Repercussions for Migration in the Federal Budget

In the announcement of changes to migration by the federal government in its budget speech the focus was on proposed reforms to the permanent migration system to gain better educated, younger and higher skilled migrants in an effort to address worker shortages in the existing landscape.

The government said it will spend $85.2 million to deliver faster skills assessments and to accelerate occupational licensing. The government is chasing skilled workers.

While the cap of 185,000 places remains, more than 70 percent will be for skilled migrants. Essentially the overall migration program remains unchanged with around 132,000 places for skilled migration around 53,000 for the family program and 300 for the Special Eligibility visas. The government said priority across both skilled and family visa streams will be given to onshore applicants, resulting in longer wait for offshore applicants.

In the opposition party’s response to the federal budget Angus Taylor, Liberal leader, appeared to single out permanent residents who are not Australian citizens saying they would remove 'Labor’s handouts for non-citizens'. He stated that non-citizens had access to 17 different welfare programs.

However, newly arrived migrants face strict waiting periods of up to four years before they can access most Centrelink payments, including JobSeeker, Youth Allowance and the Parenting Payment.

In 2021 Treasury released a paper that modelled the lifetime fiscal impact of the permanent migration program. In that paper it showed that migrants pay more in taxes than they receive in government services.

Mr Taylor also said that his government would tie overseas migration to housing construction and that could translate to total migration rates lower than 200,000. Labor’s rates sit at around 295,000 dropping to 245,000 next financial year and then to 225,000 the year after that.

The Liberals have not specified which visa categories would be cut, saying the policy details would be determined closer to the next election.

A dramatic cut to migration would have serious consequences for the Australian economy, worsening labour shortages across construction, healthcare, aged care, hospitality and other essential industries already struggling to find workers.

Sky News has quoted former immigration deputy secretary Abul Rizvi as saying that: “All three major forces of politics in Australia have described their immigration policy very poorly.” According to Mr Rizvi none have been able to explain how they will reduce numbers.

Mr Taylor also said that a Coalition government would reinstate Temporary Protection Visas (TPVs).

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