric scheme

 21 MIGRATION STRATEGY

Australians. The Migration Strategy forms a

core part of the Government’s broader 5-pillar

productivity agenda and the need to build a

skilled and adaptable workforce, as outlined in

the Employment White Paper.

In coming decades, Australia also needs

to diversify and grow our export trade.

Supporting our largest export sectors,

including international education and tourism,

is an important part of this. International

education alone is worth almost $30 billion

to the Australian economy.21 An international

education system that grows through integrity

and its world-class reputation, founded in the

confidence of the Australian people, will be

well-positioned to thrive in the decades ahead.

The approach taken in this Migration Strategy

will help safeguard and strengthen the quality

of the sector for prosperity in the years to come.

Protecting Australian living standards also

means creating a secure and resilient future,

through investment in sovereign capabilities

such as cyber security, emerging technologies

A migration system can only be reformed

through careful examination of where Australia

will be in coming decades. It is not sufficient

to just look at Australia as it is today. As the

reviewers of the migration system noted, a

post-pandemic Australia faces challenges

similar to many other nations, but is also

uniquely placed to seize opportunities to build

a prosperous and secure Australia. Australia

has in the past adapted its migration policy to

the nation’s changing needs. We must now do

so again.

Raising living standards for Australians

We need to boost productivity and growth

The Government is committed to improving

Australian living standards. This means lifting

productivity performance in alignment with

the Government’s Employment White Paper.

Over the past decade, productivity growth

has been below the long-term average in

Australia and other advanced economies, and

has coincided with low investment and wage

growth.18 In fact, productivity growth over the

decade to 2020 was the slowest in 60 years.19

Possible explanations include the absence of

dynamism and technological adoption, and

misallocation of resources.

Our migration system should never be a

substitute for upskilling local workers, but a

well-targeted migration system can help better

connect skilled migrants to Australia’s skills

needs and contribute to productivity growth.

As productivity growth is the key driver of real

wage growth and rising living standards over

the long-term, getting these settings right can

make a real difference to the lives of working

Challenges and opportunities ahead

Through a productivity lens, migration is an important avenue for attracting skills and knowledge, allocating labour to where it is most productive, and diffusing best practice from overseas.

Productivity Commission20

 22 MIGRATION STRATEGY

and ensuring supply of critical products to strengthen our supply chains. Specialists and other highly skilled people are hugely important, not only to the development of these critical capabilities but growing the skills and expertise of Australian workers within them.

Given the rapidly expanding demand for skilled workers, especially in areas such as the tech industry, skilled migration will necessarily play a role in building a more productive and dynamic workforce and a stronger economy. This will support rising living standards, business growth and better wages.

Our population is ageing In one of the most welcome trends of our era, Australians are increasingly living longer and spending more years in full health. At the same time, families are having fewer children, and they are having them later in life. This ageing population is reducing labour force participation. As the Intergenerational Report 2023 notes, as the population continues to age

over the next 40 years, the overall participation rate is projected to decline gradually, from 66.6 per cent in 2022–23 to 63.8 per cent by 2062–63.22 This means a lower working age population and a lower tax base to fund services that Australians will increasingly need.

The care and support economy is projected to almost double as a share of the economy over the next 40 years, having doubled over the last 40. Many of the jobs in sectors in the care and support economy will continue to be hands-on and face-to-face despite the trends towards automation more generally. Migration has a role to play alongside our education, skills and training systems, in responding to labour and skills shortfalls in our hospitals, clinics and aged care homes. More than this, young skilled migrants increase the size of the working-age population, which boosts our workforce and delays the effects of an ageing population on the economy.

 23 MIGRATION STRATEGY

We need to embark on a technological and

digital transformation

Emerging technologies are transforming

workplaces, industries and economies,

with the potential for greater workplace

safety, improved product quality, and new

markets. Rising living standards and future

job prospects for Australians will necessarily

depend on our ability to take up these

opportunities in areas such as artificial

intelligence and advanced robotics.

The Government has set an ambitious goal

of 1.2 million technology-related jobs by 2030.

We are focused on training more Australians

to work in the technology sector, but highly

skilled and experienced migrants can help

uplift and train our workforce to reach

this goal.24

The global race for talent is ramping up

As the Migration Review notes, other countries

are anticipating the changing world economy

and realising the benefits of attracting

migrants into their labour market, particularly

those with high skill levels. As a result, Australia

will face competition for highly skilled

migrants from both traditional and newer

competitors.25

The global working population is also

becoming more skilled overall, and the nature

of who is willing to migrate is changing. For

example, the global population of university

graduates is expected to nearly double over

the next decade, reaching 300 million by

2030, with graduates from China and India

accounting for about half of this pool.26

We need to make the transition to net zero

Australia is making the transition to net zero

emissions by 2050—the most significant shift

in our economy since the industrial revolution.

We are well positioned to seize the economic

opportunity of this transition, but we need the

skilled workforce to unlock this potential, in

occupations such as engineering managers,

scientists and geophysicists.

As we move towards a cleaner and greener

economy, a well-targeted migration system

will be critical to identifying and attracting

skilled workers who have the global expertise

required to support the transition, including

in regional Australia, where most green jobs

will emerge. A better targeted migration

system will support the Government’s broader

climate agenda, including through its Nature

Positive Plan, the Net Zero Authority and the

development of a Net Zero 2050 plan, as well

as measures to support local jobs, skills and

training.

The clean energy workforce will need to grow from approximately 53,000 workers today to 84,000 by 2050 to deliver the energy transformation that is fundamental to the Government’s commitment to achieve net zero by 2050.

Jobs and Skills Australia23

 24 MIGRATION STRATEGY

How to recruit a future Nobel laureate

Australia has shown it can attract exceptionally talented people from around the world in the past.

We have, for instance, arguably had 4 Nobel laureates in Physics.

In 1915 the prize went to the father-and-son team of W.H. and W.L. Bragg. William Henry Bragg

was a migrant who in 1885, as a 23-year-old Cambridge graduate, was appointed Professor of

Mathematics and Physics at the University of Adelaide. His son William Lawrence Bragg was an

Australian-born Adelaide graduate who, at 25, remains the youngest Nobel laureate in Physics.

Alexander Mikhailovich Prokhorov, who won the award as a Soviet physicist in 1964, was born in

Queensland in 1916 to migrants in that state’s vibrant Russian community.

Australia produced another Nobel laureate in Physics in 2011. Brian Schmidt came to a position at

the Australian National University from Harvard University in the United States in 1995. Schmidt’s

ground breaking discovery as an astrophysicist that the universe was accelerating came soon after

his arrival. Today, he is ANU Vice Chancellor.

Schmidt was granted his visa to work at the ANU’s Mount Stromlo Observatory in just 4 days. Up

until recently, if a brilliant young astrophysicist tried to come to Australia from Harvard to pursue

world-leading research, they could wait many months and struggle to navigate the complexity of

today’s system, if they decided to come at all.

Source: G.M. Caroe, William Henry Bragg 1862-1942: Man and Scientist (Cambridge: Cambridge University Press, 1978)

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Ensuring migrant workers receive fair

treatment in the workplace helps them achieve

their full social and economic potential, and

strengthen public support for migration.

Coordination of the education, training and

migration systems is needed ensure that the

focus remains on building local workers’ skills

and job opportunities.

We need to open up more opportunities

for women

In the past 60 years, one of the major shifts in

Australian workforce participation is women

entering paid employment in increasing

numbers. Having made up only around

30 per cent of the workforce in 1966, women

now make up almost half of the paid

workforce.30 This has been a major driver of

economic and productivity growth.

However, in the workforce today, women

remain over-represented in lower paying

occupations and can be more vulnerable

to exploitation, and their participation is

constrained by the fact they tend to have

responsibility for more unpaid care.

They can face gender discrimination and

bias. These problems are magnified for

migrant women.

It is important that migration settings support

migrant women to realise their full social and

economic potential, whether as a primary or

secondary applicant, including access to

well-paid, secure jobs.

A fair go in the workplace

We need to grow wages and build secure jobs

We need to ensure migrants, along with local

workers, are able to enjoy the full benefits

of Australia’s economic and social systems,

including growing wages and secure jobs. This

needs to balance the benefits of markets with

a significant role for government to help deliver

a just society. This balance has been called

‘a new province for law and order’, ‘civilising

capitalism’ and ‘the Australian settlement’.

Others have simply called it ‘the fair go’.27

In recent years, this has not always been the

case. For example, wage growth in Australia

has been subdued in the past decade. Prior

to the COVID-19 pandemic, wage growth

averaged 2.7 per cent a year from 2010 to 2020

compared to an average of 3.7 per cent in the

10 years prior.28

To ensure ‘the fair go’ is a hallmark of our

labour market in coming decades, more

needs to be done to drive real wage growth,

improve safety and job security, combat worker

exploitation and support the participation of

migrants—particularly migrant women.29

This is particularly important in light of

challenges such as rapid developments in

technology, climate change, environmental

pressures and geostrategic shifts, and the

changing nature of work.

A well-functioning migration system,

supported by strong institutions, worker

protections and compliance, will complement

(that is, to support rather than displace or

undercut) fair wages, conditions and job

security.

 26 MIGRATION STRATEGY

Port Kembla as an industrial migrant community

Port Kembla is a suburb of Wollongong, in New South Wales. It became a major centre for industry,

noted especially for its steel production. In the years following the Second World War, migrants

from many nations came to work and live there.

Migrants were able to use their secure employment at the standard rate of pay—and the higher

rates offered by shift work—as a pathway to a better life, even while experiencing the sacrifices that

come from being away from their homeland.

It was critical to public acceptance of migration, at the local level as well as nationally, that the

newcomers were paid the going wage rates and afforded the same rights as locals. Most migrants,

having access to employment offered on the principle of Australia’s ‘fair go’ system, were able to

share in Australia’s post war prosperity and assist in nation building.

Like many industrial centres, Port Kembla has reinvented itself. In doing so, it draws on its

Indigenous, industrial, worker and multicultural histories. Steel production continues in the town

on a smaller scale, with BlueScope Steel exploring the potential for the decarbonised production

of ‘green steel’. A new phase in Port Kembla’s migration history might be about to begin.

Sources: Eklund E (2002) Steel Town: The Making and Breaking of Port Kembla, Melbourne University Press, Carlton Peacock P (2022) Australia’s biggest steelmaker refines its green steel plans, PV Magazine, accessed 19 September 2023

 27 MIGRATION STRATEGY

CASE STUDY

migration policy to nation building, democratic engagement and civic participation, as it was during our times of greatest success as a migrant nation. Removing conditions that lead to ‘permanent temporariness’, restoring integrity to the migration system and international education, and better planning our migration intake will all assist with these

aspirations.

We need to better manage the migration intake As the Migration Review notes, Australia’s capital cities have generally experienced much faster population growth than non-capital cities in recent years. They have sometimes struggled to plan for the infrastructure and services needed by rapidly growing populations.

The population of regional Australia has grown at only half the national rate, with remote areas of regional Australia experiencing population declines. In coming decades, many of these trends are forecast to continue.33

A better managed migration system, supported by Commonwealth regional and urban policy initiatives and state and territory government planning and infrastructure levers necessary for successful migration, can help to manage planned cities and revitalise regional communities. This also requires investment in housing and infrastructure such as schools, hospitals and transport to align with migration levels. When this does not occur, public confidence in the migration system can erode, undermining the economic and social benefits of migration.

Through a renewed focus on integrity and more targeted skilled migration, the Migration Strategy is expected to help return migration back to near pre-pandemic levels by the next financial year, which will ensure Australia can reap the greatest benefits of migration. This will be further supported by a more robust approach to migration planning, in collaboration with state and territory partners.

Building stronger Australian communities

We need to nurture our cohesive, democratic

and multicultural society Australia’s vibrant, modern multicultural society is a national strength. A cohesive, multicultural society is one which is more adaptable and resilient. It has stronger social bonds through better inclusivity, understanding and a diversity of perspectives and ideas, creating innovation and a richer experience for all.

However, while social cohesion improved during the early years of the pandemic, the sense of national pride and belonging we have in Australia appears to be declining, along with our involvement in our communities. The decline in national belonging has been felt across society but particularly among young adults and people who are financially

struggling.31

Migration reform presents an opportunity to strengthen social cohesion by helping migrants more fully participate in Australian life and by building more public confidence in the migration system. An improved migration system will achieve far more than providing migrants merely to fill gaps in the labour market for a short period. It will reconnect

A sense of national identity and belonging is a particularly important indicator of social integration for our newest Australians who have migrated here

Scanlon Foundation Research Institute32

 28 MIGRATION STRATEGY

The Nhill model

The settlement of Karen refugees from Myanmar in the north-west Victorian town of Nhill (current population 2184) is one of the most remarkable stories in modern Australian migration history. It reveals the capacity of migrants to help revive a regional economy, reinvigorate a town, enrich a community and inspire others. These are not temporary migrants, but people who have committed to Australia, bought homes, formed community organisations and sent their children into apprenticeships and to university.

The initiative came from Mr John Millington, General Manager of poultry business, Luv-a-Duck. Responding to an increase in demand, Mr Millington needed additional workers, who could not be found locally. AMES Australia, a settlement agency, connected him with an emerging Karen community in Werribee, near Melbourne. Between 2010 and 2014, 160 Karen arrived, which represented about 10 per cent of Nhill’s population. Luv-a-Duck employed over 50 Karen, a quarter of its workforce.

According to a 2015 report by AMES and Deloitte Access, the Karen’s presence added over 70 full time equivalent positions and $41.5 million to the local economy. Karen were soon to be found across many local businesses. The boost to the population increased the viability of hospitals, schools and trade.

‘We are all enriched because of the exposure to another culture and it has made Nhill a better place to live,’ the Hindmarsh Shire Chief Executive, Tony Doyle, has said. The Nhill experiment worked not only because migration settings were in place but because there were local economic opportunities to be grasped and a community willing to adapt and welcome new members in

their midst.

Sources: AMES and Deloitte Access Economics Report (2015), Small Towns, Big Returns: Economic and Social impact of the Karen Resettlement of Nhill. IMPACT (2014) The Karen of Nhill: an experiment in regional settlement, Impact, 17 February 2014, accessed 22 September 2023 Bearup G (2018) ‘How refugees saved a town’, Weekend Australian Magazine, 21 July 2018

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 29 MIGRATION STRATEGY

Strengthening international relationships

We need to strengthen our relationships in the region The Indo-Pacific is the fastest-growing region in human history, and is the region forecast to have the greatest impact on Australia’s future prosperity and security. We are also ideally placed to continue to benefit from the region’s economic dynamism. At the same time, the Indo-Pacific is undergoing a profound transition, both economic and strategic, and previously accepted global norms are under increasing pressure.

Migration has a major role to play in managing these profound regional shifts. It is a means by which we strengthen people-to- people relationships, improve cross-cultural understanding and build our shared prosperity. It provides material and other benefits to migrants and their home nations, contributes to Australia’s security and expresses a sense of shared values and aspirations. It is underpinned by our international legal obligations and builds on the history shared by Australia and the countries of our region.

Australia shares a wider vision for a region that is peaceful, stable and prosperous, where sovereignty is respected. In support of this, the Government’s new International

Development Policy will drive our investments in tackling regional challenges like poverty, economic growth, healthcare, infrastructure investment, climate change and gender equality. We will invest in greater connectivity between Australia and the region, particularly Southeast Asia and the Pacific, through our international scholarship, volunteer, education and worker mobility programs.

Initiatives like the Pacific Labour Mobility Scheme (PALM) are critical to strengthening our regional relationships. The PALM scheme contributes to the economic development of the Pacific and Timor-Leste, including through remittances and building the skills of those who participate in the scheme to use when they return home, while helping Australian businesses address labour shortages and supporting the economy, particularly in rural and regional areas.

Invested: Australia’s Southeast Asian Economic Strategy to 2040, a report to the Government by Special Envoy to Southeast Asia Nicholas Moore AO (the Moore Report), outlined that a critical enabler for increasing Australian business engagement with our region is a visa system that works to support our links with Southeast Asia.

 30 MIGRATION STRATEGY

As in the era of post-war reconstruction,

Australia now confronts new challenges and

opportunities with a migration system that

needs reform. As the Migration Review notes,

‘While aspects of the migration system are

performing well, key areas of the system are

broken’. Getting migration working for the

nation through a system that drives a more

prosperous and secure Australia will require

major reform: ‘it cannot be achieved by further

tinkering and incrementalism’.34

This section briefly summarises the challenges

with the system today that are further detailed

in the relevant roadmap actions.

Reform is needed to ensure migration helps

raise living standards for Australians Skilled migration—matched to the needs of the workforce and the economy—needs to be restored to its central place in migration policy. Temporary skilled migrants who come to Australia provide many immediate benefits to the economy. They supply labour, add needed skills and generate the demand for goods and services on which economic growth depends. They also contribute to community life by volunteering in educational institutions, trade unions, religious bodies, migrant organisations and sporting clubs.

However, the system today is not designed to meet our national challenges. The multiple occupation listsii that form the basis of decision-making in the granting of temporary skilled visas are out of date and inflexible. They are a poor instrument for responding to a dynamic global economy in which technological change in areas such as artificial intelligence and robotics is rapidly generating demand for workers with skills for which there is strong global competition.

Australia’s visa system, as currently designed, cannot successfully compete in such an environment. A patchwork approach will not drive the productivity improvements that are necessary to underpin our future prosperity. Australia’s key permanent visa to drive innovation, the Business Innovation and Investment Program, sees over 80 per cent of company directors invest in small retail or hospitality businesses, rather than in sectors that will drive Australia’s future innovation and productivity.

Similarly, the long-established points test system is no longer operating in a way that will lead to the selection of skilled migrants best able to contribute to Australia’s long-term needs. Migrants are often awarded points for persistence and their ability to prolong their stay in Australia, rather than their contribution to Australia’s long-term economic needs.

