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DISCUSSION PAPER | I DISCUSSION PAPER Program Review ACT Skilled Nominated Sub Class 190 Visa Chief Minister, Treasury and Economic Development Directorate September 2018

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DISCUSSION PAPER | I

DISCUSSION PAPER

Program Review

ACT Skilled Nominated Sub Class 190 Visa

Chief Minister, Treasury and Economic Development Directorate

September 2018

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II | Program Review – ACT Skilled Nominated Sub Class 190 Visa

Accessibility

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If you have difficulty reading a standard printed document and would like to receive this publication in an alternative format, such as large print, please phone Skills Canberra on +61 2 6205 8555.

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For more information on these services visit https://www.cmtedd.act.gov.au/enterprise-canberra2/skillscanberra

© Australian Capital Territory, Canberra, September 2018

Publication No 18/1135

Material in this publication may be reproduced provided due acknowledgement is made.

Produced for the Skills Canberra, Chief Minister, Treasury and Economic Development Directorate, by Publishing Services.

Enquiries about this publication should be directed to the Skills Canberra, Chief Minister, Treasury and Economic Development Directorate, ACT Government, GPO Box 158, Canberra City 2601

Telephone: +61 2 6205 8555

Email: [email protected]

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DISCUSSION PAPER | III

CONTENTSIntroduction 1

Context 3

Issues 5

Prevailing Practices 8

Consultation 13

Glossary 14

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IV | Program Review – ACT Skilled Nominated Sub Class 190 Visa

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DISCUSSION PAPER | 1

INTRODUCTION The Australian Migration Program has shaped the country’s population for the past 20 years and will continue to do so for economic and social outcomes. The joint research entitled ‘Shaping A Nation: Population growth and immigration over time’ by the Australian Government was released in April 2018. It states:

Migrants, particularly Skilled stream migrants, who account for almost 70 percent of Australia’s migrant intake, contribute to the total GDP and GDP per person by offsetting Australia’s ageing population, improving labour force participation and productivity, and help businesses to source skills that are difficult to develop at short notice.

The Skilled Nominated (subclass 190) visa is a points tested permanent skilled visa for skilled workers who are nominated by a state or territory because their occupations are in demand in that jurisdiction. In 2016-17, the total national permanent migration level set by the Department of Home Affairs was 190,000, for which the skilled stream outcome was 123,567 (67.4 percent) 1. The Skilled Nominated (subclass 190) visa is a small part of the broader migration program. Out of the total nomination places planned for 2018-192 by the Department of Home Affairs, the state and territory and regional ceiling is set at 17,300 nationally, leading to a likely allocation of up to 800 nomination places for the ACT – contributing 4.6 percent of the national allocation in this category.

The demand for ACT nominations for 190 visas has increased rapidly since 2015-16 as other pathways for skilled migration have become increasingly rigid, accompanied by stricter regulations imposed by the Department of Home Affairs and other jurisdictions. This has resulted in the ACT pathway becoming more attractive for people intending to live permanently in Australia. The ACT Government is reviewing the program to ensure the policy and program settings are able to manage the increased demand.

This Discussion Paper provides context for the consideration of new options for the administration of the ACT Skilled Migration program (visa subclass 190 stream) and how applicants are selected for nomination by the Territory. Drawing on the processes followed by other jurisdictions for their 190 nomination skilled migration programs, the Discussion Paper will provide background information on ACT’s past and current practices and emerging issues related to eligibility and the assessment process. The Discussion Paper provides a platform to stimulate conversations with stakeholders on potential changes to current practices.

