DIMA Annual Report 1998-99

Sub-program 1.2: Migration Program

Performance outcomes (continued)
(iv) State-specific migration mechanisms

The Government has continued to encourage a better dispersal of Australia's migrant intake by further expanding the range of migration mechanisms available to state and territory Governments. These influence the level and composition of skilled migration to States and Territories. Existing mechanisms which are available include:

• the State/Territory Nominated Independent (STNI) scheme which allows state and territory governments to sponsor migrants who have skills that are in short supply in their areas. State and territory governments participating in STNI carry out an audit to identify skills in short supply.
• Based on this audit, states and territories select applicants who have a sound chance of gaining employment in that state or territory within a short time of their arrival. To date, this category has been used only by the South Australian Government. In 1998-99 (the first year in which visas were granted) 169 persons were granted visas under the STNI scheme;
• the Regional Sponsored Migration Scheme (RSMS) which enables employers in regional Australia to nominate overseas personnel for permanent entry to Australia in circumstances where the employer has been unable to recruit suitable skilled personnel through the local labour market. In 1998-99, 765 visas were granted under the RSMS, an increase of 184 over 1997-98;
• the Regional-Linked category, which makes it easier for people living in designated areas of Australia to sponsor skilled relatives for entry. Under this category a person may sponsor a brother, sister, nephew, niece, non-dependent child, working-age parent, first cousin and grandchild (the extension of sponsorship to first cousins and grandchildren was introduced on 1 July 1998 as part of the Government's implementation of the recommendations of the Review of the Independent and Skilled-Australian Linked categories);
• an additional five points in the Skilled-Australian Linked points test if the applicant's sponsor has resided in a designated area of Australia for two years; and
• the Regional Established Business in Australia category which allows temporary residents who have established successful business in Australia to apply for permanent residence if their business is in a designated area.

In April 1999, the Commonwealth/State Working Party on Skilled Migration (established the previous year) presented its report to the Ministerial Council meeting in Hobart. The Working Party canvassed a range of skilled migration and population issues. The Council endorsed the Working Party's recommendations and agreed its research into skilled migration and its impact on environment, infrastructure and Government services should continue.

Two new state-specific initiatives that have risen from the Working Party include:

• a Skill Matching visa effective from 1 July 1999. The Skill Matching visa is similar to the STNI scheme – it allows participating state or territory Governments to nominate migrants who possess skills that are in short supply in their state or territory. As for the STNI category, the new Skill Matching visa is designed to facilitate employer nomination of Skill Matching visa applicants under the RSMS category; and
• a concessional English language arrangement for the Skilled – Regional Sponsored visa effective from 1 July 1999. The arrangement is designed to allow participating state and territory governments to establish courses for migrants to upgrade English language proficiency once they arrive in Australia. The concession means that applicants under this category can enter with a slightly lower level of English language proficiency than applies to other skilled entry categories provided that:
  • the state or territory where the sponsor resides has put in place arrangements to upgrade English language proficiency after arrival; and
  • fees for the upgrading course are paid before the visa is granted.

Performance outcomes
(v) Achieving a positive economic and budgetary impact and properly considering population and environment matters

During 1998-99 the Government commissioned studies and reviews to examine the macro-economic and population impacts of alternative migration scenarios proposed by various groups in the community.

While final reports were not available at 30 June, the preliminary findings appear to confirm that zero net overseas migration and large increases in migration (above current levels) have serious drawbacks.

Zero net migration would lead to an ever decreasing and very aged population, resulting in lower increases in consumption per capita than would result from the Government's policy of re-balancing the Migration Program towards the Skill Stream.

On the other hand, large increases in migration would increase Australia's future population size with little effect on the ageing of the population and, because of the need to lower selection standards to obtain large increases in migration, may reduce the per capita benefits of the program.

Work commissioned from ACIL Consulting to validate a model quantifying the budget impact of each category of immigration during the first five years after arrival was substantially completed during 1998-99.

Preliminary findings confirm the reliability of the model for its purpose and show that, if it were applied to the planned 1998-99 Migration and Humanitarian Programs, the budgetary impact would be positive and increasing, other than for the first year after arrival.

