As 2022 drew to a close, annual summary data began flowing out steadily.As we enter 2023, the major Australian migration reformreview and its recommendationscontinue to unfold.，Let’s take a closer look.

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H2 2022

Cleared approximately 400,000 visa backlog

The government successfully met its year-end target,reducingthe total backlog to 600,000— a reduction of around 400,000 since they took office in May.

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This financial year

Net overseas migration forecast to recover

*Net overseas migration includes not only PR holders but also most temporary visa holders permitted to reside in Australia long-term — such as international students, graduate visa holders, working holiday makers, and employer-sponsored workers.

Last year was Australia’s first full year of open borders. Last Friday the government released its Population Statement 2023, projectingthat net overseas migration will return to normal in FY 2022–23, reaching a net inflow of 235,000.In FY 2021–22, border closures produced a net outflow of 85,000 — far more departures than arrivals.

However, nearly two years of border closureshave had lasting effects on Australia’s population. The same reportpredicts that COVID-related border closures will leave Australia’s population 473,000 lower than expected by 2025–26.

What does this mean? More migration?

First, it signals that Australia’s skills and labour shortages are not a short-term problem.The migration programme has already been boosted this financial yearto 195,000, with processing of temporary visas across all categoriesscaled up and accelerated.

On the question of numbers, Treasurer Jim Chalmers has said migration is not a “silver bullet”.Australia’s migration settings need to be sustainableand in the national interest — not a substitute for training and building our domestic workforce’s capability.

Beyond the increase to 195,000,the largest migration reform review in 30 years is under way, with preliminary findings and recommendations expected as early as next month.

The Migration Institute of Australia (MIA)also submitted a 54-page submission ahead of the review…

MIA Reform Recommendation 1

Progressively increase migration to 230,000 per year

Continue increasing the migration programme by around 20% over the coming years, reaching approximately 230,000 per annum.

On one hand, Australia’s labour shortages cannot be resolved quickly. On the other, doing sowould also help address the issue of “permanent temporary” residents.

MIA Reform Recommendation 2

Use occupation groups in the list; determine eligible visas by skill level

The occupation list is a focal point of this reform. MIA notes there are currently over 20 separate occupation lists. The previous government’s intention was greater precision and clarity, but the result was more complexity. Because updating the lists is cumbersome and costly, they cannot be adjusted frequently — and so they fail to reflect current demand.

Their recommendations are:

1、1. Consolidate occupation lists to use occupation groups (same first four digits),rather than individual occupations.

2. Adopt a “Canadian model” — classifyoccupations by skill level to determine visa eligibility,e.g. dividing occupation groups into 5 levels by experience and qualifications — Levels 1–3 eligible for Subclass 189/190, Levels 1–4 for Subclass 491/employer-sponsored.

MIA Reform Recommendation 3

Expand skills assessment bodies to introduce competitive pressure

Currently, most migration occupations are assessed by only 1–3 bodies. A skills assessment is the first step in many migration pathways, giving those assessing authorities a near-monopoly over a critical gateway.

MIA recommends increasing the number of assessing authorities and applying consistent standards for skills and work experience requirements.

MIA Reform Recommendation 4

If TSMIT ($53,900) is raised, regional areas should receive a concession

MIA has not taken a definitive stance on whether to raise the $53,900 TSMIT, as its member survey found opinion divided, with a significant number supporting the status quo.

The mainstream proposals are an increase to $65,000 (aligned with CPI since 2013) or $70,000.

MIA considers both figures too blunt a measure.Occupation, location, and seniority all significantly affect wage rates —for example, a hospitality role in a mining region may pay far above the national average.

MIA recommends abandoning a single TSMIT and instead applying annual market salary rates by occupation and specific location.

MIA Reform Recommendation 5

Regional migration issues — abolish Subclass 494

MIA focuses primarily on the Subclass 494 Skilled Employer Sponsored Regional visa.The requirements for Subclass 494 are significantly higher than the former Subclass 187,and even more demanding than the Subclass 491-to-191 pathway — making the visa largely unattractive. From applicants’ perspective it has shifted from “encouraging regional work and migration”to “take it or leave it,”，and data over the past few years shows most people have chosen to leave.

MIA therefore recommendsabolishing the Subclass 494 categoryand creating a regional stream within the Subclass 482 Skills in Demand visa to replace it.。

MIA Reform Recommendation 6

All employer-sponsored occupations to have a PR pathway; raise the age cap

– All occupations eligible to apply fora Subclass 482 (TSS) visa should have a pathway to permanent residence.

– Recommend that Subclass 186 TRT be exempt from the Skilling Australians Fund (SAF) levy; employers should be able to pay the SAF levy monthly or just before nomination approval; partial SAF levy discounts should be available.

– The age cap for employer-sponsored PR transitions should be raised from 45 to 50.

– Abolish Labour Market Testing.

– Retain existing requirements for start-ups as sponsors — no changes needed.

MIA Reform Recommendation 7

Introduce a new “workplace justice” visa

Exploitation of migrants is a significant issue in this reform. MIA highlights that potential applicants may face exploitation from multiple quarters — whether from employers or unlicensed agents. To date,addressing such conduct has largely relied on applicants reporting it — but they are often afraid that doing so may jeopardise their own applications, and that refusal or cancellation would render their entire investment worthless.

To effectively encourage visa holders to report exploitation and strengthen enforcement capacity,holders should first be granted protection from visa cancellation.New Zealand has already established a precedent with this type of visa.

Other recommendations relevant to us

MIA put forward 30 recommendations in total. We won’t cover every one here, but below are a few particularly relevant to our clients:

– Both employer-sponsored and skilled independent categories must be retained.

– The PR pathway for New Zealand citizens should be restored and expanded (the Subclass 189 NZ stream is currently paused for new applications).

– Offshore partner visa applications where the applicant holds a skills assessment should be prioritised for processing.

– The Global Talent Independent (GTI) programme should be reviewed and refined to strengthen its appeal to overseas applicants.

– Selectively reduce the number of visa categories and streams.

– Remove PIC 4005 from all skilled migration categories and replace it with PIC 4007.

As the peak body representing MARA-registered migration agents and a key bridge between agents and migration policymakers,their day-to-day work with visa and migration applications means their analysis and recommendations tend to be more practical and nuanced.

On the practical side, their recommendations foroccupation lists and assessing authoritiesdo not simply advocate wholesale abolition. Rather, they are driven bya genuine aim to help each migration applicant — recommending simplification, uniform standards, and breaking monopolies. They also argue that TSMIT should not be set as a blanket figure.

On the detailed side, they specifically raised Subclass 494494, which has averaged fewer than 4,500 applications per financial year since its introduction.It is one of the least popular skilled migration pathways — the entry threshold and PR conversion requirements are genuinely cumbersome, leading the visa to be quietly overlooked.

As a professional body, MIA has offered practical, technically grounded recommendations. At the same time, it’s clear they stand firmly on the side of applicants and agents. We hope their recommendations will be carefully considered and refined in a way that balances the interests of all parties.

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2023 Recommendations

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