Reforming Australia`s Migration Points Test System: A summary

Reforming Australia's Migration Points Test for Long-Term Prosperity

The Albanese Government is dedicated to revamping Australia's migration system. Last year, the government unveiled a Migration Strategy aimed at creating a more streamlined, higher-quality, and better-planned migration program for the nation.

Significant strides have already been taken to scale down the migration program, resulting in noticeable declines in migration rates. Now, the government is unveiling a discussion paper outlining a pathway to reform the Points Test, which has remained unchanged since 2012.

This reform is a pivotal aspect of the government's efforts to enhance skilled migration. As it pertains to the capped permanent skilled migration program, it will not impact net overseas migration.

Addressing the shortcomings of the current system will enable Australia to realign its migration policies to tackle major national challenges, fulfill skill demands, and cultivate the future workforce. The existing Points Test, as identified by the Migration Review conducted by Dr. Martin Parkinson AC PSM, Professor Joanna Howe, and Mr. John Azarias, falls short in identifying candidates with the greatest potential to contribute to Australia in the long term.

The review suggests that a revamped Points Test should serve as the cornerstone of a future permanent skilled migration program. Nearly two-thirds of permanent skilled migrants are selected through this test, making it a critical determinant of who becomes a permanent resident and future citizen of Australia.

Key recommendations for the reformed Points Test include:

• Prioritizing characteristics associated with successful employment outcomes for migrants.
• Better aligning with the skills Australia currently requires and anticipates needing in the future.
• Providing applicants with a realistic expectation of their application's likelihood of success to avoid fostering a culture of 'permanent temporariness.'
• Acknowledging that younger migrants will likely contribute more years to the Australian workforce.
• Enhancing recognition of the potential contributions from partners of primary applicants.

Focus on Skilled Workforce: Australia's future success relies on a skilled workforce capable of navigating challenges such as transitioning to net-zero emissions, embracing the digital economy, and meeting the growing care needs of an ageing population.

Balancing Temporary and Permanent Migration: Reforms should ensure skilled temporary migrants have clear pathways to permanent residency, fostering their integration into Australian society and reducing vulnerability to exploitation.

Opportunity for Improvement: While Australia has used a points test since 1979, significant changes are necessary to ensure its effectiveness in selecting migrants who will contribute to the nation's prosperity in the long term. Regular reviews are essential to adapt to changing needs.

The government has initiated the reform process by engaging the Australian National University to analyze the factors influencing success in Australia. The discussion paper outlines how an improved Points Test can meet the objectives of our Migration System, enhance living standards, and establish a fair and efficient system for migrants choosing to build their lives here.

Consultations for this phase will conclude on May 24, 2024.

Quotes from Minister for Home Affairs, Clare O'Neil: "The migration system we inherited was completely broken, and our goal is to build a smaller, better planned, more strategic migration system that works for Australia. "We are significantly reducing migration levels – we are in the middle of the biggest drop in migration numbers in Australia’s history, outside of war or pandemic. "At the same time, we’re focused on making sure that a smaller migration program is bringing in people who have the skills we need to build Australia’s future. That’s where the Points Test really matters."

By updating migration policies to reflect long-term objectives, Australia can ensure sustainable economic growth and a diverse, resilient society.

More updates to follow as they become available in the next weeks.