17th May 2012
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Home | Australian Immigration News | New Model for Australian Skilled Migration Announced

New Model for Australian Skilled Migration Announced

Last Updated on Thursday, 12 May 2011

On 10th May, the Australian Federal Government announced the 2011-12 Budget. It includes some interesting guidelines for the future of Australian immigration.

New Model for Selecting Australian Skilled Migrants

Australia’s Minister for Immigration and Citizenship, Chris Bowen, explained the migration aspect of the 2011-12 Budget, stating that it initiates the next step in the Governments current series of migration reforms - introducing a new model for selecting skilled migrants.

The ‘new model’ is intended to better target Australia’s future skills needs by providing a more focused, efficient, demand driven migration program, tailored to the needs of Australian employers.

“Under this model, the Government will be able to select migrants like a business manages its workforce – selecting the best candidates, altering the skill composition of its workforce, and speeding up or slowing down recruitment as circumstances change,” Mr Bowen said.

The new Budget focuses heavily on combating severe labor shortages in many regional areas of Australia by implementing a series of migration initiatives aimed specifically at regional Australia. It also allows for a moderate increase in Australia’s overall permanent migration numbers.

Mr Bowen stated that Governmental reforms to Australia’s immigration practices over recent years has seen Australia’s net migration intake decline to much more manageable levels.“This has provided scope for a moderate increase in the migration program in 2011-12…in the region of 170 000–180 000 over the next few years,” he said.

Bowen claims that approximately two thirds of Australia’s 2011-12 migration program has been aimed exclusively at filling critical skill and labour shortages in the Australian workforce, especially in regional areas of Australia. 

Interestingly, the new Budget specifically allocates permanent Australian visas to regional areas of Australia; a practice Bowen notes is a first in Australian immigration policy.


Overall, the number of places available in Australia’s ‘skilled’ migration stream has increased to 125, 850 places, up by 16,300 places from 2010-11 program planning levels. This figure includes 16,000 places which have been specifically allocated to the Regional Sponsored Migration Scheme, up by 6000 places from last year.


The new Budget offers many incentives to immigrants who are willing to settle and work in regional Australia, including the announcement that all Australian visa applications for regional areas will receive the highest priority processing, in recognition of the intense labour shortages regional industry and employers are currently experiencing.

This incentive is complimented by the Budgets announcement that the Department of Immigration and Citizenship (DIAC) will fast-track permanent residency visa applications for temporary business (subclass 457) visa holders who have spent two years or more living and working in regional Australia, where their employer is prepared to further their sponsorship for another two years.

This initiative is intended to make it easier for immigrants holding an Australia 457 visa to remain in the region they have been living and working in. 

'This Government recognises that different regions face different opportunities and pressures. The patchwork nature of the Australian labor market means it's important to recognise unique local circumstances and tailor migration solutions accordingly,' Mr Bowen said.

Regional Migration Agreements  

Bowen also announced the introduction of Regional Migration Agreements (RMAs) which he believes will be of immeasurable benefit to Australia’s regional areas. This new initiative is intended to bring together regional employers, local and state governments and unions to identify and address the specific labor needs of individual areas.  

Regional Migration Agreement will take the form of custom-designed, location based migration arrangements which clearly set out the occupations and numbers of overseas workers needed in that area. In this way, industry and employers will be able to gain immediate, conditional access to semi-skilled overseas workers where a critical and legitimate need for such workers has been demonstrated. 

“Regional Migration Agreements will offer a coordinated, localised response to labour needs, helping local areas to implement workforce strategies that support growth while ensuring local workers remain the first choice for employers and industry,” Bowen said.

Regional Migration Agreements will allow regional industry and employers to gain fast access to skilled labour when and where it is needed, with Bowen citing healthcare, engineering, mining and trade as significant areas of shortage.

Australia’s Skilled Migration Program 2011-12

Bowen believes that the Australian Government has the balance right in setting the size and composition of Australia’s migration program for 2011-12.

He says the new Budget works toward the common goal of maximizing prosperity for all Australians in ensuring that all communities and regions of Australia are sustainable, both in the immediate and long term.  

“It is critical that Australia's skilled migration program is driven by Australia's skills needs, rather than the desires of prospective migrants,” he said.

Bowen noted that the participation of industry, business and migration professionals will be crucial to the further development of the migration strategies outlined in the 2011-12 Budget, stating “My department will be conducting consultation (with these parties) throughout 2011 as it develops the details of this model.”

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