7. Skilled Migration
   1. A key role of nation building is delivering a robust, dynamic, innovative, and productive economic foundation to the nation that provides wellbeing and prosperity and ensures that Australia has the human capital to proactively adapt to future needs. Central to this is the supply of necessary skills, knowledge, and experience to support and grow the economy in pioneering ways. Migration has a vital role to play in supplying skilled workers that cannot be sourced domestically.
   2. In this context, migration is a powerful policy lever for infusing skilled workers that can innovate and drive economic adaptation and change and assist in future-proofing the economy for the coming decades. When used strategically, migration can be a central enabler of nation building by supercharging national economic capacity.
   3. Added to this, the nation currently faces large-scale workforce shortages that cannot be filled through domestic supply alone. As the then Minister for Skills and Training has recently noted in an address to the Committee for Economic Development of Australia (CEDA):

Widespread skill shortages in almost every industry sector pose one of our greatest economic challenges in decades.[1]

It is essential that skilled migration is a key feature in the policy response to help alleviate these workforce shortages.

7.4From the perspective of nation building, moreover, it is vital that Australia maintains viable pathways to permanent residency and citizenship for those skilled migrants who will most help promote the prosperity of the nation into the future.

The Benefits of Skilled Migration

7.5Skilled migration provides a range of benefits to the nation. Centrally, skilled migration is a key driver of productivity growth and rising living standards, positive fiscal outcomes for government, and the supply of skilled workers to supplement Australia’s domestic workforce. Skilled migrants, and migrants more generally, also enrich Australian society and culture.

Productivity Growth, Rising Living Standards and Fiscal Gains

7.6The supply of in-demand skills to the labour market in sufficient quantities is vital for productivity growth. Businesses need to be able to access skilled workers to drive innovation and ingenuity and to quickly respond to commercial opportunities as these arise. Appropriately skilled workers also allow firms to better adopt new technologies and improve asset use. Crucially, as highlighted by the Productivity Commission (PC), the productivity of labour has been a central factor in Australia’s rising living standards over the last 60 years and continues to be so.[2]

7.7According to the Reserve Bank of Australia (RBA), ‘productivity’ is defined as ‘the amount of real production (GDP) per labour hour worked’, which is determined by, among other things, ‘the amount of capital available to each worker, the rate of technological progress and how efficiently resources (like labour and capital) are used to produce goods and services.’ Essentially, productivity is a measure of how efficiently businesses use resources. Crucially, as the RBA points out, increasing productivity, rising real wages, and improvements in living standards tend to align.[3]

7.8Concerningly, in Australia, as in other similar advanced economies internationally, productivity has been declining over the last couple of decades. From an average labour productivity growth of 2.1 per cent from the 1990s to the mid-2000s, average labour productivity over the 2010s has been just 1.2 per cent.[4] Indeed, as noted by the PC, in 2020, average annual labour productivity growth was the slowest it has been in 60 years.[5]

7.9The impact of this slowdown in productivity growth is that the ‘economic pie’ available to Australians will be smaller than it otherwise would have been and that, as a result, Australians will have to work relatively more hours to afford fewer goods and services than would otherwise be the case.[6]

7.10One of the key challenges for boosting the productivity of the Australian economy is ensuring a supply of appropriately skilled workers and matching those skills with jobs in the labour market. The ability of the economy to meet the present and future demand for skills is dependent on a range of factors, including, our education and vocational training systems, the delivery of on-the-job training, the level of workforce participation, and the migration system.

7.11While education and training are vital for ensuring Australians are equipped to maximise opportunities in the economy and anticipate future labour market demands, migration offers an important source of existing skills that can be tapped to meet strategic requirements as these emerge and change.[7]

7.12Migration has particular significance for Australia within the context of declining productivity. As highlighted by the PC, skilled migration can act as a key driver of productivity gains:

Skilled migration makes a strong contribution to productivity through an inflow of skills, ideas, and innovation into the labour market.[8]

7.13The World Bank has recently highlighted ‘the aggregate economic gains’ of migration when the skills and experience of the migrant matches the labour demands of the destination country. They note:

The more migrants’ skills match the needs of the destination labour market, the larger are the gains for the destination economies and the migrants themselves—and often the origin countries as well (through remittances and knowledge transfer).[9]

7.14Related to this point, the Government of South Australia submitted that migrants, in particular skilled migrants, tend to be of working age and have skills and qualifications that are highly sought after in the Australian labour market. This means that such migrants have higher participation rates than the population more generally and play a significant role in driving improvements in productivity.[10]

7.15Together with productivity improvements, skilled migrants also produce fiscal benefits. As highlighted by the World Bank, ‘on average, the net fiscal contributions of migrants and naturalized citizens in Organisation for Economic Co-operation and Development (OECD) countries are higher than those of native-born citizens’ (Figure 7.1).

Source: World Bank, Migrants, Refugees, and Societies, World Development Report 2023, p. 166.

7.16In the Australian context, the proportion of migrants coming into the country that are skilled (roughly 70 per cent of the total intake) is higher than in most other OECD countries, which may have a higher proportion of family and/or humanitarian migrants. This means that while some OECD countries may experience a negative fiscal impact due to migration, in Australia the aggregate fiscal impact is positive.[11]

7.17As submitted by VETASSESS, the Commonwealth Treasury analysed the combined Commonwealth and State fiscal impact of the 2018-19 migrant intake—broken into Skill, Family, and Humanitarian cohorts—over their remaining lifetime and contrasted this to the wider Australian population. As shown in Figure 7.2, while skilled migrants had an aggregate positive fiscal impact of $198,141, the wider Australian population had an aggregate negative fiscal impact of $85,248. Across all categories of migrant, the average aggregate fiscal impact was positive, at $41,307.

Source: VETASSESS, Submission 89, p. 6.

Supplementing Australia’s Domestic Workforce

7.18While there have been concerns raised about the potential negative impact of migration on the wages and conditions of local workers, evidence received by the Committee indicates that such concerns are largely without merit. The Grattan Institute, for instance, submitted that the Australian case finds ‘no evidence that migration harmed the aggregated labour market outcomes of incumbents’, while international evidence ‘examining the aggregate impact of migration on the labour market generally supports this story.’[12]

7.19Similarly, the Business Council of Australia highlighted that ‘evidence shows that migrant workers do not supress local wages or take jobs from Australians’ and in fact have positive impacts in some cases. VETASSESS also supported this assertion, citing research that indicates ‘in some cases, an increase in migrant concentrations in certain levels of qualification and experience is associated with a positive impact on wages and employment’.[13]

7.20Continuing, VETASSESS argued that:

By extension, the implication is that if migrants a high quality, through their contributions to the productive capacity of the nation, they will create more jobs than they take.[14]

7.21Further to this, in a previous inquiry, this Committee found that where possible, Australian businesses will consistently choose to employ local workers rather than going through the costly and time-consuming process of bringing in skilled migrants.[15]

7.22Despite the preference of Australian businesses to hire locals, as touched on above and dealt with in more detail below, the Committee heard evidence of endemic skills shortages in key sectors of the economy that cannot be overcome through domestic supply alone. In this context, skilled migration must play an important role in supplementing Australia’s domestic workforce.

Enriching Australian Society and Culture

7.23While this chapter is primarily concerned with the economic contribution skilled migrants make and how this buttresses nation building efforts, skilled migrants are also valuable for the contribution they make to enriching Australia society and culture.

7.24Related to this, in its submission to the inquiry, the Migration Hub at ANU recounted what Swiss novelist and playwright Max Risch had said about guestworkers to Europe in the 1950s and 1960s: ‘We wanted workers, we got people instead’.[16] While this reflects a truism about the migration process—that it involves the movement of people—it is important to recognise that the value of migration for nation building is not limited to the economic utility that migrants bring, it is their contribution to making and shaping societies that is most vital.

7.25Indeed, on this point. Professor Joy Damousi, Dr Rachel Stevens, and Dr Mary Tomsic informed the Committee that ‘[r]ecent studies have indicated how significantly immigration has empowered and enabled the development of sustainable economic and social communities in both cities and regional areas’.[17]

7.26Speaking to the societal impact of migration on the Local Government Areas of South East Melbourne, including Greater Dandenong, SEMMA (South East Melbourne Manufacturers Alliance) submitted the following:

Not only do these immigrants work and live—paying rates and spending money—in the municipality but they bring a vibrancy to the area which is renowned, with eateries and markets which draw people from well outside the Dandenong area.

….

The social life of the community is enhanced by the contribution of people bringing their positive cultural models and traditions to the community.[18]

7.27As one other concrete example of the societal contribution that migrants make to Australia, the Australian Academy of Technological Sciences and Engineering highlighted the ‘enormous’ contribution migrants make to Australian science and technology research and noted that ‘approximately one-third of the Prime Minister’s Prize for Science winners since 2000 [were] born overseas’. They, further, emphasised the ‘diversity of experience, cultural background and approaches to problem-solving’ that migrants have improved the nation’s ability to ‘respond to emerging challenges’.[19]

7.28The Australian Chamber of Commerce and Industry emphasised the benefit skilled migration brings to the culture of Australian businesses by ‘providing a diversity of thinking and positive network of connections to the rest of the world’. Continuing, they submitted the following:

Cultural diversity in the business setting fosters the development of global linkages, opening up new markets for Australian businesses. These businesses have also benefitted from diversity in their workforce as it encourages critical and alternative thinking stemming from contrasting experiences and cultural contexts, often leading to innovation.[20]

7.29The Accommodation Association of Australia, the Australian Hotels Association, and Tourism Accommodation Australia, also addressed the positive benefits accruing from the diversity brought by migration. They pointed to the ‘unique cultural experiences, traditions, and languages’ brought by migrants and how these ‘enrich the country’s social fabric’. This, moreover, ‘promotes social harmony and understanding between different communities, making Australia an attractive destination for tourists’.[21]

The Impact of Skills Shortages

7.30Australia faces unprecedented workforce shortages across a wide array of industries. As highlighted by VETASSESS, the number of unemployed persons for every job vacancy is at an all-time low (Figure 7.3), meaning that businesses are struggling to find appropriately skilled workers to fill roles. The Committee heard evidence from a range of witnesses on the negative impacts these skills shortages are having on Australian businesses, industries, and wider society.

Source: VETASSESS, Submission 89, p. 1 (Note: the break in the chart reflects a suspension on the ABS’s job vacancy survey between May 2008 and November 2009).

7.31The NSW Government, for example, noted that Australia is currently facing significant workforce shortages in critical government services, such as health, aged and disability care, and education. They also noted the importance of ensuring a supply of skilled workers to fill roles in ICT, engineering, international education, tourism, agriculture, defence and aerospace industries, and clean energy.[22]

7.32The Australian Small Business and Family Enterprise Ombudsman informed the Committee that one-third of all Small and Medium-sized Enterprises (SMEs) anticipate experiencing a ‘very significant’ impact on their business over the next 12-months due to labour shortages. This impact was being felt most acutely in the construction sector, where one-half of all SMEs reported significant difficulty in hiring labour.[23]

7.33In the education sector, Independent Schools Australia cautioned the Committee that workforce shortages within the industry ‘will directly impact the capacity of Australia’s education system and have flow on impacts for student achievement, and ultimately, for Australian productivity’.[24]

7.34SEMMA) submitted that skills shortages have led manufacturing companies ‘having to turn away profitable orders.’[25]

7.35The Chamber of Minerals & Energy of Western Australia noted that labour market shortages, while delivering a benefit in terms of improved local workforce participation, constrained local business. For the resource sector, ‘the unprecedented demand for skilled workers has exacerbated long-standing skill shortages in a number of critical areas (for example, experienced and specialised skills) and placed new stresses in the local labour market.’[26]

7.36The Australian Automotive Aftermarket Association highlighted the ‘real economic impacts’ skills shortfalls are having on many local businesses and reported that businesses are paying 30-50 per cent ‘above the award rate but are still unable to find workers’. The effect of this, they contend, is that it is no longer economically viable for businesses to ‘scale up to meet demand’ and that the shortages will result in decreased consumer choice for servicing and increased wait times and costs across the nation.[27]

7.37The Smart Energy Council (the Council), meanwhile, noted that Australian Government policy to transition to 82 per cent renewable energy by 2030 required 600,000 direct and indirect workers by 2030. The Council expressed concern that without ‘significant intervention and investment the total workforce deficit will cripple effort to transform the energy network’. They noted reports of current shortages of up to 15,000 electricians and potentially 41,000 engineers and argued that migration is ‘an important policy lever’ to assist with meeting these shortages.[28]

7.38The impact of skills shortages on health and aged care, education, the tech sector, and building and construction are examined in more detail in the final section of this chapter.

Addressing Australia’s Skill Requirements

7.39Australia’s migration system aids in alleviating skills shortages and contributing to the skills base within the economy by providing working visas to overseas nationals, either on a permanent basis, through the Skilled Migration Program, or temporarily, through a number of different temporary visa offerings.

Skilled Migration Program

7.40As noted in relation to skilled migration more generally, Australia’s Skilled Migration Program is designed to infuse vitally needed skills into the labour market to meet workforce and skills shortages that cannot be met through domestic supply. It provides visas for foreign workers with specialised skills earning above average wages to enter and work in Australia permanently. These workers add resilience to the economy by providing crucial skills, knowledge, experience, and innovative practices to Australian businesses, adding to capacity, providing interpersonal connections to the global economy, and allowing businesses to take advantage of new technologies. Most crucially, as noted above, these workers aid in boosting productivity and increasing Australia’s per capita GDP—that is, improving our standard of living.[29]

7.41Skilled foreign workers entering via the migration program are younger than the Australian average, are at an age more likely to have children, and contribute more to government revenue than they take via government services and benefits. This plays a significant role in counterbalancing the impacts of Australia’s ageing population.[30]

7.42The Department of Home Affairs emphasises that the skilled migration program is designed to safeguard the jobs and working conditions of Australians by ensuring that visas are only granted to highly skilled people in roles that cannot yet be filled by appropriately skilled Australian workers and by requiring that wages paid to skilled visa grantees be above the Australian average.[31]

7.43In total, there are seven categories under the skilled migration stream: 1) Employer Nomination Scheme; 2) Skilled Independent; 3) Regional, 4) State and Territory Nominated; 5) Business Innovation and Investment Program; 6) Global Talent Program; and 7) Distinguished Talent.

7.44These categories can be summarised under the following four program types:

1General skilled migration: for skilled workers who do not have an employer sponsoring them, but possess desirable skills, attributes and social capital, and who are able to pass the points test. This category includes the skilled independent and State and Territory nominated visas.

2Employer sponsored migration: for applicants are sponsored by an employer. This category includes regional sponsored visas and visas granted under a Labour Agreement.

3Business and investment migration: which encourages successful entrepreneurs and business people to settle in Australia, develop new business opportunities and support the innovation ecosystem.

4Global and Distinguished Talent: for exceptional individuals who are internationally recognised as outstanding in their field.[32]

7.45Alternatively, the various streams can be separated according to basic eligibility requirements:

1Independent streams (incorporating Skilled Independent, Regional, and State/Territory Nominated visas): requiring applicants to be assessed and selected through a points test, but not requiring sponsorship for employment, and submit an Expression of Interest (EOI);

2The employer sponsored stream (Employer Nomination Scheme visas): requiring applicants to be nominated by a company willing to employ them; and

3Other talent and innovation streams (Global Talent, Business Innovation and Investment, and Distinguished Telent visas): requiring applicants to submit an EOI and be nominated by an eligible party.

7.46For 2024-25, the skilled migration stream has been set at 132,200 places, which accounts for approximately 70 per cent of the overall migration program, at 185,000.[33] Table 7.1 shows the planning levels for the Skill stream of the Migration Program for 2022-23, 2023-24, and 2024-25.

Source: Department of Home Affairs, Migration Program planning levels, https://immi.homeaffairs.gov.au/what-we-do/migration-program-planning-levels

7.47Of note, the Australian Government announced in the 2024-25 federal budget that the Business Innovation and Investment visa will be discontinued. According to the Department of Home Affairs, the Migration Review ‘concluded that the BIIP is delivering poor economic outcomes for Australia’, a finding supported by research by Treasury, the PC, and the Grattan Institute. Additionally, the Government also announced that the Global Talent visa will transition to new arrangements under a new National Innovation visa. The Global Talent visa is discussed in greater detail below.

7.48A breakdown of the percentage allocation/planned allocation (to 2023-24) of the Skill stream by category is included below at Figure 7.4. According to the Department of Home Affairs, the composition of the Skill stream is intended to address structural deficits in the labour market, add sought-after skills and innovative thinking into the economy, and drive productivity growth.[34]

Source: Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 26.