Our world-class education system has increased our prosperity by supporting exports, but many international students struggle with the transition into the labour market post- study. More than 50 per cent of graduate visa holders with a bachelor’s degree or higher are working significantly below their skill level.35

We also need to do more to strengthen integrity in international education, to ensure only genuine providers and genuine students are able to participate in the sector. Growth needs to be sustainable and principally driven by quality and a strong connection with our national interest. This has not always been the case in recent years. The Migration Strategy will ensure this occurs.

iiShort Term Skills Shortage List, the Medium and Long Term Shortage List, and the Regional Occupations List

Why we need reform

 31 MIGRATION STRATEGY

Restrictive occupation lists make it harder for Australia to attract highly skilled migrants

As the world decarbonises, Australia has a unique opportunity for economic transformation that ensures the nation, its regions and community realise and share the benefits of the net zero economy. We need to make sure we have the skills and the ability to attract the best talent to do this.

Goterra is a Canberra-grown start-up, building a circular economy that harnesses the power of insects to radically reduce the impact of food waste on the planet. They have created a modular waste management infrastructure to farm black soldier fly larvae at the site waste is produced.

When Goterra needed highly specialised insect farming expertise, they found their perfect fit in a South African insect farming specialist, one of a handful in the world. Despite having extensive experience, their highly skilled candidate was not eligible for an employer-sponsored skilled visa as his occupation was not on the combined skilled occupation list.

Goterra instead had to negotiate and enter into a Company Specific Labour Agreement, requiring a detailed business case that included support from several key industry and government bodies such as CSIRO, University of Queensland and the Insect Protein Association of Australia.

This process takes significantly longer and is more resource intensive than the standard business sponsorship or other permanent skilled visa options. Hundreds of businesses looking for highly skilled migrants have had to follow this same cumbersome process, with many likely losing out on talent.

Source: Goterra – goterra.au; ABC News, 26 April 2023, Migration system review to trigger major visa reforms - ABC News, both last accessed 3 August 2023

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We need to redesign the system to give

workers a fair go

We have the opportunity to design out of the

migration system features that act as a barrier

to both migrant and local workers enjoying the

benefits of a fair and inclusive labour market.

As noted by the Migrant Workers’ Taskforce,

‘[t]he underpayment and exploitation of a

substantial number of temporary migrant

workers in Australian workplaces is an

unacceptable practice… [and] it has been a

feature of the Australian labour market for

too long ... It is unfair not only to migrant

workers, but also to other employees who are

undercut on wages and job opportunities, and

law abiding employers trying to compete on

price.’36

The migration system has also increasingly

been used in lower paid sectors, where the risk

of underpayment for migrant workers is higher,

and where some evidence suggests a poorly

designed migration system can depress wages

or limit wage growth.37

The Grattan Institute notes that ‘freezing the

Temporary Skilled Migration Income Threshold

[at $53,900] appears to have put downward

pressure on wages earnt by Temporary Skill

Shortage (TSS) visa-holders,’ especially those in

the hospitality sector.38

The overall effect of such a policy has been

to undermine the capacity of our migration

system to attract the skilled workers

needed for our modern economy, while

depressing wages and reducing employment

opportunities in some industries.

The Government’s decision to lift this

threshold to $70,000 and index this figure

annually will help secure the integrity of our

skilled migration program, while ensuring it

is targeted to our skills needs and maintains

the confidence of the Australian people in the

years ahead.

Sponsored skilled migration ties the migrant

worker to a particular job, thereby rendering

the migrant heavily dependent on a single

employer, not only for their livelihood

but to secure another temporary visa or

a permanent visa that will allow them to

continue their lawful residence in Australia.

The power imbalance in such a situation can

provide opportunities for worker exploitation.

Allowing migrant workers greater flexibility in

switching jobs would reduce the likelihood of

unfair treatment while also driving welcome

productivity benefits to employers and the

economy.

Migrant women have poorer labour market

outcomes than Australian-born women and

migrant men. As noted by the Migration

Review, migrant women are often highly

skilled and want to participate more in

Australia’s labour market. More can be done

to improve experiences and economic

outcomes for migrant women, and provide

greater opportunities for their labour force

participation, including for secondary

applicants, to maximise their economic

contribution. This would support productivity

growth and gender equality, and ensure

Australia’s migration settings reflect the

Government’s commitment to fairness,

inclusion and equity.

Fostering a dynamic, resilient and growing

economy as the world adapts to new structural

changes requires investment in people’s skills

and education, which in turn provides broad

opportunities for employment and well-paid,

secure jobs and relevant services. Responsive,

effective education and training systems,

forward-looking skills-based policy and

well-targeted migration will mean Australia

is well positioned for these future structural

forces.

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Single employer sponsorship is a key driver of migrant worker exploitation

Mr Farzady, an electronic technician on a subclass 457 (Skilled-Regional Sponsored) visa, was found by the Fair Work Commission to have been unfairly dismissed. While the 457 visa has since been replaced by the Temporary Skill Shortage visa, the relevant employer sponsorship settings remain largely the same.

The Commission accepted Mr Farzady’s evidence that his employer took advantage of him, including by reassigning him to unskilled tasks; requiring him to work long hours, including weekends without additional pay; having him chauffeur friends and business associates after hours, and work on the employer’s farms on many Sundays without pay. In this case, the employer’s promise of sponsorship for permanent residence was withdrawn following dismissal.

The Commission found, as a sponsored 457 visa worker, Mr Farzady was in a position where he

was vulnerable to exploitation because of his strong desire to remain in Australia—and the need to maintain sponsorship to do so.

The Commission described as disgraceful the apparent actions of the employer to exploit his vulnerability by compelling him to work unpaid overtime, likely failing to pay superannuation entitlements and making substantial deductions from his wages.

To then terminate his employment was ‘appalling’ and his dismissal ‘harsh, unjust and reasonable’, as Mr Farzady lost a sponsored opportunity to stay in Australia.

Mr Farzady’s story is not a unique one, with countless migrant workers and trade unions expressing

the same concern in their submissions to the Migration Review.

Source: Review of the Migration System 2023

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We need to ensure migration supports

stronger Australian communities

An over-reliance on temporary visa status—

sometimes accompanied by high levels of

insecurity and stress for migrants and instances

of worker exploitation—harms migrants’

sense of civic belonging and runs counter to

Australian values. In contrast, the existence of

a pathway to permanency and citizenship for

skilled migrants will greatly enhance social

cohesion, consolidate multiculturalism and

strengthen democracy.

Temporary migration has expanded rapidly

since 2000, from about 700,000 temporary

migrants to around 2.2 million temporary

migrants in 2023 (excluding visitors and transit

visas).iii For many of these people, some of

whom have been in Australia for more than

5 years, there is no clarity on a pathway to

permanent residence; rather, they experience

the limbo of permanent temporariness.

These migrants contribute their labour, skills

and wages to our economy, pay their taxes and,

within the limits of their present circumstances

of job and visa insecurity, contribute to civic

and community life. Yet they lack the sense

of belonging that attaches to permanent

residence and citizenship.

While not all temporary migrants will receive

permanent residence under Australia’s capped

permanent migration program, complex visa

settings that incentivise persistence have led

many migrants to stay for years, jumping from

visa to visa to prolong their stay, which leads

to poor social and economic outcomes for

migrants and for the nation.

It is incumbent upon the Government to

provide more clarity to migrants who have

fewer prospects of becoming permanent

residents, to ensure they are not lured into a

false sense of hope about their prospects in

Australia.

Migration is an Australian Government

responsibility, but the efficacy of any migration

system or policy has since Federation

depended heavily on the cooperation of state

(and, more recently, territory) governments.

Yet despite migration driving two-thirds of our

population growth, we have not historically

had a national long-term planning process

that integrates migration with the state and

territory government policies that are essential

in making any migration system effective.

State and territory governments play a central

role in the day-to-day activities that can make

or break any migration policy: the provision

of general infrastructure, public transport,

housing and services such as healthcare,

education and migrant support. Planning

our migration intake with these levers in play

helps maintain and strengthen a ‘social license’

for our migration system. Such coordination

is critical to the wellbeing of migrants

themselves, as well as to the willingness of the

Australian people to support the migration

program and recognise its benefits.

iiiAs at October 2023.

 35 MIGRATION STRATEGY

to citizenship and experienced a range of

problems arising from their permanently

temporary status.

For all, the complications of negotiating the

large number of sometimes overlapping

visa categories undermines the goodwill

that Australia’s mainly successful history of

regional migration and multiculturalism at

home should have built. Australia has a good

story to tell about its success as a diverse

and welcoming society, but that can be

undermined by the frustration that so many

experience with our migration system.

We need a system that is simpler and focused

on integrity The migration system is currently regarded by many who have to negotiate its complexities as lacking in efficiency and fairness. It is a common refrain across almost all elements of the system, from occupation lists, to skills assessments, to the visa application process. Untangling the drivers of complexity requires improved policy and process, and greater flexibility and responsiveness.

Building a system that works and retains public confidence also calls for a stronger focus on integrity to ensure those who interact with the migration system follow its rules.

In January 2023, the Minister for Home Affairs appointed Ms Christine Nixon, AO, APM to undertake a Rapid Review into the Exploitation of Australia’s Visa System (the Nixon Review). The findings of this Review showed the system today is beset with gaps and weaknesses that provide opportunities for unscrupulous actors to operate unchecked. Restoring integrity requires structural reform, for example, in the enforcement of visa settings and the protection of migrant workers. This Strategy and the Government’s response to the Nixon Review set out a path to do this.

In its submission to the Migration Review, the

Regional Australia Institute noted the profound

impact that migration, in particular skilled

migration, has on regional Australia:

‘It significantly affects regional population

growth and has been shown to have the

potential to revitalise ageing or declining

communities, especially in rural and remote

Australia ... [and] is also vital for filling jobs.’39

However, regional migration measures have

often been too complex and patchwork,

without being integrated with the broader

government and social levers that can make

regional migration successful.

Migration can do more to strengthen our

people-to-people relationships in our region

Australia’s migration intake has increasingly

turned to our own region since the 1970s,

with many positive effects on our relationships

with our nearest neighbours. But the system

is no easier for migrants from these places

to navigate than it is for anyone else. Even

New Zealanders—who are allowed to enter,

live, work and study in the country—had

until recently been denied fair pathways

My husband and I are both ecstatic to hear the news of the new laws, which we beautifully found out about on ANZAC Day. I am proud to have this opportunity to become an Australian, having worked and contributed to the economy.

Lillian, Queensland healthcare worker, originally from the Cook Islands and New Zealand

 36 MIGRATION STRATEGY

OBJECTIVES TO GUIDE THE MIGRATION SYSTEM

Raising living standards for Australians

Ensuring a fair go in the workplace

Building stronger Australian communities

Strengthening international relationships

Making the system work

• Supporting productivity growth • Addressing the impacts of an ageing population • Meeting skills needs • Strengthening our export industries

• Complementing the employment, skills and experience of local workers

• Supporting wage growth for all workers • Preventing exploitation of migrant workers

• Providing clear pathways to permanent residence • Supporting a well-managed migration intake • Building a cohesive, multicultural society • Supporting relationships with family abroad

• Deepening international links, especially with partners in the Indo-Pacific region

• Contributing to international efforts to support refugees

• Delivering services quickly and effectively • Ensuring integrity and compliance • Managing our international borders • Supporting strong fiscal outcomes

In support of above

 37 MIGRATION STRATEGY

Objectives to guide the migration system Australia’s migration system for the coming decades will be shaped by the above clear objectives. This will deliver on the Government’s vision to get migration working for the nation, helping deliver a prosperous and secure Australia. A commitment to these objectives will drive strong delivery, ensure improvement, and build trust and confidence in the system.

In designing a system to achieve this vision and objectives, the Migration Strategy is focused on developing a flexible, measurable and responsive whole-of-government migration system. This will help deliver effective and clear outcomes for migrants while enhancing the benefits of migration for Australia.

This requires both setting the direction for the future and fixing elements of today’s system that are inconsistent with that direction. The Government, through this Strategy, defines a purpose for different visas. The actions in the roadmap seek to realise this purpose. Take three examples: • The primary purpose of a temporary skilled

visa is to meet Australia’s skills needs. To deliver this, actions are proposed to unlock access for higher skilled migrants, while only using migration in lower-paid sectors where a genuine labour market need has been established.

• The primary purpose of a permanent skilled visa is to drive Australia’s long-term prosperity. To deliver this, actions are proposed in all streams in the permanent program to restore their focus on driving Australia’s long-term prosperity, including through our commitment to explore a reformed points test.

• The primary purpose of a student visa is to study. To deliver this, actions are proposed to better regulate the international education sector and education agents, and to ensure student visas are used primarily for study, not work.

The disruptions of the COVID-19 pandemic reminded Australians of the many ways our modern prosperity has depended on migrants’ contributions to our economy and society, including through participation in our world-class international education system. Migration does not offer the solution to all of Australia’s economic and social problems. This Migration Strategy is, however, based on evidence and experience that has shown migration must be part of any solution.

A successful migration system will be geared primarily to securing Australia’s long-term prosperity. It will also be sufficiently responsive to help meet more immediate labour market needs where they arise, but this aspect will not be the defining feature of the system, nor a major driver of its design. A successful system will eliminate the features of the present arrangements that provide opportunities for worker exploitation and thereby undermine both social justice and public trust.

The system will be simpler to understand and use, will be based on the principles of efficiency and integrity, and will instil high levels of public confidence. It will be subject to regular evaluation of outcomes, in terms of economic needs and migrant experience. It will not be set in stone: the system will be sufficiently flexible to respond to new—including unforeseen—

challenges, both domestic and global.

 38 MIGRATION STRATEGY

Australia’s migration system has always

worked best when it balanced national needs

with migrant opportunity. A well-functioning

system delivers benefits to both nation and

migrant. Under this Migration Strategy, Australia

benefits not merely from the temporary

filling of a gap in the workforce but from the

full range of skills, capabilities, hopes and

aspirations that migrants bring to bear in

building a new life in a place they can call

their home.

Finally, a successful migration system

will elevate transparency—of aims and

performance—and accountability among those

responsible for its design, development and

administration. It is an enhancement of our

democracy as well as our society and economy.

 39 MIGRATION STRATEGY

REALISING OUR VISION

 41 MIGRATION STRATEGY

Policy Roadmap and the Path Forward

To realise the Government’s vision and objectives for the migration system, an ambitious policy

roadmap has been developed, with 8 key actions. Given generational reform takes time to deliver,

the Government proposes a phased approach across three stages.

As part of this consultation, the Government will publish discussion papers on permanent skilled

migration and regional migration, including the evaluation of the Working Holiday Maker program.

Summary of 8 key actions

REALISING OUR VISION

Existing commitments to seize immediate

opportunities

These commitments have already or are soon

to be implemented

These commitments will be implemented by

the end of 2024

These areas will be consulted on throughout

2024

New commitments to build a system fit for the future

Areas for future reform requiring tripartite

consultation

• restore integrity to the

migration system and

reduce the visa backlog

• use skilled migration to

help meet Australia’s skills

needs

• introduce measures to

combat migrant worker

exploitation

• strengthen our

people-to-people ties

in the Indo-Pacific.

• build a targeted

temporary skilled

migration system

• strengthen the

integrity and quality of

international education

• better plan the migration

intake

• begin the initial

simplification of the

migration system.

• reshaping the permanent

skilled migration system

to drive long-term

prosperity

• tailoring regional visas

and the Working Holiday

Maker program to support

Australia’s regions and its

workers

• additional measures

outlined throughout the

Migration Strategy where

future reform is needed.

Targeting temporary skilled migration to address skills needs and promote worker mobility

1

EXISTING COMMITMENTS INCLUDE:

AREAS FOR FUTURE REFORM INCLUDE:

NEW COMMITMENTS INCLUDE:

• Raise the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000

• Provide a pathway to permanent residence for temporary skilled visa holders.

• Develop a new Skills in Demand visa, with full mobility and clear pathways to permanent residence

• Develop a Specialist Skills Pathway to drive innovation and job creation

• Develop a Core Skills Pathway to meet targeted workforce needs

• Legislate indexation of income thresholds to maintain system integrity

• Take a coordinated, evidence-based, tripartite approach to identifying skills needs

• Streamline Labour Market Testing to reduce complexity

• Establish a best practice service level agreement for processing times and a modernised accreditation pathway to better compete for talent.

• Consider how best to regulate migration for lower paid workers with essential skills.

 42 MIGRATION STRATEGY

Workers in the short-term and medium-term

streams must be paid above the TSMIT. As of

1 July 2023, this amount was $70,000.

Employers who use this visa must be approved

and often must conduct labour market testing,

while migrants have to be ‘sponsored’ by a

single employer.

The temporary skilled migration system is a

small component of Australia’s total temporary

migration system (9 per cent) and, under the

Migration Strategy’s vision for a more targeted

skilled migration system, will remain modest.

INTRODUCTION

The purpose of Australia’s temporary skilled

migration system is to address labour

shortages and provide a pathway for potential

future permanent residents.

Currently, the primary visa used to facilitate

temporary skilled migration is the Temporary

Skill Shortage visa (subclass 482, previously the

subclass 457). This visa has three streams:

• Short-term stream—primarily a 2-year visa

for occupations on the short-term skilled

occupations list

• Medium-term stream—primarily a 4-year

visa for occupations on the Medium and

Long-term Strategic Skills List or the

Regional Occupation List

• Labour Agreement stream—for employers

and workers who do not meet standard

visa rules.

Figure 1: Temporary migration purposes: a breakdown of the total number of temporary

migrants in Australia

Most temporary migrants are students, graduates or NZ citizens

Students Skilled

Working Holiday Makers

New Zealand citizens

Bridging visas

Other visas

Source: Department of Home Affairs (August 2023)

Graduates

0.22m (10%)

0.19m (8%)

0.13m (6%)

0.14m (6%)

0.19m (9%)

0.66m (30%)

0.70m (32%)

 43 MIGRATION STRATEGY

Guardrails

are largely temporary and not permanent and

sustaining contributors to a workforce.