As well, the Government commissioned work from the CSIRO to validate the key assumptions and structural relationships of CSIRO's Australian Stocks and Flows Framework (ASFF) model. The model was developed by the CSIRO as part of its efforts to develop a system of national physical accounts, to complement the national economic accounts.

The CSIRO claims that the ASFF provides the first integrated overview of the long-term physical consequences of Australia's economic and social choices.

During the year, a program of 16 workshops with experts in fields such as tourism, construction, transport, energy, agriculture, and mining and water, began to validate the ASFF model's assumptions and relationships.

On completion, the CSIRO will run the ASFF to model the effect of three different immigration (and thus population) levels on a set of physical, social and demographic indicators to the year 2051. Results will be published.

Disallowance of changes to parent entry

Reforms to the Parent migration category were introduced because of concerns about the high cost to taxpayers associated with the large number of aged migrants seeking permanent residence.

Parent entrants place a disproportionate burden on Australia's health and welfare systems, and the Government believes it is reasonable that sponsors bear greater responsibility in supporting their aged relatives. As a result, the following changes were introduced on 1 November 1998:

• entry was limited to aged parents (with some exceptions);
• parents in Australia could no longer apply for permanent residence (with the exception of long-term retirement visa holders);
• the second instalment of the Visa Application Charge (health charge) increased from $945 to $5000.

On 31 March 1999, the Senate voted to disallow these changes. Legally, it is now as if the changes had never been made and the provisions in existence before 1 November 1998 have been revived. As a result, the Government decided to reduce the number of parent places available in the Migration Program in 1999-2000 in order to manage the increased financial burden on the Australian community.

Reforms arising from the Review of the Independent and Skilled Australian Linked (SAL) Categories

In March 1999, the final report on the Review of the Independent and Skilled – Australian Linked categories was launched following release of the earlier Executive Summary of Recommendations in August 1998. Recommendations to be implemented by the Government include:

• the introduction of minimum threshold requirements for the core selection criteria of skills (including employment experience), age (less than 45 years at time of lodgment of migration application), and English language ability (vocational level) in the points tested categories;
• greater emphasis on labour market circumstances through more extensive involvement of state/territory governments in migrant selection (the state or territory can choose applicants from a pool of Independent applicants to work in their state or territory);
• development of a migration occupations-in-demand list and use of a validated 'job offer';
• skilled Australian – linked applicants are supported by their sponsoring relatives through the requirement of an Assurance of Support bond; and
• streamlining skills assessment processes and ensuring assessments are undertaken by relevant appointed expert bodies. Skills assessments will no longer be undertaken by departmental staff. Applicants will also nominate their occupation, and arrange to have their skills and qualifications assessed before lodging their migration application.

New migrant visa classes were developed: Skilled – Independent, Skilled – Australian Sponsored, and Skilled – Regional Sponsored, replacing the Independent and Skilled Australian-Linked categories. The new classes take effect from 1 July 1999.

Implementation of the changes is estimated to result in an increase in annual living standards of $32 per person by 2007-2008, or $576 million nationally.

Migration application packs

In December 1998, the Minister approved the development of eight category-specific booklets to replace loose form packs currently used by clients. Each booklet will contain all the information and application forms necessary for people wishing to live permanently in Australia. The first booklet, General Skilled Migration, was scheduled to be introduced in July 1999. The other seven booklets, Partner; Child; Parent; Other Family; Employer Sponsored; Business; and Special Migration will be available in November 1999.

Performance outcomes
(vi) Minister's satisfaction with advice provided

The Minister was provided with a range of advice on trends in the Migration Program and policy issues. Satisfaction with this advice is evident from of actions and initiatives that followed, including:

• management of the Migration Program during 1998-99;
• research into and advice about the impact of immigration and population on infrastructure and the environment;
• development of additional State-specific migration mechanisms;
• implementation of recommendations of the review of the points-tested categories;
• changes associated with the entry of carers, parents and aged dependent relatives; and
• successful defence in the courts of the regulations governing the Resolution of Status visas.

[Previous Page]  [Table of Contents]  [Next Page]