7.49The PC has highlighted the economic benefits of Australia’s skilled migration program. It notes:

Overall, Australia’s skilled migration program accounts for the vast majority of permanent migration and has substantially higher net fiscal impacts than incumbent Australians as estimated over the lifetime.[35]

7.50While acknowledging this benefit, the Australian Government’s Migration Strategy seeks ‘to maximise Australia’s long-term prosperity’ through the migration program. In contrast to temporary skilled migration, according to the Migration Strategy, which should function to fill genuine and critical labour shortages in the economy, the permanent program should ‘focus on the factors that best contribute to lifting Australia’s long-term economic productivity and workforce participation.’ The Migration Strategy highlights scope to further sharpen the focus of the program ‘to boost prosperity and remain competitive.’[36]

7.51The Migration Strategy commits to new measures to reshape skilled migration, including:

1Exploring a reformed points test to better identify migrants who will drive Australia’s long-term prosperity;

2Considering development of a new Talent and Innovation visa to drive growth in sectors of national importance;

3Planning migration over a longer-term horizon to better manage the migration intake, with greater state ant territory collaboration; and

4Bringing an evidence-based, tripartite approach to evaluation and monitoring.[37]

7.52Related to this point, in evidence to the Committee the Migration Institute of Australia (MIA) cautioned about an overreliance on employer sponsored migration over other skilled migrations streams, such as those in the independent streams. While acknowledging the clear economic and fiscal benefits derived from employer sponsored migration, the MIA warned that a focus on employer sponsored migration can potentially…

… skew skilled migration towards the “importation” of currently required skills in a narrow band of occupations and negatively impact the investment in Australia’s human capital afforded by skilled migration.[38]

7.53Continuing, they noted that the ‘quality of a country’s human capital reserves underpins the quality of its future’ and asserted the migration program must aim to ‘build the country’s bank of human capital’. As such,

A balance in allocation of places must be maintained within the program of employer sponsored, skilled independent and ‘high talent’ type visas.[39]

7.54As discussed in further detail below, they argued against the use of skilled migration occupation lists in demarcating eligible occupations for migration purposes. Such lists, they claimed…

…provide a significant barrier to Australian industries and businesses where occupations are not included on these lists, impacting their ability to source sufficient labour to operate or increase their productivity and in turn grow the economy.[40]

Employer Nomination Scheme

7.55The Employer Nomination Scheme visa (subclass 186) allows Australian businesses to nominate skilled overseas workers to live and work permanently in Australia. Additionally, this subclass allows sponsored workers to transition from a Temporary Skill Shortage (TSS) visa (subclass 482) to a permanent visa via the Temporary Residence Transition stream of the Employer Nomination Scheme visa.

7.56The Employer Nominated Scheme consists of the following three streams:

1Temporary Residence Transition (TRT) stream, for TSS visa holders wishing to transition to a permanent visa;

2Direct Entry stream, for persons who have not held a TSS visa; and

3Labour Agreement stream.[41]

7.57Businesses wishing to employ an overseas worker via an Employer Nomination Scheme visa are required to go through a number of steps, including:

• Ensuring that the occupation they are sponsoring an overseas worker for is on the list of eligible skilled occupations, or otherwise enter into a labour industry agreement that covers the occupation;
• Demonstrating that there is a need for a migrant worker, as opposed to a local, which may involve Labour Market Testing (LMT);
• Ensuring that the salary for the nominated position is no less than the applicable market salary for the occupation;
• Applying to become an approved sponsor or an accredited sponsor (the latter category of sponsor receives priority processing of applications); and
• Committing to sponsor the visa applicant for three years and employ them for at least two years.[42]
  58. Nominating employers are required to pay a nomination fee and the Skilling Australians Fund levy. Exact costs depend on 1) visa stream and location of the business for the nomination fee, and 2) the business size for the Skilling Australians Fund levy. The Skilling Australians Fund is discussed in more detail below.[43]
  59. Applicants applying for an Employer Nomination Scheme visa are required to undertake a number of steps for the application process, including:
• Be nominated by an approved sponsor;
• Undertake English, skills, qualifications, work experience, health, and character assessments;
• Be under 45 years of age, or otherwise provide documentation showing that they are exempt from the age eligibility criteria (for example, for academics; scientists, researchers, or technical specialists; and Special Category visa holders who have worked for the nominating employer for at least two years in the last three before applying).[44]
  60. Visa grantees are expected to work for their nominating employer for at least two years.[45]
  61. On 27 April 2023, the then Ministers for Home Affairs, and Immigration, Citizenship and Multicultural Affairs announced that by the end of 2023, holders of TSS visas in the short-term stream would have a path to permanent residency via a TRT visa.[46] Previously, this pathway was only available for TSS visa holders in the medium-term stream.
  62. As noted by the Business Council of Australia, Treasury modelling shows that this category of visa holders ‘have the most positive lifetime fiscal impact for the nation, as compared with other visa categories and classes.’ They elaborated:

These workers are brought into the country to do a specific job, when a suitable local worker cannot be found. This means they arrive in Australia fully employed, selected by their employer based on their specific expertise and skill set for the specific job necessary, immediately contributing to our economy.[47]

7.63This point was confirmed by the Grattan Institute, citing Treasury research, which highlights that Employer Nominated Scheme visa recipients have a net positive fiscal outcome of $560,000. This contrasts, for example, to Independent stream visa holders who have a net positive fiscal impact of $390,000 and Business Innovation and Investment (Provisional) (subclass 188) visa holders who have a net negative fiscal impact of $120,000 (Figure 7.5).

Source: Grattan Institution, Submission 17, p. 50.

7.64The Grattan Institute criticised the current employer sponsored visa system as ‘both more complex and less certain’ than it was before and called for the permanent stream to be radically simplified and its purpose overhauled. They suggested that the permanent skilled program should not be ‘about skill shortages at all’, but rather aim to attract younger skilled workers, ‘whatever those skills may be’ for permanent residence in Australia. Noting the long-term fiscal benefits that younger skilled migrants bring to the nation, they suggested that the permanent skilled migration program should target ‘younger skilled talent to stay in Australia in the long term, not address skill shortages’.[48]

7.65On the idea of de-tethering permanent skilled migration from reactively addressing skills shortages in the economy, the Grattan Institute noted that:

It’s trying to predict those jobs of the future, what the critical jobs of the future are. It’s very hard to do. It’s hard to see why a government agency would know better than a growing business about what the most critical jobs are.[49]

7.66To fundamentally simplify the system, they suggested that employer sponsorship for permanent migration should be available for overseas workers in any occupation earning more than $85,000 per annum. They explained the rationale for this suggestion in the following way:

This would better target migrants with valuable skills; simplify and speed up the sponsorship process; offer clearer pathways to permanent residency for temporary sponsored workers and recent graduates; and boost Australian government budgets by $125 billion over the next 30 years.[50]

7.67Acknowledging that a $85,000 salary threshold may be too high for some businesses to be able to sponsor skilled workers for permanency, the Grattan Institute suggested that the threshold may be flexibly adjusted according to the age of the applicant. Recognising that the ‘fiscal dividend’ is ‘substantially higher’ for younger skilled migrants, they suggested that an applicant between the age 25-29, for example, could attract a salary threshold of $75,000.[51]

7.68In a similar vein, the Business Council of Australia called for open eligibility for skilled visas for any overseas worker moving into a job in Australia with a salary above $92,000, ‘the full-time adult average weekly earnings’.[52]

7.69Several submitters called for greater portability for employer sponsored visas. Acknowledging that there is an increased risk of worker exploitation if visa conditions tie a person to a single employer, submitters suggested that sponsorship be shifted from individual employers to the industry.[53]

7.70The Business Council of Australia, by contrast, was sceptical about this idea, calling it ‘an untested, unproven, and undefined concept’. While noting that they were open to considering the concept they called for a ‘workable model’ to be developed. This issue is discussed in more detail below, under the section on the Skilling Australians Fund levy.

7.71As noted above, in most cases, currently employer nominated visas require applicants to be under 45 years of age. This limitation was criticised by some submitters. Vialto Partners, for one, suggested that given increases in the working lifespan of people generally the current age restriction of 45 years should be lifted to 55 years.[54]

7.72On this issue, Fragomen pointed out that some exceptions to the age limit already exist, such as temporary skilled visa holders over the age of 45 being able to apply for permanency via the Temporary Residence Transition visa, where they earn over the Fair Work High Income Threshold (currently $167,500) for the three years before lodgement. They suggested that this unfairly impacts workers employed under enterprise agreements or awards, who are unable to negotiate pay increases to meet this condition. For fairness, they recommended that the age limit be lifted to 50 years of age for all skilled permanent visas.[55]

7.73Echoing this, the MIA also called for the age limit to be lifted to 50, what it had previously been until 2017. They cited increases in the retirement age, longer worker lifespans, and acute skills and labour shortages to support this suggestion. They further argued that age limits should be removed entirely for ‘defined “exempt occupations/persons”’.[56]

7.74The Law Council of Australia (the Law Council) shared many on these concerns around the age limit for Employer Nominated Scheme visa eligibility. They recommended that the Department of Treasury and Finance undertake ‘modelling to inform a specific figure, potentially between 50—60, drawing on the tax, fiscal, pension and relevant ageing population consideration’, but suggested that the limit should be raised to at least 50.[57]

7.75On top of this, the Law Council expressed support for ‘a standing exemption’ to the age limit eligibility criterion for senior management roles, which often correlate with lengthy work experience and older age cohorts.[58] Additionally, they proposed the following three other exemptions:

• Applicants who worked in Australia over the COVID period and held their temporary visa before 18 April 2017;
• Applicants who have been working in Australia for a considerable period, before seeking to settle in Australia; and
• Applicants whose permanent presence in Australia is of inherent benefit regardless of their age.[59]
  76. In relation to dot point two above, the Law Council suggests that ‘a standing exemption for migrants who have been working in Australia for three years before they reach the applicable age limit’. While acknowledging that the basis of the age limit is that older migrants will not pay sufficient tax during the remainder of their working lives to cover costs that they will incur through social security, the Law Council notes the following:

A person who has been working full time for a considerable period

before that point has already been paying tax, and thus, it is proposed, should be

provided with a pathway to permanent residency.[60]

7.77In relation to dot point three above, while the Law Council did not expand on what constitutes ‘inherent benefit’, it did refer to a 2018 submission that it made on the matter for the Senate Standing Committee on Legal and Constitutional Affairs’ inquiry into the skilled visa system. In evidence to the latter committee, the Law Council called for an exemption to the age limit for people who were an ‘exceptional benefit’ to Australia, with the merits of each application determined on a case-by-case basis for all occupation in the Employer Sponsored Scheme.[61]

Committee Comment

7.78The Committee sees merit in adjustments to the current age limits for the Employer Nominated Scheme visa. Recognising that people have longer working lives than before, that often the most highly experienced and skilled workers are older, and that older workers are often in leadership roles, the Committee see scope for the current age limit to be raised.

7.79Acknowledging that such an action will have fiscal implications, the Committee agrees with the Law Council that the Departments of Treasury and Finance should model these impacts before arriving at an ideal age limit that maximises the benefits that older workers bring while minimising the fiscal impost of such a step.

7.80Additionally, the Committee agrees with the categories of exemptions put forward by the Law Council for standing exemption of any age limit for those in senior management roles and who have worked in Australia for the periods identified above.

7.81The Committee recommends that the Australian Government undertakes modelling to identify a new age limit for Employer Nominated Scheme visas, between 50 and 60, that considers tax, fiscal, pension, and relevant ageing population factors.

7.82The Committee recommends that the Australian Government considers introducing standing exemptions on the age limit for Employer Nominated Scheme visas for the following applicants:

• Applicants who will be employed in a senior management role;
• Applicants who worked in Australia over the COVID period and held their temporary visa before 18 April 2017;
• Applicants who have been working in Australia for a considerable period, before seeking to settle in Australia; and
• Applicants whose permanent presence in Australia is of inherent benefit regardless of their age.

Independent Streams

7.83The independent streams of the permanent skilled migration program consist of the following visa types:

• Skilled Independent (subclass 189); and
• Skilled Nominated (subclass 190).
  84. Would-be applicants for the independent streams of the permanent migration program must undertake the following application steps:
• Score a certain number of points set by the Minister (currently at least 65);
• Make an EOI, and if seeking state or territory nomination, potentially also lodge a registration of interest and/or state or territory nomination application; and
• Lodge a visa application after having received an invitation to do so by the Minister.[62]
  85. The allocation of points is based in the following considerations:
• Age;
• English language competency;
• Overseas employment experience;
• Australian employment experience;
• Australian professional year qualification;
• Education, including Australian study and study in regional areas;
• Credentialled community language qualification;
• Partner qualifications;
• State or Territory nomination; and
• Designated regional area nomination.[63]
  86. In evidence to the Committee, the Government of South Australia called for greater decentralisation of Australia’s skilled migration program to ‘enable state and territory nominated visas to fully realise their objectives linked to each jurisdiction’s development strategies’. For this, there needed to be closer cooperation between the Commonwealth and state and territory governments in designing and administering the state-territory sponsored skilled migration scheme to ensure that states and territories are receiving skilled workers appropriate to their requirements.[64]
  87. The NSW Government shared similar concerns. For one, they submitted that while state and territory governments have ‘greater proximity to and understanding of the needs of local communities and industries’, they have limited input into decision making and processes within the migration system. They called for 1) greater flexibility in how states and territories use their allocation of nomination positions, and 2) a greater allocation of skilled independent visas from Commonwealth nominated places towards state and territory nominated places.[65]
  88. The Committee notes that the Australian Government, through the Migration Strategy, has committed to ‘better manage the migration intake, with greater state and territory collaboration’ and to ‘work with states and territories to ensure population planning is based on the best available population data and forecasts’.[66]
  89. On the application process for independent skilled visas, the Law Council called for law reform and procedural changes to improve the EOI process, while expressing support for the EOI requirement, more generally.[67]
  90. The Law Council submitted that the EOI process is ‘not authorised by law’, noting that the Migration Regulations 1994 (Migration Regulations) only pick the process up at the time an applicant is invited to apply for a visa. They submitted that the…

… broad discretion to issue an invitation—unbound or unguided by express statutory criteria—raises ostensible issues with respect to the rule of law principles that the law must be both readily known and available and certain and clear, and any action undertaken by the Executive should be authorised by law.[68]

7.91The lack of statutory guidelines governing the issuance of invitations to apply, according to the Law Council, ‘reduces the ability for independent review and scrutiny of the Department’s process for determining both the occupations generally allocated places and the individual applicants to whom’ invitations are issued. This, the Law Council contended, ‘can also reduce confidence in the system’.[69]

7.92The Law Council recommended that the EOI process be prescribed under law. Such a statutory foundation would increase transparency in the Department of Home Affairs’ processes and ensure that invitations are issued in a reasonable and non-discriminatory way.

7.93The Law Council suggested the following to provide a statutory basis to the EOI process:

This would be done, for example, by amending the Migration Act [Migration Act 1958] to provide general rules or guidance in relation to the factors generally underpinning EOIs and express discretion to the Minister or Secretary to determine occupation or visa profile priorities, with these published from time to time.[70]

7.94The Law Council also suggested that better information about priorities and processing times be provided to potential applicants, thus allowing them to make better-informed decisions and increasing Australia’s attractiveness for skilled overseas workers.

7.95While the Department of Home Affairs’ website contains information on the number of invitations issued according to occupation over the last invitation round, ‘it does not contain any information to assist to determine the likelihood that invitations in relation to a particular occupation are likely to be issued in a future round’. The Law Council suggests that the Department provides more granular information that includes ‘positions by state, numbers per occupation, and cut-off scores for applications to be issued’.[71]

7.96Of note, the Australian Government has committed to a new ‘analysis-based points test to identify more effectively the independent migrants who will make the greatest contribution to the country’. The new points test will also ensure clear and fair pathways to permanent residence.[72]

Committee Comment

7.97The Committee notes with approval recent announcements by the Australian Government to 1) commit to greater cooperation with the states and territories in determining priorities for state and territory nominated independent skilled visa places, and 2) reform the points test to make it more fit-for-purpose. The Committee will watch these developments closely and with interest.

7.98The Committee shares the Law Council’s view that the Expression of Interest process for independent skilled visa applicants should be governed by statute. Such a measure aligns with the principle of the rule of law and would increase clarity and fairness in the system.

7.99The Committee, further, supports the Law Council’s proposal that better information be provided to potential applicants on the likelihood that their Expression of Interest will meet with success or not. Such a step would reduce administrative burdens by decreasing the number of expressions of interest received by the Department and better target those potential applicants that are most needed in Australia.

7.100The Committee recommends that the Australian Government considers amending the Migration Act 1958 and the Migration Regulations 1994 to include provisions to deliver measures to ensure that the process by which the Minister, or their delegate, determines which persons who have submitted an Expression of Interest to apply for a skilled independent visa are invited to apply is authorised by law.

7.101The Committee recommends that the Australian Government publishes more granular information, in a timely manner, about the profile of forthcoming invitation rounds, to better enable potential applicants to make informed decisions around their applications for skilled independent visas.