The significant growth in the number of labour

agreements is a clear indication that the

current temporary skills program is failing to

meet Australia’s skilled workforce needs.

We will design a targeted temporary skilled migration system, underpinned by the following

guardrails established by the Migration Review:

• A tripartite approach, involving perspectives from business, unions and government in

determining the role of migration in meeting identified gaps in the labour market and delivering

fair and efficient outcomes.

• Evidence-based approaches to identifying labour market need, connecting domestic skills,

training and migration.

• Mobility for temporary migrants in the labour market, to provide migrant workers with greater

protections, and the economy with the flexibility it needs to be dynamic.

• Integrity in the system and our approach to temporary migration, including a migration system

that is transparent and accountable.

• Universality means all temporary skilled migrants engaged in the labour market should be

governed by the same regulatory framework within the visa system, albeit via a flexible,

risk-assessment-based approach.

WHY ACTION IS NEEDED

There is a clear opportunity for Australia to

capture the economic and social benefits of

attracting migrants from a rapidly growing

pool of young, skilled talent, particularly from

emerging markets. However, the current

system is designed back-to-front. Despite our

productivity and workforce challenges, too

many barriers stand in the way of attracting

highly skilled workers to come to Australia.

Conversely, despite the need to improve

access to fair and inclusive labour markets,

the migration system does not include

explicit strategic planning for migration in

lower-paid sectors of the economy, where

worker exploitation is a greater risk.

These pathways have emerged, for example,

through labour agreements and other

temporary migration programs such as the

Working Holiday Maker program and the

international student program, where workers

To ensure Australia is attracting the most innovative and productive migrants through the skilled migration program, we need a system that encourages rather than prevents workers in emerging occupations to join the Australian labour force.

Technology Council of Australia40

 44 MIGRATION STRATEGY

Multiple, outdated and inflexible occupation

lists lock out many highly skilled workers

who bring enormous economic benefit to

Australia. When a new occupation emerges,

as often occurs in technology-related roles,

it can take years for an occupation list to

reflect this change. To be globally competitive,

this requires Australia to move away from

constraining occupation lists for specialised

workers, and a more flexible, updated

approach to constructing occupation lists for

workers with the core skills we need.

The domestic skills and training system can

better integrate with the migration system,

using an evidence-based approach to help

bring in the skills and capabilities that align

with Australia’s rapidly changing needs.

Current labour market testing requirements

are also overly complex and do not work.

Fundamental elements of the program

exacerbate the power imbalance between

employers and migrants, making some

migrants vulnerable to exploitation.

In particular, the current arrangements are

based on a single employer sponsorship model

with limited scope for the migrant to change

their employer without risking their visa status.

The Temporary Skills Shortage visa does not

always have clear pathways to permanent

residence. For many visa holders their intended

visit is for a short temporary business purpose.

However, the absence of clear pathways to

permanent residence, particularly for longer

term temporary residents wishing to remain

in Australia, creates needless uncertainty

and risks Australia losing skills and talents it

needs. The reliance on a single employer for a

pathway to permanent residence, by placing

so much power in the hands of an individual

employer, is also a driver of migrant workers’

vulnerability to exploitation.

ACTION

EXISTING COMMITMENT: Raise the TSMIT from $53,900 to $70,000

The TSMIT had been frozen at $53,900 since

mid-2013. By 2023 around 90 per cent of all

full-time jobs in Australia were being paid

more than the TSMIT—a threshold which was

intended to ensure that the temporary skilled

migration program focused on well-paid skilled

jobs. Instead, it has increasingly included lower

paid workers. This trend has undermined the

basis of Australia’s skilled migration system and

helped erode public confidence in it.

The Government’s first action in response to

the Migration Review was to set a new $70,000

income threshold for the TSMIT, which came

into effect from 1 July 2023. This change

restores the threshold to approximately where

it would have been if it had been indexed over

the previous 10 years. The TSMIT will become

the new Core Skills Threshold to establish

eligibility for the new Core Skills Pathway set

out below and will be indexed annually.

Australia’s temporary migration program is characterised by widespread exploitation of migrant workers and the absence of clear pathways to permanent residency.

United Workers Union41

 45 MIGRATION STRATEGY

This does not mean a pathway for all temporary migrants in the country, nor a guaranteed place for every temporary skilled migrant worker in any given year. It means providing a clear pathway for temporary skilled sponsored visa holders.

NEW COMMITMENT: Develop a new Skills in Demand visa, with full mobility and pathways to permanent residence

The Government will introduce a new 4-year temporary skilled worker visa—the Skills in Demand visa. This new visa will give workers more opportunity to move employers and will provide clear pathways to permanent residence for those who want to pursue them. The simpler and better targeted Skills in Demand visa will replace the complex single employer sponsored Temporary Skill Shortage visa, which business and unions agree is not fit

for purpose.

EXISTING COMMITMENT: Providing a pathway to permanent residency for all temporary skilled sponsored workers

On 27 April 2023, the Government committed to provide a pathway to permanent residence for temporary skilled visa holders in the short- term stream of the Temporary Skill Shortage visa. This has now occurred following a number of regulatory changes in November 2023. This pathway is in addition to the existing pathway for the medium-term stream and helps maintain Australia as a destination of choice for skilled migrants. The pathway also helps restore permanency at the heart of Australia’s skilled migration system as all temporary skilled migrant workers will now have a clear pathway to permanent residency.

Figure 2: Value of the TSMIT today if it had been indexed since 2013

The TSMIT has been raised to $70k, in line with if it had been indexed

1. AWOTE is an abbreviation for average weekly ordinary time earnings Source: Grattan Institute (2022); Department of Home Affairs (2023)

Actua l TSMIT

New level of TSMIT

2009 2011 2013 2015 2017 2019 2021 2023 $0k

$50k

$60k

$70k

 46 MIGRATION STRATEGY

This model is similar to ‘temporary skill

mobility visa’ proposals advanced by migration

experts,43 which is a preferred approach over

other models considered, such as industry

sponsorship. This new model allows for worker

mobility across industries, which better reflects

the nature of how skills are used, and how they

will be increasingly used, in the labour market.

For example, the most common occupation in

the current Temporary Skill Shortage visa is a

software engineer, and like most occupations,

a software engineer’s skills can be used across

industries, such as in manufacturing, transport

and logistics or financial services.

A key feature of this visa is an alternative

approach to mobility—with new visa settings,

streamlined applications and consideration

of trailing employer fees that remove many

onerous conditions that tie a migrant to a

single employer. These components will

help design out elements that contribute to

worker exploitation and reduce barriers to job

switching in the labour market, which will lead

to a more productive workforce.

Higher rates of job switching improve the matching of employees with employers which, in turn, contributes to improved productivity for employers, and higher wages and job satisfaction for workers.

Employment White Paper42

 47 MIGRATION STRATEGY

Table 1: A new approach to worker mobility

CURRENT: Single employer sponsored Temporary Skill Shortage visa

FUTURE: Full worker mobility Skills in Demand visa

Restricted pathways to permanent residence

Visa holders in the short-term stream do not

have a pathway to permanent residence.

Only periods of employment with the

nominating employer can count towards

permanent residence requirements. For

many temporary skilled migrants, limited

self-nominated options exist to become a

permanent resident.

Guaranteed pathways to permanent residence

Skills in Demand visa holders will have a

pathway to permanent residence. Periods of

employment with any approved employer

will count towards permanent residence

requirements. Temporary skilled migrants

will also be enabled to apply for permanent

residence through self-nominated independent

pathways, for example, through a reformed

points test.

Quick removal if you can’t find a new job

If the employment relationship with a

sponsor ceases, visa holders only have

60 days to find another sponsor or face

being removed.

More time to find a new job

If the employment relationship with a sponsor

ceases, visa holders will have 180 days to find

another sponsor and can work during this

period.

Upfront employer fees

Employers must pay the Skilling Australia

Fund upfront at the time of application,

which deters new employers from offering

sponsorship.

Trailing employer fees

The Government will explore a model for

employers to pay trailing charges and fees

(e.g. monthly or quarterly) to make hiring a

new migrant less onerous.

Visa application barriers

Visa applications can take months to process

without any certainty for migrants or their

employers.

Streamlined visa applications

Visa applications will be backed by a service

standard for visa processing, enabling

employers to fill a vacancy quickly.

Lack of clarity about other sponsors

If a migrant wishes to change employers,

they are not easily able to gain access to a list

of approved sponsors to assist with finding a

new job.

Public register of sponsors to assist mobility

A public register of approved sponsors,

including the number of migrants sponsored

and their occupations, will be developed to

assist migrants wishing to find a new sponsor.

 48 MIGRATION STRATEGY

This pathway will be a new streamlined

approach for highly skilled specialists, to

ensure Australia can quickly and easily recruit

top talent in areas of need. It will, for example,

help Australia attract highly skilled Engineering

Managers who develop electrolysers to help

with our transition to a net zero economy,

Cyber Specialists who assist banks to respond

to cyber-attacks and Software Engineers

who help Australia embrace the artificial

intelligence transformation.

The Specialist Skills Pathway will be available

to applicants who meet the general eligibility

criteria (for example, be nominated by an

approved employer, meet the health and

character requirements) and who are:

• in any occupation except trades workers,

machinery operators and drivers, and

labourers

• earning at least $135,000 (the Specialist

Skills Threshold) and no less than Australian

workers in the same occupation.

This Specialist Skills Pathway will recognise

that migrants entering through this pathway

meet a national need that is broader than

filling a narrowly defined gap in the labour

market. Highly skilled migrants bring

significant economic benefits. They are

more likely to bring productivity enhancing

knowledge and ideas, create jobs for locals

and generate significant fiscal returns through

taxation. They help meet labour needs that

exist at an individual firm level and assist

companies in acquiring specialist knowledge,

niche technologies or research expertise

unavailable in Australia, and skillsets not

picked up in occupational definitions. These

migrants are prime candidates to choose other

countries if we do not provide competitive visa

offerings and better compete in the global race

for talent.

Trailing employer fees The Government will explore a model for

employers to pay trailing charges and fees,

rather than upfront fees, to facilitate mobility

and improve small business access to the

migration system. Under the current model,

sponsors are required to pay a range of fees

upfront including sponsorship ($420) and

nomination ($330) fees and the Skilling

Australian Fund (SAF) levy (up to $7200).

An upfront nomination fee may be included

to dissuade against employer poaching and

unscrupulous actors. A new trailing fee model

would help facilitate workers’ mobility and

provide scope for job switching.

The Government will continue consultation on

the details of a trailing payment model with

stakeholders before the launch of the new

Skills in Demand visa.

NEW COMMITMENT: Develop a Specialist Skills Pathway to drive innovation and job creation

The government will create three targeted

pathways within the Skills in Demand

visa, adopting the ‘risk-based approach to

regulation’ recommended in the Migration

Review.

The first pathway is the Specialist Skills

Pathway. This pathway recognises highly

skilled migrants are hugely beneficial to

Australia’s national productivity, including

through their support of critical sovereign

capabilities and potential to grow the skills and

expertise of the Australian workforce.

 49 MIGRATION STRATEGY

• The salary threshold will be calculated to

ensure employers cannot artificially inflate

a salary or rely on excessive overtime to

meet the threshold.

Additional protections and oversight

mechanisms (for example, a public register of

approved sponsors) are described in Action 4:

Tackling worker exploitation and the misuse of

the visa system.

NEW COMMITMENT: Develop a Core Skills Pathway to meet targeted workforce needs

The second pathway in the new Skills in

Demand visa is the Core Skills Pathway.

Most temporary skilled migrants will come

through the Core Skills Pathway, which is

designed to bring in the skilled employees

Australia needs now and in the future to ensure

that we are able to provide ourselves with

the goods and services we need to support

our way of life. It might include, for example,

a Registered Nurse who is helping a regional

hospital’s emergency department deal with

acute workforce shortages or a Secondary

School Teacher helping teach science in our

public schools.

The Core Skills Pathway would be available

to applicants who meet the general eligibility

criteria and:

• whose occupation is on a new Core

Skills Occupation List, which relates to

occupations identified by Jobs and Skills

Australia as being in shortage or where

Australia has committed to providing

access to our labour market in relation to

that occupation through international trade

agreements

The Specialist Pathway threshold of $135,000

closely corresponds with the 90th percentile

earnings for all workers. It is forecast that this

pathway could lead to $3.4 billion in benefit

to the underlying cash balance over the next

10 years, not accounting for the broader

significant economic benefit to their employers

and to the Australian economy.

The Government will commit to a service

standard of 7 days median visa processing time

for workers in the Specialist Skills Pathway.

The achievement of this standard will ensure

Australia’s migration system is among the

most attractive in the world for highly skilled

migrants.

This Specialist Skills Pathway will, in its scale,

remain a modest part of the temporary

skilled program over time. The Government is

committed to protecting the integrity of this

pathway to ensure that the skills involved are

genuinely specialised and in high demand.

• The Specialist Skills Threshold will be

indexed annually through legislation

to maintain the intent of the pathway

over time.

• Jobs and Skills Australia will have dedicated

resourcing to monitor labour market

impacts of this pathway to ensure it

supports job creation and upskilling of local

workers. Tripartite mechanisms will be

regularly advised and consulted on the use

and impacts of this pathway.

• The Department of Home Affairs will

establish a monitoring mechanism to

ensure that employees are not paid less

than their nominated salary. Employers

who pay migrants less than this amount

may be barred from sponsoring any

additional migrants for a period of time,

including migrants through the Specialist

Skills Pathway, and may be subject to other

penalties under the Migration Act 1958.

 50 MIGRATION STRATEGY

challenges’ and recommended ‘further whole-

of-government consideration be directed to

these issues to determine a future role for

migration in meeting lower paid needs’.45

Currently, when an employer wants to gain

access to a temporary skilled migrant outside

of the standard visa rules, including for

migration below the TSMIT, they do so using

labour agreements. There are currently more

than 1,800 unique labour agreements in

effect. Visa grants under labour agreements

now make up approximately 5 per cent of the

temporary skilled migration system.

Yet, many of these agreements do not contain

the protections that would be expected in

lower paid sectors and occupations ‘who are

most at risk of exploitation and displacing

Australian workers with similar skills’.46 This is a

sign that the migration system is not working

as intended.

The Government will further evaluate how to

develop an Essential Skills Pathway—a more

regulated pathway for lower paid workers with

essential skills—in consultation with state and

territory governments, unions, businesses and

migrant workers. In defining essential skills, the

Government may give consideration to sectors

and occupations that are vital to supporting

the living standards of Australians and where

persistent shortages exist. Improvements in

wages and conditions in such occupations,

where they have occurred, have not proven

sufficient to meet these labour shortages in the

short term.

The Government is primarily considering the

pathway in the context of the care and support

economy, which has become essential to the

quality of life of Australians. In doing so, the

Government will maintain the primacy of

our relationships with the Pacific as a

guiding principle.

• who will be paid a salary at or above

the TSMIT (to be retitled the Core Skills

Threshold, when the new system is

implemented), or the relevant average

market salary where it is above the TSMIT.

Unlike the Specialist Skills Pathway, trades

workers, machinery operators and drivers, and

labourers will be eligible under the Core Skills

Pathway subject to being identified on the

Core Skills Occupation List based on advice

from Jobs and Skills Australia, and being paid

above the TSMIT (including for roles paid above

the Specialist Skills Threshold).

The Migration Review was critical of the

current approach to identifying skills needs

and recommended a more forward looking

and evidence-based approach led by Jobs and

Skills Australia that takes account of domestic

training and workforce planning efforts.

The approach to constructing the Core Skills Occupation List can be found in Action 5: Planning migration to get the right skills in the right places.

AREA FOR FUTURE REFORM: Consider how best to regulate migration for lower paid workers with essential skills

The Migration Review noted that ‘labour

needs are growing in some lower paying

sectors … and may not be able to be fully met

from within the domestic workforce’.44 A key

principle of the Migration Strategy is that

where a genuine shortage exists, it is better to

meet this through visas with work rights as the

primary purpose, integrated with the domestic

skills and training system.

However, the Migration Review also noted

that ‘any shift to increase lower paid migration

presents complex economic and ethical

 51 MIGRATION STRATEGY

The Aged Care Industry Labour Agreement and the pathways for aged care workers through the PALM schemeiv will provide strong lessons for the Government, unions and employers for any future design of more regulated pathways for lower paid workers with essential skills. More than 20 Aged Care Industry Labour Agreements have been signed since its introduction in May 2023, which provides for up to 9,000 direct care workers over 5 years. We will look to examine lessons of these programs and their settings, through tripartite consultation, to inform the design of any new pathway.

This pathway would be distinct from the Core Skills Pathway and the Specialist Skills Pathway. These arrangements would be sector- specific, capped, embedded with stronger regulation and minimum standards and subject to further advice from Jobs and Skills Australia and its tripartite mechanisms. With this approach and these principles in mind, and acknowledging that there will always be a role in the system for labour agreements, the Government will evaluate existing labour agreements for below-TSMIT migration and will rewrite guidelines for future labour agreements to provide stronger worker protections. The Government will further consider how best to enshrine these guidelines in legislation.

Within sectors, the distinction between the Core Skills Pathway and Essential Skills Pathway could be defined by occupation and pay. For example, in the care and support economy, Aged and Disabled Carers would have access via the Essential Skills Pathway, but most Registered Nurses or Allied Health Professionals would have access via the Core Skills Pathway. Both pathways, however, will be regulated to ensure that Australia is receiving the skilled workers it actually needs and the employees concerned are protected from exploitation.

iv The PALM Scheme is explained in more detail in Action 7: Deepening our people-to-people ties in the Indo-Pacific.

The Government will further consult on how best to regulate migration for lower paid workers with

essential skills in early to mid-2024.

NEW COMMITMENT: Legislate indexation of income thresholds to maintain system integrity

The Government will index the new Core

Skills and Specialist Skills Thresholds in line

with annual movements in Average Weekly

Ordinary Time Earnings. This indexation

requirement will be specified in legislation to

provide clarity and predictability for migrants

and employers, as recommended in the

Migration Review.

