Australian skilled migration reset risks stalling at the pace of current framework

Under the Migration Amendment (Strengthening Sponsorship and Nomination Processes) Bill 2024, outdated labour market testing requirements and delayed processing times are causing Australia’s skilled migration reset to risk stalling, one professional has argued.

Implementation over intent

The federal government’s Migration Amendment (Strengthening Sponsorship and Nomination Processes) Bill 2024 marks the next step in its 2023 Migration Strategy. This bill aims to tackle the exploitation of migrant workers and strengthen employer compliance by implementing an “evidence-based, tripartite approach to skilled migration”, the Australian Council of Trade Unions said.

BDO migration services leader Rebecca Thomson said compliant employers are being held back by time-consuming processes and overdone red tape, slowing down Australia’s move towards a skilled migration reset.

While Thomson recognised that the new framework for the Skills in Demand visa acts as a strong foundation, she stressed that it is not merely intent, but also implementation, that will determine the success of the framework.

Operational delivery challenges

Thomson urged that policymakers must establish a streamlined processing for accredited sponsors, an expedited approval process for prominent global hires earning over $250,000 with negligible exploitation risk, and the prioritised delivery of the Essential Skills stream for occupations such as those in aged care and hospitality.

The 2024 bill establishes an annual indexation of income thresholds – currently $76,515 for the Core Skills stream and $141,210 for the Specialist Skills stream. This will end a decade of stagnation; however, it may push some employers and occupations out of reach if not managed carefully, said BDO.

Thomson recognised that these reforms can protect Australian jobs while addressing skill shortages; however, she emphasised the imminent challenge of operational delivery where employers face week- or month-long processing delays – when these approvals should only take days, she said. “There’s no justification for delay. Australia should be competing aggressively for top-tier talent, not burying employers in red tape,” she said.

Trust is a crucial step forward – “outdated” labour market testing should be replaced with smarter, risk-based oversight – this can only be achieved when employers who have done the right thing are trusted, she said. “Keeping redundant testing in place just adds cost and delay,” Thomson added.

Essential Skills stream

Thomson highlighted urgent action needed in the Essential Skills stream sectors. She stressed the need for a portable and enforceable pathway for migrant workers into these sectors, to be up and running before the next financial year. “If a role meets the salary floor, appears on the approved occupation list, and the sponsor has a clean compliance record, the government’s own system already confirms the need,” she said.

The current framework has potential, she said; however, its success relies on a migration system that can keep up with the speed of business. To achieve this, the government must reward compliance, publish transparent performance data from the framework, and have strong trust in compliant employers, BDO concluded.