Global Talent Program

7.102According to the Department of Home Affairs, the Global Talent Program is a permanent visa program (subclass 858) for ‘exceptionally talented and prominent individuals who can raise Australia’s standing in their field’. The visa caters for ‘individuals with outstanding achievements, particularly high-earning individuals in future-focused sectors.’[73]

7.103Overseas workers seeking to apply for this visa type are required to submit an EOI to the Department of Home Affairs that outlines that they are highly skilled in one of the ‘Minister’s defined sectors’ and are currently, or likely, to earn at or above the Fair Work High Income Threshold (currently $167,500).[74]

7.104The benefits of the visa for the Australian community include skills transfer, promotion of innovation, and job creation. 5,000 places within the permanent Migration Program for 2022-23 and 2023-24 have been allocated to Global Talent visas.[75] This is down from 15,000 allocations in 2020-21 and 2021-22, with outcomes of 9,584 and 8,776, respectively.[76]

7.105Key priority areas for the program, as outlined in the ‘Minister’s defined sectors’, include health industries; energy; financial services and fintech; defence, advanced manufacturing, and space; the circular economy; and infrastructure and tourism.[77] As pointed out by the AOYE Group and Sapien Group, each of these sectors have substantial potential for transformation and growth but ‘face constraints through lack of skills.’[78]

7.106AOYE Group and Sapien Group highlighted China as a currently underutilised source of talent, particularly ‘high-level technical and commercial talent’. They suggested that a greater recognition of China as a source of talent ‘across government and industry would boost Australia’s ability to achieve growth and transformation in key sectors.’[79]

7.107The Law Council argued that the listing of ‘pathway priority sectors’ for the Global Talent visa, like reliance on Skilled Migration Occupation lists more generally, ‘can effectively omit applicants with unique skill sets that do not fit within the occupation list’.[80]

7.108The Law Council, further, highlighted that under current processing priorities set by Ministerial Direction (currently Ministerial Direction No. 105), the Global Talent visa has low priority. According to the Department of Home Affairs, Ministerial Direction No. 105 ‘continues to priorities healthcare and teaching occupations in the Skill Stream, as well as regional applications in employer sponsored programs’.[81] Current processing priorities mean, according to the Law Council, that that Global Talent visa is on the ‘lowest priority rung for skilled visas and processing times have increased’.[82]

7.109The current processing time guideline for the Global Talent visa indicates that 50 per cent of visas are processed within 9 months and 90 per cent in 12 months.[83]

7.110As noted by the Law Council, such low processing priority applied to the Global Talent visa appears to be inconsistent with ‘its objective of being a streamlined visa pathway for highly skilled individuals’.[84]

7.111The current wait times for the Global Talent visa are particularly concerning given the level of global competition for highly skilled workers. As AOYE Group and Sapien Group highlight, ‘major immigrant countries have created special immigration policies for highly skilled individuals’. At present, the United States attracts around 40 to 50 per cent of the inflow of highly skilled migrants to the OECD, followed by the United Kingdom, Canada, and then Australia. This is particularly the case ‘for those at the highest levels of the talent ladder’, with the USA accounting for more than 50 per cent of migrating inventors and Nobel Prize recipients.[85]

7.112While the USA, the UK, and Canada all have visa programs directed at attracting and facilitating the entry of high skilled individuals similar to Australia’s Global Talent visa, Australia’s program has a key difference. As noted by Fragomen, ‘Australia is the only country to offer a fast-tracked pathway to permanent residency for top talent, whilst the above jurisdictions instead offer temporary or provisional visas.’[86]

7.113Fragomen argued that certain measures can be taken to cut back the application times associated with the Global Talent visa, while maintaining the integrity of the program. For one, they suggested that the salary threshold for the program be increased to $250,000 in the professional stream, while maintaining salary flexibility for candidates in the PhD stream and ‘offshore applicants where [an] international record of achievement can be demonstrated’. This would reduce the number of EOIs that are unlikely to result in the issuance of a visa that the Department is required to assess.[87]

7.114Secondly, Fragomen suggested that the assessment criteria at the visa application stage be streamlined, ‘noting that the applicant’s international reputation and record of achievement is pre-assessed at the EOI stage.’[88] These changes, Fragomen proposed, would help ensure that the program ‘remains a truly fast-tracked pathway to permanent residence, while ensuring the integrity of the program as a means of attracting exceptional talent to Australia.’[89]

7.115Science and Technology Australia praised the Global Talent visa program for ‘the hugely important role’ it has played in securing ‘great, world-leading talent for our country’s universities and research system and for industry.’ In contrast to other evidence received by the Committee, they pointed to the ‘swift processing times and clear pathway to permeant residency’ as the key attractiveness of the visa category.[90]

Committee Comment

7.116The Committee shares the Law Council’s and Fragomen’s concerns that the Global Talent visa is not currently functioning as effectively as it could as a conduit for exceptionally talented people to migrate permanently to Australia.

7.117Australia is in global competition with countries such as the USA, Canada, and the United Kingdom for skilled workers in cutting-edge fields. Unless Australia can offer an efficient entry pathway for such distinguished individuals, we are likely to miss out on the substantial societal and economic benefits that such people bring. Australia is well-placed to leverage the prospect of permanent residency for talented individuals as a key attraction strategy, so long as the process is streamlined and targeted.

7.118In the context of nation building in the 21st century, the skills and experience that the world’s most highly skilled people have are absolutely crucial for ‘future proofing’ our economy and society. It is vital that Australia remains an attractive destination for such people and that our visa system does not detract from our attractiveness.

7.119The Committee notes that under the Migration Strategy, the Australian Government announced that it was considering ‘developing a new Talent and Innovation visa to drive growth in sectors of national importance’.[91]

7.120Indeed, following on from this, the Australian Government announced in the 2024-25 Budget that it ‘will implement a new National Innovation visa, replacing the current Global Talent visa (subclass 858) from late 2024, to target exceptionally talented migrants who will drive growth in sectors of national importance’.[92]

7.121The Committee welcomes this announcement and hopes that the new National Innovation visa addresses the evidence that the Committee received in relation to the Global Talent visa.

7.122Given the announcement of this change, the Committee does not consider there to be a need to make a recommendation regarding the current Global Talent visa program. The Committee looks forward to the introduction of the legislative instrument enacting this change and encourages the Government to ensure changes to the Migration Regulations on the scope and nature of the new visa offering accurately addresses the concerns of stakeholders as expressed in evidence to the Committee.

Temporary Visa Program

Temporary Skill Shortage Visa

7.123The primary visa used to facilitate temporary skilled migration is the TSS visa (subclass 482). The TSS visa was introduced in 2018 to replace the Temporary Work (Skilled) visa (subclass 475). This visa type has the following three streams:

• Short-term stream

• Primarily a 2-year visa for occupations on the short-term skilled occupation 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.[93]
  124. On 27 April 2023, the then Ministers for Home Affairs, and Immigration, Citizenship and Multicultural Affairs announced that by the end of 2023, TSS short-term stream visa holders would gain access to a pathway to permanent residency within the existing capped permanent program.[94] With this announcement, the TRT stream of the Employer Nomination Scheme (subclass 186) visa is available for ‘all TSS visa holders whose employer wishes to sponsor them.’[95]
  125. Visa applicants in the Short and Medium-term streams are required to be paid above the Temporary Skilled Migration Income Threshold (TSMIT) of $70,000 per annum.
  126. In evidence to the Committee, the Grattan Institute emphasised the economic need for temporary skilled migration, but cautioned that even temporary visas should target high-skilled workers:

Temporary skilled migration helps fill genuine skills shortages, which helps the labour market adjust to shocks such as the recent mining boom. But, since it also provides much of the applicant pool for permanent skilled migration, it too should target high-skilled migrants.[96]

7.127Fragomen emphasised the fiscal benefits derived from temporary migrant workers. They noted that because temporary skilled migrants are not entitled to government supports such as Medicare and subsidies for childcare and education, they tend to have an even more positive fiscal benefit than other categories of migrant. Moreover, in cases where TSS visa holders subsequently go on to transition to a permanent visa, these workers typically earn more than other permanent visa holders.[97]

7.128In evidence to the Committee, several submitters raised the need by some industries for low-skilled or semi-skilled workers that are not easily facilitated through existing visa channels, for example because industry pay rates are below the TSMIT or they are not captured on a skilled migration occupation list. Unions NSW, for one, noted their support for greater low-skilled and semi-skilled migration given there ‘are some labour shortages in those areas’. They continued:

We, however, believe that any form of unskilled or low-skilled migration that involves working visas should have pathways to permanency… We believe this is the time to have a conversation about how we can bring unskilled and low-skilled migrants into the country on appropriate visas that allow them to work and live in Australia but also give them a clear pathway to permanency, to become residents and citizens of our country.”[98]

7.129The Government of South Australia echoed the need for some low and semi-skilled migration, through the continuation of Designated Area Migration Agreements and Industry Labour Agreements, ‘where government agencies can closely monitor the activities of participating businesses and the legitimacy of the demands for the positions requested to be filled by overseas workers’.[99]

7.130Citing the research of the Committee of Economic Development of Australia, BDO Migration Services (BDO) argued for a ‘Specific Essential Skills’ visa to be made available for aged care workers, such as Personal Care Assistants. Such workers are currently classified as Australian and New Zealand Standard Classification of Occupations (ANZSCO) Level 4 in the skill hierarchy, the second lowest category. Workers in these occupations are not currently included on a skilled migration occupation list and are, therefore, not eligible for the skilled migration program. They noted, further, that even if these workers were to be added to a skilled migration occupation list, most roles would fall short of the TSMIT. As a solution they suggested the creation of a Special Essential Skills visa category to capture such workers.[100] The Aged Care Industry Agreement, which enables the migration of such workers, is discussed in more detail in the final section of this chapter.

7.131The issue of semi or low-skilled labour migration will be discussed in further details as it relates to regional, rural, and remote areas in Chapter 10.

7.132The Migration Strategy announced that the TSS visa will be replaced by a 4-year temporary skilled worker visa—the Skills in Demand visa, with ‘full mobility and clear pathways to permanent residence’.[101] According to the Migration Strategy:

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.[102]

7.133The Migration Strategy goes on to explain that a key feature of this visa is ‘an alternative approach to mobility’. This new approach will include:

…new visa settings, streamlined applications and considerations 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.[103]

7.134The Migration Strategy claims that this approach is superior to an industry sponsorship model, as it allows for worker movement to other industries where their skills and experience have relevance.[104] This approach as it relates to the requirement of sponsors to pay the Skilling Australians Fund levy is discussed further below.

7.135According to the Migration Strategy, the Skills in Demand visa will consist of three pathways:

• Specialist Skills Pathway;
• Core Skills Pathway; and
• Essential Skills Pathway.
  136. The Specialist Skills Pathway will cater to certain high-paid workers earning over $135,000, or no less than Australian workers in the same occupation. The Core Skills Pathway will cater for workers in occupations on a Core Skills Occupation list earning above the TSMIT. Essential Skills Pathway will be a ‘more regulated pathway for lower paid workers with essential skills’[105].

Committee Comment

7.137The Committee notes with interest the announcement in the Migration Strategy of the replacement of the TSS visa with a new four-year Skills in Demand visa that includes three streams. The Committee is hopeful that this change addresses much of the evidence received by the Committee on how temporary visa offerings can be improved. This is a policy area in significant flux and the Committee will continue to monitor these developments closely.

7.138The Committee is particularly interested to see how the Essential Skills Pathway will provide access to lower-paid low-skilled or semi-skilled workers to service industries vital to our national interests, while maintaining the integrity of Australia’s labour standards and conditions.

7.139The Committee is mindful that a larger proportion of Australia’s permanent migrant intake transition to permanency through various temporary skilled visas. Given this, it is essential that Australia attracts high-quality temporary workers with good prospects of becoming permanent residents and citizens.

7.140The Committee recommends that the Australian Government continues to prioritise the development and implementation of the Skills in Demand visa, informed by widescale stakeholder consultation, and ensures that the three streams: Specialist Skill Pathway, Core Skills Pathway, and Essential Skills Pathway address the full gamut of demand for labour in the economy.

International Students

7.141The primary purpose for international students coming to Australia is to engage in education. At the same time, international students can also potentially contribute to the Australian economy as a temporary workforce (working up to 48 hours per fortnight[106]) and as potential longer-term, or permanent, skilled migrants.

7.142The important contribution that international students make to the Australian economy and society was highlighted by SUPRA (the Sydney University Postgraduate Representative Association), who submitted that ‘international students are a major highway for Australia to access and retain highly skilled, educated and motivated new migrants’.[107]

7.143Indeed, as noted in the Migration Strategy, International students compromise the largest component of Australia’s temporary migration program and are the biggest feeder into the permanent migration program.[108]

7.144Similarly, Independent Higher Education Australia (IHEA) noted that international education is a $40 billion export industry for Australia that ‘creates jobs for Australians and provides workers that fill demand at all levels of employment across a myriad of sectors’.[109]

7.145The Committee heard calls for increased pathways to permanent residency for international students. IHEA, for example, recommended the introduction of a “International Student Migration Program” that would provide clear pathways to permanent residency and citizenship for international students studying in areas of national priority.[110]

7.146Echoing this call, VETASSESS submitted the following:

Australia needs to openly acknowledge the intrinsic link of international education to visa pathways and have a well-defined roadmap connecting the dots for this cohort before they arrive. This will increase the interest of young learners in coming to Australia as not only a safe study destination and allay anxieties about their options when they complete their studies.

They recommended increased supports for international students seeking pathways to permanent residency.[111]

7.147The NSW Government made a similar recommendation, calling for pathways to permanent residency for international students ‘who complete vocational education and training and higher education qualifications in Australia in critical or high demand skills and sectors’.[112]

Committee Comment

7.148The Committee notes that the Migration Strategy has outlined a new points test for independent migrants, as is discussed earlier in this chapter. The new points test is set to include faster pathways to permanent residence for ‘international student graduates who are working in skilled jobs in the labour market, but fewer pathways for graduates not working in skilled jobs’.[113]

7.149Additionally, the Migration Strategy recognises that international students comprise the largest share of ‘permanently temporary’ migrants. In relation to the international education migration sector, the Migration Strategy commits to the following actions, among others:

• Improving the integrity of the international education sector and supporting genuine students;
• Increasing English language requirements;
• Increasing scrutiny of student visa applications;
• Strengthening requirements for international education providers; and
• Supporting international students and graduates to realise their potential.[114]
  150. The Committee notes that on 27 August 2024, the Minister for Education , Hon Jason Clare MP, the Minister for Home Affairs and Minister for Immigration and Multicultural Affairs, Hon Tony Burke MP, and the Acting Minister for Skills and Training, Senator Hon Murray Watt, jointly announced measures aimed at ‘strengthening the integrity and sustainability of the international education sector’. Towards this end, the Government announced that it will ‘set a National Planning Level (NPL) for new international student commencements of 270,000 for the calendar year 2025’. The Government explained that the NPL is divided between the higher education and the vocational education and training (VET) sectors, and that it would bring the number of international students across these sectors back to pre-pandemic levels.[115]
  151. The announcement noted the following exceptions:
• School students;
• Higher degree by research students;
• Students undertaking standalone English language courses;
• Non-award students;
• Students that are part of an Australian transnational education arrangement of training arrangement;
• Key partner foreign government scholarship holders; and
• Students from the Pacific and Timor-Leste.[116]
  152. The new NPL means that for publicly funded universities, around 145,000 new international students will commence in 2025, similar to 2023 levels; 30,000 will start in other universities and non-university higher education institutions, and 95,000 will commence in the VET sector. Individual education and training providers will be provided with an International Student Profile (ISP) which stipulates their international student in-take limitations.[117]
  153. The Committee recognises the important role that international students play in adding vitally-needed skills into the Australian economy. The Committee hopes that international students continue to be a significant source of Australia’s permanent migrant program and that the reforms announced by the Australia Government for international education help to ensure that Australia is able to retain those international students who can potentially make the best contributions to Australia’s economy and society as permanent residents and citizens.

Identifying Skills Shortages

7.154It is important that the migration system is agile enough to respond to demands within the economy to enable business to tap into international labour markets smoothly and rapidly when appropriately skilled workers are not available.

7.155The current migration system employs two main mechanisms to ensure that Australians are given priority in the job market and skilled working visas go to genuinely needed overseas workers: Labour Market Testing (LMT) and Skilled Migration Occupation lists. As discussed below, the Committee heard evidence that these mechanisms are potentially problematic for a range of reasons.