NEW COMMITMENT: Take a coordinated, evidence-based, tripartite approach to defining skills needs

The Government has established a formal role

for Jobs and Skills Australia in defining skills

needs. Its approach will be evidence-based and

draw on advice from tripartite mechanisms.

Coordination of the education, training and

migration systems will all feed into this process

to ensure identified labour shortages are dealt

with in a holistic manner.

Further information on Jobs and Skills Australia’s role in the migration system is detailed in Action 5: Planning migration to get the right skills in the right places.

 52 MIGRATION STRATEGY

NEW COMMITMENT: Streamline labour market testing requirements to reduce complexity

Both business and unions agree that the

current labour market testing requirements

are not fit for purpose. The Government will

immediately move to streamline labour

market testing by removing the requirement

to advertise positions through Workforce

Australia and will subsequently increase the

validity period from 4 to 6 months. As Jobs

and Skills Australia’s role further matures, the

Government will consider moving away from

employer conducted labour market testing

towards mechanisms for robust and genuine

independent verification of labour market need.

NEW COMMITMENT: Establish a best practice service level agreement for processing times and a modernised accreditation pathway to better compete for talent

The Government will do more to help Australia

compete in the global race for talent. This

includes committing to clear, fast service

standards for visa processing for temporary

skilled workers. The Government will establish

a median service standard of 21 days for the

new Skills in Demand visa and 7 days for the

Specialist Skills Pathway.

The Government will also look for opportunities

to modernise the accreditation pathway,

which will further help approved sponsors

gain streamlined access to the migrant

workers they need. These requirements for

becoming an accredited sponsor favour large

and established businesses, and disadvantage

smaller businesses, especially start-ups, acting

as a brake on innovation. The Government

will open the accredited sponsor program to

start-ups that have received venture capital

from a registered venture capital fund. This will

be balanced by strengthening integrity in the

approved sponsor application process.

 53 MIGRATION STRATEGY

INTRODUCTION

Permanent skilled migration should aim to

maximise Australia’s long-term prosperity.

This goal is distinct from meeting genuine

labour shortages, which is the primary

purpose of temporary skilled migration.

The way we select permanent skilled migrants

(while providing clear pathways to permanent

residence for temporary skilled migrants)

should differ from the temporary migration

system and focus on the factors that best

contribute to lifting Australia’s

long-term economic productivity and

workforce participation. It should respond to

the challenges posed by our ageing population.

In planning both permanent and temporary

skilled migration, however, we must recognise

the intrinsic link between the two.

Reshaping permanent skilled migration to drive long-term prosperity2

AREAS FOR FUTURE REFORM

• Explore a reformed points test to better identify migrants who will drive Australia’s long-term prosperity

• Consider developing a new Talent and Innovation visa to drive growth in sectors of national importance.

Even small improvements in the selection of permanent skilled migrants can have enduring benefits over an extended period.

Grattan Institute47

 54 MIGRATION STRATEGY

These streams are:

• Points-tested skilled migration: includes

Skilled Independent, Skilled Nominated

and most Regional visas, which are

selection-based on a points test

• Employer-nominated: requires applicants

to be nominated by a sponsoring employer

• Global Talent: intended to target

exceptionally skilled migrants in priority

sectors

• Business Innovation and Investment:

intended to target migrants who invest or

drive innovation.

Given migration accounted for two-thirds

of population growth in the 10 years before

the pandemic, and permanent migration is

the largest feature of the contribution from

migration over the long run, these choices

will also have lasting impacts on Australia’s

social fabric.

The Government sets an annual planning level

on the number of permanent skilled migrants,

with allocations distributed across 4 main

streams (and various sub-streams).

Figure 3 : 2023–24 planned permanent program allocations

In 2023–24, we plan to grant 190k permanent visas

7,200

36,825

93,075

190,000

52,500

Special Eligibility

Family

Other talent and innovation

Employer-nominated

Independent streams

400

1. Skilled Independent, Regional, S&T-nominated 2. Global Talent, BIIP, Distinguished Talent 3. Partner, Parent, Child, Other Source: Department of Home Affairs (2023)

 55 MIGRATION STRATEGY

Points-tested skilled migration There is a need to simplify and recalibrate

the basis for selecting independent skilled

migrants, not least to get the balance right

between selecting the best temporary visa

holders seeking to stay permanently while also

drawing highly skilled permanent migrants.

The current points test used to select

independent skilled migrants is complex

and does not effectively attract migrants

best able to contribute to Australia’s

long-term prosperity. It includes factors

which are likely to be poor predictors of

success in the labour market, such as regional

study or community language skills.

Australia’s current points test also does not

effectively capture age and skill trade-offs,

despite both being strong predictors of

migrant success and fiscal impact.

WHY ACTION IS NEEDED

The Migration Review found that Australia’s

permanent skilled worker programs have

historically delivered clear economic benefits,

but that there is evidence that the economic

impact of the skilled migration stream has

weakened in recent years. The Migration

Review considered that there is scope for

Australia to sharpen its efforts to boost

prosperity and remain competitive.

.

Furthermore, as described in the reforms

to the temporary skilled migration system,

the permanent program has drifted away

from providing clear and fair pathways to

permanent residence for temporary skilled

migrant workers. This not only poses ethical

challenges in terms of lack of fairness, but

restricts Australia’s access to migrants with

proven experience in the Australian labour

market.

The permanent program has been skewed too much to visas that perform more poorly in economic terms over the long run.

Review of the Migration System48

More consideration should be given to the skills of secondary applicants ... Points offered via the test for different migrant characteristics should be re-calibrated to reflect the contribution those characteristics make to migrants’ contribution to the welfare of the Australian community.

Grattan Institute49

 56 MIGRATION STRATEGY

Furthermore, features of the current

independent skilled visa might discourage

temporary skilled migrants from being able

to apply through independent, points-tested

migration pathways. This could limit their

options to employer-nominated pathways,

which creates a power imbalance between a

migrant and their employer. Addressing this

imbalance is part of the Government’s renewed

emphasis on permanent migration.

Employer Nomination Scheme The Employer Nomination Scheme visa

produces the strongest lifetime fiscal outcome

for the nation in the permanent skilled

migration program. The strong skill and job

matching ensures the migrant is using their

qualifications and experience, allowing the

program to deliver long-term benefits.

Previously, the Employer Nomination Scheme

visa did not provide a direct pathway to

permanent residence for many Temporary

Skill Shortage visa holders, effectively

rendering these temporary skilled migrants

‘permanently temporary’. Migrants could only

be nominated for permanent residence after

three years with their sponsoring employer.

This situation, where the employer holds the

pathway to permanent residence, creates a

power imbalance between a migrant and

their employer, which can be a driver of worker

exploitation.

The Government has already acted on this

issue by expanding the eligibility requirements

for the Temporary Residence Transition stream

of the Employer Nomination Scheme visa to

enable employers to sponsor holders of all

streams of the Temporary Skill Shortage visa.

In addition, the period of time a Temporary

Skill Shortage visa holder must be employed

with a sponsoring employer in order to be

eligible for the Temporary Residence Transition

stream has been reduced from three years to

two years.

Global Talent Program The current Global Talent Program had its

origins in initiatives that commenced in

2018 and is intended to attract migrants

with a record of outstanding achievement,

entrepreneurial ideas and cutting edge

skills who can make a major contribution to

Australia. Several submissions to the Migration

Review pointed to a lack of transparency

in the visa application process and long

processing timeframes. In addition, some

Global Talent visa applications are made in lieu

of an attractive visa product for highly skilled

workers in the temporary program.

Business Innovation and Investment Program The Migration Review concluded that

the Business Innovation and Investment

Program (BIIP) is delivering poor economic

outcomes for Australia. This has been further

supported by previous reviews, including work

undertaken by the Productivity Commission

and the Grattan Institute. Skilled migrants are

estimated to contribute $300,000 more in fiscal

benefits over their lifetime compared to a BIIP

visa holder.50 Furthermore, just over 80 per

cent of company directors within the Business

Innovation Stream are in retail or hospitality,

which are sectors not typically associated

with major advancements in productivity and

innovation. The Migration Review flagged the

opportunity to draw on the relative strength

of the Significant Investor stream to design a

visa product more sharply targeted to select

migrants who can drive innovative investments

in sectors of national importance or play a

valuable role in the venture capital industry.

 57 MIGRATION STRATEGY

The Government has already commenced this

challenge with the commissioning of work

through the Australian National University to

study the factors that drive success in Australia.

This research found that certain characteristics

such as education, English language skills,

occupation and age all play an important role

in determining the economic outcomes of

permanent skilled migrants. The analysis also

found that certain factors are more important

in predicting migrant outcomes in the short

term relative to the long term (and vice versa).51

The fiscal and economic benefits of getting this

right are significant. The Treasury estimates

that a skilled migrant arriving at the age of 45

would need a starting salary of $160,000 to

match the lifetime fiscal impact of a skilled

migrant arriving at age 30 with a starting salary

of $100,000. Balancing this out, some older

migrants may have achieved high level skills

which can deliver major economic benefits to

the nation over their remaining working career.

The Government will publish a discussion paper later in 2023 outlining the proposed approach to the redesign of the points test and will further consult on proposed changes. This will also consider impacts to State/Territory nominated and Regional visas, given these are points-tested visa programs.

ACTION

AREA FOR FUTURE REFORM: Explore a reformed points test to better identify migrants who drive Australia’s long-term prosperity

There are challenges in clearly identifying and

calibrating factors for a new points test.

These include making evidence-based

judgements on the relative weighting of

work experience in Australia and offshore,

dealing effectively with age requirements

and constructively recognising the potential

contributions which could be made by

accompanying spouses.

The Government will consider the

development of a new analysis-based

points test to identify more effectively the

independent migrants who will make the

greatest contribution to the country. In the

design of a new and simpler points test, the

Government will ensure there are clear and

fair pathways for temporary skilled sponsored

migrant workers to apply for self-nominated

pathways to permanent residence.

The reformed points test will also seek to

better reward skill level over perseverance,

which will mean for example, faster pathways

for international student graduates who are

working in skilled jobs in the labour market,

but fewer pathways for graduates not working

in skilled jobs.

 58 MIGRATION STRATEGY

AREA FOR FUTURE REFORM: Consider developing a new Talent and Innovation visa to drive growth in sectors of national importance

The Government’s broader reforms, such as the

new Specialist Skills Pathway, will open up new

and streamlined pathways for highly skilled

migrants with the skills we need.

This allows the Government to more sharply

target the existing Global Talent program to a

relatively small number of migrants who can

make outsized contributions to Australia.

Development of this new Talent and Innovation

visa will also consider how best to drive

innovative investments and entrepreneurship

in sectors of national importance.

These are some objectives of the current BIIP

visa, yet are poorly realised under existing

settings.

A new Talent and Innovation visa could create

a single, streamlined pathway to attract

relatively small numbers of highly talented

migrants to Australia, such as high performing

entrepreneurs, major investors and global

researchers.

Permanent residency is an important drawcard

to attract these migrants as we compete with

other nations in the global race for talent.

As the Government considers the design of

the new, single Talent and Innovation visa,

the Government will not provide any new

allocations for the BIIP visa.

 59 MIGRATION STRATEGY

Strengthening the integrity and quality of international education 3

• Introduced a first set of measures to improve integrity in international education and support genuine students.

EXISTING COMMITMENTS INCLUDE:

NEW COMMITMENTS INCLUDE:

• Increase English language requirements to improve the quality of students’ educational experience in Australia and reduce potential workplace exploitation

• Apply greater and more targeted scrutiny to student visa applications from high risk providers

• Bolster the student visa integrity unit in the Department of Home Affairs to reduce misuse of Australia’s student visa system

• Strengthen requirements for international education providers

• Restrict onshore visa hopping that undermines system integrity and drives ‘permanent temporariness’

• Strengthen and simplify Temporary Graduate visas.

AREAS FOR FUTURE REFORM INCLUDE:

• Support international students and graduates to realise their potential.

 60 MIGRATION STRATEGY

WHY ACTION IS NEEDED We need to ensure sustainable sector growth, with a focus on integrity and quality

Since 2010, Australia has experienced sustained

growth in the number of student and graduate

visa holders. The increase in demand has been

driven by growing international demand for

an Australian education, changes in visa policy

settings and an expansion in the number and

capacity of education providers.

Post-COVID, recent growth in international

education has been partly driven by non-

genuine students and unscrupulous education

providers subverting aspects of the current

regulatory and compliance framework, and

pandemic-era visa concessions, such as

unrestricted working hours for international

students.

Throughout the reform and consultation

process, stakeholders have shared concerns

that international student recruitment is

partly being driven by some education

providers helping non-genuine students to

gain access to Australia’s labour market using

a student visa. Some private providers in the

Vocational Education and Training (VET) sector

with lower fees and shorter durations are of

particular concern because these institutions

create financial incentives for non-genuine

study. Student visa refusal rates also support

this assessment, with consistently higher

refusal rates for those applying to study VET

courses compared with those seeking higher

education.52

INTRODUCTION

Australia is the destination of choice for

hundreds of thousands of international

students seeking high quality education every

year. International students are a valuable part

of our social and economic fabric, and they

help take Australian education and our way

of life to the world. They are generally full-fee

paying students and, like domestic students,

should be able to count on an excellent

education experience and protection from

both unscrupulous employers and education

providers.

International students contribute $30 billion

to the Australian economy per annum and

are Australia’s fourth largest export. Australia’s

international education sector contributes to a

peaceful, prosperous and resilient region and

advances our global interests. International

students and graduates are also a source

of talent for our economy that can help lift

Australia’s economic productivity, meet critical

skills needs and drive exports. As was evident

during the COVID-19 pandemic, student and

temporary graduate visa holders also make a

significant contribution to our labour market,

particularly in retail and hospitality.

In addition to their importance to the

education sector and the Australian economy,

international students are critically important

to our migration system. After New Zealand

citizens, they are the largest component of our

temporary migration system and the single

biggest feeder into our permanent program.

Carefully managing the relationship between

the international education system and the

migration system is critical to the prosperity

of both of these systems and the benefits they

create for the country.

 61 MIGRATION STRATEGY

The Government’s first focus has been rebuilding the capacity and strengthening high quality TAFE and VET provision through the recent National Skills Agreement and Fee Free TAFE. The Government began improving integrity in the sector by implementing reforms, some of which were unimplemented recommendations in a series of inquiries over the past decade.

Concerns about the behaviour of some education providers were also identified in the Nixon Review, which made recommendations relating to the exploitation of Australia’s student visa program. The Nixon Review acknowledged that while the VET sector has a role in responding to Australia’s skill needs, exploitation of the student visa program ‘appears more prevalent’ among VET courses.

More recently, an interim report by the Joint Standing Committee on Foreign Affairs, Defence and Trade under the Inquiry into Australia’s Tourism and International Education Sector made several recommendations related to some VET providers, acknowledging ‘deep-seated integrity issues’ in parts of the sector. Evidence was provided to the Inquiry about non-genuine education providers, or so called ‘ghost schools’, where non-genuine students allegedly maintain enrolment without attending classes. The interim report concluded that ‘it cannot be denied that some providers in the private VET sector have systematically exploited Australia’s education system and broken migration law’.53

Where growth is driven by non-genuine students and unscrupulous providers, it threatens the integrity and reputation of Australia’s international education sector. It also erodes public confidence in both international education and the migration system. Retaining the ‘social license’ for Australia’s international education system is critical if the sector is to prosper in the decades ahead.

However, the importance of strengthening integrity extends beyond risk management. It also helps to promote the competitive advantage of Australia’s international education industry, which is underpinned by quality. Supporting genuine providers and improving the quality of students’ educational experience will strengthen the sector’s international reputation, especially as international education is the face Australia often presents to the region. Having students return home—or apply their new skills here— with a positive experience helps Australia’s image in the region and the vitality of our international relationships. This is supported by the Government’s renewed focus on taking Australia’s strong international tertiary education brand to the world, including through more offshore campuses and training facility partnerships.

More can be done to support internationals students and graduates in the labour market

But the focus in this Migration Strategy is broader than strengthening international education integrity. The opportunity that comes from our thriving international education system is equally as important— especially as international graduates with the skills Australia needs have the potential to make a strong contribution to our economy. However, there is a mismatch between the qualifications of international graduates and the work they are doing. More than 50 per cent of graduate visa holders with a bachelor’s degree or higher are working significantly below their skill level. This is particularly true for Engineering and IT graduates, despite them studying in areas tied to skills shortages. We can do more to help these students find a job that uses their skills and meets Australia’s skills needs.

 62 MIGRATION STRATEGY

For those that have fewer prospects of becoming permanent residents, it is incumbent upon the Government to provide these migrants with clarity about their future. International students and graduates make up the largest share of ‘permanently temporary’ migrants, with 108,000 having lived in Australia for 5 or more years. Many former students are able to prolong their stay and become even more ‘permanently temporary’ by shifting on to another student visa while onshore or by shifting back to another student visa from a graduate visa. However, rarely are these further student visas driving professional advancement and are instead often used by former students to stay in Australia in lieu of meeting permanent resident or other skilled visa requirements.

Furthermore, the Migration Review found that temporary migrants, including students, face a greater risk of workplace exploitation in the labour market. A 2020 study found ‘underpayment of international students was systemic and widespread ... half (49 per cent) were paid below the basic statutory minimum wage [and] over three quarters (77 per cent) were paid below the minimum casual hourly wage’.54

This undermines the integrity of Australia’s international education system, hurts international students and harms labour market outcomes.

