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457 crackdown: PM slashes immigration numbers by 15 per cent

AUSTRALIA’S immigration intake could fall to as low as 160,000 — a drop of up to 15 per cent — as a result of the Turnbull government’s crackdown on foreign workers.

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AUSTRALIA’S immigration intake could fall as low as 160,000 — a drop of up to 15 per cent — as a result of the Turnbull government’s crackdown on foreign workers.

Modelling done between Treasury, Finance and the Department of Immigration into the impact of the sweeping changes announced this week shows the annual immigration intake is predicted to come in under 190,000 and as low as 160,000.

The Daily Telegraph understands the federal Budget next month will still base its economic forecast assumptions on the current level of 190,000 migrants a year.

PM Malcolm Turnbull made the 457 announcement this week. Picture: Kym Smith
PM Malcolm Turnbull made the 457 announcement this week. Picture: Kym Smith

The government this week announced the axing of the 457 visa program, replacing it with a new program, and a tightening up of the employer-sponsored skilled migration visa program.

The overhaul of the temporary and permanent skilled migration programs, announced by Prime Minister Malcolm Turnbull and Immigration Minister Peter Dutton this week, will see jobs going to Australians first and fewer foreign workers moving to Australia.

At a speech to the Australian Chamber of Commerce and Industry Breakfast this week, Mr Turnbull said, along with axing the 457 program, major changes were also being made to the criteria regarding skilled migrants being sponsored by companies.

“Similar changes will be made to the Permanent Employer Sponsored Visas whether Employer Nominated or Regional Sponsored migration schemes,” Mr Turnbull said.

“The maximum age will be reduced from 50 to 45, competent English will be mandatory, no exceptions, and the pathway to permanent residency will begin at three years, not two years.”

Mr Turnbull spoke about how the Coalition had lowered the immigration levels from Labor’s high of 315,000 migrants under former Prime Minister Kevin Rudd.

“Under Labor, net migration peaked at an unsustainable 315,000 migrants a year. It is now less than 200,000,” he said.

“It means we are able to do what Labor could not do — set the parameters for a well-regulated, sustainable migration program and focus our humanitarian efforts on those whom we judge most in need.”

He said more than 65 per cent of permanent visas accessed in 2015-16 were by skilled professionals who are now an integral part of our workforce.

Mr Turnbull said the Coalition had lowered the immigration levels from Labor’s high of 315,000 migrants. Picture: Kym Smith
Mr Turnbull said the Coalition had lowered the immigration levels from Labor’s high of 315,000 migrants. Picture: Kym Smith
Minister for Immigration and Border Protection Peter Dutton said it was time to stop immigrants slipping through the backdoor. Picture: Kym Smith
Minister for Immigration and Border Protection Peter Dutton said it was time to stop immigrants slipping through the backdoor. Picture: Kym Smith

“But migration must be in our national interest,” Mr Turnbull said.

Mr Dutton revealed this week that one of the aims of axing the 457 visas is to stop the temporary foreign worker visas being used as a backdoor to migration into Australia.

However, the government did not put a figure on how the immigration intake would be affected, given it is a highly controversial issue.

Mr Dutton’s office declined to comment on the immigration intake yesterday.

But the modelling shows that the flow-on effect of the changes to 457 and broader skilled migrant visas is a likely lowering of the migration intake from 190,000 a year.

‘Make me great again’: Malcolm Turnbull channels Donald Trump on 457 foreign workers

Inside the government, senior figures have been arguing for the immigration intake to be lowered, to ease the pressure on housing prices in Sydney and Melbourne, along with the gridlocked traffic and road and rail infrastructure.

The move has been strongly resisted at the highest levels of government, out of concern the changes will adversely impact on our GDP.

Government data shows that when the population increases by 60,000 people, an additional 20,000 houses need to be built.

If the migration level drops to 160,000 a year, it will mean 10,000 fewer houses need to be built.