Labour Market Testing

7.156Employers wishing to sponsor a foreign worker though a short-term or medium-term TSS visa (subclass 482) and Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) are required to conduct LMT to demonstrate that a role cannot be filled by an appropriately skilled Australian citizen or permanent resident or ‘eligible temporary visa holder’.[118] LMT consists of a business publishing two advertisements with ‘national reach’ for a position in Australia for at least four weeks within a four-month period immediately prior to nominating a foreign worker for visa sponsorship.[119]

7.157As pointed out by the Law Council, LMT is based on the principle that ‘temporary skilled visas are utilised only where suitably qualified Australian residents and citizens are not available and cannot be trained in a reasonable time’ to fill needed roles in the economy.[120]

7.158Under the Migration Strategy, the Government has streamlined LMT requirements, by removing the condition that positions be advertised through Workforce Australia (yet, still requiring two advertisements) and by increasing the validity period from four to six months. The Government is further considering moving away from LMT towards a mechanism ‘for robust and genuine independent verification of labour market need’ through Jobs and Skills Australia.[121]

7.159The requirement to conduct LMT was criticised in submissions for a variety of reasons, including:

• cost and burden for businesses
• ineffectiveness as a means of:

• guaranteeing appropriately skilled Australians are employed and
• preventing the exploitation of foreign workers

• detriment for Australian communities that miss out on skilled workers for essential services, such as healthcare.[122]
  160. While noting that LMT should be retained in some form for many jobs, the Law Council called for reform to LMT requirements to make it more flexible, ‘dynamic and responsive to business need, while still serving the LMT principle’.[123]
  161. Submitters to the inquiry highlighted costs associated with LMT and suggested in some cases the requirement should be waived. The Royal Australian College of General Practitioners (Rural) suggested the need for LMT for rural general practitioners be removed, while the Australian Private Hospitals Association recommended a 12-month moratorium on LMT requirements for clinical professions in acute shortage at both the regional and national levels.[124]
  162. The Primary Care Business Council noted that LMT is particularly unnecessary for International Medical Graduates (IMGs) who are required to work in regional areas that have been classified as Distribution Priority Areas (DPA), as DPAs already have established workforce shortages.[125]
  163. The Immigration Advice and Rights Centre and Unions NSW suggested that provided a job paid above 30 per cent of the median annual wage paid to employees within a given industry that the requirement for LMT could be removed.[126] Others suggested exemption from LMT be tied to a specific salary, with the Law Council proposing roles paying over $100,000 be exempted from LMT, while the Grattan Institute suggested $70,000 (the current TSMIT).[127]
  164. Other submitters suggested that LMT not be required when a role has been identified as in shortage by Jobs and Skills Australia. The Law Council, for instance, noted that in these circumstances, ‘advertising the position to Australian workers is not necessary to satisfy the LMT principle and unnecessary delays’ businesses recruiting required workers.[128] The Australian Private Hospitals Association, similarly, submitted that ‘costly’ LMT should not be required ‘where acute shortages have already been demonstrated at either regional or national levels.’[129]
  165. KPMG, meanwhile, called for ‘a more date driven approach to determining whether [LMT] is even required’, suggesting that Jobs and Skills Australia may appropriately administer such an approach.[130]
  166. Echoing these points, the Aged and Community Care Providers Association (ACCPA) called for a move away ‘from individual [LMT] to an economy-wide approach, potentially led by Jobs and Skills Australia collaborating with the AIHW [Australian Institute of Health and Welfare]’.[131]
  167. Lamattina Holdings Pty Ltd/Elmtree Migration Lawyers suggested two potential alternatives to LMT requirements:
• A declaration by a local council, valid for two years, that there is a local shortage of workers in a given industry.
• Where the unemployment rate in a given region is under a certain percentage (for example, 6 per cent), then businesses in that area are exempt from LMT requirements.[132]
  168. Others echoed the suggestion that the requirement for LMT be pegged to the unemployment rate. Clubs Australia, for example, pointed out that ‘certainly as the unemployment rate drops, the need to demonstrate [LMT] diminishes.’[133]
  169. The Law Council also proposed that LMT not be required when a role is offered by an accredited sponsor. Instead, the sponsor would be obliged to declare that they have a genuine commitment to recruiting from the local labour market and that they have been unable to find an Australian resident for the role. The Law Council suggests that such a declaration should be taken at face value unless the case officer holds ‘broader concerns about the genuine need for the position’.[134]
  170. In a similar vein, the Business Council of Australia argued that ‘Trusted Trainers’—accredited sponsors with a demonstrated track record for training and hiring locally—should be able to advertise positions for shorter periods than the four-week requirement. They further suggested that the Department of Home Affairs should have the flexibility to waive the technical requirements of LMT for such trusted employers.[135]
  171. Vialto Partners proposed that LMT be abolished completely. In lieu of this, they suggested that the advertising period be reduced from 28 days to 14 days; that the requirement for salary to be advertised be removed; that LMT be allowed to occur up to 12 months before lodging a nomination application; that LMT only be required for initial applications, not subsequent applications for the same employee; and that a business case be accepted instead of LMT, particularly for approved sponsors with accredited status.[136]
  172. Clubs Australia noted that LMT lacked policy rationale in relation to the hospitality industry as ‘clubs do not have any commercial interest in overlooking local workers to engage overseas workers’ and argued that it was counterproductive to impose additional costs and time lags on businesses through LMT requirements when it was clear that there were shortages of qualified staff to fill roles. They recommended the removal of LMT requirements for sponsors of TSS visa holders.[137]
  173. Others suggested that LMT requirements be redesigned from ‘top-down’ approaches. On this, the MIA informed the Committee that:

The economy is very complex. Economists can't get their predictions right. So we need to have a system that allows an employer to say, 'Hey, I can't find anyone in this location, in this occupation, with this profile.' There's no way you can do that at a national level, a top-down approach with some broad number. That would cause all sorts of issues for individual employers, and that would have meaningful impacts on industry and regions.[138]

7.174In contrast, the MIA suggested a flexible, bottom-up approach that can account for regional conditions, and the specific circumstances of industries and occupational categories: ‘[a]s long as the employer can demonstrate that there is a shortage of that particular occupation, position, in that location then that’s the test, whatever that demonstration is and the form that it takes.’[139]

Skilled Migration Occupation Lists

7.175The Department of Home Affairs maintains the following three skilled migration occupation lists for the purposes of assessing eligibility for skilled permanent and temporary visas, based on purported shortages in the economy:

1Short-term Skilled Occupation List

2Medium and Long-term Strategic Skills List

3Regional Occupation List

These lists are tabled in Parliament through ‘a complex set of legislative instruments’[140] under the Migration Regulations and available on the Department’s website. The lists are designed to capture occupations that are currently in shortage in the economy. The last update of the Skilled Migration Occupation List was on 11 March 2019, which was based on ‘consultation and labour market analysis by the then National Skills Commission’ (which has since been absorbed into Jobs and Skills Australia).[141]

7.176The PC has criticised the use of skilled migration occupation lists as being ‘difficult to accurately construct and update, with doubtful value as a criterion for permanent migration’.[142] Similarly, the Migration Strategy acknowledged problems around the use of skilled occupation lists for visa purposes. It noted:

The multiple occupation lists 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.[143]

7.177Closely echoing the PC and the Migration Strategy, the Committee heard evidence that the current skilled migration occupation lists used by the Department of Home Affairs may not accurately reflect the true needs of some businesses and industries. The disconnect between the fluctuating labour needs of business, the changing nature of some jobs that are not easily captured under static occupation lists and the Department’s reliance on these lists for visa eligibility means that businesses are often hindered in obtaining required skilled workers to grow their business and take up opportunities as these arise.

7.178The Law Council, for example, submitted the following on the usefulness of the lists:

…these lists are not sufficiently dynamic to capture areas of genuine shortages in real time, and actually contribute to longer processing times, backlogs, and frustration for applicants.[144]

7.179The Australian Constructors Association, similarly, noted that the occupation lists do ‘not comprehensively address the breadth of contemporary occupations in the construction industry’.[145]

7.180The Tasmanian Government, meanwhile, pointed to the lists being ‘complex and not flexible or sensitive enough to accommodate changing labour market needs across different geographical regions’ as problems with the current approach. They called for an approach which is better informed by real-time data from a range of sources.[146]

7.181The Immigration Advice and Rights Centre and Unions NSW highlighted that the skilled occupation lists tend to be ‘subject to change without notice and are out of step with roles that exist in many industries’.[147] Similar to their recommendation around removing the need for LMT, they suggested that the need for a skills list could be replaced by a requirement that a role pay 30 per cent above the industry medium salary.

7.182The MIA noted how the skilled occupation lists ‘very often do not cater to the specific labour needs of Australian industries and businesses’ and cited the recent proliferation of industry and company-specific “workaround” labour agreements as evidence ‘that the occupational skills lists are not fit for purpose and are a barrier to Australian industry and businesses in their attempts to access skilled overseas labour’. They recommended that the TSS occupation lists and the Regional Occupation List be consolidated ‘to provide all visa holders in these visa classes the opportunity to attain permanent residency in Australia’.[148]

7.183The Government of South Australia suggested that skilled occupation lists could be abolished for ‘employer sponsored visas at high skills levels’ that meet certain criteria. They suggest the following model to deliver this:

• Employer:

• Demonstrates a genuine need to fill a position commensurate to any ANZSCO Skill Level 1, 2 or 3 occupations, and
• Pays for the associated cost of sponsoring a skilled migrant.

• Skilled migrants demonstrate that they:

• Have an AQF (Australian Qualifications Framework) Qualification and/or experience that meet the Skill Level as defined by ANZSCO and have at least one-year relevant work experience.
• Have an overseas qualification or experience that satisfies the relevant Skill Level as defined by ANZSCO and have at least two-years relevant work experience.
• Meets minimum English language competency.[149]
  184. The Law Council recommended similar changes and highlighted the following examples of AZNSCO skill level 1—3 jobs currently not included in the skilled migration lists:

• 221212 Corporate Treasury
• 312412 Electronic Engineering Technician
• 139917 Regulatory Affairs Manager
• 224115 Data Scientist
• 262114 Cyber Governance and Compliance Specialist.

These positions are excluded from the skilled migration occupation lists despite being examples of senior oversight roles critical to business functions; highly skilled specialist occupations incorporating roles such as Aircraft Electronics Technician and Combat System Technician; and highly skilled occupations in emerging areas of vital importance for the economy and society, such as cyber security vigilance roles.[150]

7.185The Australian Small Business and Family Enterprise Ombudsman, meanwhile, questioned the suitability of the current ANZSCO for skilled visa purposes. The ANZSCO is a skill-based classification of jobs used to describe all occupations in the Australian and New Zealand labour markets. The Ombudsman noted that the current list largely dates to 2006, based on information related to the jobs market in 2001. While noting that the Australian Bureau of Statistics (ABS) is currently undertaking a comprehensive review of the list to better reflect current occupations in the labour market, which is earmarked for release in December 2024, they suggested the Australian government consider the immediate suitability of ANZSCO classifications for visa purposes and identify more appropriate alternatives.[151]

7.186The Law Council also raised the ANZSCO as problematic, as it is not updated frequently and does not ‘reflect roles and occupations within emerging technologies’. The reliance of the skilled occupation lists on occupations listed in the AZNSCO, they contended, ‘further exacerbates the [skilled occupation] lists’ inflexibility’. The end results of this inflexibility, according to the Law Council, are:

…instances where migrants with appropriate skills, experience and training are prevented from making an application because their occupation is not on the list.[152]

7.187The Law Council submitted that assessment of skills shortages in the economy should ‘be performed by an independent agency, with a statutory responsibility for regulating the assessment based on clear, publicly available criteria’. They contrasted this to the current situation, which they oppose, which is based on ‘discretionary, permissive Ministerial power to determine occupations which is not informed by any specific criteria’.[153]

7.188They suggested that such a role could be performed by Jobs and Skills Australia.

Jobs and Skills Australia

7.189Jobs and Skills Australia is a secondary statutory authority under the Department of Employment and Workplace Relations which was established in November 2022. Jobs and Skills Australia replaced the National Skills Commission, but has a broader remit than the latter, including workforce planning and working closely with the states and territories, industry, unions, and education providers.[154] Its mission is ‘to be a catalyst in activating the potential of Australia’s human capital to meet present and future skills needs’.[155] Its Commissioner is directly accountable to the Minister for Skills and Training.[156]

7.190The role of Jobs and Skills Australia is as follows:

…to engage, advise and assist the Australian Government and other stakeholders in decision-making on the current, emerging and future skills and workforce needs of the Australian economy. This includes in regional, rural and remote Australia, and on the development of new industries and new technologies.[157]

7.191Jobs and Skills Australia does this through the provision of high-quality data, analysis, and insights on skills shortages across the economy and advice on the effectiveness of Australia’s vocational education and training, higher education, and migration systems in meeting labour demands.[158]

7.192In April 2023, the then Minister for Home Affairs emphasised the role of Jobs and Skills Australia in pinpointing labour market shortages and helping to integrate the jobs market, the training and education systems, and the migration system in addressing these shortages. She stated that with clear guidance from business and unions, ‘Jobs and Skills Australia will use facts and data to prove where skills shortages exist.’[159]

7.193As noted, the Law Council expressed the opinion that Jobs and Skills Australia has the potential to act as the independent statutory body tasked to assess skills shortages in the economy under the Jobs and Skills Australia Act 2022 (Jobs and Skills Act). They submitted:

Subsection 9(1) of the Jobs and Skills Act sets out its various functions including to provide advice to the Minister of Employment and Workplace Relations or the Secretary in relation to, amongst other things, Australia’s current, emerging and future skills and training needs and priorities.[160]

7.194Subsection 9(cb) of the Jobs and Skills Act expressly confers on Jobs and Skills Australia the role ‘to analyse skills needs and workforce needs, including in regional, rural and remote Australia, and in relation to migration’.[161]

7.195The Law Council suggested that the Migration Act or Migration Regulations ‘could be amended to expressly confer on Jobs and Skills Australia the function of periodically performing a bespoke assessment of skills and workforce shortages for the purposes of migration law’.[162]

Committee Comment

7.196The Committee believes that the principle of LMT is sound—where possible and appropriate local residents should be afforded priority to fill job vacancies. It is vital that the migration system is not used by unscrupulous employers to undercut the wages and conditions of local workers.

7.197Despite this, the Committee believes the LMT principle can be achieved in the current migration system through a more dynamic and data-driven approach by Jobs and Skills Australia, that accounts for industry and geography-specific circumstances, such as prevailing unemployment rates, workforce needs, average wages for occupational categories, and the capacity of locals to fill demands.

7.198As touched on above, the Committee notes that the Migration Strategy has outlined a larger role for Jobs and Skills Australia in determining skills shortages in the economy. To this end, according to the Migration Strategy, 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.[163]

7.199Under this approach, the Migration Strategy further states that Jobs and Skills Australia will:

…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.[164]
  200. The Committee approves of steps to replace the current LMT regime with skills and workforce shortage determinations by Jobs and Skills Australia, based on real-time evidence and tailored to geographic and sector-specific circumstances.
  201. The Committee endorses the suggestion by the Law Council that the Migration Act or the Migration Regulations be amended to expressly confer on Jobs and Skills Australia the statutory function of making such determinations for the purposes of skilled migration visa application eligibility, thus removing ministerial discretion in determining what occupations are included or excluded from these lists.
  202. Under such an approach, therefore, the skilled migration occupation lists currently employed for visa applications should eventually be replaced by lists determined by Jobs and Skills Australia.
  203. In the interests of consistency and fairness across occupations, the Committee believes that the ANZSCO must form the basis for such analysis. At the same time, there must also be flexibility that allows for Jobs and Skills Australia to account for emerging occupational categories that may be vital for driving future sectors of the economy but are not easily captured under the ANZSCO, even if this is on a case-by-case or by-exception basis.
  204. Further, the Committee is concerned with the long periods that elapse between updates of the ANZSCO. Given the rapidly changing nature of modern work practices and associated occupational categories, the Committee believes that a five-year gap between updates is excessive. The Committee recommends that more regular updates of the ANZSCO occur, as well as ensuring that Jobs and Skills Australia maintains a level of flexibility to adapt to real time changes in the job market between ANZSCO updates, as per the above.

7.205The Committee recommends that the Australian Government considers the phasing out of Labour Market Testing requirements in favour of a data-driven approach by Jobs and Skills Australia, especially for the agriculture sector, which is tailored to specific geographic and industry conditions.

7.206The Committee recommends that the Australian Government amends the Migration Act 1958 or the Migration Regulations 1994 to expressly confer on Jobs and Skills Australia the statutory responsibility of determining skills and workforce shortages for the purposes of migration law.

7.207The Committee recommends that the Australian Government replaces the current skilled migration occupation lists with lists produced by Jobs and Skills Australia, based on the Australian and New Zealand Standard Classification of Occupations but flexible enough to account for newly emerging occupations in the economy.

7.208The Committee recommends that the Australian Government conducts more regular updates of the Australian New Zealand Standard Classification of Occupations.

Skills Assessment and Recognition of Overseas Qualifications

7.209Many temporary and permanent skilled visa applicants must undertake a skills assessment by a skills assessing authority as part of their visa application. The skills assessing authority is an organisation that checks that applicants’ skills meet the standards they set to work in a relevant occupation. The Department of Home Affairs currently lists 43 assessing authorities[165] covering relevant occupations on the skilled occupation lists. Each skills assessing authority has its own assessment procedures, timeframes, and charges. It is the responsibility of the applicant to contact the relevant skills assessing authority to gain skills recognition prior to applying for their visa. Applicants who fail to gain a positive assessment cannot apply for a skilled migration visa.[166]

7.210For Australia to compete globally in the race to attract highly skilled foreign workers it is essential that the nation’s skills assessment and recognition framework is fit for purpose. That is, it must ensure that foreign workers hold the skills and qualifications they claim they have and assess that these skills and qualifications are at, or higher than, Australian standards to ensure quality and safety for the Australian community. At the same time, it is imperative that the skills assessment framework is agile enough that it does not unduly inhibit the ability of Australian businesses to access the skilled workers they need to function in a timely manner.

