Amanda Skeen    

Partner - LLB, B. Bus (Economics)

Registered Migration Agent (MARN) 0635067 

As one of Australia’s leading immigration firms, AMVL has made informing clients of DIAC announcements a priority. However, as further changes are introduced we have had more clients asking why these changes are happening, what has prompted continual review of the nature of the General Skilled Migration scheme?

Background

The Minister for Immigration, Senator Chris Evans, recently described the Skilled Migration Program as the ‘unsung achiever’ of Australia’s prosperity during the Global Financial Crisis. The Skilled program has been implemented for many years now and it is not only during the difficult times that it has enriched Australia’s economy. New migrants have brought new ideas, entrepreneurial spirit and trade channels which allow a young country such as Australia to develop and reach new levels.

The recent string of changes which began in January 2009 were introduced as a result of the Government identifying aspects of the General Skilled Migration scheme that need to be updated to maintain the focus of the system of targeting applicants whose skills are in need.

The major changes have resulted in priority being given to applicants with an occupation on the Critical Skills List. Prior to the CSL visa applications were processed in the order in which they were received regardless of the occupation with Migration Occupation in Demand List (MODL) receiving slightly quicker time frames. When one takes into consideration migrants account for around half of Australia’s doctors and dentists and more than a third of all pharmacists, it becomes clear that the immigration system may be improved to assist applicants who contribute vital services to Australians. The CSL was implemented to rectify this situation in recognition that some professional are in fact in ‘critical shortage’ and the consequences of not having access to these resources could be drastic.

To give an indication of how the system has shifted to better service the Australian economy, the number of visas granted to Registered Nurses and General Practitioners (both occupations on the CSL) has increased by 50% compared to the previous year when the Critical Skills List was not in place.

The abolishment of the Migration Occupation in Demand List (MODL) was the result of the Government decision that it had stopped meeting its purpose. Additional points were awarded to applicants who had an occupation on the MODL and the Government concern was that overseas students were training in these MODL occupations for the purpose of acquiring permanent residency only. The end result of the MODL was identified in a 2006 DIAC survey which found that one third of the applicants were unemployed or working in unskilled positions. The MODL was encouraging overseas students into areas of study for the purpose of obtaining residency only as opposed to studying to pursue a career pathway.

In response to criticism about how the changes have been implemented, Senator Evans has defended the changes which caught applicants who were already in the processing system by explaining that it is in the nation’s interest for priority to be given to the most in demand skills. In a time when poor economic management within Governments has resulted in desperate times in a lot of countries, the responsible steps taken by the Australian economy have some merit.

Our experience at Australian Migration & Visa Lawyers is that people from a variety of countries are still pursuing their goal of obtaining residency in Australia. We hear the different reasons for our clients wanting to migrate to Australia and these range from a better lifestyle, greater opportunities for children, a diverse range of employment opportunities and good governance. AMVL also recognizes that some clients must migrate in order to support their families in the midst of a recession in their home country.

The General Skilled Migration scheme will continue to develop to meet Australia’s needs and the most recent changes have been major in the face of the Global Financial Crisis. The General Skilled Migration scheme is linked with Australia’s economy as the shortage of skilled workers stunts economic growth. The changes to date have been to balance the need for local labour to be given opportunity to find employment with filling shortages with the assistance of skilled migrants.

The Future

Australia is still actively seeking skilled migrants. With the retirement of the large generation group the ‘baby boomers’ the labour force is shrinking and as this generation group ages, certain skills are needed to support their needs. Lower fertility rates have also had an impact.

Australia’s immigration system has been the basis of many others around the world including the United Kingdom. The view of the existing system however is that some aspects are ‘rusty and in need of reform’.  

In 2009, 170,000 applications were received by DIAC for the 108,000 positions that were available under the General Skilled Migration scheme. The action taken by the Australian Government over the past 12 months has been described as shifting the General Skilled Migration scheme from current supply driven system to a demand driven system to better manage the needs of the Australian economy. What this translates to is DIAC can take from the 170,000 applicants (the supply), those who have the most sought after skills (the demand) and process those applications quicker. The previous system processed all applications supplied in the order they were received with no regard to the demand of the Australian employer.

Top priority has been assigned to employer sponsored applications in line with this new approach to skilled migration. An applicant for an Employer Nomination Scheme visa has the skills set required by an employer and the position has not been filled locally.

