The Federal Government are currently undertaking a review of the Australian migration system. A Draft report was published in November 2015 and provided the following comments in relation to the Skilled (points Test) categories.
They are important in that they give some guidance into how DIBP will structure their new points test which is expected later in 2016 …
Comments from the Report
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There is a case for adjusting the selection of skilled immigrants
Across the skill stream as a whole, immigrants’ skill levels are broadly similar to those of the Australian born population. However, within the skill stream there is significant variation. The relatively poor labour market outcomes of onshore independent skilled immigrants suggest that there is scope to improve the labour market outcomes of the skilled immigration stream overall by adjusting the eligibility criteria for this visa subclass.
One option would be to radically change the approach to selection of all skilled immigrants, such as by imposing a points test on all applicants, similar to the Canadian system. However, this would not address the most problematic subclass the onshore independent subclass which is already subject to a points test. It would add extra administration to employer
nominated skilled immigration (which performs well).
On balance it is unlikely that imposing extra bureaucracy to the entire skilled immigration program to address deficiencies in one visa subclass would improve skilled immigrants’ labour market outcomes significantly. An alternative would be to make targeted adjustments to the eligibility criteria, including:
• increasing the points granted for superior English language skills (currently superior English attracts 20 points)
• granting more points to graduates who have studied in fields which are under supplied (or penalising graduates in over-supplied fields)
• granting more points to applicants who have achieved better academic results (currently points are granted based on the award of a degree from a recognised institution; academic success is not taken into account) for example those with a distinction or high distinction average, honours and higher degrees
• reducing the occupational ceilings for over-supplied fields
• capping the onshore independent visa subclass (which would implicitly increase the points test pass mark for the subclass each year).
Of these options, the Commission favours the first three. Increasing the points granted to applicants who have desirable human capital characteristics (English language skills and
high marks in fields that are not over supplied) would be consistent with the objective of identifying immigrants who are likely to meet Australia’s longer term labour market needs.
Reducing the occupational ceilings for over supplied fields would be a less targeted approach, particularly if applications are processed in the order they are lodged.