Australia recently introduced changes to its existing immigration system in an effort to speed up the process of bringing in highly skilled professionals into the country. The move is intended to make the immigration process a lot smoother in general. The new system is a revamp of the points-based system and would include the required skillsets that the Australian economy needs, along with a few other changes.
Why the change?
A few months ago, speaking about the immigration system currently used by Australia, their federal government said that the points system, which was previously used to select applicants, will be reformed to better screen for and select the right applicants for various jobs in the country. Australia also recently entered into a partnership with India to open opportunities for students, academic researchers, and businesspeople through a new scheme, mainly introduced to retain international students in the country.
Moreover, visa procedures and timelines for highly skilled professionals wanting to enter the country will be made a lot smoother and quicker to reduce the time taken for them to earn their visa. As for the skillsets to be included, the new reforms are set to include qualifications in fields such as mining, engineering, artificial intelligence, fintech, and agritech.
What changes are to be introduced?
The reforms introduced are aimed at making Australia an attractive destination for skilled immigrants who can contribute to their various industries. Some of them include:
1) Temporary skilled migration income threshold (TSMIT): This is a permit of sorts that companies are required to grant immigrants before the government issues them a temporary skilled visa. Recently increased to 70,000 Australian dollars, the government, through this scheme, intends to prevent businesses from hiring immigrants on a low-wage basis. The move also guarantees immigrants a fixed wage threshold that they know for sure won’t be changed by the organisations they work for.
2) In situations where immigrants are still stuck with their temporary visas, the government is also ensuring that temporary visa holders can apply for permanent residence status by the end of the year. This was assured by the Home Affairs Minister, Claire O'Neil.
3) In another step, the long and taxing visa application processes are said to be simplified. This is mainly to shorten the amount of time an immigrant needs to obtain their visa. Additionally, the government is also working towards making it easier for highly skilled professionals to obtain their visas through a stringent ‘point test’, where applicants with the right skills to further contribute to national interest are encouraged to enter the country.
The primary reason for this change is Australia's shortage of labour across industries. The government is under pressure from big businesses to boost migration intake in order to help economic growth. Australia’s immigration reforms are said to reduce more than 30,000 annual immigrants who work at low wages in the country. By offering a limit on employee wages, this scheme offers a mobility pathway for not just professional workers but also students and graduates from other countries to live and work in Australia for over two years. For the month of September, Australia accepted 195,000 permanent migrants, an increase of 35,000 over the previous month. The government had also announced that starting July 1st, the minimum salary for temporary skilled workers would increase to A$70,000 (INR 37,17,624). This could be a huge incentive for immigrants, especially those from developing countries like India, looking to move down under for better opportunities.
Extra Info:
1) As consumers fight higher living costs by tightening their purse strings, businesses are finding it difficult to pass on their rising costs in the form of higher prices. With the unemployment rate already at a nearly 50-year low, the service industry could be facing a more serious labour shortage.
2) A study claims that around 90 percent of full-paid jobs in Australia are now paid more than the current threshold, leading to the exploitation of migrant workers.
3) Under the new scheme between Australia and India, Indian graduates of Australian institutions on a student visa can apply to work and pursue professional development without visa sponsorship for up to eight years.
SOURCE
2) https://asia.nikkei.com/Politics/Australia-to-overhaul-immigration-policy-joining-race-for-talent
Moneycontrol journalists were not involved in the creation of the article.
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