Review of the General Skilled Migration Points Test: discussion paper

[Migration Help]

16 February 2010

This paper, released by the Department of Immigration and Citizenship today, examines the effectiveness of the current Points Test in identifying potential migrants who will make the optimal contribution to Australia’s future economic challenges.

The paper also examines the role of the Points Test in the context of the current skilled migration reform agenda, and is intended to generate discussion surrounding the selection factors relevant to meeting the agreed principles of a new Points Test. To promote discussion, this paper avoids suggesting a single preferred solution or outcome to the Points Test Review. Instead, it seeks input on a number of key features of the Points Test.

The propositions in this paper have been developed in the light of the outcomes of the Review of the Migration Occupations in Demand List (MODL) and other measures announced by the Minister for Immigration and Citizenship on 8 February 2010.

Read the full text of the discussion paper (http://www.immi.gov.au/skilled/general-skilled-migration/pdf/points-test-discussion.pdf)

MH

[Zoltan Bertok]

Allow the migration from overseas of people with high human capital value, including well qualified and experienced tradespeople with good English which would:
o Enable those people with vocational skills and high levels of human capital, but who do not wish to be directly sponsored, to migrate; and
o Address any concerns from particular industries, eg the building industry, that the structure of their industry (i.e. the use of subcontractors rather than employees) inhibits the direct sponsorship of tradespeople.

The threshold point values may be too high.

Many professionals spend significant amounts of time studying and training in the initial years of their careers. The current Points Test does not adequately recognise the trade-off between age and work experience, particularly for highly skilled professionals. As such, potential applicants in this set of circumstances are losing points for age, whilst not gaining points for their experience.

We still have a Points Test that favours young onshore applicants with Australian qualifications and work experience. The Points Test Review should test whether these settings best meet the needs of the Australian labour market.

If there are to be point gradations for occupations, then it is proposed that they should be allocated on the basis of the value of that occupation to the Australian economy. Alternatively, given the decision to move to a more targeted SOL, no points could be awarded for an occupation (ie all eligible occupations are weighted equally).

Good unis
If it is accepted that Australia’s interests are best served through maximising human capital in our economy, then the Points Test should be structured to attract migrants of the highest skill, including those with qualifications from internationally respected overseas institutions.

English
One option would be for all applicants to meet the threshold requirement with no additional points. Those who are able to meet higher English language standards could get bonus points.

Age
it should be noted that a relaxation of the age criteria – if it increases the average age of the GSM cohort – is from a policy perspective inconsistent with the aim of addressing ageing workforce and population issues (per Intergenerational Report). This would need to be balanced against the immediate gains to productivity provided by a more highly experienced worker.

Higher quals
There is currently no differentiation between holders of an honours degree, and holders of a masters degree. One option for a new Points Test may be to introduce a differentiation.

Partner
A well-qualified partner would further increase Australia’s stock of human capital. The evidence on labour market outcomes for this cohort would need to be considered and balanced against the potential that a perverse incentive could be created for “marriages of convenience” in order to qualify for points and secure permanent entry.

Sponsored relatives
Birrell et al note that, “offshore migrants who are sponsored - especially those sponsored by family … do least well in obtaining employment soon after arrival. Almost 30 per cent … are not employed.

Community language
community language proficiency may not contribute directly to labour market outcomes.

Should there be points for State/Territory sponsorship?
the introduction of State Migration Plans may provide a sufficient mechanism to address jurisdictional skill needs.

Should Professional Year (PY) points be retained?
25 and 50 per cent of PY graduates are employed in their nominated occupation immediately after completing their professional year.