In former prime minister John Howard’s early years, the immigration level fell to as low as 67,000 a year. By his term’s end, it had risen to 150,000.

Under Labor, Mr Rudd called for a big Australia and the level of immigration grew to 300,000 people.

As Prime Minister Kevin Rudd called for a “Big Australia”.
As Prime Minister Kevin Rudd called for a “Big Australia”.

“I actually believe in a big Australia — I make no apology for that. I actually think it’s good news that our population is growing,” Mr Rudd said at the time.

In 2009, then-Treasury head Ken Henry said he was concerned Australia would not be able to sustain the population growth over the next four decades.

Then-Opposition leader, Mr Turnbull said he welcomed a larger population if the infrastructure was there to support it.

Migration levels have since fallen to around 190,000 under the Coalition Government.

A week ago, Mr Abbott called for the Turnbull Government to “scale back” immigration to help ease the pressure on housing prices, which have risen by 17 per cent in Sydney over the past year.

“There are supply factors and there are demand factors,” Mr Abbott said.

“And one thing the federal government could do that would ease some of the demand pressure is to scale back immigration at least until land release and infrastructure can keep up.

“And frankly there is nothing sacrosanct about any particular immigration number. The Howard government scaled back immigration its first few years for a whole host of reasons.”

Getting fair dinkum on our value-added society

AUSTRALIA’s ethos of freedom and fairness has created a cosmopolitan culture envied the world over.

Half of all Australians were born overseas or are the children of migrants in a multicultural success story that Prime Minister Malcolm Turnbull regards as “extraordinary’’.

“We’re not defined by race or religion or culture, as many other nations are,’’ he said yesterday. “We’re defined by commitment to common values — the rule of law, democracy, freedom, mutual respect, equality for men and women.

“We have a unique Australian understanding of a fair go … we should be proud of our Australian values.’’

Equality is the bedrock of Australian culture: in 1902 it became the first country to give women the right to vote and to stand for election in federal parliament.

In the half-century since Australia shed its White Australia policy, it has assimilated waves of foreign settlers seeking a better life for their children in the Lucky Country.

Australia has peacefully absorbed 7.5 million migrants since the end of World War II, including 800,000 refugees.

Professor Roger Wilkins, of the Household, Income and Labour Dynamics in Australia survey, says Australia is more egalitarian than most nations. “But the idea of a ‘fair go’ is conditional on you having a go,’’ he said. “Australians tend to have an attitude that if you’re working you should have a decent standard of living, but if you’re shirking you don’t deserve anything.’’

Newcastle World War II veteran Alf Carpenter, who turns 100 tomorrow, has a pretty good idea of what he values as a proud Australian and has welcomed Turnbull’s focus on tougher tests for migrants.

WWII vet Alf Carpenter reckons immigrants should abide by Aussie customs. Picture: Peter Lorimer.
WWII vet Alf Carpenter reckons immigrants should abide by Aussie customs. Picture: Peter Lorimer.

“And (migrants) should abide by our customs and features of Australian life, not run their own shows,” he said.

Adapting to Australian life was no problem for Lebanese-born mum Grace Karajian, who “easily” passed the citizenship test with a 100 per cent mark.

St Claire builder Geoff McPherson said freedom and sport was what it meant to be Australian. “I’m enjoying the freedom of the life that I have,” he said.

Western Sydney carpenter Geoff McPherson, 57. Picture: Jonathan Ng
Western Sydney carpenter Geoff McPherson, 57. Picture: Jonathan Ng
Mum-of-four Grace Karajian and her children Joseph and Mary. Picture: Stephen Cooper
Mum-of-four Grace Karajian and her children Joseph and Mary. Picture: Stephen Cooper

— Natasha Bita & Chris Hook

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Original URL: https://www.dailytelegraph.com.au/news/nsw/457-crackdown-pm-slashes-immigration-numbers-by-15-per-cent/news-story/784441f7e223d546161b8864ddb10daa