The Joint Standing Committee on Migration has released its final report on Australia’s skilled migration program.
In the report, MP Julian Leeser has outlined the effect of the COVID-19 pandemic and Australia’s skilled migrant population, stating:
“With the onset of the COVID-19 pandemic Australia was forced to shut its borders to the world. As a result, more than 500,000 temporary migrants have left our shores since March 2020. Many of those temporary migrants were skilled migrants. Net overseas migration continues to be in negative territory with a further 77,000 people expected to leave Australia in the 2021-22 financial year.
The lack of skilled migrants and near record low unemployment has resulted in major skill shortages in the Australian economy, impacting businesses’ viability.”
The report has outlined the following recommendations:
Recommendation 1: Develop a dynamic national workforce plan
The plan would coordinate the efforts of State and Federal Governments to ensure Australia’s persistent skills shortages and future workforce needs are addressed through Australia’s higher education and vocational education systems, employment services, and the skilled migration program.
Recommendation 2: Develop a new occupation and/or skills identification system
This system would be in consultation with the industry to replace ANZSCO. It would allow the government to adapt to emerging labour market needs.
Recommendation 3: Develop accepted definitions of acute & persistent skills shortages
It would take into account recruitment difficulty, length of time the shortage has existed, number of job vacancies and the geographic spread of vacancies, criticality of the occupation if left unfilled (nurses, doctors etc), and criticality of the occupation to temporary circumstances (pandemics, bushfires, floods etc).
Employers should also be offered a more streamlined process when looking to fill jobs on the PMSOL.
Recommendation 4: One Skilled Occupation List (SOL)
The Government should consolidate the Medium and Long Terms Strategic Skills List (MLTSSL) and Short-Term Skilled Occupation List (STSOL) into one list: the Skilled Occupation List (SOL).
Recommendation 5: Acute and Persistent Skills Shortage List (APSSL)
The PMSOL should be replaced with the Acute and Persistent Skills Shortage List (APSSL).
Recommendation 6: Review of the skills list
The skills lists should be regularly reviewed.
Recommendation 7: Pathway to permanent residency for 482 visa holders in the short-term stream
Visa conditions on 482 visa holders in the short-term stream should be changed to provide a pathway to permanent residency.
All employer-nominated visas should provide the option of a pathway to permanency. The length of time to permanency and the conditions involved may vary from visa to visa. For instance, applicants in lower skilled occupations take longer to reach permanency than more highly skilled visa holders.
Conditions for permanent residency should include Competent English and the age of applicants is under 45 years old.
Recommendation 8: Further concessions for regional visas
These concessions include:
- Labour Market Testing advertising can be up to 12 months before
- lodging a nomination application
- Raise the age limit to 50
- English language requirements at vocational English
- Reduction of prior experience required in occupation to 2 years and
- Priority visa processing
Recommendation 9: Increase the TSMIT
The Government should revisit the recommendations of the Review of the Temporary Skilled Migrant Income Threshold (TSMIT) (2017) in order to increase the TSMIT. Such a change should be made with consideration of exemptions or different rates for jobs in regional areas.
Recommendation 10: Changes to post-study arrangements for certain international graduates
The government should consider international student graduates who have:
- Undertaken a university course (or a course run by a reputable non-university higher education provider) leading to a job in an occupation with a persistent skills shortage
- Demonstrated excellence for instance by graduating in the top ten per cent of all graduates in their course or achieving first class honours
- Met relevant English language standards
- On graduation, worked in a job that is relevant to their field of study with a persistent skills shortage
These graduates should be eligible for a discount on the work experience criterion for permanent residency under the employer-nominated scheme, i.e. to demonstrate 2 years rather than 3 years.
For those applying under a points-based visa, additional points could be awarded for the graduates meeting the above criteria.
The Government should also consider longer temporary graduate visas of three years to provide time and flexibility for graduates to find work.
As a special integrity measure, the Tertiary Education Quality and Standards Agency should undertake special and regular audits of the assessment of excellence measure to ensure standards are maintained.
Recommendation 11: Enable intra-company transfer of employees of multinational companies to Australia
The Government should consider enabling the intra-company transfer of executive employees of multinational companies to Australia where necessary for these companies to expand their operations in Australia.
Streamlining should include an exemption from labour market testing. This measure should be subject to other strict integrity measures. Consideration should be given to whether a separate visa category is necessary to enable intra-company executive transfers.
Recommendation 12: Update visa processing system
The Department of Home Affairs should update its visa processing system to ensure a more streamlined visa application process for applicants and employers
Recommendation 13: Improve customer service for the Department of Home Affairs
The Department of Home Affairs should improve their customer service within the skilled migration program with consideration given to:
- Establishing industry liaison officers to assist businesses in navigating the skilled migration program and provide feedback to the Department on emerging conditions in industry
- Provision of a specialist triage system to provide advice on complex visa
- applications including: making officials available to discuss visa applications over the
- phone and allowing skilled visa applicants and; employers the opportunity to correct minor discrepancies without having to restart the application.
Recommendation 14: Extend LMT timeframe
The Government should temporarily extend the timeframe for employers to undertake Labour Market Testing prior to the nomination from 4 months to 6 months during the pandemic recovery.
Recommendation 15: Exemptions to LMT criteria for certain 457/482 visa holders
The Government should exempt businesses from Labour Market Testing when a 457 or 482 visa holder has been employed in the position on a full-time basis for twelve months or more and prior to their lodgement of a subsequent visa application or a permanent residence application.
Recommendation 16: Exemption to SAF Levy
Employers should be exempt from paying the Skilling Australia Fund levy twice for the same applicant or a subsequent visa. The employer has already paid the Skilling Australia Fund levy for that employee.
Recommendation 17: Exemption to SAF levy for universities
Universities should be exempt from the Skilling Australia Fund levy.
Universities Australia noted that ‘payment of the SAF Levy..does not contribute to the funding the development of local capacity in the highly specialised skilled and expertise for which universities recruit.’
It was further noted that as universities educate a large number of domestic students, it did not make sense for universities to have to pay the SAF Levy when they aren’t able to draw from the fund
Recommendation 18: Refund of SAF Levy for unsuccessful applications
The Government should guarantee a refund of the Skilling Australia Fund levy where the visa application is unsuccessful and where there is no evidence of fraud on the part of the sponsor or applicant.
