Immigration system not fit for purpose: reform required to remain competitive

Australia’s post-pandemic immigration system requires a reset to ensure the nation can effectively enter the global talent race and realise future growth and investment opportunities.

In a new paper ahead of the Federal government’s Jobs and Skills Summit, the Committee for Economic Development of Australia (CEDA) says Australia’s migration system has been playing catch-up since borders re-opened and is no longer fit for purpose.

“Businesses are increasingly resorting to labour agreements with the federal government, where standard temporary or permanent visa programs are not suitable to meet their needs,” says CEDA Chief Economist Jarrod Ball. 

“There are over 1,000 such agreements currently in place, increasing almost two-fold in the last 18 months.”

Historically, migrants have supplied a third of the increased skills requirements of the Australian economy.

However net overseas migration will not fully recover until 2024, a loss of over 600,000 people since the middle of 2020, 83 per cent of whom are generally of working age. 

Temporary skilled migrants now account for around 0.7 per cent of the labour force, less than half the level when temporary skilled migration peaked shortly after the mining boom.

“Furthermore, the administrative visa backlog is significant - blowing out waiting times and requiring substantial administrative effort to reverse this trend,” says Mr Ball.

It comes as global interest in migration to Australia has recovered to levels not seen since before the pandemic.

“Prolonged administrative delays and uncertainty risk cruelling the pitch to prospective migrants at a critical juncture in the recovery of global migration flows. 

“This comes on top of negative sentiment regarding Australia’s stringent border policies and lack of income support for temporary migrants during the pandemic, in contrast to Canada and the United Kingdom.”

CEDA is calling for immediate reforms to the migration system including:

• A visa backlog action plan in the October Budget to provide greater certainty and confidence to prospective migrants;
• A streamlined path for intra-company transfers of employees to Australia
• A specific Essential Skills Visa to address the caring workforce deficit;
• Consolidating the multiple skilled occupation lists to one expansive list with a consistent pathway to permanent residency; and
• Ensuring Jobs and Skills Australia have responsibility to advise on areas of training need and report on how training funds are allocated.

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• Australia’s migration system must be overhauled to focus on skills needs rather than occupations and clear pathways to permanency for temporary migrants.

   

  “Australia must remain competitive against other destinations as our skills needs will continue into the future,” he says.

  “A new immigration system must also be systematically reviewed by an independent institution such as the Productivity Commission with timely data on performance provided by the Department of Home Affairs.”

  CEDA Chief Economist Jarrod Ball is available for further comment and interviews. 

  For more information, please contact: 

  Elizabeth Byrne, Media Manager and Content Specialist

  Mobile: 0410 627 250 | Email: elizabeth.byrne@ceda.com.au 

  CEDA – the Committee for Economic Development of Australia – is an independent, membership-based think tank.   

  CEDA’s purpose is to improve the lives of Australians by enabling a dynamic economy and vibrant society. Through independent research and frank debate, we influence policy and collaborate to disrupt for good.

  CEDA has more than 620 members from a broad cross-section of industry, government, community and academia. Our members span every state and territory.

  CEDA was founded in 1960 by leading economist Sir Douglas Copland. His legacy of applying economic analysis to practical problems to aid the development of Australia continues to drive our work today.