1 https://www.homeaffairs.gov.au/ReportsandPublications/Documents/statistics/report-on-migration-program-2016-17.pdf

2 https://www.homeaffairs.gov.au/about/corporate/information/fact-sheets/20planning

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2 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

CONTEXTa. The ACT EconomyBeing the nation’s capital city is a key advantage in attracting and retaining national and global talent to Canberra. The Chief Minister’s Statement of Ambition recognises that, “we must continue to open and diversify our local economy building on the strong position we have as one of Australia’s longest serving knowledgebased cities”. The Statement elaborates that “Canberra is competing with, and exceeding the offer of other Australian cities. With its economy coming from a knowledge base, Canberra is well positioned to lead and attract the talent that is needed. Research and development already adds more than $2.7 billion per annum to our local economy through our higher education and research institutions, and we are ahead of the pack positioning ourselves in key 21st century industries such as the space economy and cyber security sectors. While our aim is the urban renewal and economic diversification of Canberra, at the core of our vision is a Canberra that is an inclusive, welcoming society, open to diverse talents and determined to help everyone reach their fullest potential.”

We must attract and retain the talented people that can help make our city great

-‘Canberra: a Statement of Ambition’

The ACT economy is one of the strongest in the country and among the fastest growing of all states and territories, showing a 13.6 percent economic growth3 in the last three years. The 2018-19 Budget continues to invest in programs and initiatives that will bolster this growth and diversify our jobs base to benefit all Canberrans.

Tertiary education is now the ACT’s leading services export at $880 million per annum, with our tertiary and research sector contributing well over $3 billion to the economy. Our strong partnerships with local universities, research institutions, and the Canberra Institute of Technology (CIT) are strengthening Canberra’s appeal as a leading place to study.

Canberra is a diverse and inclusive city, shaped by people moving here from more than 180 different countries around the world. The 2018-19 Budget4 makes new investments to increase the visibility and inclusion of Canberrans from diverse backgrounds, including investment of $247,000 to highlight and promote community participation, cultural diversity and inclusion in the ACT, and $89,800 for the Work Experience Support Program to support culturally and linguistically diverse Canberrans to enter the workforce. It has also delivered additional funding for a job brokerage service to help refugees find jobs, and expanded access to English language programs to help new Canberrans improve their language skills.

3 Economic growth is the increase in a country’s productive capacity, conventionally measured as the percent rate of increase in real gross domestic product (GDP), or real GDP.

4 https://apps.treasury.act.gov.au/budget/budget-2018-2019/budget-in-brief

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DISCUSSION PAPER | 3

DISCUSSION POINT Determining who should be the main beneficiaries of the ACT 190 nomination program e.g. long term Canberra residents; international students; temporary work (457/482) visa holders sponsored by an ACT employer; overseas applicants with occupations in demand and overseas applicants with close family ties in Canberra.

b. The Department of Home Affairs CriteriaSkilled workers interested in migrating to Australia cannot apply directly for a skilled migration visa unless they are invited by the Australian Government. Applicants applying under the Skilled Nominated (subclass 190) visa stream also need to be nominated by a state or territory government. Subclass 190 visa nomination requires intending migrants to submit an Expression of Interest (EOI) through the Department of Home Affairs’ ‘SkillSelect’, an online service that helps Australia manage its skilled migration program. State and territory governments can then nominate an intending migrant if they meet the relevant jurisdictions’ 190 nomination criteria.

The Territory Migration Agreement with the Australian Government provides the ACT Skilled Migration Program, managed by Skills Canberra, with an avenue to address skills shortages, labour market needs and entrepreneurial investment through the state and territory nominated streams. These are the Skilled Nominated 190 Stream, the Regional Sponsored Migration Scheme (RSMS) 187 Stream and the Business Innovation and Investment Program (BIIP) 188 Stream. Under the Skilled Nominated stream, the ACT is allocated approximately 800 places from the Department of Home Affairs to nominate the Skilled Nominated visa (subclass 190) of intending migrants wishing to live in Canberra.

The ACT Skilled Nominated visa (subclass 190) program operates within the guiding principles of the Department of Home Affairs and sets the guidelines for nominating intending migrants, including ACT residents on a temporary visa and overseas applicants, to fill the places annually allocated by Home Affairs. If an individual is nominated by the ACT, they are awarded five additional points towards their overall points score though the Department of Home Affairs. Approved 190 nomination does not guarantee a migration outcome, but triggers the invitation, issued by the Department of Home Affairs, to apply for an ACT nominated 190 visa. Visa applicants must still meet the eligibility criteria set by the Department of Home Affairs, which includes having a relevant occupation5 along with a suitable skill assessment for that occupation, meeting the points test pass mark of 65 points, being under 45 years of age, having competent English and being nominated by a state/territory government agency.6

A state and territory nomination is, however, significant as it confers additional points for the applicant and instigates the visa invitation from the Department of Home Affairs.