7.211Australia’s skills assessment framework for migrant workers was raised in evidence to the Committee as problematic for a number of reasons. Submitters described the process as, among other things, ‘difficult’, ‘slow’, ‘lengthy’, ‘cumbersome’, ‘inflexible’, ‘opaque’, ‘confusing’, ‘costly’, ‘complicated’, and ‘over-bureaucratised’. Multiple contributors called the process ‘inconsistent’ and warned that the process potentially impedes the ability of Australian businesses to bring in the migrant workers they require. There were also widescale calls for reform of the current framework and associated processes.[167]

7.212Policy settings that appropriately recognise migrant worker skills and qualifications are important for maximising the contribution migrant workers can make to Australia, thus benefiting both the migrant and Australian society. Related to this point, the World Bank has recently noted the following:

Some migrants face occupational or professional downgrading—that is, they cannot work in occupations commensurate with the diplomas or credentials they received outside of the destination country. This inability typically weakens the match between their skills and attributes and the needs of the destination economy. The extent of such “brain waste” depends on the quality of the education migrants received and on the transferability of the credentials they obtained.[168]

7.213Given this, the World Bank points out the importance of policies designed to aid the successful integration of migrants into the labour market. As part of this, ‘[r]ecognition and certification of migrants’ skills and experience influence how quickly they find a job and the extent of skill downgrading they experience’.[169]

7.214Related to this matter, the Settlement Council of Australia submitted that the skills recognition mechanism ‘hinders many migrants and refugees from gaining meaningful employment with career progression, severely impacting Australia’s future prospects’.[170]

7.215In a similar vein, the NSW Government submitted that issues surrounding the recognition of overseas qualifications can pose a significant barrier for some migrants in securing jobs that match their skill level. They suggest that Australia’s governments work together to ensure that ‘skilled migrants can achieve recognition of their skills and qualifications consistently across jurisdictions, without compromising quality or safety’.[171]

7.216Recognising that governments alone cannot solve this issue, the NSW Government also called on Australia’s governments to work with ‘industry, professional bodies and unions to identify opportunities to streamline and accelerate skills and qualification recognition’.[172]

7.217Speaking to this issue, the Community and Public Sector Union (CPSU) cited the ‘reluctance’ of professional organisations ‘to readily recognise overseas skills and qualifications’ and suggested that the Department of Home Affairs take the lead in a national approach to ensure ‘professional organisations encourage, rather than prevent, the accreditation required by recent entrants to practice and apply their skills in Australia’.[173]

7.218In relation to the credentialing of overseas-trained doctors, the Department of Home Affairs pointed out to the Committee that the Department does not set the requirements for practicing in Australia, that being the responsibility of the Department of Health, the Australian Health Practitioners Regulation Agency (AHPRA) and the various medical colleges. Despite this, the Department acknowledged that it plays a role in working ‘with those bodies to try and find a way to accommodate their requirements and still deliver the kind of system we are trying to deliver’.[174]

7.219Internationally, the NSW Government recommended that the Australian Government works closely with foreign governments to promote greater mutual recognition of skills. They recommended the following:

Investigate and implement greater mutual recognition of overseas qualifications, licensing and registration procedures with major migrant source countries including supporting migrants to update their qualifications prior to arrival in Australia to expedite their ability to enter the workforce.[175]

As an example, the NSW Government raised the potential of greater mutual recognition of skills between Australia and New Zealand ‘given the Trans-Tasman Mutual Recognition Agreement is already in place’.[176]

7.220The Law Council echoed this recommendation, calling for ‘more effort for governments to mutually recognise, with other countries, skills and qualifications’. As an example, they highlighted the ‘the engineering Washington Accord’, which was a ‘simple process of having engineers mutually recognised’.[177]

7.221On the Washington Accord, the Australian Constructors Association argued that the agreement was outdated and suggested that the relevant accrediting body—Engineering Australia—could ‘analyse a wider range of overseas qualifications and identify gap training requirements’ that could ‘unlock a larger pool of overseas-trained graduates’.[178]

7.222Master Builders Australia suggested that recognition of international qualifications and experience for trade and licensed occupations needed to be ‘strengthened and streamlined’. In particular, they noted that for international qualifications that are comparable to, or exceeded, Australian requirements there should be automatic recognition for the purposes of visas applications. Under the current system, a visa applicant is obligated to pass through trade or skills assessments prior to recognition. Master Builders Australia cited as an example of qualifications that are of a higher standard than that required in Australia ‘some trade apprenticeships in the United Kingdom’. Allowing the holders of such high-standard qualifications automatic recognition, they suggested, would speed up application processes, reduce costs and red tape and make Australia a more appealing destination for potential skilled migrants.[179]

7.223In relation to the skills assessment framework, the Law Council highlighted that skills assessment processes, while being ‘a very important part of the migration program’, ‘sits outside the program’. They noted that each assessment authority has its own requirements ‘which are rigid and potentially, in certain circumstances, narrower than the migration law provides’. Continuing, they said the following:

But from a Law Council perspective, if it touches migration law and the migration program, there needs to be a mechanism where it is entrenched in migration law and there is accountability and responsibility for those bodies to make decisions in certain ways, if it impacts a migration decision.[180]

7.224While acknowledging that there is still a role for skills assessments for certain visas, and that many of the standards applied by skills assessing authorities may be justified, the Law Council argued that ‘these processes should align with visa criteria and a migration statutory framework and that the Department and Minister should have oversight of the standards they impose’.[181]

7.225Registered migration agents Heather Marr, Libby Hogarth, and Nish K. Padiya related to the Committee a case where a permanent visa applicant, who otherwise meets criteria for the grant of the visa and Australian Government requirements to work in a given field, had had their application rejected on the basis of a negative skills assessment. This case study is included in Box 7.1, below.

7.226Relating to this issue of the skills assessment process being outside the remit of migration law is the lack of independent appeals mechanisms for decisions made by assessing authorities. While some skills assessing authorities have internal review processes, these can be ‘time-consuming, unpredictable and costly’. Moreover, skills assessment decisions ‘are not subject to independent review by the AAT’ (Administrative Appeals Tribunal). As the Law Council explained:

That means that, if the applicant’s skills are not assessed as suitable by an authority applying standards that it has set out outside of the legislative framework, there is no means by which that person may independently challenge the merit of that assessment.[183]

7.227The Law Council recommended that the skills assessment process be fundamentally reformed to ensure that, where required, it is performed pursuant to statutory criteria, consistent with ANZSCO, and subject to merits review.[184]

7.228On the related, but wider, issue of government oversight of and accountability for the skills assessing authorities, the Federation of Ethnic Communities’ Councils of Australia (FECCA) noted that there is currently ‘little consistency, transparency, or accountability across the various industry bodies who implement skills qualification recognition’. They made the following recommendation regarding this situation:

Develop government oversight of the skills assessment bodies in Australia to expand transparency and opportunities for internal review; improve the fairness, consistency, and equity of service; and retain centralised accountability within a broad market system.[185]

7.229Addressing this issue, the Settlement Council of Australia raised the idea of ‘an ombudsman for skills recognition processes, that can have some oversight over the process’.[186] As an alternative to an ombudsman, they recommended the establishment of an independent oversight body for skills assessment processes and raised the example of the Office of Fairness Commissioner in Ontario, Canada, as a potential model for such a body. Settlement Services International, similarly, recommended that an external oversight body be established based on the Office of Fairness Commission.[187]

7.230The Office of Fairness Commissioner ‘is responsible for dismantling barriers to recognition by streamlining processes, improving information and providing support’. The establishment of the Office had ‘resulted in increased accessibility, fairness and equal treatment of overseas trained migrants and refugees in regulated professions and trades in Ontario.[188]

7.231According to the Office of Fairness Commissioner’s website, the mandate of the Office is to ‘oversee the registration practices adopted by regulated professions, regulated health colleges and skilled trades’. The Office works with the various occupation regulation bodies ‘to help establish registration processes that are transparent, objective, impartial and fair, and that comply with the specific legal obligations identified in the legislation’.[189]

7.232The legislation establishing the Office of Fairness Commissioner grants those seeking skills recognition the following:

• The right to obtain clear information about the requirements, assessment criteria, processes, and timelines;
• The right to timely decisions;
• The right to an explanation of the reasons driving the results of the assessment;
• The right to request a review or appeal;
• The right to a transparent, objective, impartial and fair assessment of their qualification by adequately trained assessors; and
• The right to access application records.[190]
  233. According to the Settlement Council of Australia, 10 years following its establishment, the Office of the Fairness Commissioner had resulted in a 59 per cent increase in ‘foreign trained licensed professionals’, including lawyers, teachers, physiotherapists, dentists, social workers, physicians, engineers, nurses, and engineering technicians.[191]
  234. The Committee heard evidence that skills and qualifications assessment and recognition processes could be accelerated through better information and a rationalisation of online tools to aid in the process. SSI, for example, highlighted that ‘there is limited information for newcomers on the process and criteria used to assess qualifications and skills’. They cited the example of Germany which ‘has established an online portal which provides a one-stop shop for all information on skills recognition’ and ‘a step-by-step guide to the qualification recognition procedure in 11 languages’.[192]
  235. On other matters, Vialto Partners criticised the requirement for applicants of Skilled Employer Sponsored Regional (Provisional) visas (subclass 494) to undertake skills assessment by a ‘relevant assessing authority’ prior to lodging an application. They note that for standard temporary skilled work visas (TSS [subclass 482] visas) ‘skills assessments are rarely required’ and note that it is ‘counterintuitive that the pathway designed to incentivise settlement in regional Australia has a higher barrier to entry than the standard work visa pathway’.[193]
  236. The Law Council, meanwhile, criticised the requirement for international graduates who have obtained an Australia qualification and who are applying for an employer sponsored visa to undertake a skills assessment. They suggested that this requirement be reviewed.[194]

Committee Comment

7.237The Committee notes that on 12 September 2023, the then Ministers for Skills and Training; Home Affairs; and Immigration, Citizenship and Multicultural Affairs jointly announced the release of a discussion paper seeking feedback from stakeholders on ‘the new standards for skilled migration assessing authorities’. The announcement noted that the current skills assessment process ‘is complex, costly and lengthy’ and noted the need for ‘actions to improve and streamline the recognition of overseas skills to help migrants enter the labour force market at a level commensurate with their qualifications’.[195]

7.238While the Committee looks forward to the outcomes of this review of the standards of skills assessment authorities, it believes that the Government should undertake more fundamental steps to improve the integrity, consistency, fairness, and timeliness of skills assessment processes. One possible approach could be through the empowerment of Jobs and Skills Australia to oversee the work of Australia’s skills assessing authorities. Importantly, as argued by the Law Council, it is important that these processes be embedded within and aligned to migration law and subject to independent review mechanisms.

7.239Recognising that skills assessment, qualifications recognition, and occupational licensing requirements in Australia are a matter for both the Commonwealth and state/territory governments and the various professional bodies, the Committee recommends that the Australian Government takes the lead in a nationally coordinated approach to promoting a more effective framework to manage these processes, including pursuing harmonisation of any relevant legislation or regulation governing these processes.

7.240Related to this, the Committee sees merit in Settlement Services International’s suggestion that a consolidated and fit-for-purpose online tool could be developed to improve skills and qualifications assessment and recognition processes. This could be modelled on similar online systems used in Germany, which are available in multiple languages. Such an online ‘one-stop-shop’ could be developed as part of a wider effort by the Commonwealth and the state and territory governments to harmonise skills assessments, qualifications recognition and occupational licensing requirements, to ensure a seamless process across all levels of government.

7.241Internationally, the Committee sees scope for greater mutual recognition of skills and qualifications between Australia and countries with similar standards to our own. Mutual recognition would significantly reduce administrative burdens and costs and make visa application processes much smoother for skilled workers with qualifications equal to Australian standards, or higher.

7.242In lieu of mutual recognition, in situations where foreign workers have skill levels or qualifications that are equal to or higher than the standards required for equivalent occupations in Australia, the Committee recommends that the Australian Government, through a competent authority, provide such workers automatic recognition. Not only would this reduce burdens for such workers applying for Australian skilled visas but would also result in raising the standard of such occupations in Australia.

7.243The Committee recommends that the Australian Government considers providing Jobs and Skills Australia the statutory power to oversee the work of Australia’s skills assessment authorities and also provides an appeal mechanism for skills assessment decisions.

7.244The Committee recommends that the Australian Government takes the lead in a nationally coordinated approach to harmonising the regulation of skills assessment, qualification recognition, and occupational licensing requirements in partnership with state and territory governments and professional bodies to ensure more effective and efficient processes.

7.245The Committee recommends that the Australian Government, as part of a wider nationally coordinated approach to harmonising the regulation of skills assessment, qualification recognition, and occupational licensing requirements, establishes an online portal as a one-stop-shop for navigating these processes, available in multiple languages.

7.246The Committee recommends that the Australian Government works to establish mutual recognition of skills and qualifications with partner governments and accreditation authorities of countries with similar standards to Australia.

7.247The Committee recommends that the Australian Government, through a competent body, provides for automatic skill and qualification recognition and, including where possible, occupational licensing of foreign workers coming from countries where standards for a given occupation are equivalent to or higher than that of Australia.

Skilling Australians Fund

7.248Employers seeking to sponsor an overseas worker for a skilled work visa are required to pay the Skilling Australians Fund (SAF) levy. The levy applies to the following visa schemes:

• 186 – Employer Nominated Scheme
• 187 – Regional Sponsored Migration Scheme
• 494 – Skilled Employer Sponsored Regional (Provisional)
• 482 – Temporary Skill Shortage.
  249. The amount businesses pay into the Fund differs according to the turnover of the sponsoring business, the type of visa, and the length of stay of TSS visa recipients, up to $7,200.[196]
  250. The Fund is designed to ensure that businesses that benefit from skilled migration also contribute to the skilling of Australian citizens and residents. While the levy is collected by the Department of Home Affairs, it is managed by the Department of Employment and Workplace Relations.[197]
  251. Between 1 July 2018 and 30 June 2022, the Fund supported the National Partnership on the Skilling Australians Fund, which was an agreement between the Commonwealth Government and six state and territory governments for the delivery of skills, training, and apprenticeships projects.[198]
  252. In late 2022, the Commonwealth Government entered into the 12-Month Skills Agreement with all state and territory governments to provide $1 billion in funding to make 180,000 free TAFE and vocational education places available in 2023, with a focus on technology and digital, hospitality and tourism, construction, agriculture, and sovereign capability.[199]
  253. In October 2023, the Government agreed to further boost investment in vocational education and training through the National Skills Agreement, in partnership with the state and territory governments. Through the Agreement, the Commonwealth Government will provide up to $12.6 billion over 5 years. While the funding earmarked for the Agreement far exceeds revenue collected through the SAF levy, the levy will continue to contribute to the Government’s investments in vocational education and training through the Agreement.[200]
  254. As discussed in the section on temporary skilled visas, under the Migration Strategy, the Commonwealth Government has indicated that it 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’, including the SAF levy. Under the proposed model, businesses would pay monthly or quarterly fees associated with certain temporary visa applications.[201]
  255. Submitters to the inquiry criticised the SAF on a range of factors, including:
• Cost burden on business, particularly upfront costs; and
• Ineffectiveness in aiding to alleviate skills shortages in specific sectors.
  256. Vialto Partners recommended that the Government conducts a broad review of the SAF levy against competing economies to ensure that it remains fit-for-purpose. They suggested that businesses should be able to make payment of the levy at the time of visa approval, rather than at lodgement, that the levy be easily refundable in cases where a visa is not granted and there is no evidence of fraud committed by the sponsor or the applicant. They further suggested that startups and small business be exempt from the levy if they can provide a business case for growth and job creation.[202]
  257. The Australian Private Hospitals Association (APHA) criticised the requirement for private health providers to pay the SAF levy on the basis that the Fund does not contribute to skilling Australians to take up roles in health. APHA explained: ‘…the Levy is directed toward VET programs, not towards programs that would reduce the health sectors [sic] dependency on skilled migration’.[203]
  258. In a similar vein, the Business Council of Australia recommended that the levy be directly linked to the staffing needs of the paying business and that businesses should ideally be able to direct the funds to industry-specific training. They argued the following:

Due to the focus on VET-level training, many businesses like professional services and technology firms that pay the levy have no confidence that they will see any benefit in terms of an increased supply of skilled local workers in their industry or region.[204]

By contrast, the Business Council of Australia suggested that the levy currently functions as ‘an additional tax on skilled labour that diverts funds that could have been used by companies to train their own staff’.[205]

7.259The Business Council of Australia proposed that a new category of Accredited Sponsor be created for the purposes of skilled visa applications. Under the Council’s proposal, a category of ‘Trusted Trainer’ be applied to businesses that can demonstrate a significant commitment to training local staff and high-quality working conditions for local and migrant workers. These businesses would then benefit from SAF exemption, lower LMT requirements, and prioritised visa processing for sponsored overseas workers.[206]

7.260Clubs Australia suggested that businesses should be able to choose whether they pay the levy or use the money to train their own staff.[207] Australian Pork Limited, similarly, argued that the levy must ‘benefit the agricultural industries who contribute to it via effective upskilling initiatives, supported by transparent monitoring and evaluation reporting’.[208]

Committee Comment

7.261The Committee recognises that the Skilling Australians Fund plays an important role in offsetting benefits derived by businesses in their employment of skilled overseas workers back into the training and upskilling of locals. At the same time, the Committee also acknowledges that this is a cost burden on employers in industries that may derive little benefit from the skilling that the levy facilitates. If the rationale for the levy is to skill workers in industries that rely on the importation of skilled workers, the Committee sees room for the broadening of the use of the levy to serve the needs of a wider array of industries.

7.262The Committee notes evidence received concerning the need for greater portability for sponsored visas. This not only reduces instances of worker exploitation but also promotes a more dynamic, and therefore better, labour market. The Committee acknowledges that employers will be reluctant to commit to the payment of visa application fees and the Skilling Australians Fund levy, if there is a risk that sponsored foreign workers leave the employment of their nominator soon after arrival in Australia. To reduce the risk associated with the cost impost of the Skilling Australians Fund levy, the Committee sees scope for the general applicability of trailing employer fees for all classes of employer sponsored visas.

7.263Such a measure would reduce the risk of worker exploitation and the risk of loss of return on investment for sponsoring employers, and promote a more mobile workforce and a more dynamic labour market.

