Message From CEO

The Australian Government has delivered the Budget for 2009-10 and the skilled migration intake will be reduced to 108,100 from 115,000, an overall reduction of 20 per cent on previous planning levels in the previous budget.

With Australia well positioned to come out of the global economic slowdown ahead of many other advanced nations, we are at serious risk of playing catch up again with skills shortages as the economy picks up speed.

I am staunchly in favour of not only retaining record levels of skilled migration, but opening it up further.

Will this result in taking jobs away from Australians? Evidence would suggest otherwise.

In BRW magazine on 5 March, the Chairman of IBISWorld, Phil Ruthven, made a critical observation that reducing immigration increases unemployment. He provided a simple example of how an immigrant family of four creates the need for housing, schooling, hospitals and transport, to name just a few. The same family also provides 1.25 jobs continuously through consumption expenditure.

Then there is the issue of Australia’s aging population.

I fully support Heather Ridout’s (Chief Executive of the Australian Industry Group) comments in Manufacturers' Monthly on 24 April, that when labour market conditions improve, skill shortages will re-emerge, especially given Australia’s aging workforce. Without the support of a growing skilled migration program, pressure will increase on our ability to sustain investment and growth that, as a nation, we have been working so hard to build.

The impact of the reduction may not be felt in the short term, but it’s important to keep in mind that the turnaround time for a migrant starting the permanent residency process to arriving on our sandy shores can be 2-3 years.

Considering that many analysts have recently indicated that the Australian economy will start to pick up again by the end of 2009, proactively boosting skilled migrant numbers now, not reducing them, will ensure we have the talent in place to cope with the inevitable increase in demand.

The Budget includes spending of $AU134 million to attract health professionals to regional Australia. Although many health occupations are listed on the Critical Skills List, providing priority visa application processing, an overall reduction in the skills program is sending the wrong message to a world that is hungry for talent.

Australia just can’t afford to stand still on skilled migration and must do more to secure skilled and experienced professionals. Systems and processes need to be improved. As a country we need to look to the future and show strong leadership when it comes to migration policy.

Our recommendations include:

Raising the existing age limit for skilled migration from 45 years to 50 years of age
Australia misses out on a range of highly skilled individuals older than 45 who can make a strong contribution to the economy. We suggest lifting the age limit to 50 years of age, and as a compromise in terms of eligibility for retirement benefits, these ‘older’ migrants need to work in Australia for a minimum of 15 years before accessing benefits.

Broadening the Skilled Occupations List (SOL)
Industries experiencing critical shortages in certain skills face extended delays if the occupation in which they need expertise is not listed. Permanent work visa approvals for those on the list can take 12 to 18 months. More occupations need to be recognised on the SOL in order to keep certain industries viable.

More frequent reviews of the Migration and Occupations in Demand List (MODL)
Occupations are currently added to this list every six months based on the findings of an independent research team who study short and long term labour market data, ABS statistics, as well as feedback from selected employers. If an applicant is skilled in a MODL occupation, they receive 15 bonus points and their application is prioritised, although visa approval time remains six to 12 months. The process of identifying and approving critical occupations must be made every quarter, not every six months, allowing shortages of skills in specific fields to be identified sooner.

Provide skilled worker incentives from certain countries that have the same qualifications standards
It stands to reason that if Australia actively recruits talent from countries that have industry standards in the same league as their own, the worker’s transition to becoming productive members in the Australian economy will be a faster one. Australia should target individuals from these countries by providing additional points for a proven level of qualification that is recognised as comparable to Australian standards.

Streamline the skills recognition processes to ensure faster turn around times
The skills assessment process is at present very slow to respond to the assessment of people who can make an immediate difference to our economy once they are working in Australia. Skill recognition of migrants needs to be applied consistently and uniformly and is being held back by mutual recognition problems between states, as well as those between industries of other countries and Australia.

Information sessions for international students to encourage permanent residency
With students already making a commitment to come to Australia for their education, the challenge of physically bringing a skilled person to Australia is already completed. Having university students remain in Australia through a greater commitment to educating this younger generation to the benefits of living in this society won’t convince all to stay, but it is a smart way to make an active investment in building up the next generation of Australian workers.

Tourism and brand Australia
To attract the best workers in the world, Australia has to present a compelling case for moving to Australia. A proactive, positive message to the world about Australia and its resilient and strong economy, its outstanding job opportunities and rates of pay, and its safe and healthy lifestyle will ensure that this nation at the very least is getting on the front foot in attracting international talent. The current strength of our economy could well represent a unique opportunity to attract the world’s best.

Assyl