5 https://www.legislation.gov.au/Details/F2018L00299

6 https://www.homeaffairs.gov.au/Trav/Visa-1/190-?modal=/visas/supporting/Pages/190/points-table.aspx

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4 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

c. ACT Skilled Migration ProgramIn line with the ACT’s Statement of Ambition and supported by the initiatives funded in the ACT Budget, the Government is striving to boost the economy by designing its Skilled Migration program with a targeted approach to attracting and nominating skilled migrants to the Territory in response to evidence based analysis of occupations in demand. To identify current and emerging occupations in demand, the ACT Government has developed a Forecasting of Industry Needs and Entitlement (FINE) model which assesses the demand and supply of labour across different occupations according to economic, social and training variables to identify the skills gaps that are not being met by the local workforce in the ACT. As a result, skilled migration is contributing important skill sets to growth oriented private sector companies; skills that are not readily in supply from local sources or through training pathways. Without these skills, business growth and the development of strategically important companies can be restrained.

The broader impact of migration is also worth reflecting on for the ACT. The ACT Skilled Migration program is a significant contributor to ACT population growth and the economy. The key driver of population growth in the ACT over the past decade has been international migration. The demographic features of skilled migrants are also important to the economy; skilled migrants are generally ‘established career age’, highly skilled and bring significant funds to support settlement. As well as bringing essential skills in demand to the Territory, there is a potential economic benefit of $249 million in nominated settlement assets being transferred into the ACT (as declared by the ACT nominated applicants within the last three years).

DISCUSSION POINT Identifying the fairest way to manage the ACT 190 nomination program to ensure that the ACT benefits from the program, in addition to the intending migrants.

The delivery of the existing program has largely been non-contentious and functioning smoothly for an extended period of time. Changes in the Australian Government’s approach to skilled migration have recently placed increased pressure on state government delivered aspects of skilled migration. As the other categories for skilled migration have become increasingly rigid over the past 24 months, accompanied by stricter regulations imposed by other jurisdictions, the subclass 190 pathway in the ACT has become more attractive for people seeking to live permanently in Australia.

Skills Canberra is reviewing the program to ensure policy settings enable the program to manage increased demand. Changes to the ongoing strategic management of the program should aim at achieving a sustainable skilled migration program that is better aligned to meet ACT’s skills need and is equipped to target applicants who demonstrate a strong commitment to the ACT and are able to contribute to the ACT economy. Better containment of potential applicant expectations and removing the need to use blunt instruments such as program closure to manage demand are also aims of the review.

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DISCUSSION PAPER | 5

ISSUESa. Increasing Demand for Subclass 190 ACT Nomination There are a limited number of places allocated by the Department of Home Affairs for each jurisdiction, which was around 800 for the ACT in 2017-20187. A summary of allocations, applications received and nominations granted over past five years is presented below.

Figure 1: Applications for ACT 190 Visa over Time

Source: ACT Government - Skilled Migration System Data.

As the number of applications for ACT nomination under the 190 visa has increased over recent years, the gap between applications received and available places or nominations granted has continued to grow, resulting in an increasing number of unsuccessful applicants. (This does not include the number of applicant who were unable to lodge their application due to program restrictions applied in response to demand pressures.) A portion of the unsuccessful applicants may decide to re-apply in the following year if they continue to meet eligibility criteria. To manage this increase in demand, it is necessary to understand the factors driving the demand for this particular visa category.

DISCUSSION POINT Identifying approaches to the ACT Skilled Migration Subclass 190 program that ensure it is capable of balancing increased demand.

