A consultation paper to review the points test is now available, seeking feedback until May 24, 2024. The essence of the paper can be summarised as follows.
The Migration Review has highlighted significant limitations of Australia’s points test, asserting that it fails to effectively identify applicants with the best potential to contribute to the country over the long term. It has been observed that a reformed points test should:
- Concentrate on traits associated with migrants successfully securing skilled employment.
- Avoid proposing a state of permanent temporariness and offer migrants greater certainty regarding their prospects for permanent residency.
- More accurately target the skills Australia requires presently and in the future.
- Recognise that younger migrants will have more years to contribute to Australian workplaces.
- Better acknowledge the potential contributions to Australia from partners.
Proposed Changes to the Points Test
The points test should outline clear, attainable pathways for temporary migrants possessing the skills Australia needs. A substantial proportion of migrants arriving on temporary visas ultimately transition to permanent residency via a points-tested visa. For instance, 50 percent of international students arriving in 2006-07 and later obtaining permanent residency received an independent points-tested visa.
Targeting Skilled Employment
It is imperative for the points test to prioritise talented students who fulfill Australia’s skills requirements. International students arrive in Australia with aspirations for quality education, often seeking work experience and an opportunity for settlement. However, the current structure of the points test can disadvantage international students who secure jobs in skill-needed areas post-graduation compared to other graduates. For instance, an international student working for up to 3 years in a skill-needed area after graduating is awarded 5 points, equivalent to a student returning to study for 2 years in a regional area or completing a professional year.
Fostering a Dynamic Economy
A focus on successful labour market outcomes will foster a more dynamic and innovative economy. Migrants are more likely to leverage their unique experiences and skills to contribute to novel approaches. They will also enhance the dynamism of the Australian labour market by being well-prepared to adapt to evolving economic landscapes.
Points Allocation and Work Experience
The current points allocation fails to adequately reflect these considerations. For example, a PhD is only awarded 20 points, whereas a Bachelor’s degree earns 15 and a trade qualification 10. This disparity does not align with the differences in outcomes, easily bridged by undertaking a professional year or returning to study in a regional area, each of which is worth 5 points.
Moreover, an emphasis on awarding more points for extensive work experience renders migrants on temporary skilled visas more vulnerable to exploitation. This may compel visa holders to remain with employers who refuse sponsorship to gain experience in hopes of improving their chances of obtaining a self-nominated visa via the points test.
Balancing Overseas and Local Experience
Balancing overseas and local experience is another challenge. While overseas experience can inject fresh perspectives and innovation, local experience in skilled work has proven to be a robust predictor of success over decades.
Addressing Employment Barriers
The points test does not mandate a job offer in Australia, potentially hindering migrants in establishing professional networks and finding work in their nominated occupation upon arrival. Nearly a quarter of skilled migrants end up working below their skill level, indicating a significant mismatch. Some barriers to finding skilled work, such as discrimination and qualification recognition issues, cannot be remedied solely by reforming the points test. However, a genuine demand for their skills can significantly aid migrants in securing skilled employment.
Enhancing Partner Contributions
The limited points available for partners mean that even highly skilled and qualified partners, who may themselves have been competitive for a points-tested visa, can contribute only minimally to the total points available to the primary applicant. A more thorough assessment of partner attributes will better equip them to find employment, if desired, and enhance the labour market outcomes of secondary applicants. This will enable partners to participate in Australian life more effectively, benefiting the country with a greater pool of skilled workers in the labour market.
The proposed changes aim to address the current system’s limitations, focusing on enhancing skilled migration and better matching Australia’s labour market needs.
By understanding the nuances and proposed reforms of the points test, stakeholders can contribute to a more effective and fair migration system in Australia.
