Migration

298. One of the key Australian Government policy objectives underlying this Inquiry is to attract and retain people in the workforce, and paying taxes, longer. A complementary objective is to utilise the skills and experience of older persons, including to fill labour market shortages.

299. The Department of Immigration and Citizenship (DIAC) is responsible for the administration of the Migration Act 1958 (Cth). The object of the Migration Act is to ‘regulate, in the national interest, the coming into, and presence in, Australia of non-citizens’.^[382] The Migration Act empowers the Minister for Immigration and Citizenship to grant a non-citizen a visa to remain in Australia, either temporarily or permanently.^[383]

300. Australia’s Skilled Migration Program is aimed at attracting highly skilled workers from overseas to fill labour market shortages. But where the migration law system imposes barriers that could discourage older persons from migrating to Australia in order to participate in the workforce, this may conflict with Government policy objectives in relation to utilising the skills of older persons. However, there are also concerns that mature age skilled migrants may contribute to the financial strain on the Australian economy posed by an ageing population where they are not in a position to self-fund retirement.^[384]

301. There are two pathways by which a person can gain entry into Australia as a skilled migrant: the General Skilled Migration (GSM) program (for those who are not sponsored by an Australian employer), or through Employer Nominated Categories (where a person needs to be sponsored by an employer).^[385]

General Skilled Migration

302. The current age threshold for GSM visas is set at 50 years of age.^[386] According to DIAC, the age limit ‘reflects the level of benefit to the Australian work force and economy expected of persons entering the Australia under this stream of the migration program’.^[387]

303. In order to obtain a range of visas under the General Skilled Migration category, applicants must obtain a pass mark in a ‘points test’.^[388] The points test provides a ‘transparent and objective method of selecting skilled migrants’, based on a number of factors, including the applicant’s age at the time of application.^[389] The points that may be awarded for age for GSM visa applicants range from 0–30, with the least points for applicants aged 40–44 and no points for those aged 45–49.^[390]

304. The age limit and the points test reflect the policy position that:

workers do not reach their full potential until their mid to late 40s, and that significant work experience is a key factor in determining a skilled migrant’s labour market performance. While applicants aged 45–49 will be eligible to apply, no points will be awarded for age. This means that those applicants will have to have outstanding results in other areas in order to meet the pass mark.^[391]

305. Both New Zealand and Canada have similar skilled migration programs. In New Zealand, the age limit is set at 55 years of age and points are available under the points test for those in the 40–44, 45–49 and 50–55 age ranges.^[392] In Canada, there is no upper age limit, however, zero points are awarded for those who are aged 54 or above at the time of application.^[393]

306. The current arrangements with respect to age may impose a barrier that could discourage mature age skilled migrants seeking to work in Australia. The age limits may also in turn affect Australia’s ability to compete with other countries for such skilled workers. For example, 12.3% of principal applicants in New Zealand’s skilled migration program were aged between 45–54, compared to only 1.6% for Australia.^[394] This may suggest that the higher age limit is a factor in New Zealand’s ability to attract highly skilled mature age workers.

Permanent employer-sponsored visa program

307. Most permanent employer-sponsored visas do not require an applicant to meet the ‘points test’. However, one criterion for applying for such visas is that the applicant is under 45 years of age.^[395]

308. In March 2012, the Australian Government announced reforms to the employer-sponsored visa program, to take effect from 1 July 2012.^[396] The reforms seek to streamline and simplify the visa classes, and create simplified pathways to permanent residence. As part of the package of reforms, the upper age limit for visas in the employer-sponsored program are to be raised from 45 to 50 years of age.^[397]

309. The upper age limit will apply unless the person is an ‘exempt person’. DIAC has indicated that age exemptions will be available to applicants:

• nominated in specific occupations where the typical age profile is older due to the specialised or technical nature of the work;^[398] or
• applying through the Temporary Residence Transition stream and has been employed with their sponsor for the last four years, with a salary equivalent to the Fair Work high income threshold (currently $118,000).^[399]

310. These exemptions are intended to ‘provide more clarity and certainty to applicants, while ensuring that visa programs are still able to respond flexibly to unique cases’.^[400] It is not clear how these reforms will be implemented in legislation, most likely through changes to the Migration Regulations 1994 (Cth).