7 An additional 450 places were requested in September 2018 and but only a permanent increase of 50 was granted bringing the 17/18 Home Affairs allocation to 800. A temporary increase of 100 was granted in May 2018, bringing the allocation to 900 for FY 17/18.

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6 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

The increase in the demand for the ACT skilled migration program can be attributed to the following factors:

▷ Recent changes by the Department of Home Affairs: The changes to other visa streams include replacement of the 457 Visa with the Temporary Skill Shortage (TSS) visa with tighter regulations for the work experience requirement and a higher required level of English. In addition, a lengthier two-step process for partner visas may have contributed to increased demand for the state and territory 190 nomination pathway. The Department of Home Affairs also increased the minimum requirement for the 189 and 190 visas from 60 points to 65 points. As a state-based nomination is worth five points, the additional points requirement to achieve these pathways may have made the state nomination a necessary step to achieve a migration outcome.

▷ Stricter requirements introduced by other states: States including Victoria, Queensland, Tasmania and South Australia have recently tightened their 190 skill streams to manage the increased demand. In July 2018, Queensland announced that interstate applicants can no longer apply for Queensland nomination. In January 2018, Tasmania revised its 190 visa requirements stating that applicants will need to complete at least two years of study at a CRICOS-registered Tasmanian tertiary institution instead of one year. Victoria introduced a new set of criteria on required level of experience and English score for selected occupations that have higher demand for nomination. South Australia also revised its requirements for residency from 12 months to 24 months for family members of skilled migrants to ensure closer ties and commitment to South Australia. While it is unclear if the tightened eligibility criteria for skilled nomination by other states are long-term, ACT continues to operate at a relatively low bar for meeting the minimum eligibility criteria and therefore has become more attractive to applicants seeking the 190 pathway for permanent residency.

▷ Reduction in employee sponsored visa: The levy associated with the Skilling Australians Fund (SAF), effective since 12 August 2018, will increase the cost for employers intending to sponsor employees, and will potentially reduce the demand for employer nominated permanent visas, making state and territory 190 nomination an alternative (and potentially more attractive) pathway. The implementation of the SAF levy translates into small businesses (annual turnover of less than $10 million) being required to pay $1,200 per year for Temporary Skill Shortage (TSS) visa and a one-off payment of $3,000 for Employer Nominated Scheme (ENS) / Regional Sponsored Migration Scheme (RSMS) visa. Other business are required to pay $1,800 for a Temporary Skill Shortage (TSS) visa and $5,000 for ENS/RSMS visa. The price for subclass 190 visa remains unchanged.

▷ Interstate migration of temporary residents and international students: Data indicates that a significant number of international students have moved to Canberra from interstate in recent months. Austrade data shows that International Student Commencements in Vocational Education in the ACT have jumped from 46 in 2017 to 380 in the first quarter of 2018 indicating a growth rate of 700 percent in less than one year while growth was around 17 percent for other jurisdictions. The University of Canberra reported a 30 percent increase in commencements by international students in 20188. It has been reported that one Sydney-based migration agent may have sent up to 800 students to the ACT in hope of gaining a 190 visa nomination 9. This data indicates that the number of interstate international students in the ACT will continue to grow in 2018-19 and this may be attributed to a relatively easier study requirement (12 months vs 24 months) for the ACT Skilled Nomination 190 pathway relative to other jurisdictions. The following graphs show a spike in student visas lodged within Australia in 2017-18.

8 https://www.canberratimes.com.au/national/act/anu-looks-to-halt-enrolment-growth-as-uc-prioritises-canberra-students-20180724- p4ztbf.html

9 https://www.canberratimes.com.au/national/act/colleges-get-cold-comfort-from-act-government-20180726-p4ztuj.html

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DISCUSSION PAPER | 7

Figure 2 Study Visas Lodged within Australia for ACT

Source: Department of Home Affairs - 2018

DISCUSSION POINT Identifying which characteristics are most important to support the achievement of the principles of the Skilled Nominated subclass 190 visa.