7.264The Committee recommends that the Australian Government redesigns the Skilling Australians Fund levy so that it more directly contributes to the skilling of locals to meet the needs of industries that rely on foreign workers and pay the levy.

7.265The Committee recommends that the Australian Government trials the application of trailing employer fees to all classes of employer sponsored visa.

Sector-Specific Issues

Health and Aged Care

7.266The Committee heard evidence of significant workforce shortages across the health and aged care sector.

7.267In evidence to the Committee, HealthWISE reported that ‘[a]ll professional roles within health are in shortage.’[209] Co.As.It. Community Services Ltd, likewise, pointed to a shortage of ‘aged care workers, nurses, and other community care personnel’, noting that these shortages have been ‘persistent’ and are not ‘a direct result of the [COVID-19] pandemic.’[210]

7.268Related to this, the APHA, submitted that ‘the health care sector is facing a workforce shortage crisis’ that predated the COVID-19 pandemic. The pandemic had not only exacerbated these shortages, but had resulted in increased demand, also. These workforce shortages extended ‘across all clinical professions – medical, nursing, midwifery, allied health and mental health.’[211]

7.269More specifically, APHA identified that the private hospital sector needed more than 8,000 nurses to meet immediate demands and that at the start of 2022, ‘operators were seeking more than 1,000 skilled migrants to assist in meeting this shortfall in skilled and experienced nurses’, particularly in mentoring roles to support new graduates.[212]

7.270This evidence of widespread shortages in nursing, midwifery, and medicine has been confirmed by the findings of the Independent Review of Australia’s Regulatory Settings Relating to Overseas Health Practitioners (The Kruk Review), which reported the following to the Australian Government in August 2023:

Shortages are widespread across medicine, nursing, midwifery, and allied health professions, including dentistry, occupational therapy, physiotherapy, psychology, and radiation therapy.

The Kruk Review also affirmed the vital role International Medical Graduates (IMGs) play in helping to alleviate workforce shortages in healthcare and the need to ensure regulatory settings are fit-for-purpose and do not act as a barrier for IMGs coming to Australia.[213]

7.271At present, Australia heavily relies on IMGs to fill roles as General Practitioners (GPs). Around 45 per cent of GPs in Australia are IMGs, and around 50 per cent of all GPs attained their degree overseas.[214] This reliance is expected to increase, as there is a ‘declining rate of [Australian] graduates choosing General Practice as a career’.[215]

7.272The Primary Care Business Council (PCBC) pointed to research by the Australian Medical Association that predicts there will be a shortage of more than 10,600 GPs by 2031-32, ‘with the supply of new graduates not keeping pace with growing community demands.’[216] Additionally, as pointed out by the Royal Australian College of General Practitioners Rural (RACGP Rural), this shortage will be compounded by an increase in demand for GPs of 38 per cent (47 per cent in cities) by 2032.[217]

7.273The PCBC suggests that while efforts must be made to encourage more local graduates to pursue careers as GPs, ‘increasing the supply of IMGs in Australia must form part of the short to medium-term policy response.’[218]

7.274The PCBC cited the expensive and slow visa application process for IMG as a significant barrier to attracting skilled healthcare workers to Australia:

The current time it takes to process an IMG application in Australia is anywhere from 14 to 18 months, at a cost of $25,000 plus to the individual. By comparison, in New Zealand, it takes three months to process and costs $5,000.[219]

7.275Reflecting the cost and time difference in the visa application process for IMGs between Australia and New Zealand, the PCBC informed the Committee that ‘NZ is recruiting 7.5× more IMG GP’s per capita than Australia is post COVID’.[220]

7.276Moreover, given the international competition for doctors, PCBC informed the Committee that countries such as Canada and the United Kingdom have put measures in place to streamline their processes in a similar fashion to New Zealand to better attract IMGs by cutting down application time and costs.[221]

7.277Given the necessity to improve the IMG applicant experience when trying to relocate to Australia, the Kruk Review has recommended that the system be significantly streamlined to reduce time and cost for applicants.[222]

7.278The Royal Australian college of General Practitioners (RACGP) Rural noted that since 2020, all IMG GPs coming to work in Australia are required to practice in ‘rural designated areas of (medical) workforce shortage’ for a minimum of ten years, the so-called ’10-year moratorium’, to access Medicare benefits. This means that IMG are estimated to constitute a large proportion of GPs living and working in regional, rural, and remote areas.[223]

7.279The RACGP Rural submitted that the RACGP has never supported or endorsed the 10-year moratorium and called for it to be reviewed. They noted that measures ‘which compel doctors to work rurally are often unsustainable’ because at the end of the 10-year period ‘the GPs move away from the rural areas’. They suggested that the policy focus shift towards ‘mechanisms which would ensure registrars have a positive rural placement’, which could include ‘setting requirements for high-quality rural experience for example, duration, location, and breadth of exposure to rural medicine’.[224]

7.280Noting shortages of nurses, particularly in regional and rural areas, the Australian College of Nursing (ACN) called for streamlined visa processing and fast-track pathways to permanent residency as key mechanisms to attract more Internationally Qualified Nurses and Midwives (IQNMs). Pathways to permanency, ACN contends, should also be extended to the families of IQNMs coming to Australia.[225]

7.281The issue of shortages of medical professionals in regional, rural, and remote locations will be discussed in greater detail in chapter 10.

7.282In relation to aged care, Co.As.It Community Services Ltd submitted that:

…Australia is lagging behind in meeting the human challenges of caring for an increasingly older population. The chasm between the need and the demand can only be met by a large well-trained and competent workforce… Hence the attraction of skilled migrant workers is critical.[226]

7.283Speaking to this widening labour force chasm between supply and demand, the ACCPA informed the Committee that the industry is going to ‘have a shortfall over the next decade of something like 110,000 workers, and by 2050 that would be 400,000 workers’.[227]

7.284Noting the requirement from 1 July 2023 for aged care providers to have at least one Registered Nurse on-site and on duty 24 hours a days 7 days a week at each residential facility[228], the ACCPA called for the introduction of a UK-style ‘health and care workforce visa’ for Registered Nurses as a streamlined option to help meet this demand.[229]

7.285Currently, Ministerial Direction 105 sets visa applications in relation to healthcare (together with teaching) as second on the order of priority after sponsored visa applications in relation to an occupation to be carried out in a designated regional area.[230]

Aged Care Industry Labour Agreement

7.286The Aged Care Industry Labour Agreement (the Agreement) was announced on 5May 2023 as a ‘tripartite approach to address workforce shortages in aged care’. For employers to be able to access migrant workers through this pathway, they must first enter into an MOU with the relevant industry union and the agreement is then ‘negotiated directly between unions and employers, promoting transparency and collaboration across the sector’.[231]. Employers using this pathway must also demonstrate that they have ‘made recent and genuine attempts to recruit workers from the domestic workforce pool’, but the Department of Home Affairs notes that they will consider labour testing requirements to have been met once the employer enters into an MOU with the relevant union.[232]

7.287The Agreement is designed to provide streamlined recruitment of qualified direct care workers from overseas and is intended to ‘create positive incentives for aged care providers to improve workforce conditions and deliver additional support to overseas workers’.[233]

7.288The Agreement can be used to access the following ANZSCO occupations:

• Nursing Support Worker;
• Personal Care Assistant; and
• Aged or Disabled Carer.
  289. Applications through this pathway can be either for a TSS (subclass 482) visa or an Employer Nominated Scheme (subclass 186) visa. Under the Agreement, the following concessions to the standard skilled visa apply:
• Two year pathway to permanent residence through the Employer Nominated Scheme;
• Streamlined visa nomination and priority visa application processing;
• No post qualification work experience requirement;
• English language concessions for workers with relevant community language skills; and
• Annual salary of at least $51,222 or the Australian Market Salary Rate, where it is higher.[234]
  290. Applicants for a skilled visa through the Agreement have the following requirements:
• Hold a relevant Australian Qualifications Framework (AQF) Certificate III or equivalent, or higher qualification. Applicants can also have 12 months of relevant work experience or part time equivalence in lieu of the qualification;
• Obtain a positive skills assessment from the Australian Nursing and Midwifery Accreditation Council or the Australian Community Workers Association if applicants obtained their qualifications overseas. This also applies if applicants claim work experience in lieu of the formal qualifications;
• Have an English language proficiency level of at least International English Language Testing System (IELTS) 5.0 or equivalent. Workers with target community language skills employed by culturally and linguistically diverse aged care providers need at least IELTS 4.5 or equivalent. An IELTS of 5.5 or equivalent is required for the Employer Nomination Scheme (subclass 186) visa; and
• For workers sponsored under the Employer Nomination Scheme (subclass 186) visa, have at least two years of relevant work experience in Australia in a direct care occupation. The two years of work experience is not tied to a particular employer or visa subclass.[235]
  291. BDO criticised the process leading to the announcement of the Agreement, particularly the lack of consultation with industry concerning the requirement for aged care providers to enter into an MOU with the relevant union to be eligible to join the Agreement. They suggested that if aged care providers are unwilling to enter into an MOU with the relevant union it may undermine the Government’s aim of boosting the aged care workforce.[236]
  292. BDO argued that the MOU requirement is ‘misconceived’ and emphasised that it is ‘inconsistent with standard Labour Agreement requirements’. Given this, they submitted that the Agreement ‘is not the solution’ to addressing ‘the significant and growing aged care workforce shortages’.[237]
  293. The peak body for the aged care industry, the ACCPA, reported ‘varying experiences’ of ACCPA members with the Agreement and suggested that it should be subject to a ‘rolling cycle’ of monitoring and reviews, in consultation with industry, to ensure that any issues identified with it are addressed in a timely fashion. More specifically, they recommended that the Government reviews the MOU requirement under the Agreement in consultation with the sector and noted that the model MOU ‘for some providers includes things that are challenging to actually achieve’. Difficulties in providers being able to meet the requirements of the MOU, the ACCPA argued, has meant that the sector has not seen ‘the benefit of the industry labour agreement that we would like to see’.[238]
  294. BDO asserted that labour agreements are ‘clunky, highly bureaucratic and inconsistent with the Government’s focus on reforming the migration program to better meet Australia’s needs now and into the future’, and suggested an alternative approach to the Agreement in the form of an ‘Essential Skills Visa’. As discussed briefly above, such a visa would be targeted at semi and lower-skilled labour. BDO submitted that the visa should capture overseas aged care workers and include the concession to the standard skilled migrant pathway currently operational under the Agreement. Such a visa, they argued:

…will best meet the needs of the aged care sector and is consistent with a better-targeted migration system, which includes improved skills recognition.

….

The Essential Skills Visa should be implemented and allow for concessions, including for permanent more effective residency contained in the Aged Care Industry Labour Agreement. This reform would more effectively address middle and lower skilled workforce needs, and provide the opportunity for permanent residency. [239]

7.295The Department of Home Affairs currently lists 56 Aged Care Industry Labour Agreements in place.[240] For context, while it can be difficult to determine the exact number of aged care providers, as many offer more than one service (for example, aged care, independent living, home care, and other forms of flexible care), and some operate in more than one state/territory. According to the Australian Institute of Health and Welfare (AIHW), as at 30 June 2023, there were almost 3,200 aged care providers in Australia.[241]

7.296The AIHW breaks this figure down in the following way:

• 1,334 providers delivering home support through 3,744 outlets;
• 923 providers delivering home care through 2,448 outlets;
• 764 providers delivering residential care through 2,639 services;
• 73 providers delivering transition care and short term restorative care; and
• 66 providers delivering other types of flexible care.[242]

Education

7.297The Association of Heads of Independent Schools of Australia (AHISA) emphasised the reliance of the sector on the hiring of overseas workers on temporary visas for leadership positions and specialised teacher roles, and particularly to meet workforce shortages in boarding schools in regional, rural, and remote locations. AHISA described ‘a global “talent war” for teachers’, and cautioned that:

If Australia is to brace for a war for teaching talent with nations whose teaching training systems are similar to our own, schools must be supported, not penalised by visa arrangements.[243]

7.298Echoing the above point, Independent Schools Australia submitted that access to overseas recruiting allows ‘Australian schools to increase the range of expertise available and hire teachers in high priority learning areas such as science, technology, engineering and mathematics (STEM)’.[244]

7.299Given the workforce shortages across the board in the education sector, the AHISA called for ‘all school-related occupations’ to be included on the migration occupation lists ‘by default’.[245]

7.300Ministerial Direction No. 105 currently lists visa applications in relation to a ‘teaching position’, together with healthcare, as second on the list of visa application processing priorities.[246]

Tech

7.301According to the Tech Council of Australia (the Tech Council), the tech sector contributes $167 billion to Australia’s GDP and employs over 860,000 people, making it the country’s third largest industry after mining and banking, and Australia’s seventh largest employing sector.[247]

7.302In August 2022, the Australian Government committed to working with the tech industry to increase the sector’s workforce to 1.2 million people by 2030. Allowing for the creation of new roles and the loss of workers through retirements and transfers to different fields, this means 650,000 tech workers will need to be employed, or 186,000 additional workers above business-as-usual hiring figures (an increase of 40 per cent).[248] While increasing the number of people studying Information and Communications Technology (ICT) and reskilling and upskilling existing workers will be the major avenues through which this increase is intended to be achieved, targeted migration of skilled workers, too, will factor into this.[249]

7.303The Tech Council highlighted a significant problem with a reliance on education alone to meet this goal: ‘We have the same number of people doing IT-related degrees in Australia, in terms of domestic students, as we did in 2002… despite the tech sector growing massively over that period’.[250] And while government and the tech sector will work to better promote career opportunities within the industry to potential students to boost the number of domestic workers moving into tech jobs, there remains a danger of shortfalls if more young Australians are not attracted into ICT training and education. The Government has committed to ‘targeting skilled migration to areas of high need and greatest shortages’ to help meet the 1.2 million target.[251]

7.304The Tech Council suggested that an additional 43,000 skilled migrants above the business-as-usual hiring levels (estimated to be around 119,000) will be needed to meet the target before 2030.[252] A breakdown of how the 1.2 million tech jobs target will be achieved is at Figure 7.6.

Source: Tech Council of Australia, Submission 39, p. 6.

7.305In relation to Figure 7.6, the Tech Council explained that to reach the 1.2 million job target, it will require an additional 186,000 tech workers above 2030 business as usual predictions. Further, an expected 314,000 tech workers will either retire or change jobs over the next ten years, pushing up demand for workers more. Finally, the Tech Council noted that for the sector to meet the job target over the next ten years it will need to employ the following:

• An additional 42,000 graduates will be required, above and beyond the expected 132,000 graduates from VET and tertiary institutions;
• An additional 101,000 Australians will need to move into tech roles, through reskilling and upskilling; and, as noted above,
• An additional 43,000 skilled migrants will be required, above the typical intake.[253]
  306. Beyond contributing to the aggregate numbers required to meet industry demand for ICT workers, overseas tech workers also bring qualitative benefits to Australian tech firms. The Tech Council pointed out that ‘skilled migrants play an important role in training entry level and reskilling or upskilling workers’. Because of this, such skilled migrants were ‘a crucial, complementary component to the local tech workforce as we grow towards this job goal’.[254]
  307. To help ensure that the industry can meet labour market demands and government jobs targets, the Tech Council suggested that employer-sponsored migrants within the sector attract prioritised visa processing, and that LMT requirements and skills assessment be waived for skilled visas for tech jobs earning above the average Australian fulltime salary.[255]
  308. Similarly, Vialto Partners suggested that ICT-specific visa pathways be developed to enable Australian business to access skilled workers in this sector. They noted that existing TSS visas are often not fit-for-purpose for ICT.[256]
  309. The Australian Technology Network of Universities recommended international students studying in ICT fields be given more opportunities ‘to participate in work-based and work-integrated learning, internships and graduate programs’.[257]
  310. Vialto Partners recommended that approved sponsors with accredited status have access to a dedicated ICT visa pathway that attracts priority processing. They suggest that such a visa could be free from LMT requirements, skilled occupation list adherence, and English language requirements. This visa, they further suggest, could be limited in number and required to comply with a salary threshold as a quality control measure, with requests for an increased number of workers considered under a Labour Markets Benefits Plan model.[258]

Building and Construction

7.311The residential, commercial, and civil building and construction sector employs around 1.3 million workers and one in six Australian businesses are in the industry, the majority of which are small businesses.[259]

7.312The Housing Industry Association (HIA) noted ‘a systemic shortage of trades workers’ in the residential building industry.[260] Master Builders Australia (MBA), similarly, pointed out an ‘acute and systemic shortage’ of construction trades workers.[261]

7.313Directly related to this point, the Chamber of Minerals & Energy of Western Australia noted that across mining, infrastructure, civil and residential construction there were reports of ‘a shortage of experienced concrete workers, steel fixers, structural steel erectors, riggers, scaffolders and crane operators’. It further noted the low proportion of vacancies being filled ‘within the broad group of occupations encompassing construction workers’, with Construction Trades Workers, for example, down from 45 per cent in 2021 to 32 per cent in 2022.[262]

7.314In addition to trades roles, the Australian Constructors Association (ACA) emphasised the skills shortages of ‘white collar’ roles within the construction industry. Drawing on research by Infrastructure Australia, ACA noted that ‘two-thirds of occupations relevant to public infrastructure are likely or potentially in shortage’ and that ‘half of these are engineers, scientists and architects’. In terms of figures, there is expected to be a shortfall of 89,000 project managers, engineers, scientists, architects, compared to 29,000 tradespeople and labourers.[263]

7.315According to MBA, the workforce needs of the industry are around half a million workers by 2026, without which the industry will not ‘be able to build the housing and community infrastructure needed to support the growing population’. While the industry is confident that it can keep pace with demand based on Australia’s migration intake alone, combined with other sauces of population increase, MBA foresees ‘total new home building activity falling short of underlying demand over the years ahead.’[264]

7.316On this point, the HIA, too, acknowledged the ‘mismatch between supply and demand for housing’. They noted, however, that while part of this was due to migration, ‘the shortage of housing was still evident when Australia’s borders were closed’. A situation, they argued, which was exacerbated by the ‘absence of skilled migrants, with widespread labour shortages’. They emphasised that Australia ‘benefits greatly from migrants, but the undersupply of housing is letting the nation down’.[265]

7.317Similarly, MBA explained that currently the industry lacked workers to meet demands, yet bringing in migrant workers to meet labour demands pushes up demand for housing stock:

We find ourselves in a catch-22 where we don't have enough workers to build the 200,000 dwellings a year that we need, but at the same time we don't have enough homes to meet the current migration levels, as well as the extra demand in the housing market.[266]

7.318The HIA highlighted the importance of ensuring that housing stock keeps pace with demand, noting the potential for a detrimental impact on public confidence in the migration program:

Amid an environment of acute shortages of housing and high costs, domestic acceptance of Australia’s permanent migration program also presents challenges. A migration program that facilitates population growth while Australian citizens are unable to find appropriate and affordable housing, risks eroding social cohesion.[267]

7.319The HIA emphasised the need for balance between placing more pressures on housing stock and the need for population growth. It called for governments to be proactive in alleviating ‘the strain in the housing system by improving housing supply’, but also noted that it would be ‘detrimental to Australia’s economic performance to unduly restrict immigration’.[268]

Committee Comment

7.320In relation to the health sector the Committee notes the recommendations of the Kruk Review to improve and streamline visa application processes for IMGs and IQNMs. The Committee will monitor the progress of these reforms and their impact on GP and nurse numbers.