ACTION

EXISTING COMMITMENT: Introduced a first set of measures to improve integrity in international education

The Government is delivering a first package of measures to support integrity in the international education system and to support genuine international students to study in Australia. To do this, the Government has: • closed a loophole that allowed

international students to switch to lower- quality education providers to facilitate work in Australia ahead of study

• increased the amount of savings international students will need to be eligible for a student visa. This requirement had not been indexed since 2019 and should reflect higher living expenses. Applicants now need to show evidence of $24,505 in savings, which is a 17 per cent increase on previous levels

Figure 5: Occupational skill level of primary temporary graduate visa holders

with at least a bachelor’s degree

Many international graduates work below their skill level

Note: Proportion of undergraduate domestic students working in managerial or professional roles 3 years after graduation, noting the typical Temporary Graduate visa duration for a bachelor’s degree is 2 years. Source: ABS (2016) Australian Census and Temporary Entrants Integrated Dataset (ACTEID) 2016; QILT (2022) Graduate Outcomes Survey - Longitudinal (2022)

26% 25% 6% 11% 33%

ANZSCO skill Level 5

Level 4 Level 2 Level 3 Level 1

>50% end up in jobs at lowest 2 skill levels (when qualified for top level)

 63 MIGRATION STRATEGY

Furthermore, the Government will also explore

regulation of education agents through an

expansion of the Office of the Migration

Agents Registration Authority. Together, this

powerful first package of measures will help

restore integrity to international education,

and support the competitive advantage

and prosperity of an Australian international

education sector that is underpinned by

its quality. It will also help place downward

pressure on migration levels as fewer non-

genuine students arrive and fewer non-

genuine providers recruit students.

NEW COMMITMENT: Increase English language requirements to improve the quality of students’ educational experience in Australia and reduce potential workplace exploitation

Australia is a proud multicultural, multilingual

country. However, the Migration Review found

that ‘student English language requirements

may not set up students to succeed’.55 English

proficiency has a clear and direct relationship

with strong education and labour market

outcomes.56 The Review also found that lower

English proficiency may make migrants more

vulnerable to exploitation. Currently, our

English language requirements for these visas

are below those of some comparable countries,

such as Canada.

The Migration Review recommended aligning

‘the English language requirements of the

Student and/or Graduate visas with skilled visa

English language requirements’.

• invested $37.8m to bolster the capacity of

the national VET regulator, ASQA, including

through the establishment of an Integrity

Unit to proactively identify and respond

to integrity risks in the international VET

sector. Boosting ASQA’s capacity will enable

a compliance blitz of unlawful behaviour,

targeting non genuine providers who may

be exploiting international students

• strengthened the fit and proper person

requirements that apply to VET providers

and signalled intent to change this test

in the Education Services for Overseas Students Act 2000 (ESOS Act). This will

strengthen the standards required to

gain and hold Commonwealth Register

of Institutions and Courses for Overseas

Students (CRICOS) registration and deter

collusive behaviours associated with

international student exploitation

• committed to making education providers

more accountable for their agents, through

increasing provider reporting requirements

and acting to prohibit agent commissions

for onshore transfers between providers

• committed to developing new risk

indicators for international education, to

build a whole-of-system risk framework

to inform compliance action by education

providers.

The Government is also considering using

its powers under Section 97 of the ESOS Act

to issue suspension certificates to high-risk

education providers and is currently further

consulting with the international education

sector on the use of these powers and will

announce changes in coming months.

 64 MIGRATION STRATEGY

In early 2024, the Government will increase

English language requirements for the Student

and Temporary Graduate visas:

• the test score required for a Temporary

Graduate visa will increase from an International English Language Testing System (IELTS) score (or equivalent) of 6.0 to 6.5

• the test score required for a Student visa will increase from IELTS (or equivalent) 5.5 to 6.0

- the test score required for students undertaking an English Language Intensive Course for Overseas Students (ELICOS) before their main course of study will increase from IELTS (or equivalent) 4.5 to 5.0

• the test score required for students undertaking university foundation or pathway programs that deliver reputable English language training will be IELTS (or equivalent) 5.5.

This will deliver a range of benefits to the international education sector, the migration system, the labour market and students themselves, including: • improving the quality of their educational

experience • increasing the outcomes of international

students in the labour market • strengthening the integrity and reputation

of the international education sector • reducing the workplace exploitation of

international students.

The Government will also strengthen education provider requirements to report students’

English language proficiency at enrolment.

NEW COMMITMENT: Apply greater and more targeted scrutiny to student visa applications from high risk providers

The Government will introduce a new Genuine Student test for all international students. The Genuine Student test will clearly incentivise applications from genuine students and discourage non-genuine students, whose primary intention is to work rather than study, from accessing Australia’s international education system. This test will replace the existing Genuine Temporary Entrant requirement to acknowledge that post-study temporary migration (and beyond) pathways are available for those who may be eligible. At the same time, the new Genuine Student test will be clear that the vast majority of international students in Australia will return home.

Two new Ministerial Directions will be introduced to support the integrity of processing in the student visa caseload.

The first Ministerial Direction will outline key areas of consideration to support decision- makers, including the circumstances of the applicant, such as their academic or career progression and the usefulness of the intended study to their future career prospects. The Direction will be clear in setting the expectations of students who come to complete study in Australia. Those who do not meet those requirements will not be granted a student visa.

The second Ministerial Direction will focus on the prioritisation of processing the visa caseload. A processing priority Ministerial Direction will prioritise student visa applications based on risk-level of providers and will come into effect by the end of 2023, in time to support processing for the 2023–24 student visa peak season. Higher risk providers will experience slower processing times as visa decision makers consider the integrity of a provider, as well as the individual student applicants.

 65 MIGRATION STRATEGY

The Government will act to assist regulators as they address unscrupulous provider behaviour through further legislative change. The Government will engage further with the sector in the development of its response and any implementation of these or similar measures.

This work will be complemented by the development of an International Education Strategic Framework. Working with the sector and the Council for International Education, the Government will ensure Australia’s valuable international education sector continues to prosper in delivering high quality education to genuine students.

NEW COMMITMENT: Restrict onshore visa hopping that undermines system integrity and drives ‘permanent temporariness’

Australia’s student visa program has a proud

history of attracting talented students from

around the world. More recently, it has been

used by some international students and other

temporary visa holders to ‘visa hop’ from visa to

visa to extend their stay in Australia when they

have little prospect of becoming permanent

residents. This has contributed to a growing

cohort of ‘permanently temporary’ former

international students living in Australia.

The Government will apply additional scrutiny

to international students applying for another

student visa

Gaining new qualifications is a great way to

help international students to gain deeper

specialisation in their field. New qualifications

can also support career development by

complementing academic and practical skills.

vFunding over 4 years, with an ongoing uplift in the Department of Home Affairs

NEW COMMITMENT: Bolster the student visa integrity unit in the Department of Home Affairs to reduce misuse of Australia’s student visa system

To complement the introduction of the new Genuine Student test, the Government will invest $19 million to significantly bolster the student visa integrity unit in Home Affairs. This will reduce the misuse of student visas by those using it to seek work in Australia instead of study and those seeking to exploit international students.v This investment will allow for greater scrutiny at the point-of- application to better identify non-genuine students and help build new analytical capabilities to identify students, facilitators and agents who misuse student visas post-arrival. This strengthened student visa integrity unit will also help support ASQA’s new integrity unit through cross-agency compliance activities.

NEW COMMITMENT: Strengthen requirements for international education providers

Australia’s international education sector is vital to the economy and the nation’s prosperity. To maintain the highest quality system, it’s important to ensure the appropriate integrity measures are in place to remove unscrupulous providers.57

The Government will pursue measures to further strengthen integrity, quality, entry requirements and student support across the international education sector to target non-genuine providers. This work will build upon the Government’s response to the Nixon Review. It will take into consideration recommendations made by the Joint Standing Committee on Foreign Affairs, Defence and Trade Inquiry into Australia’s tourism and international education sectors in their ‘Quality and Integrity – the Quest for Sustainable Growth’: Interim Report into International Education.

 66 MIGRATION STRATEGY

However, the prevalence of international

students moving from course to course,

particularly to courses that are below their

current level of study, to prolong their stay in

Australia has been growing. The numbers of

international students staying in Australia on

a second, or subsequent student visa has

grown by over 30 per cent to more than

150,000 in 2022–23. The biggest growth in

visa hopping has been in the VET sector, where

there is a lower likelihood of a credible course

progression. However, in 2022–23 almost

69,000 students granted a subsequent student

visa in Australia have stayed in, or shifted into,

studying in VET, compared to 42,000 students

pre-pandemic in 2018–19.

Using the new Genuine Student test, the Government will require any eligible students applying inside Australia to provide evidence in their application to demonstrate that any subsequent course is furthering their career or academic aspirations, such as undertaking a practical VET course to complement their degree, or undertaking research to gain a Masters qualification in their field of expertise. Prospective international students who cannot demonstrate this sensible course progression from their initial course of study will not meet the Genuine Student test.

The Government will restrict Temporary Graduate visa holders from transferring back to student visas while onshore

In their recent Graduates in Limbo report, the Grattan Institute found that 32 per cent of Temporary Graduate visa holders are returning to study when their visa expires in order to prolong their stay in Australia. This has increased in recent years as fewer graduates have become permanent residents. As the report notes, ‘Of those who return to study, most go on to study a VET course despite mostly already holding a higher degree,

especially if they initially studied a Masters-by- coursework degree. This suggests that many international graduates are returning to study when their Temporary Graduate visa expires in

order to prolong their time in Australia.’58

This change, combined with future proposed changes to the points test and other skilled visa settings, helps the graduates working in skilled jobs stay permanently, while reducing the number of graduates that are left in limbo and that stay despite having fewer prospects of permanent residence.

The Government is also considering other changes to restrict onshore visa hopping where it circumvents offshore processes and will make further announcements early in 2024.

NEW COMMITMENT: Strengthen and simplify Temporary Graduate visas

Graduate visas are available to former student

visa holders. The visa provides full work rights

and allows international students to gain work

experience in Australia’s labour market after

finishing their studies.

The Migration Review found that former

students are among the largest cohort of

‘permanently temporary’ migrants.59

The Review also showed that over 50 per cent

of Temporary Graduate visa holders are

working in low skilled jobs, and are not gaining

the skilled work experience necessary to

become eligible for a skilled permanent visa.60

Because of this, around 19,000 students and

graduates have been onshore for 9 or more

years. These migrants cannot fully establish a

life in Australia and face barriers in the labour

market based on their temporary status.

 67 MIGRATION STRATEGY

The Government is adopting the proposed reform directions suggested in the Migration Review by strengthening graduate visas to ensure more graduates are working at their skill level, addressing skills needs and not becoming ‘permanently temporary’. The Review found that extra time on a graduate visa does not improve graduates’ career outcomes, so the Government is adjusting the length and eligibility of post study work rights accordingly. These changes will give graduates sufficient time to demonstrate their ability to succeed in the skilled labour market and establish their careers, while setting boundaries for others with low prospects of becoming permanent residents.

Where a graduate is working in a skilled job in the labour market, the graduate will be able to apply for the new Skills in Demand visa or a permanent skilled visa, rather than requiring a two-year extension based on

The current problem Government approach

Long post-study work rights

Generous post-study work rights mean that former students can spend up to 8 years on a Subclass 485 Temporary Graduate visa (TGV), increasing the risk they become ‘permanently temporary’.

TGV length under existing settings: Initial TGV

• 2 years for Bachelor Degree • 3 years for Masters by coursework • 3 years Masters by research • 4 years for PhD

Eligibility for a second TGV

• + 1–2 years for study in a regional area (dependent on location)

Extension of Post-Study Work Rights

• + 2 years for an eligible course of study in an area of skills need

Shorter post-study work rights

The duration of an initial TGV will be shorter. The extension of post-study work rights will no longer be available. Only applicants who studied in a regional area will be eligible for an extension.

TGV length under new settings: Initial TGV

• 2 years for Bachelor Degree • 2 years Masters by coursework • 3 years for Masters by research • 3 years for PhD

Eligibility for a second TGV • + 1–2 years for study in a regional area

(dependent on location)

Table 2: Key changes to graduate visas

their qualification. This brings Australia’s graduates visa settings into line with most comparable countries. The Government will ensure these changes are consistent with Australia’s obligations under international trade agreements.

The Government is simplifying graduate visas to improve the applicant experience, and taking action to speed up the transition between student and graduate visas. The Government is also strengthening the pathway from graduate visas to temporary skilled visas to give employers more certainty about a graduate’s ongoing work rights and pathways to permanent residence.

Together, the key changes to graduate visas in the below table will help put downward pressure on migration levels, as graduates that have fewer prospects of permanent residence depart the country.

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The current problem Government approach

Eligible age not aligned with permanent residence options

The maximum eligible age for a TGV is 50, however the cut off for permanent residency is 45 so many older graduates are left ‘permanently temporary’.

Eligible age encourages early career professionals

The maximum eligible age for a TGV will be reduced to 35, repositioning the visa as a product for early career professionals who can contribute to the Australian economy over a longer period.

Multiple and confusing graduate visa products

The names and eligibility criteria of the ‘Post-

Study Work’ and the ‘Graduate Work’ streams

of the TGV are confusing for applicants, with

many applying for the wrong stream. The

‘Replacement Stream’ of the TGV and the

subclass 476 Skilled Recognised Graduate visa

no longer align with policy priorities.

Limited graduate visa products with clearly defined purposes

TGV streams will be re-named as

‘Post-higher Education Work’ and

‘Post-Vocational Education Work’ streams to

be more descriptive for the relevant applicants.

The ‘Replacement Stream’ of the TGV and

the subclass 476 visa will be abolished.

Unclear visa processing times

Slow TGV processing times have delayed transitions from student to graduate visas, forcing many graduates to shift to Bridging visas before becoming graduates, which worsens their skilled employment outcomes.

Clearer visa processing times

TGV processing times for the ‘Post-Higher

Education Work Stream’ will be backed by a

21-day service standard, which will give

employers confidence in a student’s post-study

options.

Uncertainty about pathways to permanent residency

A lack of clarity about pathways to permanent residency creates uncertainty for employers when considering hiring graduate visa holders.

Clearer post graduate visa pathways

The work experience requirement for a Temporary Skills Shortage visa (and future Skills in Demand visa) will be changed to give TGV holders more opportunity to move on to a skilled visa. Proposed reforms to the points test will also give graduates working in skilled jobs faster pathways to permanent residency.

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AREA FOR FUTURE REFORM: Support international students and graduates to realise their potential

The Migration Review found employment

outcomes for all graduates are better in

sectors with strong entry level programs,

work integrated learning, internships and

work experience.61 Yet many international

graduates are working below their education

and skill level. If we are choosing international

students for permanent residence based on

their potential to succeed in the Australian

labour market, then they need better support

to use their qualifications to get the right

job after graduation. Local work experience

and access to professional networks are key.

The Government will partner with education

providers, unions, industry and governments

to incorporate more work integrated learning

(such as professional workplace placements

or industry-partnered projects) into tertiary

courses to ensure students are better prepared

for Australia’s skilled workforce.

Similarly, international students who want

a trade qualification in Australia currently

have few opportunities to undertake an

apprenticeship on a student visa. We will

examine the full extent of these barriers,

and consider other mechanisms to support

high-skilled in-demand graduates who can

support our future economic needs, for

example through reforms to the vocational

stream of the temporary graduate visa

program.

The Government has commissioned a study

through Jobs and Skills Australia to better

analyse international student outcomes and

pathways into the labour market, with deep

tripartite consultation of unions, employers,

and training and education providers.

 70 MIGRATION STRATEGY

 71 MIGRATION STRATEGY

Tackling worker exploitation and the misuse of the visa system

4

• Introduced legislation, new powers and large penalties to punish unscrupulous employers

• Supported migrant workers by introducing protections against visa cancellation and giving migrants opportunities where they have experienced exploitation

• Better regulated migration agents to crack down on unscrupulous activity

• Helping migrants understand their workplace rights to reduce worker exploitation

• Established real-time priority processing of Protection visa applications

• Created a united intelligence, investigations and compliance capability in the Department of Home Affairs.

EXISTING COMMITMENTS INCLUDE:

AREAS FOR FUTURE REFORM INCLUDE:

• Strengthen integrity in the approved sponsor application process

• Improve post-arrival monitoring and compliance including through coordination with the tax system.

NEW COMMITMENTS INCLUDE:

• Develop a public register of approved sponsors to enable monitoring and oversight.

These measures complement other strong measures outlined in the Migration Strategy to design migrant worker exploitation out of the migration system.

 72 MIGRATION STRATEGY

Australian workplace laws, expectations

informed by their experiences in other

countries and, in some cases, visa conditions or

migrant workers’ migration intentions.

In turn, certain employers—a minority, but still

significant—exploit opportunities to gain at

the expense of workers.’63 As highlighted by

the MWT, this can take the form of a range of

misconduct such as wage underpayment and

failure to provide other forms of workplace

entitlements, pressure to work beyond

visa conditions, unsafe working conditions,

unfair deductions, threats and sub-standard

accommodation. Recent migrants are

40 per cent more likely to be underpaid than

long-term residents with the same skills and

experience and who work in the same job.64

INTRODUCTION The Government’s vision for migration will

be realised only by ensuring that the system

is underpinned by integrity and strong

protections for workers. Integrity measures

help to protect the migration system from

the unscrupulous, who seek to circumvent

or misuse migration rules for their own gain.

Without addressing this issue, our migration

programs will be unable to achieve their core

objective of serving the national interest, and

migrants themselves may be exploited.

Strong integrity is critical to ensuring the

system works, migrant workers are protected

and the public has confidence in the integrity

and fairness of the migration system.

The Government has made tackling migrant

worker exploitation a centrepiece of its

migration reform and workplace relations

agenda. This includes implementing the

recommendations of the 2019 Migrant

Workers’ Taskforce (MWT) and bringing forward

a dedicated package of measures in 2023.

The Government will also continue to engage

with stakeholders on reforms that are needed

looking beyond the MWT recommendations.

WHY ACTION IS NEEDED Designing out migrant worker exploitation

from visa settings is critical to the Migration

Strategy, and is reflected across the

Government’s reform agenda. Specific

measures are needed to deter and, where it

occurs, to detect and penalise, migrant worker

exploitation.

