This output:

• strengthens the economic and budgetary benefits from granting permanent residence visas to skilled and business migrants
• addresses key and emerging skill shortages, particularly in regional Australia
• expands business establishment and investment.

Description

Under this output, the department manages the entry of skilled and business migrants. State-specific and regional migration programs help employers and state and territory governments fill skill shortages that cannot be filled locally. These programs are targeted to address existing and projected skill shortages and help in the development of local communities.

Performance

In 2008–09, the department issued 114 777 Skill Stream visas, compared to 108 542 in 2007–08.

Regional migration and state-specific initiatives now account for 29.2 per cent of the Skill Stream of the Migration Program. The Australian Government works with state and territory governments to encourage Australian employers and potential overseas applicants to use these programs.

During 2008–09, the department issued 33 474 state specific and regional migration visas, an increase of 27.9 per cent over the previous year. Since the introduction of these programs in 1996, a total of 169 328 visas have been issued.

Regional migration continues to be a priority under the Skill Stream. Through their sponsorship of skilled migrants, state and territory governments have a direct influence on the number and skill sets of migrants who settle in their jurisdictions. The number of visas granted to people sponsored by states and territories was 14 055 in 2008–09. Table 4 shows the economic migration outcome for 2008–09 and the previous two years, while Table 5 shows the broad categories of Skill Stream Entrants.

Table 4: Economic migration—performance information

Key performance indicators	2006–07	2007–08	2008–09
Quantity: Economic migration is delivered in line with government planning levels (number of visa grants countable under the program)
Planned migration program outcome	97 500	108 500	115 0001
Result	97 920	108 542	114 777

1. The Skill Stream planning level in 2008–09 was cut from 133 500 places to 115 000 places in mid-March 2009 in response to the global economic situation.

Table 5: Economic migration program outcome—skill stream

Category	2007–08	2008–09	Percentage change
Employer Sponsored	23 760	38 030	60.0%
Skilled Independent	55 890	44 590	-20.2%
State/Territory Sponsored1	7 530	14 060	86.7%
Skilled Australian Sponsored	14 580	10 500	-28.0%
Distinguished Talent	210	200	-4.8%
Business Skills	6 570	7 400	12.6%
1 November2	2	-	-
Total	108 542	114 780	5.7%

Note: Numbers have been rounded and totals may not be the exact sum of the components.

1. Includes State/Territory Nominated Independent and Skilled Independent Regional.
2. Applications for 1 November 1993 visas closed on 1 August 1994.

General Skilled Migration

Changes were made to the 2008–09 General Skilled Migration (GSM) program in response to the global economic crisis and Australia's changed economic circumstances. The changes, effective from 1 January 2009, sought to ensure that the Skilled Migration program is driven by the requirements of industry and targets skills in critical need across a number of sectors.

One of the key features of the changes was to put into practice priority processing arrangements for GSM applications submitted after 1 January 2009 and those that were already in the pipeline.

The Critical Skills List (CSL) was developed in consultation with the states and territories and the Department of Education, Employment and Workplace Relations. It identifies skills that are in chronic shortage despite the economic downturn and includes occupations most frequently sought by employers through sponsorship.

Applicants with employer sponsorship, state or territory nomination or who have an occupation on the CSL are now being given priority processing.

Another key feature of the changes gives state and territory governments greater scope to address the critical skill needs in their areas. Under the new arrangements states and territories have been provided with an expanded baseline of occupations and they can nominate an unlimited number of migrants (within the overall target for the Skilled Stream) from those occupations.

The CSL was established as an interim measure pending the outcome of a review of the role of, and research methodology which underpins, the Migration Occupations in Demand List.

As a result of the global economic situation, the skilled migration program for 2008–09 was cut by 14 per cent, from 133 500 to 115 000.

This reduction struck a balance between maintaining public confidence in the program and meeting the needs of employers.

In 2008–09, the GSM program outcome was 69 153. Of these, 14 055 were nominated by state and territory governments and 29 035 had occupations on the CSL.

Figure 4: General Skilled Migration outcomes 1996–97 to 2008–09

In 2008–09, India was the single largest source country for migrants under GSM, ahead of the United Kingdom and China.

Figure 4 shows the growth in general skilled migration since 1996–97 while Figure 5 shows a breakdown by nationality of general skilled migration.

Employer-sponsored programs

Australian employers can also seek to nominate skilled workers from overseas for permanent residence through the Employer Nomination Scheme, Regional Sponsored Migration Scheme and the Labour Agreement programs in order to fill skilled vacancies.

These programs allow employers to recruit skilled workers within an increasingly competitive global labour market and respond effectively to changing economic conditions.

In 2008–09, 38 026 visas were granted under the three programs, representing 33 per cent of the total Skilled Migration program. The number of visas granted in 2008–09 represents a 60 per cent increase from visas granted in the previous program year.

The main occupation sought through these programs was registered nurse and the major source countries were India, the United Kingdom and the Philippines. More than 90 per cent of people lodging applications for these programs had last held a Temporary Business (Long Stay) (subclass 457) visa.

Table 5 shows the broad categories of Skill Stream visas granted, while Table 6 shows the distribution of state-specific and regional migration.

Figure 5: General Skilled Migration 2008–09–top 10 nationalities

Business and investment migration

Overseas business people who have successful business or investment backgrounds can benefit Australia through job creation, capital transfers and exports. State and territory governments play an active role in selecting business migrants through their sponsorship of 97.3 per cent of all applicants. This sponsorship supports economic development in specific areas of the sponsoring states or territories.

All business skills migrants have to demonstrate a commitment to the promotion of business activity in Australia which creates jobs or generates new economic opportunities.

In most cases, applicants have up to four years on a provisional visa to establish a business before they can apply for permanent residence.

Some visa holders who were granted permanent residence, without the need to first hold a provisional visa, on the basis of their exceptional business talents may be subject to visa cancellation if they cannot demonstrate they have been able to successfully manage a new or existing business in Australia.

The combined offshore and onshore Business Skills planning level was revised to a ceiling of 7500 places for 2008–09, with the offshore Business Skills visa classes formally capped at 6650.

In 2008–09, 7397 visas were granted under this category. A total of 175 visas were also cancelled in this period.

Table 6: Distribution of state-specific and regional migration

State/territory	2007–08	2008–09	Percentage change
New South Wales	2 130	2 690	26.3%
Victoria	9 270	9 410	1.5%
Queensland	2 610	4 240	62.5%
South Australia	7 040	7 650	8.7%
Western Australia	3 170	6 340	100.0%
Tasmania	550	760	38.2%
Northern Territory	390	890	128.2%
Australian Capital Territory	860	1 320	53.5%
Unknown	140	180	28.57%
Total	26 160	33 470	27.9%