7.321The Committee acknowledges widescale shortages in the aged care sector. It notes that Labour Industry Agreements are gradually being entered into between providers and the relevant unions and hopes that this contributes to alleviating these shortages. As a more fundamental and long-term solution, the Committee is hopeful that the proposed Essential Skills Pathway of the new Skills in Demand temporary visa provides an appropriate avenue for aged care provider to access overseas workers.

7.322The Committee acknowledges evidence from the Tech Council that the domestic supply of tech workers is unlikely to meet industry demands. The Committee will watch with interest the contribution of the skilled migration program in contributing to meet this demand.

7.323Finally, the Committee is cognizant that the country is in the midst of a housing crisis that has the potential to undermine public confidence in the migration system. It is of the utmost importance that governments of all levels work together to ensure that the supply of housing is sufficient to meet demands. The Committee acknowledges evidence from the building and construction industry that the provision of migrant workers must play a part in addressing workforce shortages to allow the industry to keep pace with demands.

Footnotes

[1]Hon Brendan O’Connor MP, Minister for Skills and Training, ‘Address—CEDA’, 13 December 2022, https://ministers.dewr.gov.au/oconnor/address-ceda, viewed 16 April 2024.

[2]Productivity Commission, 5-year Productivity Inquiry, Vol. 7, Inquiry Report no. 100, February 2023, pp. 1-2.

[3]Angelina Bruno, Jessica Dunphy and Fiona Georgiakakis, ‘Recent Trends in Australian Productivity’, Reserve Bank of Australia, Bulletin, September 2023, p. 1.

[4]Angelina Bruno, Jessica Dunphy and Fiona Georgiakakis, ‘Recent Trends in Australian Productivity’, Reserve Bank of Australia, Bulletin, September 2023, pp. 2-3.

[5]Productivity Commission, 5-year Productivity Inquiry, Vol. 1, Inquiry Report no. 100, February 2023, p. 1.

[6]Productivity Commission, 5-year Productivity Inquiry, Vol. 1, Inquiry Report no. 100, February 2023, p. 1.

[7]Productivity Commission, 5-year Productivity Inquiry, Vol. 7, Inquiry Report no. 100, February 2023, pp. v, 1-2.

[8]Productivity Commission, 5-year Productivity Inquiry, Vol. 7, Inquiry Report no. 100, February 2023, p. v. Also see: KPMG, Submission 47, p. 2.

[9]The World Bank, Migrants, Refugees, and Societies, World Development Report 2023, pp. 4; 161.

[10]Government of South Australia, Submission 84, p. 3.

[11]Government of South Australia, Submission 84, p. 3.

[12]Grattan Institute, Submission 17, p. 29.

[13]Business Council of Australia, Submission 56, Attachment 1, p. 14; VETASSESS, Submission 89, Attachment 1, p. 13.

[14]VETASSESS, Submission 89, Attachment 1, p. 13.

[15]Joint Standing Committee on Migration, Interim Report of the Inquiry into Australia’s Skilled Migration Program, Canberra: Parliament of the Commonwealth of Australia, March 2021, pp. 17-20.

[16]The Migration Hub at ANU, Submission 70, p. 8.

[17]Prof Joy Damousi, Dr Rachel Stevens, Dr Mary Tomsic, Submission 24, p. 3.

[18]SEMMA, Submission 12, p. 4.

[19]Australian Academy of Technological Sciences and Engineering, Submission 45, p. 1.

[20]Australian Chamber of Commerce and Industry, Submission 79, p. 2.

[21]Accommodation Association of Australia/Australian Hotels Association/Tourism Accommodation Australia, Submission 83, p. 3.

[22]NSW Government, Submission 57, p. 6.

[23]Australian Small Business and Family Enterprise Ombudsman, Submission 113, p. [1].

[24]Independent Schools Australia, Submission 93, p. 1.

[25]SEMMA, Submission 12, pp. 2-3.

[26]The Chamber of Minerals & Energy of Western Australia, Submission 69, p. [2].

[27]Australian Automotive Aftermarket Association, Submission 101, p. 6.

[28]Smart Energy Council, Submission 5, p. 1.

[29]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 25; Department of Home Affairs, Submission 127, p. 6.

[30]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 25.

[31]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 25; Department of Home Affairs, Submission 127, p. 6.

[32]Department of Home Affairs, Submission 127, p. 6.

[33]Department of Home Affairs, ‘Migration Program planning levels’, https://immi.homeaffairs.gov.au/what-we-do/migration-program-planning-levels, viewed 17 May 2024.

[34]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 25.

[35]Productivity Commission, 5-year Productivity Inquiry, Vol. 7, Inquiry Report no. 100, February 2023, p. 18.

[36]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, pp. 54, 56.

[37]Australian Government, ‘Migration Strategy – Action Plan’, pp. 2,4, https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy-action-plan.pdf, viewed 28 March 2024.

[38]Migration Institute of Australia, Submission 87, p. 17.

[39]Migration Institute of Australia, Submission 87, p. 17.

[40]Migration Institute of Australia, Submission 87, pp. 17, 25.

[41]Law Council of Australia, Submission 117, p. 8.

[42]Department of Home Affairs, ‘How to sponsor a worker’, https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/learn-about-sponsoring/how-to-sponsor-a-worker, viewed 22 February 2024.

[43]Department of Home Affairs, ‘ Cost of Sponsoring’, https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/learn-about-sponsoring/cost-of-sponsoring, viewed 17 April 2024.

[44]Department of Home Affairs, ‘Employer Nomination Scheme visa (subclass 186) – Direct Entry stream’,https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/employer-nomination-scheme-186/direct-entry-stream#HowTo, viewed 22 February 2024.

[45]Department of Home Affairs, ‘Employer Nominated Scheme visa (subclass 186)—Direct Entry stream—About this visa’, https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/employer-nomination-scheme-186/direct-entry-stream#About, viewed 17 April 2024.

[46]Hon Clare O’Neil MP, Minister for Home Affairs and Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs, ‘Temporary Skilled Migration Income Threshold Raised to $70,000’, Joint Media Release, 27 April 2023, https://minister.homeaffairs.gov.au/ClareONeil/Pages/temporary-skilled-migration-income-threshold-raised.aspx, viewed 14 September 2023.

[47]Business Council of Australia, Submission 56, Attachment 2, p. 6. Also see: Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 57.

[48]Mr Trent Wiltshire, Migration and Labour Markets Deputy Program Director, Grattan Institute, Committee Hansard, Melbourne, 26 April 2023, pp. 16-15.

[49]Mr Trent Wiltshire, Migration and Labour Markets Deputy Program Director, Grattan Institute, Committee Hansard, Melbourne, 26 April 2023, p. 17.

[50]Mr Trent Wiltshire, Migration and Labour Markets Deputy Program Director, Grattan Institute, Committee Hansard, Melbourne, 26 April 2023, p. 15.

[51]Mr Trent Wiltshire, Migration and Labour Markets Deputy Program Director, Grattan Institute, Committee Hansard, Melbourne, 26 April 2023, p. 21.

[52]Business Council of Australia, Submission 56, Attachment 1, pp. 4, 16.

[53]Settlement Services International, Submission 26, p. 14; Immigration Advice and Rights Centre and Unions NSW, Submission 32, p. [3]; Federation of Ethnic Communities’ Councils of Australia, Submission 52, p. 7; Migrant Workers Centre, Submission 78, p. 2.

[54]Vialto Partners, Submission 28, p. [3]. Aso see: Aged and Community Care Providers Association, Submission 131, p. [3].

[55]Fragomen, Submission 54, p. 8.

[56]Migration Institute of Australia, Submission 87, p. 22.

[57]Law Council of Australia, Submission 117, pp. 13-14.

[58]Law Council of Australia, Submission 117, p. 13.

[59]Law Council of Australia, Submission 117, p. 14.

[60]Law Council of Australia, Submission 117, p. 13.

[61]Senate Standing Committee on Legal and Constitutional Affairs, Inquiry into the effectiveness of the current temporary skilled visa system in targeting genuine skills shortages, Law Council of Australia, Submission 36, p. 19.

[62]Law Council of Australia, Submission 117, p. 29.

[63]Migration Regulations 1994, Schedule 6D—General points test for General Skilled Migration visas mentioned in subregulation 2.26AC(1); Law Council of Australia, Submission 117, p. 29.

[64]Government of South Australia, Submission 84, p. 2.

[65]NSW Government, Submission 57, Attachment 1, pp. 4, 7.

[66]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 78.

[67]Law Council of Australia, Submission 117, p. 29.

[68]Law Council of Australia, Submission 117, p. 29.

[69]Law Council of Australia, Submission 117, p. 29.

[70]Law Council of Australia, Submission 117, p. 30.

[71]Law Council of Australia, Submission 117, p. 30.

[72]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 58; Minister for Home Affairs, The Hon Clare O’Neil MP, ‘A reformed points test to drive Australia’s long-term prosperity’, Media Release, 23 April 2024, https://minister.homeaffairs.gov.au/ClareONeil/Pages/reformed-points-test.aspx, viewed 24 April 2024. .

[73]Department of Home Affairs, ‘Visas for innovation – Global Talent Program’, https://immi.homeaffairs.gov.au/visas/working-in-australia/visas-for-innovation/global-talent-independent-program, viewed 19 February 2024.

[74]Department of Home Affairs, ‘Visas for innovation’, https://immi.homeaffairs.gov.au/visas/working-in-australia/visas-for-innovation/global-talent-independent-program/eligibility, viewed 5 March 2024; Fair work Commission, ‘High income threshold’, https://www.fwc.gov.au/high-income-threshold, viewed 5 March 2024.

[75]Department of Home Affairs, ‘Migration Program planning levels’, https://immi.homeaffairs.gov.au/what-we-do/migration-program-planning-levels, viewed 19 February 2024.

[76]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 24.

[77]Department of Home Affairs, ‘Visas for innovation’, https://immi.homeaffairs.gov.au/visas/working-in-australia/visas-for-innovation/global-talent-independent-program/eligibility, viewed 5 March 2024.

[78]The AOYE Group and Sapiens Group, Submission 30, Attachment 1, p. 4.

[79]The AOYE Group and Sapiens Group, Submission 30, Attachment 1, p. 4.

[80]Law Council of Australia, Submission 117, p. 35.

[81]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, Second Addendum to the 11th Edition, February 2024, p. 23.

[82]Law Council of Australia, Submission 117, p. 35.

[83]Department of Home Affairs, ‘Visa processing times – Global Talent visa’, https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times/global-visa-processing-times, viewed 20 February 2024.

[84]Law Council of Australia, Submission 117, p. 35.

[85]The AOYE Group and Sapiens Group, Submission 30, p. [8].

[86]Fragomen, Submission 54, p. 6.

[87]Fragomen, Submission 54, p. 7.

[88]Fragomen, Submission 54, p. 7.

[89]Mr Charles Johanes, Special Counsel, Fragomen (Australia) Pty Ltd, Committee Hansard, Videoconference, 16 May 2023, p. 37.

[90]Ms Misha Schubert, Chief Executive Officer, Science and Technology Australia, Committee Hansard, Canberra, 12 May 2023, p. 34.

[91]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 59.

[92]Australian Government, Budget 2024-25, Budget Measures, Budget Paper No. 2, p. 136.

[93]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 43.

[94]Hon Clare O’Neil MP, Minister for Home Affairs and Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs, Joint Media Release, ‘Temporary Skilled Migration Income Threshold Raised to $70,000’, 27 April 2023, https://minister.homeaffairs.gov.au/ClareONeil/Pages/temporary-skilled-migration-income-threshold-raised.aspx, viewed 21 February 2024.

[95]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 19.

[96]Mr Trent Wiltshire, Migration and Labour Markets Deputy Program Director, The Grattan Institute, Committee Hansard, Melbourne, 26 April 2023, p. 15.

[97]Fragomen, Submission 54, p. 3.

[98]Mr Thomas Costa, Assistant Secretary, Unions NSW, Committee Hansard, Videoconference, 16 May 2023, p. 15.

[99]NSW Government, Submission 57, p. 4.

[100]BDO Migration Services, Submission 129, p. 6.

[101]Australian Government, ‘Migration Strategy – Action Plan’, https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy-action-plan.pdf, viewed 17 April 2024.

[102]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 46.

[103]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 47.

[104]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 47.

[105]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, pp. 49-52.

[106]Department of Home Affairs, ‘Work restrictions for student visa holders’, https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/student-500/temporary-relaxation-of-working-hours-for-student-visa-holders, viewed 19 April 2024.

[107]SUPRA, Submission 25, p. [2].

[108]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 61. Also see: Department of Home Affairs, Submission 127, p. 11.

[109]Independent Higher Education Australia, Submission 37, p. [2]. Also, see: Australian Technology Network of Universities, Submission 91, p. 1.

[110]Independent Higher Education Australia, Submission 37, p. [3]. Also see: NSW Government, Submission 57, Attachment 1, p. 5.

[111]VETASSESS, Submission 89, p. 19.

[112]NSW Government, Submission 57, p. 4.

[113]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 58.

[114]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 60.

[115]Hon Jason Clare MP, Minister for Education, Hon Tony Burke MP, Minister for Home Affairs and Minister for Immigration and Multicultural Affairs, Senator Hon Murray Watt, Minister for Skills and Training, Joint Media Release, ‘Improving the sustainability of international education’, 27 August 2024, https://ministers.education.gov.au/clare/improving-sustainability-international-education, viewed 9 September 2024.

[116]Hon Jason Clare MP, Minister for Education, Hon Tony Burke MP, Minister for Home Affairs and Minister for Immigration and Multicultural Affairs, Senator Hon Murray Watt, Minister for Skills and Training, Joint Media Release, ‘Improving the sustainability of international education’, 27 August 2024, https://ministers.education.gov.au/clare/improving-sustainability-international-education, viewed 9 September 2024.

[117]Hon Jason Clare MP, Minister for Education, Hon Tony Burke MP, Minister for Home Affairs and Minister for Immigration and Multicultural Affairs, Senator Hon Murray Watt, Minister for Skills and Training, Joint Media Release, ‘Improving the sustainability of international education’, 27 August 2024, https://ministers.education.gov.au/clare/improving-sustainability-international-education, viewed 9 September 2024.

[118]Migration Act 1958, paragraph 140GBA(1)(a).

[119]Department of Home Affairs, ‘Nominating a position’, https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/nominating-a-position/labour-market-testing, viewed 3 January 2024.

[120]Law Council of Australia, Submission 117, p. 23.

[121]Australian Government, Migration Strategy: Getting migration working for the nation, December 2023, p. 53.

[122]See, for example: Grattan Institute, Submission 17; Vialto Partners, Submission 28;Immigration Advice and Rights Centre and Unions NSW, Submission 32; Business Council of Australia, Submission 56; Australian Private Hospitals Association, Submission 100; Primary Care Business Council, Submission 110; Law Council of Australia, Submission 117; Lamattina Holdings Pty Ltd/Elmtree Migration Lawyers, Submission 123.

[123]Law Council of Australia, Submission 117, pp. 6, 24.

[124]Royal Australian College of General Practitioners, Submission 73, p. [2]; Australian Private Hospitals Association, Submission 100, p. 1.

[125]Primary Care Business Council, Submission 110, p. [4].