The MWT found ‘migrant workers can be

particularly vulnerable to exploitation due to

language barriers, lack of awareness of

That fact that visa holders and migrants are overrepresented in the [Fair Work Ombudsman’s] work, even though the problem is likely underreported, underscores the systematic nature of migrant worker exploitation and why this cohort is prioritised by the FWO.

Fair Work Ombudsman62

 73 MIGRATION STRATEGY

Risks of migrant exploitation The MWT’s findings have been echoed

by a range of other reports prepared by

Parliamentary committees, unions, academics

and civil society, including the recent Nixon Review.

This evidence highlights the need to address

a number of problems that contribute to

migrant worker exploitation, or impede action

to combat it. These include:

• addressing fears from migrant workers

that they are effectively compelled to

remain in exploitative circumstances, or are

unable to report exploitation or take legal

action in response to exploitation, because

of potentially adverse impacts on their

migration status

• ensuring that our regulatory frameworks

empower regulators across migration and

workplace relations functions to detect and

sanction exploitative conduct

• ensuring migrant workers are able to

pursue workplace justice, both with

the assistance of law enforcement and

regulators and independently (through

trade unions, community legal centres or

other forms of representation)

• ensuring there are appropriate safeguards

and protections available to migrant

workers so that unscrupulous employers

are unable to use a person’s visa conditions

or criteria for a future visa application to

exploit migrant workers

• ensuring migrant workers and their

employers understand their rights and

obligations, and avenues available to

seek support, while overcoming distrust

of government that can be a barrier to

migrant workers raising concerns with

relevant authorities.

ACTION

EXISTING COMMITMENT: Introduced legislation, new powers and large penalties to punish unscrupulous employers

The increasing reliance of Australian business

on temporary workers in recent years has

coincided with repeated public revelations of

migrant worker exploitation, mistreatment and

wage theft.

The Government has already introduced to

the Parliament of Australia, the Migration

Amendment (Strengthening Employer

Compliance) Bill 2023. This Bill will address

the misuse of migration rules to exploit

temporary migrant workers, strengthening

employer compliance with obligations under

the Migration Act 1958 and the protection of

workplace rights under the Fair Work Act 2009.

The Bill introduces three new criminal offences

and associated civil penalty provisions for

persons who coerce or exert undue influence

or pressure on a non-citizen to accept or agree

to an arrangement in relation to work. The Bill

also introduces a measure to prohibit certain

employers from employing additional migrant

workers for a period. It is the Minister’s intent

that the prohibition will be imposed on those

employers who have engaged in serious,

deliberate or repeated non-compliance.

The Bill contains increased civil and criminal

penalties, and it introduces new compliance

tools to ensure that employers meet their

obligations.

 74 MIGRATION STRATEGY

Importantly, the Bill includes measures to

encourage temporary migrant workers to

make a complaint and seek support just like

Australian workers. These include:

• repealing section 235 of the Migration Act 1958, which makes it a criminal offence to

breach a work-related visa condition

• inserting an avoidance of doubt provision

for remaining work offences, to remove

the ability for employers to abrogate their

obligations to provide safe and fair working

conditions.

EXISTING COMMITMENT: Supported migrant workers by introducing protections against visa cancellation and giving migrants opportunities where a migrant worker has faced exploitation

The Government is currently consulting

with business, unions and civil society on

protections for temporary visa holders. This

includes designing appropriate mechanisms

to enable migrant workers to report

exploitation, and enhanced protections

against visa cancellation (discretionary and

non-discretionary) in circumstances where a

migrant worker has been subject to workplace

exploitation. The Government will also

consider the creation of a substantive visa to

allow temporary migrant workers who have

been exploited or underpaid to remain in

Australia where necessary to pursue workplace

entitlements.

The Government is also considering

introducing restrictions on information

sharing arrangements between labour

and migration regulators to give effect to

the underlying principles of a firewall—to

encourage increased reporting and support

appropriate collaboration to address the issue

of exploitation holistically.

EXISTING COMMITMENT: Better regulated migration agents to crack down on unscrupulous activity

The Nixon Review examined allegations of

sexual exploitation, human trafficking and

other organised crime, some facilitated by

professionals including education agents,

registered migration agents and unlawful

providers of immigration assistance.

The Government strengthened the regulation

of registered migration agents and combat

providers of unscrupulous immigration

assistance, including increasing financial

penalties and an increase of staff of up to

50 full time equivalent for the regulator,

the Office of the Migration Agents

Registration Authority.

The Government will also consult on the

feasibility of limiting the involvement of

unregistered overseas providers in the

migration system, and severely curtail and

monitor the provision of unqualified advice

from influencing the visa lodgement process.

EXISTING COMMITMENT: Helping migrants understand their workplace rights to reduce worker exploitation

The Government will develop options to

communicate more effectively key information

about rights and responsibilities for workers

and employers alike. This will ensure, among

other things, that temporary visa holders

are aware of reporting mechanisms and the

safeguards and protections available to them.

It will seek to overcome a lack of trust in

government that can be a barrier to reporting.

Such initiatives will include briefings provided

by migrant worker communities, unions,

industry and civil society.

 75 MIGRATION STRATEGY

EXISTING COMMITMENT: Established real-time priority processing of Protection visa applications

On 5 October 2023, the Government

announced a $160 million package of

reforms to restore integrity to Australia’s

refugee protection system, providing a fair

go to genuine asylum seekers and to combat

exploitation of the system.

The Nixon Review found extended delays in

processing and reviewing onshore Protection

visa applications were ‘motivating bad actors to

take advantage by lodging increasing numbers

of non-genuine applications for protection’.65

This has come at a cost to people in genuine

need of protection and to the broader

Australian community.

This package included an investment of

$54 million that will be used to establish

real-time priority processing of Protection

visa applications to help break the business

model of those who abuse the system and

ensure a faster, fairer and more efficient

protection system for those genuinely in need

of Australia’s protection.

EXISTING COMMITMENT: Created a united intelligence, investigations and compliance capability in the Department of Home Affairs

In the Government’s response to the Nixon

Review, the Government committed to

creating a new immigration compliance

capability within the Department of Home

Affairs that will bring together a range of

existing functions into a more coherent and

effective capability.

This new capability will provide dedicated

resources to traditional immigration

compliance functions, in particular targeting

the organised misuse of immigration

programs. This capability will not duplicate

existing Australian Border Force management

of the border but will rather focus on bringing

together intelligence, investigations and field

compliance activities.

This new function supports the Government’s

$50 million investment to resource

immigration enforcement and compliance

activities. Operation Inglenook, which was

established alongside the commissioning of

the Nixon Review to investigate the systemic

abuse of Australia’s visa system for the

purpose of exploitation, will also continue to

provide a focus on the exploitation of migrant

workers, including temporary skilled workers,

international students and other temporary

visa holders.

NEW COMMITMENT: Develop a public register of approved sponsors to enable monitoring and oversight

The Government will develop a public register

of employers who are approved to sponsor

temporary migrant workers, to encourage

public transparency, monitoring and oversight,

and promote productivity-enhancing worker

mobility. This will help migrant workers find

new sponsors and give migrant workers a

resource to check that a sponsoring employer

is legitimate. The register will include details

such as:

• the name of approved sponsors

• how many temporary skilled workers they

are employing

• what occupations and / or pathway those

workers are employed in.

 76 MIGRATION STRATEGY

Far North Queensland

Agreement to the entry of these details on the

public register will be part of the process for

approval of sponsors of temporary migrants.

This will complement the public register

of sanctioned sponsors, published by the

Australian Border Force.

In future, the Government will consider if this

register can extend to businesses that employ

other temporary migrants where workers are

particularly susceptible to exploitation.

AREA FOR FUTURE REFORM: Strengthen integrity in the approved sponsor application process

The Employer Sponsor framework provides

a valuable mechanism to support employers

to meet labour and skills shortages within

the labour market. It provides a dedicated

regulatory framework in which to both assess

the suitability of the sponsor and regulate their

behaviour in accordance with set obligations.

This framework has also been a key focus for

reforms within the Migration Strategy and

dedicated reforms to address migrant worker

exploitation. It is a priority for compliance:

in 2022–23, 146 approved sponsors were

listed on the public register of sanctioned

sponsors for failing to meet their obligations.

However, more can be done to combat

unscrupulous employers gaining access to

the migration system before they become an

approved sponsor.

The Government will look to strengthen the

criteria to become an approved sponsor to

prevent unscrupulous actors from being

able to gain access to the temporary skilled

migration system.

These criteria will be developed through

further consultation and will consider,

for example, taking account of sponsors’

employment practices and records based

on all available evidence, including requiring

sponsors to declare any adverse findings by

relevant workplace regulators and previous

bankruptcies.

AREA FOR FUTURE REFORM: Improve post-arrival monitoring and compliance including coordination with the tax system

The Government will examine further

measures to improve post-arrival monitoring

and enforcement of wages and conditions

to detect and prevent exploitation of both

migrant workers and Australia’s labour market

and migration system. This includes the

potential to strengthen compliance with pay

and conditions for temporary migrants via

monitoring payments through the Australian

tax system, including through the use of

Tax File Numbers and Single Touch Payroll.

 77 MIGRATION STRATEGY

Planning migration to get the right skills in the right places5

NEW COMMITMENTS INCLUDE:

• Plan migration over a longer-term horizon to better manage the migration intake, with greater state and territory collaboration

• Work with states and territories to ensure population planning is based on the best available population data and forecasts

• Establish a formal role for Jobs and Skills Australia in defining Australia’s skills needs using evidence, including advice from tripartite mechanisms

• Improve the approach to skills recognition and assessment to better unlock the potential of migrants

• Launch an enhanced outreach program to improve access to the migration system

• Bring an evidence-based, tripartite approach to evaluation and monitoring.

INTRODUCTION A well-managed migration system requires

strategic planning to ensure Australia gets

the right skills in the right places. While the

permanent migration system is managed at

the federal level, successful planning requires

not only alignment with Commonwealth

regional and urban policy initiatives but the

cooperation of state and territory governments.

This is because the levers that make migration

successful in communities—the provision

of general infrastructure, public transport,

housing and services such as healthcare,

education and migrant support—are principally

controlled at the state, regional and local level.

Ensuring that migration complements the

domestic skills and training system also

requires a strategic and coordinated approach

to workforce planning. This requires evidence-

based coordination of the education, training

and migration systems, and input from

tripartite mechanisms, so that migration can

be best targeted to areas where it is most

needed.

 78 MIGRATION STRATEGY

WHY ACTION IS NEEDED

Our annual planning process constrains strategic planning

The existing short-term planning approach for

the permanent Migration Program does not

effectively target migrants with the skills we

need to meet current and emerging national

challenges.

The planning levels for this program, including

its size and composition, are set on an annual

basis. A 12-month planning horizon limits

our ability to identify or respond with agility

to emerging trends and challenges, and

especially to the changing skills needs of

the economy. It also limits the way that the

permanent program links to and supports

other Commonwealth or state and territory

strategic priorities or reform efforts, while

making it difficult to plan effectively for

demographic changes, such as the ageing of

Australia’s population.

The Government is working with states and

territories to ensure population planning

is based on the best available data and

forecasts. Targeted and well-planned

migration will support population planning

and help deliver better outcomes for Australia

in infrastructure, housing, service delivery

and the environment.66 Together with the

complementary efforts the Government has

initiated, these efforts can support rising living

standards for Australians over time.

Extending the planning horizon of our

programs beyond the current 12-month view

would allow us to plan more effectively in

the national interest. It would also help state

and territory governments to better plan and

deliver their programs.

This is especially important for regional

Australia, where the challenges that Australia

faces as a nation are often experienced more

acutely.

We had limited coordination between the education, training and migration systems

Prior to Jobs and Skills Australia’s creation, the

migration system had limited coordination

with the education and training systems.

There was no whole-of-government and

tripartite mechanism for assessing Australia’s

skills needs—what, where and especially why

and how these shortages can be resolved

most effectively. This led to some occupations

remaining short of workers for decades

without a coordinated approach to addressing

the problem.

The Migration Review was also critical of the

current approach for identifying skills needs

and recommended a more forward looking

and evidence-based approach led by Jobs

and Skills Australia that also takes account

of domestic training and workforce planning

efforts.

With urgent needs to skill up across the

economy, especially in the technology sector

and in the care and support economy, a more

coordinated approach will be critical to

meeting skills needs into the future.

We have not had a rigorous approach to evaluation and monitoring

Well-targeted migration policy is a critical, but

‘often underappreciated’,68 part of Australia’s

economic policy toolkit.

 79 MIGRATION STRATEGY

Policy reform therefore needs to be better

informed by strong public evaluation and

monitoring of migration outcomes.

The Migration Review said ‘a lack of data

inhibits effective assessment of the system’

and limited stakeholder visibility over

migration data further inhibits program design

and reform.69

ACTION

NEW COMMITMENT: Plan migration over a longer-term horizon to better manage the migration intake, with greater state and territory collaboration

The Government will develop a principles-

based, multi-year planning model for

permanent migration, to improve collaboration

with states and territories on migration

settings. This will deliver on the Government’s

commitment to National Cabinet, to enable

greater contribution by states and territories

to ensure migration meets the local needs of

communities across the country.

Shortages should be identified using a robust, evidence-based process … This process should seek to determine the various levers— including but not exclusively temporary migration—to attract more applicants to sectors in shortage ...

Australian Manufacturing Workers Union67

The multi-year planning model will extend the

planning horizon of the permanent Migration

Program beyond its current 12 months and

enable a better planning effort to meet the

strategic, structural and long-term challenges

that we face as nation and in our cities and

regions.

The extended outlook will also help to align

investments by Commonwealth, state and

territory governments in infrastructure,

service delivery and housing to support

strong settlement outcomes. The multi-year

model will be guided by a set of principles for

agreement between the Commonwealth and

states and territories. This will give states and

territories a greater role in determining their

migration needs, especially in the regions, and

demonstrate the commitment of governments

at all levels to planning in the national interest

and to supporting cohesive policy efforts.

A multi-year planning model for the

permanent Migration Program will be

supported by an annual Ministerial Migration

Roundtable led by the Minister for Home

Affairs and the Minister for Immigration,

Citizenship and Multicultural Affairs and

attended by relevant state and territory

level counterparts. This forum will serve as a

touchpoint to inform Government decision-

making on the ongoing suitability of planning

levels against the prevailing strategic and

economic climate. The Government will also

reinvigorate existing officials’ level forums,

such as the Skilled Migration Officials Group,

to improve collaboration and data sharing.

 80 MIGRATION STRATEGY

NEW COMMITMENT: Work with states and territories to ensure population planning is based on the best available population data and forecasts

The Commonwealth is working with the

states and territories and local government

to strengthen population forecasting

methodologies and evidence, including for

overseas migration, so that all governments

can better plan for population change.

NEW COMMITMENT: Establish a formal role for Jobs and Skills Australia in defining Australia’s skills needs using evidence, including advice from tripartite mechanisms

The Government will enhance coordination of

the education, training and migration systems,

with Jobs and Skills Australia acting as the key

advisory body. This will formalise an evidence-

based approach to identifying labour market

need, including through advice from tripartite

mechanisms.

As the key body for advising on Australia’s skills

needs, Jobs and Skills Australia will help ensure

local workers’ skills and job opportunities are

prioritised, and the migration system is guided

to areas of best use. Jobs and Skills Australia’s

role in the migration system will mature over

time and will look to take into account not just

the ‘what’ and ‘where’, but also the ‘why’ and

‘how’ with respect to occupations in shortage.

This will help ensure migration complements

the domestic skills and training system.

Jobs and Skills Australia’s role in the migration

system will be multi-faceted. Various analytical

studies will support different migration

programs, such as the evaluation of Working

Holiday Maker visas. However, Jobs and Skills

Australia’s primary role in the migration system

will be to advise on labour shortages as inputs into the design and delivery of a targeted temporary skilled migration system, through: • labour market analysis relevant to the

Specialist Skills Pathway • defining a new Core Skills Occupation List

for the Core Skills Pathway • advice on appropriate sectors and

occupations in the Essential Skills Pathway.

Transparency will be a guiding principle of Jobs and Skills Australia’s role in the migration system. Jobs and Skills Australia will submit its findings to government and publish its analysis and recommendations. The Minister for Immigration would retain decision-making power on the final list and could provide reasons for any variations to Jobs and Skills Australia’s advice. This mirrors the approach taken in the United Kingdom by its well-regarded independent Migration Advisory Committee. Jobs and Skills Australia’s role in defining the new Core Skills Occupation List

The Core Skills Occupation List (CSOL) will be a single consolidated list, developed by Jobs and Skills Australia, who will: • start with the Jobs and Skills Australia

Skills Priority List, constructed through a comprehensive evidence-based process that takes account of a range of factors and includes extensive tripartite engagement and input from across Commonwealth and state and territory governments

• analyse whether migration is an appropriate path to address the identified shortages, considering how well migrants do in the labour market upon arrival, reliance on sponsored skilled visa holders relative to employment size and vacancy data, the likelihood of domestic supply for those occupations and the market salary for

occupations

 81 MIGRATION STRATEGY

• support this analysis through proactive

stakeholder engagement, including with

business and unions, and a structured

qualitative research component. This will

involve semi-structured interviews with

a range of labour market participants,

targeting both those experiencing

shortages and those that aren’t, to

gain a broad range of views on the

appropriateness of migration pathways

for a range of occupations

• supply a list of occupations that the

Government considers are required to be

on the list to fulfil Australia’s obligations

under international trade agreements.

In the near-term, the Core Skills Occupation

List will incorporate new occupations that have

been added to ANZSCO in recent years. New

ANZSCO occupations will also be factored into

the list as they are added by the Australian

Bureau of Statistics.

NEW COMMITMENT: Improve the approach to skills recognition and assessment to better unlock the potential of migrants

Skills assessments for migration ensure

prospective migrants have the necessary

technical skills, qualifications and experience

to meet the occupational standards needed

for employment in Australia.