A variety of applications are still been processed but applications such as Employer Sponsored and CSL applications are moving through the system faster than others.

Further changes that will be implemented (it is nice to have been warned) include the following:

• A change to the Skilled Occupation List (SOL):
  • The Skilled Occupation List determines what occupations will be allowed into the General Skilled Migration scheme. An applicant must still meet the designated points for a visa, but the first step is to have an occupation on the SOL.
  • The new SOL will be announced on 30 April 2010 and will take effect we believe at this stage 1 July 2010. The Minister has stated prospective migrants will have ‘a couple of months’ before it takes effect.
  • Once the new SOL takes effect all future applicants for GSM will need to be on this list.
  • Any application lodged with DIAC prior to it taking effect (ie.1 July 2010) will not be impacted by the new SOL.

• State Migration Plan:
  • It was announced on 8 February 2010 that an applicant under a State Migration Plan will be processed in priority processing Group 2.
  • This is a DIAC ‘moment’ as there are currently no State Migration Plans and therefore no applications can be made.
  • As some background the Minister has asked each of the State and Territory Governments to submit a State Migration Plan to the Department.
  • The States and Territory’s will be able to nominate applicants for a visa even if they are not on the new SOL if there is labour market evidence to support the demand for the skills.
  • We do not expect this to be implemented until at least the second half of 2010 considering the infancy of the concept.

• A review of the GSM points system:
  • Under General Skilled Migration an applicant must meet a points mark in order to be eligible for a visa.
  • Points are awarded based on English language ability, age, skill level and work experience.
  • The theory behind the review is that the current points test could allocate points on a basis that would better to target migrants who are of working age, are likely to find employment in their skill area, can increase work output due to high level qualifications and experience.

• The basis on which points are awarded is currently under review and the focus of the review is that:
  • Points should be awarded on the basis of human capital points namely, English language ability, age and skill and include bonus factors for higher levels of settlement value (i.e. Greater English language ability).
  • Allow migration of people with high human capital value, which includes well qualified and experienced tradespersons with good English.

• The submissions are currently been taken for the review and we expect that this will be implemented in the second half of 2010.

A major concern that has been raised by current clients and prospective applicants is that their files will end in the same result as the 20,000 that were recently cancelled by DIAC. Little information was provided as to why this happened. On 1 September 2007 quite drastic changes to the visa criteria were made. Please note that these were not sudden changes and warning was given by DIAC. One of the changes was that the English language ability criteria was raised and the capital bond that people submitted to claim 5 bonus points was withdrawn (this was a bond whereby if you invested AU$100,000 you were awarded 5 bonus points).

Upon changing these criteria certain applicants were no longer able to meet the pass mark for the grant of the visa and were in migration limbo. They did not have enough points and could not claim any additional points so they were put on hold to be processed in the event that DIAC lowered the points mark (was unlikely to happen and turns out it didn’t). DIAC have now said enough is enough and the applicants will not ever meet the criteria for the visa and have had long enough to try to pass the English language test and have failed. We cannot guarantee that this situation will not happen in the future but it was not as clear cut at DIAC withdrawing 20000 applications with no explanation.

At AMVL we will continue to make updating our clients a priority. We have had to advise of various changes, good and bad, and work towards meeting our clients’ needs as well as fitting into DIAC’s new framework. With the up take in the Australian economy and a well thought out General Skilled Migration scheme we look forward to a prosperous future in Australia and know our clients will contribute to this greatly.

To confirm, the processing arrangement is as follows:

1. Applications from people who are employer sponsored under the ENS and the RSMS.

2. Applications from people who are nominated by a state/territory government agency under a state migration plan agreed to by the minister.

3. Applications from people who are nominated by a state/territory government agency and whose nominated occupation is on the Critical Skills List (CSL).

4. Applications from people who are neither nominated nor sponsored in priority groups 1, 2 or 3, but whose nominated occupation is listed on the CSL.

5. Applications from people who are nominated by a state/territory government agency whose nominated occupation is not listed on the CSL.
6.         (i) Applications from people whose occupations are listed on the Migration Occupations in Demand List (MODL).

(ii) Applications from people who are sponsored by family and whose nominated occupation is not listed on the CSL.

7. All other applications are to be processed in the order in which they are received.

For further information, please contract Australian Migration & Visa Lawyers on 07 3212 2200.