Australia's migration system set for major overhaul as PM flags reduced intake

Anthony Albanese gestures with his right hand as he speaks in front of a microphone.

Prime Minister Anthony Albanese says migration levels will be scaled back to a level that is considered sustainable. Source: AAP / Brent Lewin

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The federal government is due to outline its strategy for major reforms to Australia's immigration system. It comes after the findings of the first significant review of the system in 35 years found it was "broken" and in need of a 10-year rebuild.


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TRANSCRIPT

More than seven months after the findings of the Albanese government's review of the immigration system, the Prime Minister says it is very close to announcing the new strategy.

The 200-page report, led by former public service chief Martin Parkinson, outlined the case for "major reform" of the system to stop Australia becoming a nation of "permanently temporary" residents where underpayment and exploitation can arise.

The first major review of the immigration system in 35 years found that temporary skilled migration helped to fill labour skill gaps, while boosting economic growth, but found that it was "not effectively targeted to either current or future needs" of Australia.

The report also found the immigration backlog and ageing technology systems in Home Affairs reflected the severity of the problems.

Prime Minister Anthony Albanese says those findings will be reflected in the government's migration strategy this week.

"What we know is, that we need to have a migration system that enables Australia to get the skills that we need, but make sure the system is working in the interests of all Australians. We had a once-in-a-generation review of the migration system by Dr Martin Parkinson, the former head of of the Department of Prime Minister and Cabinet. And it found that it was a deliberate decision to neglect the system, and that it was so badly broken, according to Mr Parkinson, that it required a ten-year rebuild. Well we are determined to fix this."

13 months after Australia's borders were reopened to overseas arrivals, net overseas migration has accounted for 81 per cent of population growth in the year to March 2023.

The country's population grew by 454,400 people (to 26.5 million) driven by a larger number of arrivals versus departures, and reflecting the transition of international students after returning two years of closed borders.

That effect is expected to be temporary as departures of international students starts to return to previous levels.

Budget forecasts have net migration falling substantially by the end of this financial year, but still well above the pre-pandemic average.

The migration intake level is something, Mr Albanese says, the federal government wants to get right.

"There was always going to be a jump post-COVID in our migration numbers, and the net figures for population are, of course, lower than that was projected to be in place by now, before the global pandemic ensured that our borders were shut. But what we know is that we need to have a migration system that enables Australia to get the skills that we need, but make sure the system is working in the interests of all Australians."

He says the Parkinson review identified cases of exploitation of the migration system by international students - and the government will be looking to put a stop to that.

"What we have seen in the Parkinson Review and other reviews of migration indicated this. Is that in some cases, the system has been abused. People are coming here, enrolling in courses that don't really add substantially to either their skills base or to the national interest here. So, it's not in the interests of our neighbours, nor is it in the interests of Australia, that there not be a crackdown on this."

About 250,000 former students are staying in Australia on a variety of temporary post-study and pandemic visas. From September, the 408 Covid visa began to be phased out, ahead of full closure in February 2024.

The federal opposition spokesperson on immigration, Dan Tehan, says post-pandemic, he doesn't think the government has handled the migration policy well.

"Get rid of the COVID visa starting tomorrow. They should have done it six months ago. They need to reduce the number of international students, they should have done that months ago. But what we've seen is them sitting on their hands doing nothing. Over half a million people coming in here in 12 months when you've got a rental crisis, you've got a housing crisis, people can't see the G-P. It's a mess of the government's own making."

Deloitte analyst on immigration issues, Fiona Webb says the link between migration levels and cost-of-living pressures is not clear cut.

"It's a really tricky one. If you look at the student visa cohort there's been a real drive for the student visa holders to physically be present in Australia and return to Australia. Now that's absolutely put a strain on different aspects of the economy - particularly housing has been a key factor. But again we have to balance it out, that any of our migrants are also contributors to the economy, from the point of view of spending, they pay taxes, there is the net benefit as well. So it's really hard to unscramble that egg, in terms of knowing which of the factors are linking in to driving things like cost-of-living pressures and potential recession factors."

She says the increase in migration levels following the pandemic is there, but it shouldn't be blown out of proportion.

"In this current program year, it will be up slightly compared to pre-pandemic levels. The next program year, we will even out though. And we are likely to go back to numbers that are likely to be a bit lower than prior to the pandemic."

Ms Webb says getting the skilled migration settings right will be key to ensuring the system works well.

"From a skills perspective there is still an absolute need in our economy for more people who are working and contributing. So it's difficult to look at migration as one of the factors. It definitely plays a part. But the overall benefit of migration to Australia, in terms of our workforce, also has to be taken into account when we look at this."

The full details of the overhaul to the immigration system, including new rules for temporary visa holders, is expected to be unveiled on Monday (11 December) by Home Affairs Minister Clare O'Neil.

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