There are currently 39 skilled migration

assessing authorities approved by the Minister

for Skills and Training to undertake skills

assessments for 650 occupations.

The Government will improve skills assessment

processes for migrants through enhanced

assurance, standards and reporting. Reforms

to lift the skills assessment sector, reduce

complexity in the skills assessment process

and invest in migrants’ employment outcomes

will facilitate greater workforce participation

and drive stronger economic outcomes for all

Australians. Specifically, the Government will:

• develop and deliver an enhanced assurance

framework to improve accountability,

transparency and integrity in the skills

assessment sector

• implement new standards for skilled

migration assessing authorities to optimise

outcomes for Australian employers and

migrants

• develop an enhanced IT reporting system

to ensure collection and analysis of current,

accurate, reliable skills assessment data

to inform evidence-backed assurance and

policy.

NEW COMMITMENT: Launch an enhanced outreach program to improve access to the migration system

Migration reform will be supported by a

reformed outreach program which will

establish and maintain strong links to business,

especially small business, and unions, built

on the tripartite approach outlined in the

Migration Strategy. An energised local outreach

network will provide a single point of contact

for key stakeholder groups, including business,

small business, regional bodies and unions,

which will be especially important as changes

in the Migration Strategy are implemented.

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NEW COMMITMENT: Bring an evidence-based, tripartite approach to evaluation and monitoring The unique complexities of migration and the

gaps in our understanding of the effects of our

migration system—on migrants and Australia—

highlight the critical need for better data,

more program evaluation and research to

inform continuous improvement in migration

policy design. This includes assessment of

economic, social and fiscal measures to better

understand our level of success and identify

areas for improvement.

The Government will establish fit-for-purpose

evaluation arrangements to help ensure

policies designed and implemented to deliver

on this Migration Strategy have the intended

outcomes and effects. We will underpin

these arrangements with robust data and an

evidence base collected throughout policy

implementation, to ensure we can accurately

measure and assess their success.

Furthermore, tripartite evaluation of data and

feedback on the reform process is critical to

ensuring this new system works for all who use

it. A reformed Ministerial Advisory Council on

Skilled Migration will play this role, providing

regular feedback on the delivery of reforms

outlined in the Migration Strategy, in close

coordination with Jobs and Skills Australia and

its tripartite mechanisms.

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INTRODUCTION

A well-managed migration system will deliver

skills where they are most needed. Migration

can play a powerful role in revitalising regional

communities and meeting critical workforce

needs in regional Australia.

As noted by the Migration Review, regional

migration works for migrants and for long-term

regional development when supported by the

policy levers that make migration successful,

such as government planning, infrastructure

investment and economic opportunities.

Tailoring regional visas and the Working Holiday Maker program to support regional Australia and its workers

6

NEW COMMITMENTS INCLUDE:

• Designate visa processing to regional Australia as the highest processing priority.

For example, a coordinated approach to

workforce needs in the regions, integrated with

the domestic education and training system and

the migration system, and informed by advice

from Jobs and Skills Australia, will best meet

long-term workforce needs in regional Australia.

Getting the settings right for migration to

regional Australia will be especially important in

coming decades. Regional Australia’s population

is forecast to grow by 0.8 per cent per annum

between now and 2031–32, compared to

1.2 per cent for the capital cities.70

EXISTING COMMITMENTS INCLUDE:

• Increased skilled migration to help meet labour shortages in regional Australia.

AREAS FOR FUTURE REFORM INCLUDE:

• Evaluate regional migration settings and the Working Holiday Maker program to ensure migration supports development objectives in regional Australia and does not contribute to the exploitation of migrant workers.

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WHY ACTION IS NEEDED

Previous approaches to regional migration have been patchwork and complex without clear objectives

A number of programs currently exist to provide migrant pathways into regional Australia, yet stakeholders consistently noted that these are often too complex and slow, such as with DAMAs, or not well designed to support long-term regional development in Australia.

DAMAs are in place to support the unique needs of individual regions yet often have very low uptake, which is partly driven by the difficult processes for employers to navigate. Stakeholders criticised the complicated and frequently changing definition of regional Australia used for migration purposes and the isolated use of provisional visa settings that can sometimes limit the appeal of regional visas. State and territory governments can help make regional migration successful yet have a limited role in the coordination of regional

migration programs.

However, many of Australia’s developing

economic and social opportunities are

emerging in regional Australia. For example,

most of the new jobs and the critical

infrastructure required to make the transition

to a net zero economy will be in regional

Australia.

A range of place-based migration measures

have been introduced since 1994 to enable

states and territories to deal with unique

needs that are not addressed by national

migration programs and to encourage a more

balanced distribution of migrants arriving in

Australia. These include state and territory

nominated visas, regional visas, Designated

Area Migration Agreements (DAMAs), tailored

skilled occupation lists and regional incentives

for Working Holiday Makers and regional

graduates. Such measures aim to provide

increased flexibility to states, territories and

regional Australia to meet their own needs

while also supporting Australia’s national

migration objectives.

Furthermore, Australia’s Working Holiday Maker

programvi has been intended to foster closer

ties and cultural exchange between young

people from Australia and around the world

for almost five decades. Arrangements under

the Working Holiday Maker program, including

some eligibility requirements, are established

on a bilateral basis between Australia and the

relevant partner country or jurisdiction. For

example, in connection with the entry into

force of the Australia-United Kingdom Free

Trade Agreement, the Government recently

delivered enhanced pathways for young

Australians and UK passport holders to live and

work in each country.71

viComprising the Working Holiday (subclass 417) visa and the Work and Holiday (subclass 462) visa

Since 2005, the Working Holiday Maker

program has been used to meet workforce

needs in regional Australia. The program allows

young adults from over 40 partner countries

to have a 12 month holiday in Australia, during

which they can undertake short-term work

and study. If these young adults want to stay in

Australia for a second year, they must in most

cases complete 88 days (3 months) of ‘specified

work’ in regional Australia. If they want to stay

in Australia for a third year, they must complete

179 days (6 months) of ‘specified work’. This

is one of several measures attached to the

program, designed to address labour shortages

in regional areas, specifically the horticulture

industry, but also in the visitor economy.

 85 MIGRATION STRATEGY

These patchwork approaches have often been

needed because migration policy has been

exercised in isolation from wider necessary

reforms. Despite the range of existing place-

based migration measures, 2016 census

These visas encompass inconsistent criteria, multiple occupation lists and bespoke arrangements, adding to the complexity of the migration system without serving a clearly articulated purpose.

Review of the Migration System72

Figure 5: Location of general population vs. migrant population (2016)

Only 14% of migrants live outside of capital cities

34%

14%

17%

24%

49%

62%

Australia overall

Migrants

Sydney, Melbourne, Brisbane

Other capital cities

Outside of capital cities

data indicated that only about 14 per cent of

migrants live outside capital cities (compared

to 34 per cent of the general population).73

Place-based migration measures should also

have regard to potential impacts on migrant

worker vulnerability associated with remote

work locations, where limited alternative

employment may exist.

However, when integrated approaches have

been adopted, more success has been found.

Regional migrants are more likely to settle

in regions with strong employment where

jobs can be found, as the previous case study

highlights with the story of Karen refugees in

Nhill. These stories are likely to become more

regular as growing economic opportunities

emerge in regional Australia, such as in the

green economy.

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Our Working Holiday Maker program needs to provide a positive cultural exchange

The Government recognises the role of the

Working Holiday Maker program as a cultural

exchange program, including its contribution

to our international relationships. It also makes

valuable contributions to Australian businesses

and communities. However, as the Migration

Review outlined, successive reviews and

inquiries have shown the 88-day, 179-day and

specified work requirement is a key driver of

exploitation. Visa holders have been subject

to an increased dependency on employers,

underpayment and non-payment of wages,

sexual harassment and workplace health and

safety problems.74 Worker exploitation hurts

backpackers, as well as Australians, and it

damages Australia’s international reputation.

The Fair Work Ombudsman’s 2016 survey

of more than 4,000 backpackers found

30 per cent did not receive payment for

work undertaken. Many—from across all

cultural and language backgrounds—were

not aware of or supported to gain an

understanding of what conditions to expect

when working in Australia.

In considering any changes to the Working

Holiday Maker program, the Government will

analyse the importance of the program in

meeting labour shortages in regional Australia,

especially in horticulture. The horticulture

industry produces 93 per cent of food eaten

in Australia and is central to the agriculture

industry, which contributes $48.7 billion to

Australia’s gross domestic product.75

As Parliament’s Inquiry into the Working

Holiday Maker program found:

WHMs play a critical role in filling skills shortages across Australia, particularly in our horticultural and agricultural industries, which continue to face the challenge of attracting Australians to fill these jobs.

Joint Standing Committee on Migration76

However, a historical reliance on Working Holiday Makers has not always supported positive workforce outcomes for the agriculture sector. Working Holiday Makers are typically less productive than other workers in this sector and the transient nature of this workforce means there are often few incentives for employers to invest in skills and training.77

ACTION

EXISTING COMMITMENT: Increased skilled migration to help meet labour shortages in regional Australia

With many parts of regional Australia experiencing acute labour shortages and skills gaps, the Government is committed to supporting industries and employers in regional Australia to promote ongoing economic development and employment opportunity.

This can be seen in the effort the Government has made to increase the number of migrants moving to the regions, as outlined in the Snapshot on page 89.

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NEW COMMITMENT: Designate visa processing to regional Australia as the highest processing priority

The Government will immediately alter Ministerial Direction 100 to make visa processing for migrants sponsored by employers in regional Australia its top visa processing priority. This will help further streamline visa processing for businesses located in regional Australia who are sponsoring skilled workers.

AREA FOR FUTURE REFORM: Evaluate regional migration settings and the Working Holiday Maker program to ensure migration supports development objectives in regional Australia and does not contribute to the exploitation of workers

The Government will conduct an evaluation of regional migration settings, including regional visas, regional definitions, regional occupation lists and DAMAs. The objective of this work will be to evaluate how migration settings can better support community and workforce needs in regional Australia while not contributing to migrant worker exploitation.

This review of regional migration settings will also be informed by the further consideration of a potential Essential Skills Pathway in the temporary skilled migration system.

This evaluation will occur in alignment with other work the Government is doing to support regional Australia, including reform to the Infrastructure Investment Program, the Regional Investment Framework, the refresh of the Northern Australia White Paper and the National Urban Policy.

The Government will also undertake a detailed consultation and research process into the 88-day, 179-day and specified work requirement. This project will help inform the future design of the program, to combat worker exploitation and improve young visitors’ experience of Australia, while ensuring temporary migration to Australia continues to support the need for essential skills in regional Australia. This work will be supported by Jobs and Skills Australia’s Food Supply Chain Capacity Study.

The Government will publish a discussion paper early in 2024 on the evaluation of regional migration settings and the Working Holiday Maker program and will further consult on these proposals.

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The Government’s support of migration in regional Australia

Figure 6: More migrants addressing regional skills shortages

Source: Department of Home Affairs (2023)

2021-22 2022-23

11k

34k

+23kSkilled regional visa allocation

2021-22 2022-23

17k

30k

+14kPacific Australia Labour Mobility visa grants

2021-22 2022-23

96k

222k

+126k Working Holiday Maker visa grants

SNAPSHOT

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7 Deepening our people-to-people ties in the Indo-Pacific

EXISTING COMMITMENTS

• Established a direct pathway to Australian citizenship for eligible New Zealanders to reflect the strong ties between our two countries

• Reformed the Pacific Australia Labour Mobility scheme, and delivering a new Pacific Engagement Visa to encourage more mobility from our region

• Providing a special visa arrangement for Tuvalu citizens under our bilateral treaty, the Australia Tuvalu Falepili Union

• Making it easier for Southeast Asian businesses and eminent people to travel to Australia.

INTRODUCTION

Australia sees itself as being both in and of the Indo-Pacific. We share a region and we share a future. We have deep connections to the Indo-Pacific, including family, business, education and tourism. As a nation, we also depend on our region remaining peaceful, stable and prosperous.

As Australia’s International Development Policy states, ‘there is also great opportunity in the Indo-Pacific region and each country within it, and much to be optimistic about. Indo-Pacific countries have made extraordinary development progress in recent decades. Hundreds of millions of people are living longer, healthier, and more productive lives. Helping to sustain equitable economic growth that can lift the living standards of people in our region makes Australians more secure.’78

The Government is listening to our partners in the Pacific and Southeast Asia, and working with them on our shared interests, including on climate, infrastructure, security, economic development and resilience. Encouraging greater people-to-people links with our partners in the Indo-Pacific is critical to further strengthening ties and our shared interests.

The Government is taking further steps to strengthen these connections, including increasing two-way movement, particularly of business people, other visitors and students. This complements existing efforts to enhance temporary and permanent migration offerings for the Pacific and Timor-Leste and work on visa settings for the Pacific and Southeast Asia

to encourage movement to Australia.

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The Moore Report indicated the critical link

between people-to-people links and business

relationships. It highlighted Southeast Asian

leaders and businesses have often suggested

that Australia’s visa system was an obstacle

to commerce and travel. The Government is

exploring options to ease travel to Australia

for Southeast Asian business people, frequent

travellers and eminent people.

ACTION

EXISTING COMMITMENT: Established a direct pathway to Australian citizenship for eligible New Zealanders to reflect the strong ties between our two countries

The Government has provided more than

300,000 New Zealand citizens living in Australia

with a direct pathway to Australian citizenship.

From 1 July 2023, New Zealand citizens living

in Australia have a direct pathway to Australian

citizenship, as long as they have been a

resident for 4 years and meet other eligibility

requirements. This deepens the friendship

Australia shares with New Zealand.

EXISTING COMMITMENT: Reformed the PALM scheme, and delivering a new Pacific Engagement Visa to encourage more mobility from our region

The reformed PALM scheme consolidated the

former Seasonal Worker Program and Pacific

Labour Scheme into a single streamlined

visa. It simplified administration and provided

more flexible program settings to better meet

the needs of employers and Pacific and

Timor-Leste workers.

WHY ACTION WAS NEEDED

Migration reform can help Australia deepen

connections in the Indo-Pacific by deepening

our shared values and aspirations, building

stronger links with diaspora communities and

further integrating our social and economic

relationships.

Australia and New Zealand have long shared

a special bond. Many New Zealand citizens

choose to work, raise families and build their

lives in Australia.

Many New Zealand citizens in Australia have

been living here for decades, yet have had

limited opportunity to become Australian

citizens and enjoy the rights and exercise the

obligations that come from citizenship.

This has made New Zealand citizens the largest

cohort of ‘permanently temporary’ people

in Australia.

Australia’s migration programs also reflect our

special relationship with the countries of the

Pacific. Through permanent and temporary

migration, such as the Pacific Australia Labour

Mobility (PALM) scheme and the Pacific

Engagement Visa, Australia is supporting

the economic aspirations of Pacific countries

and Timor-Leste and strengthening

people-to-people links. These programs

diversify livelihoods and boost remittance

flows to support sustainable development,

increase the Pacific and Timor-Leste diaspora

in Australia and support a more integrated

education and labour market. Supporting

Pacific migration to Australia is an essential

part of the Government’s plan to deepen

connections with the Pacific and contribute

to a peaceful and prosperous region.

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The scheme has grown rapidly in recent years—from just 8,000 workers at the end of February 2020 to more than 38,000 at the end of October 2023.

The reforms introduced from July 2023 are the result of extensive consultation with stakeholders and include important safeguards for workers.

They include requirements for minimum hours of work, minimum rates of pay, improved welfare and wellbeing support, and managing grievances. Combined with effective, appropriately resourced oversight, these requirements limit the opportunity for unscrupulous operators to do the wrong thing. They also allow PALM workers to realise benefits of participating in the PALM scheme and exercise their rights as provided in Australian law. The number of Approved Employers participating in the PALM scheme since July 2023 has increased since the implementation of the new Deed and Guidelines compared to the number of employers participating under the previous deed.

The Government has strengthened oversight of the PALM scheme, expanded culturally appropriate worker support services, and is ensuring that relevant agencies will have the resources they need to hold unscrupulous

operators to account and enhance the integrity of the scheme as it grows.

The PALM scheme’s footprint within regional Australia will expand to better support employers across the nation, including small growers, to participate in the scheme. PALM scheme workers’ home countries will receive additional resources to support the mobility of their citizens who are suitable, willing and ready to undertake the journey to work for a time in Australia.

The Pacific will be considered in the context of changes to other parts of the migration system – including enhancements to protections for all temporary migrant workers. In particular, maintaining the primacy of our relationships with the Pacific and Timor-Leste will be a guiding principle in filling labour shortages in the design of the Essential Skills Pathway. This will ensure that international mobility pathways which support our regional relationships, such as the PALM scheme, will continue to deliver wins for workers, communities, Pacific countries and Australian businesses.

The Government has also been consulting extensively with Pacific partners on the design of the Pacific Engagement Visa (PEV) and is listening to ensure it meets shared needs and priorities.

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The special visa arrangement will enable Tuvaluans to send remittances, diversify livelihoods and acquire new skills which can be used to strengthen community resilience in Tuvalu.

Under the special visa arrangement citizens of Tuvalu will be permitted to migrate to Australia, with an initial allocation of 280 visas each program year. Both the Government of Australia and Tuvalu are working together to develop the special visa arrangement to ensure that it serves our shared interests and is in the interests of the people of both countries. The special visa arrangement is part of a package of cooperation under the Union, which also includes support from Australia for Tuvalu’s efforts to enable its people to continue to live and thrive in their territory and retain Tuvalu’s deep ancestral connections to land and sea.

EXISTING COMMITMENT: Making it easier for Southeast Asian businesses and eminent people to travel to Australia

At the Australia-Indonesia Annual Leaders’ Meeting in Sydney in July 2023, Prime Minister Albanese announced several changes to visa settings to drive deeper people-to-people links and economic cooperation. These included an extension of visa validity for Indonesian business visitors from three to five years, and the expansion of Australian SmartGates access to Indonesian e-passport holders. Australia also committed to commencing arrangements to give Indonesia access to the Frequent Traveller Stream, with a 10-year validity. In line with the recommendations of the Moore Report, these changes help to remove obstacles to commerce and travel between Indonesia and Australia.

