KEY POINTS
- The government has released its long-awaited migration strategy.
- It includes changes for international students, who will need higher English proficiency.
- But visas for the highest earners will be fast-tracked.
The government's long-awaited migration review is out, and it comes with an ambition to slash Australia's intake after an .
Central to that are tougher restrictions on international students, with more than 650,000 international students currently in Australia, and many now pushing for additional visas.
It comes after a damning review by senior public servant Martin Parkinson, which warned Australia's migration system was "not fit for purpose" and overly dependent on temporary migration.
Clare O'Neil says the system will be based on Australia's national interest. Source: AAP / Lukas Coch
"We've got an urgent need to transition to a net zero economy, and we don't have the skills and capabilities here to do it. We face the most challenging geostrategic circumstances in our region that we're seeing in 70 years, and we need to build sovereign capabilities fast," she said.
"Migration can help us answer all of these challenges. It's not the full answer to any of them, but it's part out to all of them."
Here are the key takeaways.
Language tests for students
Getting a student visa will mean an applicant needs better English.
Someone applying for a graduate visa will need to score 6.5 on the International English Language Tests System (up from 6.0), and someone applying for a student visa will need to score 6.0 (up from 5.5).
The strategy says this will have multiple benefits: improving the quality of their education experience, and boosting the reputation of the education sector.
The university sector is highly dependent on international students, who will face tougher language restrictions before coming to Australia. Source: AAP
Crucially, the review says it will also improve the quality of work they are able to attain when they graduate; the current system is sending foreign graduates into work well below their skill level.
- Just a third of international students end up working in a job at their skill level, compared to three quarters of domestic graduates
- More than half work in the lowest two skill brackets
- The median annual salary for an international master's degree graduate is more than $30,000 lower than their Australian equivalents.
There'll also be restrictions on visa hopping, which the government says creates "permanent temporariness". Around 108,000 international students have been in Australia for over five years, by shifting to another visa type.
The system currently means a graduate can stay in Australia for up to eight years by applying for various visas and waiting for processing.
O'Neil wouldn't rule out caps on international student numbers when pressed on Monday.
Faster visas for high earners
Visas at the top end of the system will be fast-tracked.
Anyone being brought in for a job on $135,000 or more will have their visa application expedited, as part of a new 'specialist pathway'. The aim is to have those visas processed within a week on average.
Visas for people with in-demand skills will also come with a clear path to permanent residency, in a bid to attract overseas talent Australian industries most need.
That's after businesses complained that getting approval to fill a vital role with a highly-skilled foreign employee is too laborious.
Companies often have to strike individual labour agreements, which take months to process and require a ministerial rubber stamp, to get a single worker into the country. There are around 1,300 agreements like that currently in operation.
But high earners are significantly less likely to be exploited by an employer - they're more likely to speak proficient English, have multiple options professionally, and know their rights.
The government says fast-tracking their visas is a win-win; it's less risky, helps employers, and will boost the budget by $3.4 billion over the next decade.
But trade workers, machinery operators and drivers, and labourers won't be eligible for the new visa.
What about low-paid workers?
That's the most challenging part.
The strategy describes regulating migration for lower-paid workers with essential skills as an "area for future reform". Consultation will begin in the first half of next year.
Low-paid workers are most vulnerable to exploitation, but are clearly needed in multiple key sectors - think aged care and regional farming.
Many Australian farmers are reliant on overseas workers, but the low-paid migrants are most vulnerable to exploitation. Source: AAP / Johan Palsson
The strategy wants more flexibility for migrants looking to switch jobs, which it says would "reduce the likelihood of unfair treatment while also driving welcome productivity benefits to employers and the economy".
"Ending bonded labour and allowing exploited workers to move freely in our labour market is critical to ending exploitation. Because your boss should not be in charge of your pay cheque and your passport," Liam O'Brien, Australian Council of Trade Unions assistant secretary, said on Monday.
What's already been done?
It comes after a busy 12 months on visas.
Earlier this year, the government raised the income required to be eligible for the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000. The previous figure was set in 2013 and not indexed, meaning it did not keep pace with wages.
The government said that meant a scheme set up to bring in skilled workers was actually an avenue for cheap labour. Labor will also move to index the TSMIT, meaning it would automatically rise with wages.
The Pandemic Event Visa, created in 2020 at the height of COVID-19, is also being phased out.
The visa was easy to jump onto for people already here - it was free to apply for, and could easily be extended for a year with no additional fee.
But the government announced in September it would be phased out, with no new applicants allowed from September, and applications closed entirely from February.
That means the last visas will expire in August next year, and around 70,000 people on the visa could leave Australia within the next 12 months.