[126]Immigration Advice and Rights Centre and Unions NSW, Submission 32, para. 21.

[127]Law Council of Australia, Submission 117, p. 26; Grattan Institute, Submission 17, pp. 2-3.

[128]Law Council of Australia, Submission 117, pp. 6, 26.

[129]Australian Private Hospitals Association, Submission 100, p. 3.

[130]Mr Mark Wright, National Leader, Immigration Services, KPMG Australia, Committee Hansard, Canberra, 16 May 2023, p. 30.

[131]Mr Tom Symondson, Chief Executive Officer, Age and Community Care Providers Association, Committee Hansard, Canberra, 27 September 2023, p. 35.

[132]Lamattina Holdings Pty Ltd/Elmtree Migration Lawyers, Submission 123, p. [2].

[133]Mr Simon Sawday, Executive Manager, Policy and Government, Clubs Australia, Committee Hansard, Canberra, 16 May 2023, p. 23.

[134]Law Council of Australia, Submission 117, p. 26.

[135]Business Council of Australia, Submission 56, Attachment 1, p. 4.

[136]Vialto Partners, Submission 28, p. [5].

[137]Clubs Australia, Submission 74, pp. 2-3.

[138]Mr Constantine Paxinos, Vice President, Migration Institute of Australian, Committee Hansard, Canberra, 17 May 2023, p. 47.

[139]Mr Constantine Paxinos, Vice President, Migration Institute of Australian, Committee Hansard, Canberra, 17 May 2023, p. 47.

[140]Law Council of Australia, Submission 117, p. 15.

[141]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 18.

[142]Productivity Commission, 5-year Productivity Inquiry: A more productive labour market, Vol. 7, Inquiry Report no. 100, February 2023, p. 13.

[143]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 31.

[144]Law Council of Australia, Submission 117, p. 15.

[145]Australian Constructors Association, Submission 10, p. 7.

[146]Tasmanian Government, Submission 115, p. 8.

[147]Immigration Advice and Rights Centre and Unions NSW, Submission 32, para. 20.

[148]Migration Institute of Australia, Submission 87, pp. 25-26.

[149]Government of South Australia, Submission 84, p. 4.

[150]Law Council of Australia, Submission 117, p. 16.

[151]Australia Small Business and Family Enterprise Ombudsman, Submission 113, pp. [3-4].

[152]Law Council of Australia, Submission 117, p. 15.

[153]Law Council of Australia, Submission 117, pp. 16-17.

[154]Department of Employment and Workplace Relations, ‘Establishing Jobs and Skills Australia’, 27 July 2022,https://www.dewr.gov.au/newsroom/articles/establishing-jobs-and-skills-australia, viewed 5 February 2024.

[155]Jobs and Skills Australia, ‘The role of Jobs and Skills Australia’, https://www.jobsandskills.gov.au/publications/towards-national-jobs-and-skills-roadmap-summary/context#:~:text=In%20response%20to%20this%20challenge,present%20and%20future%20skills%20needs, viewed 11 January 2024.

[156]Jobs and Skills Australia, ‘Our Commissioner’, https://www.jobsandskills.gov.au/engage/about/our-commissioner, viewed 3 January 2024.

[157]Jobs and Skills Australia, ‘Our role’, https://www.jobsandskills.gov.au/engage/about/our-role, viewed 3 January 2024.

[158]Jobs and Skills Australia, ‘Our role’, https://www.jobsandskills.gov.au/engage/about/our-role, viewed 3 January 2024.

[159]Hon Clare O’Neil MP, Minister for Home Affairs, ‘Australia’s Migration System’, National Press Club address, 27 April 2023, https://minister.homeaffairs.gov.au/ClareONeil/Pages/national-press-club-address-australias-migration-system-27042023.aspx, viewed 20 February 2024.

[160]Law Council of Australia, Submission 117, p. 17.

[161]Jobs and Skills Australia Act 2022, S. 9(cb).

[162]Law Council of Australia, Submission 117, p. 17.

[163]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 81.

[164]Australian Government, Migration Strategy – Getting migration working for the nation, December 2023, p. 81.

[165]Department of Home Affairs, ‘Assessing authorities’, https://immi.homeaffairs.gov.au/visas/working-in-australia/skills-assessment/assessing-authorities, viewed 9 May 2024.

[166]Department of Home Affairs, ‘Skills assessment’, https://immi.homeaffairs.gov.au/visas/working-in-australia/skills-assessment, viewed 9 May 2024.

[167]Fragomen Australia, Submission 54, p. 15; Business Council of Australia, Submission 56, Attachment 1, p. 20; NSW Government, Submission 57, Attachment 10, p. 10; CORE Community Services, Submission 71, p. 4; Australian Chamber of Commerce and Industry, Submission 79, p. 5; National Farmers’ Federation, Submission 81, Attachment 1, p. 14; Tasmanian Government, Submission 115, p. 8; Law Council of Australia, Submission 117, p. 34; BDO Migration Services, Submission 129, p. 4; Mrs Valerie Pereira, Chair, Migration Law Committee, Federal Dispute Resolution Section, Law Council of Australia, Committee Hansard, Canberra, 12 May 2023, p. 1.

[168]The World Bank, Migrants, Refugees, and Societies, World Development Report 2023, p. 99.

[169]The World Bank, Migrants, Refugees, and Societies, World Development Report 2023, p. 99.

[170]Settlement Council of Australia, Submission 34, p. 9.

[171]NSW Government, Submission 57, p. 10.

[172]NSW Government, Submission 57; Attachment 2, p. 9. Also see: Settlement Services International, Submission 26, p. 2.

[173]CPSU, Submission 62, Attachment 1, p. [4]. Also see: Migration Youth and Children Platform, Submission 99, pp. 9-10.

[174]Ms Stephanie Foster PSM, Associate Secretary, Immigration, Department of Home Affairs, Committee Hansard, Canberra, 14 June 2023, p. 6.

[175]NSW Government, Submission 57, p. 5.

[176]NSW Government, Submission 57, Attachment 1, p. 14

[177]Mr Chris Spentzaris, Deputy Chair, Migration Law Committee, Federal Dispute Resolution Section, Law Council of Australia, Committee Hansard, Canberra, 12 May 2023, p. 4. Also see: National Farmers’ Federation, Submission 81, Attachment 1, p. 14.

[178]Australian Constructors Association, Submission 10, p. 7.

[179]Master Builders Australia, Submission 38, p. 5. See also: Australian Small Business and Family Enterprise Ombudsman, Submission 113, p. [3].

[180]Mr Chris Spentzaris, Deputy Chair, Migration Law Committee, Federal Dispute Resolution Section, Law Council of Australia, Committee Hansard, Canberra, 12 May 2023, p. 4.

[181]Law Council of Australia, Answers to Questions Taken on Notice, Public Hearing, 27 September 2023, p. 20. Also see: Fragomen, Submission 54, p. 15.

[182]Heather Marr, Libby Hogarth, Nish K. Padiya, Submission 88, p. 8.

[183]Law Council of Australia, Answers to Questions Taken on Notice, Public Hearing, 27 September 2023, p. 16. Also see: BDO Migration Services, Submission 129, p. 4.

[184]Law Council of Australia, Submission 117, p. 35.

[185]Federation of Ethnic Communities’ Councils of Australia, Submission 52, p. 6.

[186]Ms Sandra Elhelw Wright, Chief Executive Officer, Settlement Council of Australia, Committee Hansard, Canberra, 12 May 2023, p. 30.

[187]Dr Mairead MacKinnon, Policy Lead, Settlement Council of Australia, Committee Hansard, Canberra, 12 May 2023, p. 31; Settlement Services International, Submission 26, p. 2. Also see: Multicultural Australia, Submission 40, p. 15; Refugee Council of Australia, Submission 105, p. 17..

[188]Settlement Council of Australia, Responses of to Questions of Notice, Public Hearing, 12 May 2023, p. 2.

[189]Office of the Fairness Commissioner, ‘About’, https://www.fairnesscommissioner.ca/en/About/Pages/Mandate.aspx, viewed 10 May 2024.

[190]Settlement Council of Australia, Responses of to Questions of Notice, Public Hearing, 12 May 2023, p. 2.

[191]Settlement Council of Australia, Responses of to Questions of Notice, Public Hearing, 12 May 2023, p. 2.

[192]Settlement Services International, Submission 26, p. 10. Also see: Australia Migrant Resource Centre, Submission 102, p. [2].

[193]Vialto Partners, Submission 28, p. [4].

[194]Law Council of Australia, Submission 117, p. 34.

[195]Hon Bredan O’Connor MP, Minister for Skills and Training; Hon Clare O’Neil MP, Minister for Home Affairs; Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs, ‘Skills assessment reform for migrants and local businesses’, Joint Media Release, 12 September 2023, https://ministers.dewr.gov.au/oconnor/skills-assessment-reform-migrants-and-local-businesses, viewed 9 May 2024.

[196]Department of Home Affairs, ‘Cost of Sponsoring’, https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/learn-about-sponsoring/cost-of-sponsoring, viewed 8 February 2024; Australian Government, Migration Strategy, December 2023, p. 49.

[197]Department of Employment and Workplace Relations, ‘Skilling Australians Fund levy’, https://www.dewr.gov.au/skilling-australians-fund-levy, viewed 9 February 2024.

[198]Department of Employment and Workplace Relations, ‘Skilling Australians Fund levy’, https://www.dewr.gov.au/skilling-australians-fund-levy, viewed 9 February 2024.

[199]Department of Employment and Workplace Relations, ‘Skilling Australians Fund levy’, https://www.dewr.gov.au/skilling-australians-fund-levy, viewed 9 February 2024.

[200]Department of Employment and Workplace Relations, ‘Skilling Australians Fund levy’, https://www.dewr.gov.au/skilling-australians-fund-levy, viewed 9 February 2024.

[201]Australian Government, Migration Strategy, December 2023, pp. 48-9.

[202]Vialto Partners, Submission 28, p. [6].

[203]Australian Private Hospitals Association, Submission 100, p. 4.

[204]Business Council of Australia, Submission 56, Attachment 1, p. 23.

[205]Business Council of Australia, Submission 56, Attachment 1, p. 23.

[206]Business Council of Australia, Submission 56, Attachment 1, p. 24.

[207]Clubs Australia, Submission 74, pp. 1, 3.

[208]Australian Pork Limited, Submission 114, p. 4.

[209]HealthWISE, Submission 36, p. [2].

[210]Co.As.It Community Services Ltd., Submission 75, p. [2].

[211]Australian Private Hospitals Association, Submission 100, p. 1.

[212]Australian Private Hospitals Association, Submission 100, p. 1.

[213]Department of Finance, ‘Health Practitioner Regulatory Settings Review’, https://www.regulatoryreform.gov.au/priorities/health-practitioner-regulatory-settings-review, viewed 11 April 2024; Australian Government, Independent Review of Australia’s Regulatory Settings Relating to Overseas Health Practitioners, Final Report, 2023, p.1.

[214]The Royal Australian College of General Practitioners, Submission 73, p. [1].

[215]Primary Care Business Council, Submission 110, p. [1].

[216]Primary Care Business Council, Submission 110, p. [1].

[217]The Royal Australian College of General Practitioners, Submission 73, p. [3].

[218]Primary Care Business Council, Submission 110, p. [1].

[219]Dr Gerald Foley, Chair, Primary Care Business Council, Committee Hansard, Videoconference, 17 May 2023, p. 56.

[220]Primary Care Business Council, Answer to Questions on Notice, Public Hearing on 17 May 2023, p. 1.

[221]Mr Jeremy Stone, Executive Director, Primary Care Business Council, Committee Hansard, Videoconference, 17 May 2023, p. 59.

[222]Australian Government, Independent Review of Australia’s Regulatory Settings Relating to Overseas Health Practitioners, Final Report, 2023, p. 8.

[223]The Royal Australian College of General Practitioners, Submission 73, p. [1].

[224]The Royal Australian College of General Practitioners, Submission 73, p. [5].

[225]Australian College of Nursing, Submission 90, p. 5.

[226]Co.As.It Community Services Ltd, Submission 75, pp. [2-3].

[227]Mr Tom Symondson, Chief Executive Officer, Aged and Community Care Providers Association, Committee Hansard, Videoconference, 27 September 2023, p. 35.

[228]Aged Care Quality and Safety Commission, ‘National aged care reforms’, https://www.agedcarequality.gov.au/national-aged-care-reforms, viewed 16 May 2024.

[229]Aged and Community Care Providers Association, Submission 131, p. [2].

[230]Department of Home Affairs, ‘Visa processing times – Skilled visa processing priorities’, https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times/skilled-visa-processing-priorities, viewed 23 February 2024.

[231]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 20.

[232]Department of Home Affairs, ‘Skilled migration program—Aged Care Industry Labour Agreement’, https://immi.homeaffairs.gov.au/what-we-do/skilled-migration-program/recent-changes/new-aged-care-industry-labour-agreement, viewed 16 May 2024.

[233]Department of Home Affairs, ‘The Administration of the Immigration and Citizenship Programs’, 11th Edition, May 2023, p. 20.

[234]Department of Home Affairs, ‘Skilled migration program—Aged Care Industry Labour Agreement’, https://immi.homeaffairs.gov.au/what-we-do/skilled-migration-program/recent-changes/new-aged-care-industry-labour-agreement, viewed 16 May 2024.

[235]Department of Home Affairs, ‘Skilled migration program—Aged Care Industry Labour Agreement’, https://immi.homeaffairs.gov.au/what-we-do/skilled-migration-program/recent-changes/new-aged-care-industry-labour-agreement, viewed 16 May 2024.

[236]BDO Migration Services, Submission 129, pp. 8-9.

[237]BDO Migration Services, Submission 129, pp. 14, 18.

[238]Aged and Community Care Providers Association, Submission 131, p. [2]; Mr Tom Symondson, Chief Executive Officer, Aged and Community Care Providers Association, Committee Hansard, Videoconference, 27 September 2023, pp. 35-36.

[239]BDO Migration Services, Submission 129, pp. 9, 16.

[240]Department of Home Affairs, ‘List of current labour agreements’ https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/nominating-a-position/labour-agreements/list-of-current-labour-agreements#, viewed 16 May 2024.

[241]Australian Institute of Health and Welfare, ‘Providers, services and places in aged care’, https://www.gen-agedcaredata.gov.au/Topics/Providers,-services-and-places-in-aged-care, accessed 20 May 2024.

[242]Australian Institute of Health and Welfare, ‘Providers, services and places in aged care’, https://www.gen-agedcaredata.gov.au/Topics/Providers,-services-and-places-in-aged-care, accessed 20 May 2024.

[243]Association of Heads of Independent Schools of Australia, Submission 6, p. 8. Also see: Independent Schools Australia, Submission 93, p. 1.

[244]Independent Schools Australia, Submission 93, p. 2.

[245]Association of Heads of Independent Schools of Australia, Submission 6, p. 11.

[246]Department of Home Affairs, ‘Visa processing times – Skilled visa processing priorities’, https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times/skilled-visa-processing-priorities, viewed 18 April 2024.

[247]Tech Council of Australia, Submission 39, p. 1.

[248]Tech Council of Australia, Submission 39, p. 3.

[249]Hon Ed Husic MP, Minister for Industry and Science, ‘Mapping out Australia’s path to tech jobs future’, Media Release, 2 August 2022, https://www.minister.industry.gov.au/ministers/husic/media-releases/mapping-out-australias-path-tech-jobs-future, viewed 6 February 2024.

[250]Mr Thomas McMahon, Deputy Chief Executive Officer, Tech Council of Australia, Committee Hansard, Videoconference, 12 May 2023, p. 21.

[251]Hon Ed Husic MP, Minister for Industry and Science, ‘Mapping out Australia’s path to tech jobs future’, Media Release, 2 August 2022, https://www.minister.industry.gov.au/ministers/husic/media-releases/mapping-out-australias-path-tech-jobs-future, viewed 6 February 2024.

[252]Tech Council of Australia, Submission 39, p. 3.

[253]Tech Council of Australia, Submission 39, p. 6.

[254]Tech Council of Australia, Submission 39, p. 3.

[255]Tech Council of Australia, Submission 39, p. 8.

[256]Vialto Partners, Submission 28, p. [7].

[257]Australian Technology Network of Universities, Submission 91, p. [1].

[258]Vialto Partners, Submission 28, p. [7].

[259]Mrs Alex Waldren, National Director Industry Policy, Master Builders Australia, Committee Hansard, Canberra, 12 May 2023, p. 8.

[260]Housing Industry Association, Submission 43, p. 2.

[261]Master Builders Australia, Submission 38, p. 5.

[262]Chamber of Minerals & Energy of Western Australia, Submission 69, p. [2].

[263]Australian Constructors Association, Submission 10, p. 4.

[264]Mrs Alex Waldren, National Director Industry Policy, Master Builders Australia, Committee Hansard, Canberra, 12 May 2023, p. 8.

[265]Mrs Jocelyn Martin, Deputy Managing Director, Policy and Industry, Housing Industry Association, Committee Hansard, Canberra, 12 May 2023, p. 10.

[266]Mrs Alex Waldren, National Director Industry Policy, Master Builders Australia, Committee Hansard, Canberra, 12 May 2023, p. 8.

[267]Housing Industry Association, Submission 43, p. 2.

[268]Housing Industry Association, Submission 43, p. 2.