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Is Australia's Skilled Migration System Working? Proposed Reforms to the Points Test
The recent Australian Government's Migration Strategy, released on 11 December 2023, proposes a new vision for the current migration program, including proposed reforms to the current points-tested system for skilled migration.
The points test is crucial for the permanent skilled migration system, with two thirds of the intake occurring through the points tested visa programs. The full discussion paper on the Points Test can be read here
.
Why the Change?
The Australian Government’s recent discussion paper on the points test identified several key issues with the current system. Here’s what they discovered:
- The current points test is criticised for not effectively identifying applicants with the best potential for contributing to Australia’s long-term prosperity. This means that they might be overlooking some truly talented individuals who could make a big difference.
- The current design of the points test contributes to a growing group of permanently temporary migrants who remain in Australia seeking to increase their points for a permanent visa. This creates uncertainty and makes it harder for them to feel settled in Australia. Many migrants are also being exploited by their employers as migrants may feel more compelled to remain with an employer longer than necessary. This also creates an imbalance in power and social positions.
- The current system does not sufficiently recognise the long-term contributions of younger migrants. It fails to prioritise critical predictors of an applicant’s success in the labour market, which are the key factors contributing to Australia’s growth.
- The current system does not give enough credit to the skills and experience of a migrant’s partner. This is a missed opportunity, as partners can also be valuable contributors to the Australian workforce.
- There are concerns that the current system might not be fair to women. The goal is to make sure everyone has an equal short, regardless of gender.
Proposed Reforms and Challenges
The proposed reforms aim to focus more on critical criteria that create a fairer and more direct migration pathway for younger and talented migrants while ensuring that Australia can attract good international talents for its growth.
- ?? Labour Market Success: The test should prioritise characteristics that predict successful integration into skilled work, such as education, English proficiency, and relevant experience.
- ?? Occupation Lists: The current occupation lists is slow to adapt to the current market. Reform should better align with actual and future skill needs to satisfy market demands.
- ??? English proficiency: Migrants with higher levels of English proficiency (IELTS 7 and above) earn more points, as these skills are crucial for workplace integration, professional networking, and accessing support services.
- ?? Education: Emphasising higher education qualifications, such as PhDs and Masters degrees, which have been shown to correlate with better employment outcomes and higher earnings. The current points system does not adequately reflect the benefits of higher education. For example, a PhD earns only slightly more points than a Bachelor's degree. A reformed system should better differentiate between levels of education to incentivise higher qualifications that align with Australia's needs.
- ?? Work Experience: The reform seeks to emphasise the quality of work experience rather than just the quantity. For example, successful local work experience should be valued more than longer periods of overseas experience if the latter does not align well with Australia's current job market needs. Additionally, points should not overly incentivise extended temporary stays.
- ?? Partner Contribution: The current points test offers limited recognition of the partner’s potential contribution. The proposed change should give greater consideration to the partner’s attributes, such as English language ability, education, and skilled work experience.
- ???? Support for Migrant Women: The points test should support gender equality by recognising the contributions of migrant women, both as primary applicants and partners. This includes ensuring that the system does not disadvantage women and providing support for recognising their qualifications and skills.
- ?? Transparent and Fair Pathways: The points test should provide clear signals to migrants about what is required to maximise their chances of receiving a permanent visa. This transparency helps reduce uncertainty and prevents exploitation. Furthermore, reforms should ensure that migrants who have made life decisions based on the current system are treated fairly. Transition arrangements should balance the need for reform with the need to honour the commitments made to existing migrants.
Key questions for consideration include:
- Criteria and weightings for targeting skilled migrants.
- Effective ways to identify and target Australia's long-term skill needs.
- Redesigning points for age to select younger migrants.
- Allocating points for partners to reflect their labor market contributions.
- Supporting gender equality through the points test.
- Managing transition arrangements for test reforms.
- Frequency and focus of future points test reviews.
Concluding Thoughts
The current points test evaluates migrants based on factors such as age, English language proficiency, employment experience, partner skills, and educational qualifications. The points test applies to several visa categories, including the Skilled Independent visa (subclass 189), Skilled Nominated visa (subclass 190) and Skilled Work Regional (Provisional) (subclass 491).
The reformed test aims to better target skills critical for economic development, emphasising suitability for employment and societal integration. For potential migrants, the reform promises a more transparent and fair assessment process, enhancing their prospects of long-term employment and integration into Australian society.
While the Australian Government is still figuring out the fine details of the reform, the reform is expected to be a positive step towards a more efficient and effective skilled migration program. Please subscribe to our LinkedIn Newsletter for further announcements about the final details.
Changes to the migration program can occur without notice. The above information is not intended to be legal advice and is correct as of the date of writing this article.
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