The Government will explore further options to facilitate travel to Australia more broadly for Southeast Asian business people, frequent travellers and eminent people.

The PEV will enable up to 3,000 nationals of participating Pacific countries and Timor-Leste to migrate to Australia as permanent residents each year. In response to feedback, we have adjusted the design of the program to reduce barriers to participation by applicants and minimise disruption to the domestic labour markets of participating countries. The Government is also establishing an offshore support service to help connect Pacific Engagement Visa applicants with employers in Australia. A range of government benefits and supports will be extended to newly arrived visa holders to support their settlement in Australia and enable them to upskill, better equipping them to participate in the Australian job market.

Recognising that efficient visa arrangements help underpin people-to-people links between Australia and the countries in our region, the Australian Government is responding to requests from Pacific countries for enhanced visa arrangements to facilitate business and personal travel. New Pacific Service Centre arrangements have been established to priority process visitor visas for Pacific island nationals. The Government is actively looking for opportunities to streamline visa applications for Pacific cohorts, for instance through the inclusion of Fiji as a pilot country to trial the use of mobile technologies in the online visa application process.

EXISTING COMMITMENT: Providing a special visa arrangement for Tuvalu citizens under the Australia-Tuvalu Falepili Union

Falepili is a Tuvaluan word for the traditional values of good neighbourliness, care and mutual respect. These are the values that underpin the Australia-Tuvalu Falepili Union (the Union).

Under the Union, Australia has committed to establishing a special visa arrangement to enable Tuvaluans to live, study and work in Australia, with access to services that will enable mobility with dignity.

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The Government’s fifth objective of the

migration system is a ‘fast, efficient, and fair’

system that supports the other objectives.

Principally, simplicity is about creating a

system that is best able to seize opportunities

in the national interest. Without simplicity,

small businesses might not be able to fill

a critical role quickly, migrants might be

deterred from migrating to Australia and in

INTRODUCTION

Simplifying the migration system to improve the experience for migrants and employers

Why is simplicity desirable? When people call for ‘simplicity’ they are asking for their experience, when they use a system, to be clear, easy and fast. Government systems that are simple (and transparent) are perceived as more trustworthy.

Review of the Migration System79

8

EXISTING COMMITMENTS INCLUDE:

• Invested to reduce the visa backlog and modernise the visa system experience for migrants and employers.

the case of the Government, ‘complexity can

prevent reform being implemented quickly

or—sometimes—at all’.80

The migration system is inherently complex

and some complexity is unavoidable. The

question is therefore: how can government

make the migration system as simple as

possible for those who use it?

NEW COMMITMENTS INCLUDE:

• Abolish unnecessary and duplicative visas to simplify the visa system

• Embed simplification as a key objective of all actions in the Migration Strategy.

 94 MIGRATION STRATEGY

WHY ACTION IS NEEDED

Stakeholders’ submissions and consultation

during the Migration Review and the

development of the Migration Strategy

were consistent in advocating for a simpler

migration system. This feedback was

unanimous across migrants, employers,

education providers and governments—local,

state and federal. Sixty-five per cent of business

visa applications use migration assistance,

which is a sign that the system is not working

as desired.

This Strategy presents an opportunity to

reform many of the drivers of complexity,

where possible. This is about genuine

simplification—not just through fewer visas but

through simpler policy settings, streamlined

administration and technology, and better

collaboration with stakeholders.

ACTION

EXISTING COMMITMENT:

Invested to reduce the visa backlog and modernise the visa system experience for migrants and employers

The Government is already reforming the visa

system to improve the experience of potential

migrants and businesses. We have invested

more than $84 million on visa processing

staff to reduce the visa backlog and improve

processing times.

For example, the Temporary Skill Shortage

visas are now processed in an average of

11 days compared to 50 days, helping regional

businesses especially get access to the skilled

workers they need.

We have also invested $27.8m to enhance the

visa ICT systems. This investment commences

the delivery of a more flexible and responsive

visa system that is simpler to use and reduces

the time taken to process an application.

This work will also improve the Department’s

ability to manage current and emerging risks

in a rapidly changing and dynamic digital

environment, thereby improving the quality of

visa decision-making.

In a timely migration system, people know how long their application will take to be processed because maximum timeframes are established, processing is efficient, bridging visas are not overused when timing blows out, and citizenship is achievable.

Federation of Ethnic Communities Council

of Australia81

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NEW COMMITMENT: Abolish unnecessary and duplicative visas to simplify the visa system

Genuine simplification is more than a

reduction in the number of visas, but the

proliferation of visas has been a driver of

complexity in the migration system. With

around 100 visa products, it is difficult for

migrants and employers to navigate, and

hard for the Department of Home Affairs

to administer.

The Migration Review noted Australia is

relatively weak in attracting younger and

more highly educated migrants.82 Competitor

countries are simplifying eligibility criteria and

providing a seamless application journey and

we risk falling behind. As other countries make

simpler, more appealing offers to migrants, we

risk losing our edge in the global race for talent

because of our complex migration system.

To start reducing the administrative burden,

the Government will initially reduce the

number of visa subclasses by 20, for example

by merging offshore and onshore visa classes

such as the subclass 101 Child visa (offshore)

and the subclass 802 Child visa (onshore) into a

single Child visa. We will close some temporary

visas that are no longer receiving new

applications and merge others that essentially

perform the same purpose.

Our complex visa system not only risks losing

out on the skills we need, but creates a market

for third parties to exploit confused and

vulnerable visa applicants who can’t navigate

the system. This proposal simplifies family

migration visas by cutting the number of

options in half. The Family visa program is a

vital part of our attractiveness and supports

Australian citizens and permanent residents,

many of whom are skilled migrants.

This measure will not affect existing visa

holders or existing visa applications, but will

help reduce the administrative complexity in

the system and help migrants and employers

navigate fewer visa classes.

NEW COMMITMENT: Embed simplification as a key objective of all actions in the Migration Strategy

Building a simpler migration system is

broader than one key action in a roadmap. It is

a core objective of the Migration Strategy that

has been embedded across all actions and

commitments.

The next page provides a summary of

the drivers of complexity expressed by

stakeholders and a clear articulation of how

the Government proposes to build a simpler

migration system. The majority of these

changes have been explored under other

actions in the Migration Strategy.

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Table 3: How we will tackle complexity to build a simpler migration system

Theme Complexity expressed by stakeholders Government approach (recap)

Policy settings ‘Outdated’, ‘inflexible’, ‘multiple’ occupation lists

No occupation lists used for the Specialist Skills Pathway and a single new list for core skills, developed by Jobs and Skills Australia

Unclear pathways to permanent residence

Clear pathways to permanent residence for temporary skilled migrants and a pathway to citizenship for New Zealanders

High upfront employer costs Exploring a model for employers to pay trailing fees, rather than upfront fees

Unnecessary labour market testing requirements

Streamlined approach to labour market testing requirements

Complexity in the skills assessment process

Improved approach to skills recognition and assessment to unlock migrants’ potential

Duplicative visa classes Reduction in number of duplicative visa classes

Overreliance on 1800 labour agreements to meet industry or company specific needs

Clearer guidelines for labour agreements and simpler approaches to skilled migration

Complex process to establish DAMAs Commitment to evaluating the role of DAMAs, including how to improve the process

Administration and technology

No clear service standards for visa processing times

Clear service standards for visa processing of temporary skilled migrant workers and graduate visa holders

Lengthy visa processing times and a long visa backlog

Investment of $84m to reduce the visa backlog and visa processing times

Poor ICT user experience for migrants and employers

Investment of almost $27.8m to improve the visa ICT system

Complex naming conventions in the system, not focused on objectives

Clear descriptions of visas and pathways to signal the desired objectives – for example, the description of the new Specialist, Core and Essential Skills Pathways, and the Graduate visa changes

Collaboration with stakeholders

Unclear stakeholder points of contact with the Department of Home Affairs

Enhanced outreach officer program to establish direct points of contact into the migration system for key national organisations

Limited, short-term role for state and territory governments to select migrants to meet their needs

New multi-year migration planning model for greater foresight and responsiveness to state and territory government needs

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END NOTES

1 Commonwealth of Australia (2022) 2021 Census: Nearly half of Australians have a parent born overseas | Australian Bureau of Statistics (abs.gov.au)

2 Commonwealth of Australia (2023) Review of the Migration System 2023, p.1

3 Commonwealth of Australia (2023) Working Future – The Australian Government’s White Paper on Jobs and Opportunities, p.2

4 Commonwealth of Australia (2023) Review of the Migration System 2023, p.31

5 Commonwealth of Australia (2023) Review of the Migration System 2023, p.21

6 Commonwealth of Australia (2023) Review of the Migration System 2023, p.1

7 The Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs, Increase to Humanitarian Program (homeaffairs.gov.au) (media release), 11 August 2023

8 We came by boat – how refugees changed Australian business’, Bleby, Fitzsimmons and Khadem, Sydney Morning Herald, 10 September 2013

9 National Museum of Australia (n.d.) Trade with the Makasar, accessed 21 September 2023

10 Hasluck A (1959) Unwilling Emigrants: A Study of the Convict Period in Western Australia, Oxford University Press, Melbourne

11 McLean IW (2013) Why Australia Prospered: The Shifting Sources of Economic Growth, Princeton University Press, Princeton and Oxford, pp. 84-7

12 Markus, A. (1984), ‘Labor and Immigration: Policy Formation 1943-5’, Labour History, No. 46, May 1984, pp.21, 31

13 Persian, J. (2017) Beautiful Balts: From Displaced Persons to New Australians, NewSouth Publishing, Sydney

14 Commonwealth of Australia (2015) A History of the Department of Immigration, Department of Immigration and Border Protection, p.32

15 National Archives of Australia (n.d.) Malcolm Fraser: during office | naa.gov.au

16 Referenced in multiple sources, including: Reserve Bank of Australia (2010), Twenty Years of Economic Growth | Speeches | RBA; Parliament of Australia, Parliamentary Library (2018), 27 years and counting since Australia’s last recession – Parliament of Australia (aph.gov.au)

17 Commonwealth of Australia (2022) 2021 Census: Nearly half of Australians have a parent born overseas Australian Bureau of Statistics (abs.gov.au), Australian Bureau of Statistics

18 Commonwealth of Australia (2023) Review of the Migration System 2023, pp. 11-12

19 Commonwealth of Australia (2023) Working Future – The Australian Government’s White Paper on Jobs and Opportunities, p.11

20 Productivity Commission (2023) 5 year Productivity Inquiry: A more productive labour market, Vol. 7, Inquiry Report no. 100, Canberra, p.14

21 Commonwealth of Australia (2023) Australia’s goods and services by top 25 exports 2022 (dfat.gov.au), Department of Foreign Affairs and Trade

22 Commonwealth of Australia (2023) Intergenerational Report 2023, p.61

23 Commonwealth of Australia (2023) The Clean Energy Generation – Workforce needs for net zero economy, Jobs and Skills Australia, p.261

24 Commonwealth of Australia (2023) Working Future – The Australian Government’s White Paper on Jobs and Opportunities, p.201

25 Central Intelligence Agency (2022) The World Factbook Country Comparisons: Net Migration Rate, CIA, accessed 8 February 2023

26 Organisation for Economic Co-operation and Development (2019) Benchmarking Higher Education System Performance, OECD

27 Higgins HB (1915) ‘A New Province for Law and Order: Industrial Peace through Minimum Wage and Arbitration’, Harvard Law Review, Vol. 29, No. 1 (November,1915), pp.13-39; Nairn B (1973) Civilising Capitalism: The Labor Movement in New South Wales 1870-1900, Australian National University Press, Canberra; Kelly P (1992) The End of Certainty: The Story of the 1980s, Allen & Unwin, Crows Nest, pp.1-2; Kelly P (2001) 100 Years: The Australian Story, Allen & Unwin, Crows Nest, pp.98-9

28 Commonwealth of Australia (2023) Working Future – The Australian Government’s White Paper on Jobs and Opportunities, p.51

29 Commonwealth of Australia (2023) Working Future – The Australian Government’s White Paper on Jobs and Opportunities, p.51

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31 Scanlon Foundation Research Institute, Australian Cohesion Index 2023, SFRI, p. 8

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33 Commonwealth of Australia (n.d.), Snapshot of Cities and Regions, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, p.4, accessed 20 September 2023

34 Commonwealth of Australia (2023) Review of the Migration System 2023, p. 31

35 Commonwealth of Australia (2023) Review of the Migration System 2023, p.109

36 Commonwealth of Australia (2019) Report of the Migrant Workers Taskforce, March 2019, p.13

37 Boucher A (2016) ‘Chapter 2: Australia’s de facto low skilled migration program’, in Migration: the economic debate, CEDA

38 Coates, B, Reysenbach, T (2022) The Goldilocks wage threshold for temporary skilled migrants – Grattan Institute, Grattan Institute

39 Regional Institute of Australia (2022) Migration Review submission p.4

40 Technology Council of Australia (2022) Migration Review submission p.14

41 United Workers Union (2022), Migration Review Submission, p.4

42 Commonwealth of Australia (2023) Working Future – The Australian Government’s White Paper on Jobs and Opportunities, p.55

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43 Clibborn, S and Wright, C (2022) Migration Review submission, p.17; Clibborn, S. & Wright, C.F. 2023. Proposing mobility visas as an alternative to employer sponsorship: Addressing inequalities in the treatment of temporary migrant workers, Economic and Labour Relations Review, doi:10.1017/elr.2023.56

44 Commonwealth of Australia (2023) Review of the Migration System 2023, p. 90

45 Commonwealth of Australia (2023) Review of the Migration System 2023, p. 90

46 Commonwealth of Australia (2023) Review of the Migration System 2023, p. 9

47 Coates B, Sherrell H and Mackey W (2021) Rethinking permanent skilled migration after the pandemic, Grattan Institute, p.10

48 Commonwealth of Australia (2023) Review of the Migration System 2023, p.63

49 Grattan Institute (2022) Migration Review submission, p.62 50 The Australian Government – the Treasury (2021) The

lifetime fiscal impact of the Australian permanent migration program

51 Varela, P, and Breunig, R (2023) Determinants of the economic outcomes of Australian permanent migrants, Tax and Transfer Policy Institute, Australian National University

52 Home Affairs data FY2015-16 to FY2021-2022 53 Commonwealth of Australia (2023), Joint Standing

Committee on Foreign Affairs, Defence and Trade, Inquiry into Australia’s tourism and international education sectors, Quality and integrity – the Quest for Sustainable Growth: Interim Report into International Education, Parliament of Australia, p.137-138, accessed 24 November 2023

54 Berg, L and Fardenblum Bassina (2020) International Students and wage theft in Australia, p.8

55 Commonwealth of Australia (2023) Review of the Migration System 2023, p.113

56 Tang A, Perales F, Rowe F and Baxter J (2022) From bad to worse: examining the deteriorating labour market outcomes of international graduates in Australia, Journal of Population Research, 39:441-473

57 Commonwealth of Australia (2023) Review of the Migration System 2023, p.106

58 Coates, B, Wiltshire T, Reysenbach, T (2023) Graduates in limbo: International student visa pathways after graduation, Grattan Institute, p.57

59 Commonwealth of Australia (2023) Review of the Migration System 2023, p.108

60 Commonwealth of Australia (2023) Review of the Migration System 2023, p.99.

61 Commonwealth of Australia (2023) Review of the Migration System 2023, p.111

62 Fair Work Ombudsman (2022) Migration Review Public Submission, p.6

63 Commonwealth of Australia (2019), Report of the Migrant Workers’ Taskforce, p.33

64 Coates, B, Wiltshire T, Reysenbach, T (2023) Short- changed: How to stop the exploitation of migrant workers in Australia, Grattan Institute, p.3

65 Nixon, C (2023) Rapid Review into the Exploitation of Australia’s Visa System, p.24,

66 Commonwealth of Australia (2023) Intergenerational Report 2023, p.37

67 Australian Manufacturing Workers Union (2022) Migration Review submission, p. 2

68 Coates B, Wiltshire T and Reysenbach, T (2022) Australia’s migration opportunity: how rethinking skilled migration can solve some of our biggest problems, Grattan Institute

69 Commonwealth of Australia (2023) Review of the Migration System 2023, p. 36

70 Commonwealth of Australia, Snapshot of Cities and Regions, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, p.4

71 The Hon Andrew Giles MP (2023) Media release: Changes to Australia’s Working Holiday Maker Program and the UK’s Youth Mobility Scheme, 31 May 2023

72 Commonwealth of Australia (2023) Review of the Migration System 2023, p.128

73 Commonwealth of Australia (2023) Review of the Migration System 2023, p.124

74 Commonwealth of Australia (2016) Inquiry into the wages and conditions of people working under the 417 Working Holiday visa program, Fair Work Ombudsman, p.3

75 Howe J, Clibborn S, Reilly A, van Den Broek D and Wright CF (2019) Towards a Durable Future: Tackling Labour Challenges in the Australian Horticulture Industry, The University of Adelaide, p.2

76 Parliament of the Commonwealth of Australia (2020) Final Report of the Inquiry into the Working Holiday Maker Program (aph.gov.au), Joint Standing Committee on Migration, p.v

77 Howe J, Clibborn S, Reilly A, van Den Broek D and Wright CF (2019), Towards a Durable Future: Tackling Labour Challenges in the Australian Horticulture Industry, The University of Adelaide, p.95

78 Commonwealth of Australia (2023) Australia’s International Development Policy, Department of Foreign Affairs and Trade, p.13

79 Commonwealth of Australia (2023) Review of the Migration System 2023, p.175

80 Commonwealth of Australia (2023) Review of the Migration System 2023, p.175

81 Federation of Ethnic Communities Council of Australia (2022) Migration Review submission, p.3

82 Commonwealth of Australia (2023) Review of the Migration System 2023, p.70

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