Making immigration work better

The Albanese government engaged the former secretary of Prime Minister and Cabinet and of the Treasury, Martin Parkinson, to review the current situation and advise on the way ahead. Picture: Aaron Francis

Immigration has made Australia the nation it is, as successive waves of new arrivals from all corners of the world have brought their talents, culture and aspirations to our shores. About one in four of us was born overseas, and almost half of us has a parent who was. For generations, capital brought by immigrants has opened up our economy and resources, and fostered new businesses. Australian society has been enriched by the heritage of newcomers, whose skills have staffed our industries and whose children, often, have excelled at school. International university students have paid a premium for the benefits of an Australian university education, helping themselves and enriching the sector.

But more rapid immigration in the post-Covid period, Tom Dusevic reports, has triggered concerns about overcrowding and pressure on infrastructure. Reserve Bank economists calculate that the population grew by about 2.5 per cent in the year to September, almost double the four-decade pre-pandemic average. Home Affairs Minister Clare O’Neil has said the nation could not sustain the recent migrant inflow, with almost 900,000 students, temporary workers and permanent settlers arriving in two years. Nor is the system the nation-building engine it used to be.

It often fails to identify and attract those people who are best placed to help build the skills base of Australia’s workforce, boost exports and raise living standards.

It was time to take stock. This week’s mid-year budget update is likely to show a reduction in net overseas migration in coming years to reflect great vigilance over visas and the new policies. Given the eagerness of so many people around the world to live in Australia because it is democratic, prosperous and freer than most nations, the government can afford to be selective from among those who apply.

The Albanese government has done the nation a favour engaging the former secretary of Prime Minister and Cabinet and of the Treasury, Martin Parkinson, to review the current situation and advise on the way ahead, bearing in mind, as his report says, that ultimately “the success of our migration program relies on the backing of the Australian people”. The current system, Dr Parkinson concludes, is “so badly broken” that it does not deliver for workers, businesses or for Australians in general. For 20 years, piecemeal reforms under both sides of politics, most often creating new visa categories to plug skills shortages and deal with problems as they arise, have made the system cumbersome. If well implemented, the 10-year rebuild, called for by Dr Parkinson, should transform the system in the interests of the nation, of industries that need new skills and extra workers, and of regions that would benefit from population growth. The reforms should also benefit immigrants and their families, making the system simpler to use with fewer visa categories and better processing.

Under the current system, Ms O’Neil writes, it is very hard to come to Australia as a permanent, high-skills migrant because of long delays and bureaucracy. The proposed reforms would bring about an enhanced “points system” for permanent migrants and updated occupation lists to better target the needs of employers, would see specialist, skilled workers paid at least $135,000 a year and would aim for a seven-day median turnaround for visa processing. A second category, a core skills stream, would be geared to workers able to earn at least $70,000 a year in jobs where qualified workers are in short supply, such as registered nurses or secondary school science teachers. The review also calls for better tailoring of regional visas and the Working Holiday Maker Program to support regional Australia.

The integrity and quality of international education, the report says, should be improved through higher English language requirements for international students and graduates. Labor will not cap the number of students coming to study in Australia, or introduce extra fees, but it will aim to cull the intake through measures aimed at ensuring that student visas will be granted only to those with the best chances of eventually filling gaps in the local jobs market. That is in line with the approach of comparable nations such as the US, Canada and Britain.

Delivery of the constructive changes envisaged in the report will take time. They will contribute, however, to the productivity gains the economy needs.