Mr Kruno Kukoc, the First Assistant Secretary for the Migration and Visa Policy Division of the Department of Immigration and Citizenship, recently addressed the Australian Industry Group (AIG) at the National Personnel and Industrial Relations Group Conference.

Mr Kukoc spoke about the global surge in migration and explained the important role migration plays in Australia’s economic and social goals. He also outlined the range of skilled migration reforms the Australian government has implemented in recent years and the intended goals of these reforms.

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Migration and its Importance to Australia

Supporting his assertion that “we are living in the age of migration,” Mr Kukoc noted that in 2010 there were 214 million migrants worldwide, and this number is expected to rise to approximately 405 million by 2050. These figures suggest that migration programs across the world will need to remain flexible as they continue to expand in the future.

In his address, Mr Kukoc pointed out that despite the significant instability of the larger global economy, the Australian economy has remained relatively strong and stable, with Australia becoming an increasingly attractive destination for skilled migrants seeking to relocate.

He emphasised the need for dependable and sustainable migration programs to cope with this expected increase in demand.

Mr Kukoc noted that approximately half of Australia’s population consists of persons either born overseas, or persons who have at least one parent born overseas. Coupled with the fact that Australia’s labour force is experiencing significant contraction due to an ageing population, he says, “… the need to rejuvenate labour forces through migration to support a growing population of retirees will become ever more pressing. Now and into the future, Australia needs migrants to supplement the labour force in key areas where skill shortages exist.”

While Mr Kukoc made it clear in his address that migrants who come to Australia through Australia’s skilled migration program do not compete with Australian workers for jobs, he cited the government’s commitment of $3 billion over six years to raise Australia’s labour force participation. Even so, this increased Australian participation would still not be enough to solve the challenges the Australian labour market will likely face in the future.

Mr Kukoc also cited recent figures on participation rates and earnings of skilled migrants undertaking work in Australia as evidence of the real benefit skilled migration has on Australia’s overall economic performance and stability.

He revealed that skilled migrants, who hold a valid temporary subclass 457 visa can earn an average of $86,000 per year, which is well above the Australian average. These workers also have a participation rate of close to 100%, which is also well above the average participation rate of Australian workers.

Given the current and anticipated future skills shortages in Australia, along with the obvious benefits overseas skilled workers bring to the Australian economy, Australia will inevitably continue to rely on its skilled migration programs to deliver workers to meet skill shortages.

Demand Driven Skilled Migration

In his address, Mr Kukoc explained the Australian government’s recent shift in focus to “demand-driven skilled migration programs” in an effort to “tether” Australia’s temporary and permanent skilled worker programs to the demands of the Australian labour market.

A series of new initiatives by the Department of Immigration and Citizenship (DIAC) has simplified the process for employers wishing to secure skilled migrants to fill positions in their Australian businesses which workers from within the Australian labour force are either unable or unwilling to fill. 

In recognition of the high demand for skilled workers in Australia, the Australian government has created 12,000 extra skilled migration places for the 2011–2012 program year.

Australia’s skilled stream of migration has 46,000 places allocated to the Employer Sponsored category. 16,000 of these places have been specifically allocated to Regional Migration programs, due to the current high demand for skilled workers in regional areas of Australia.  

Recent Reforms to Australia’s Migration Programs

In his address, Mr Kukoc outlined the range of DIAC’s recent reforms to Australia’s immigration program.

He explained that over recent years, DIAC has implemented a series of reforms intended to “re-establish the temporary nature of [Australia’s] temporary migration programs.”

Recent reforms mean that any temporary migrant living in Australia is only able to extend their stay in Australia beyond that first period either by securing another valid temporary entry visa (not a bridging visa) or by securing a skilled position in an Australian workplace and thus obtaining approved employer sponsorship. This ensures that any extended stay will reflect a genuine need for the migrant’s particular skills and attributes within the Australian labour market.

Kukoc noted that additional recent reforms by the Australian government are aimed at improving the selection process for permanent, independent non-sponsored skilled migration. These include recent DIAC initiatives such as:

• Regional Migration Agreements (RMAs)
• Enterprise Migration Agreements (EMAs)
• Business Skills Reviews 
• priority processing for Regional Sponsored Migration Scheme (RSMS) and  Employer Nomination Scheme (ENS)
• a revised Points Test
• a new Fraud Public Interest Criterion
• and an intended SkillSelect program

Temporary Business (Long Stay) subclass 457 Visa Reforms

Noting that Australia’s temporary 457 visa program is invaluable in meeting the short-term skills needs of employers in Australia, Mr Kukoc emphasised that many international observers regard Australia’s temporary 457 visa program as an example of ‘best practice’ in comparable temporary skilled worker programs.

