The Australian Government is embarking on a comprehensive reform of the Australian immigration system, aiming to attract skilled foreign workers and provide a pathway to permanent residency for temporary workers.

During a speech at the National Press Club (NPC), Minister of Home Affairs Clare O’Neil unveiled plans for a Canada-like points-based system to address the growing preference of global talent for Canada over Australia as a work destination.

Recognizing the competitive nature of the international talent market, the Australian government intends to introduce a points-based immigration system modeled after Canada’s successful approach. While Australia already has a points-based migration system in place, it is currently limited by occupation quotas specific to individual states and territories. The existing system has been criticized for its high competitiveness, lengthy processing times, expensive visa applications, and its relatively limited success in attracting highly skilled migrants.

In contrast, Canada’s points-based system is renowned for its innovation, simplified eligibility criteria, generous visa conditions, expedited processing, strategic marketing, absence of state or territory limitations, and a seamless application process.

Acknowledging the shortcomings of the current Australian immigration system, Minister Clare O’Neil aims to implement new migration policies that will ensure Australia remains an attractive destination for skilled foreign workers, fostering their contributions to the local labor market.

Through these proposed reforms, the Australian government aspires to create a more efficient and effective immigration system, facilitating the entry of highly skilled migrants and strengthening the country’s position in the global talent competition.

Why are changes required in the Australia immigration system?

The need for changes in the Australian immigration system has been highlighted in the Government’s Migration Strategy, titled “A Migration System for a More Prosperous and Secure Australia.” The current system has been deemed inadequate in delivering desired outcomes for both Australia and migrants, necessitating the implementation of a more targeted and simplified approach that serves the national interest and enables migrants to thrive.

According to the report, the existing immigration system lacks clear direction, is overly complex, inflexible, inefficient, and falls short of meeting the needs of Australians and migrants alike. It fails to prioritize migrants who can contribute to Australia’s economic prosperity, resulting in a decline in the number of skilled migrants choosing Australia as their preferred destination. Additionally, there is a growing concern that the selection process does not sufficiently emphasize the skills of potential migrants.

The complexity of the current immigration system poses challenges for migrants and employers alike. In comparison, Canada has established itself as a more attractive option by offering a simpler and more appealing experience for skilled migrants.

In light of these issues, the proposed changes aim to address the shortcomings of the existing system and create an immigration framework that better aligns with Australia’s economic goals and aspirations. By streamlining processes, enhancing transparency, and focusing on the skills and contributions of migrants, Australia seeks to build a more prosperous and secure future for the nation and those seeking to call it home.

What are the proposed changes in the Australia immigration system?

The Australian government plans to leverage the expertise of state and territory governments by fostering collaboration and enhancing data collection. By adopting a place-based approach, the government aims to move away from the intricate visa regulations currently imposed by individual states and territories, towards a more streamlined and efficient points-based system. This shift will facilitate a smoother and more consistent immigration process, benefiting both the government and prospective migrants.

Australia is set to make significant changes to its migration systems in the coming months, aimed at streamlining and simplifying the skilled visa program by:

• Streamlining and simplification of the skilled visa program to enhance its efficiency.
• Introduction of a three-tiered processing system categorizing applicants based on their skill levels: highly skilled, mainstream, and essential workers.
• More pathways to permanent residency (PR) for Australia student visa holders (subclass 500), offering increased opportunities for international students to settle in Australia permanently.
• Introduction of PR pathways for Employer Sponsored visa holders, facilitating a smoother transition for skilled workers sponsored by Australian employers.
• Increasing the minimum salary threshold for Employer Sponsored visa applicants to ensure fair wages and protect the interests of both local and migrant workers.
• Modification of Australia’s student visa rules to ensure genuine engagement in studies and support the country’s skill needs.

Top 5 changes in Australia immigration that are expected to come into effect from July 1, 2023

• Increase in the Temporary Skilled Migration Income Threshold (TSMIT) to AUD 70,000, up from the current AUD 53,900, ensuring a higher income benchmark for temporary skilled workers.
• Visa extension eligibility for certain Temporary Graduate (subclass 485) visa holders, allowing them to stay in Australia for an additional two years after completing their studies.
• Expansion of international students’ work rights to allow them to work up to 48 hours within a two-week period, providing more employment opportunities.
• Exemption from the 48-hour per fortnight work limit for international students working in the aged care sector until December 31, 2023, recognizing the crucial role they play in this sector.
• Increase in visa application charges, reflecting the costs associated with processing and administration.