Recent reforms to the 457 visa program have put increased focus on a prospective migrant’s skills and English language proficiency to ensure that overseas workers can function at optimum capacity in the Australian workplace and society in general.

According to Mr Kukoc, figures taken from the 2010–2011 migration program year “… demonstrate just how the 457 program is delivering highly-skilled workers to those growth sectors of the economy where they are most needed.”

These figures show a significant increase in 457 visa grants, especially for WA and QLD, states that are currently experiencing resource booms and a subsequent high demand for skilled workers. The data also indicates that the vast majority of approved sponsors for 457 visas identify themselves as small to medium sized businesses.

Additional funding has also been allocated to keep the processing time for a visa application short, ensuring that businesses can recruit skilled overseas workers quickly.

“This additional funding will ensure that processing times remain low as the program keeps pace with the increasing demand for skills brought on by the massive expansion in the number of resource and infrastructure projects …” Mr Kukoc said.

Currently, visa processing times are at “historically low levels”, with the median time to process an application now 21 days. DIAC have recently placed an emphasis on “decision-ready applications”, encouraging applicants, or their migration agents/lawyers, to submit applications that include all relevant information and documentation and are therefore able to be decided swiftly by the Department.  

In his address Mr Kukoc explained how recent reforms to Australia’s migration programs have also made the process much easier and more cost effective for sponsors of 457 visas. DIAC have extended the sponsorship period from two to three years, and removed the cap on the number of sponsorship nominations an employer can make. This will improve the ease and limit the expense of sponsoring overseas workers.

The Australian government has also recently implemented an accreditation scheme for 457 visa sponsors. The new scheme allows high-volume sponsors with a good sponsorship track record to seek approval as a “standard business sponsor”. An employer who obtains this accreditation will be able to sponsor overseas workers for a period of six years rather than three, and will receive priority processing on their nominations and visa applications.

“Sponsorship accreditation recognises that many Australian businesses have a long history of good dealings with the department and an excellent record of compliance not only with migration laws, but also with workplace relations, taxation, occupational health and safety and other laws,” Mr Kukoc said.

Enterprise Migration Agreements (EMAs) and Regional Migration Agreements (RMAs)

Mr Kukoc noted the recent introduction of Enterprise Migration Agreements (EMAs), which are intended to assist large scale resource projects with a capital expenditure over $2 billion and a peak workforce of over 1500 workers, to streamline access to overseas workers.

Along with EMAs, the Australian government also plans to implement Regional Migration Agreements (RMAs), which will allow employers in regional areas of Australia to access overseas labour where local labour is not available.  

It is intended that once the labour needs of a particular region in Australia have been agreed upon between employers and government authorities in that area, employers can then “sign on” to sponsor overseas workers in a streamlined fashion, making it a quick and effective process.

Mr Kukoc advised that DIAC are currently finalising the program requirements for Regional Migration Agreements. It is expected that negotiations for the first agreements will commence in early 2012.

New Skilled Migration Points Test

Mr Kukoc also identified the new Points Test, which was implemented into Australian immigration policy on 1 July 2011, as an initiative intended to refine the way high value independent skilled migrants are selected through Australia’s migration program.

The new Points Test places stronger emphasis on a prospective migrant’s English language ability, relevant work experience and high level qualifications as a means of selection. “The introduction of the new Points Test will ensure that the best and the brightest skilled migrants who represent high economic value are selected,” Mr Kukoc said.

While he concedes that it is too early to tell at this point whether the new Points Test is achieving this aim, available figures for the beginning of the 2011–2012 program year indicate that the number of primary applicants with trade and technical skills has already increased by 11% from the last program year.

New SkillSelect Program

The new SkillSelect program, scheduled to commence on 1 July 2012, will consist of an electronic skilled migrant selection register that will use the new Points Test system to streamline the selection of the best and brightest skilled migrants from a pool of prospective migrants who have registered on the database.

The SkillSelect program will be based on a two-stage electronic process in which prospective migrants first submit an expression of their interest to work in Australia, and are then invited by DIAC to submit a skilled migration visa application if their skills and attributes match Australia’s needs.

Employers will also be able to access the SkillSelect database. This will allow them to match with and contact prospective migrants who are suitable to fill vacant positions in their businesses. The SkillSelect database will also make it clear which prospective migrants have expressed an interest in living and working in regional Australia. 

The new SkillSelect program is currently in its planning stages, and the government will provide more specific details as implementation begins.

Conclusion

Kukoc assured the conference that all migration initiatives and reforms being implemented by the Australian government will continue to ensure that Australia’s immigration programs, policy and practice remain competitive, well-managed and selective.

“Immigration has stood Australia in good stead for many years. It will continue to do so if we ensure that it is managed according to sound long-term objectives and if we get the balance right for Australia’s future economic, demographic and social needs,” he said.