b. Equity and Fairness of the Process

The Australian visa system is complex, continuously changing and often difficult to navigate. While the Department of Home Affairs sets the overarching policy framework for skilled migration, state and territory governments adjust their visa nomination policy subject to their local economy and community priorities. It is up to the state and territory governments to explain the priorities and capacity to nominate as explicitly as possible. Firstly, this helps enhance transparency of the program and enables stakeholder expectations to be managed. Furthermore, putting in place a system that is clear, systematic and requires minimal change, it ensures that the program can be accessed equitably by eligible applicants. Historically, supply and demand have been relatively even subject to the control of overseas applications, but as the demand for the program has increased, the ACT must modify the program management approach to ensure that the ACT is selecting the most suitable applicants to maximise the benefit to the ACT.

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8 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

c. Sustainability

The program guidelines for the ACT Skilled Nomination subclass 190 visa have been amended numerous times since 2012. While the framework should enable innovation and should be able to respond to our changing and dynamic economy, it should also minimise the need for changes in response to adjustments to the broader framework by the Department of Home Affairs, and fluctuations in other variables such as demand. The recent temporary restrictions in the ACT Skilled nominated 190 program has reportedly impacted individuals who have moved to Canberra to undertake a 12-month course of study to meet the minimum requirements for ACT nomination, who under the current restrictions, may not be eligible. The review of the program will focus on a sustainable approach that allows flexibility for minor adjustments to respond to policy changes by the Department of Home Affairs, government priorities and increasing demand. For example, an analysis of the costs and benefits of imposing temporary restrictions as opposed to defining a ceiling for occupations (‘caps’) will be looked at in the context of sustainability.

DISCUSSION POINT Determining the fairest and most effective way to manage demand for the ACT 190 nomination program.

PREVAILING PRACTICESAustralia moved from a ‘supply-driven’ skilled migration system (where emphasis was given to the attributes and capabilities of applicants and how they fare on the government administered points system) to a ‘demand-driven’ system from the mid-1990s. The current system is a hybrid system where greater weight is given to the applicants whose skills are in demand in the Australian economy, making the program more responsive to labour market needs. Various policy measures have been implemented with the aim of increasing the likelihood that new migrants will be able to gain employment and achieve economic independence. The Skilled Migration program (visa subclass 190) has played an important role in enabling state and territory governments to set policy and criteria to reflect regional economic and social needs. Some of the policy levers used by different states and territories to manage the program are discussed below. The policies are presented in the context of a need to establish efficient, fair and sustainable jurisdictional programs that are better aligned to meet each jurisdiction’s skills needs, targeting applicants who demonstrate a strong commitment and are able to contribute to the local economy.

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DISCUSSION PAPER | 9

a. Managing demandStates use a number of levers to manage the number of applications in the 190 visa category within the cap allocated by the Department of Home Affairs, including:

– lists of occupations in demand;

– caps on occupations10;

– temporary closure of the programs;

– revised minimum criteria.

Lists of Occupation in demandAll jurisdictions except for Tasmania have their own occupation lists. These lists are subsets of the occupation list provided by the Department of Home Affairs in the legislative instrument Migration (IMMI 18/051: Specification of Occupations and Assessing Authorities). The number of occupations nominated on each list varies across jurisdictions, for example Western Australia has 10 nominated occupations while South Australia has 172.

Caps on occupationsWith occupation specific caps jurisdictions may raise the bar for the selection criteria and restrict the number of applicants. No jurisdiction publishes these caps explicitly. Instead, they provide a status for each occupation, for example South Australia lists occupations as either “available”, “low availability” or “special conditions apply” as opposed to listing how many places are left.

Queensland, South Australia, Western Australia and Northern Territory apply caps per occupation to manage the large volume of applications and continuously monitor applications to stop intake once the occupational caps are reached. In February 2018, Queensland announced that applicants listed in select occupations (Registered Nurse, Finance Manager Café or Restaurant Manager) that were receiving a high number of applications, can no longer submit Expressions of Interest (EOIs).

Temporary closure of programsVictoria temporarily closed its skilled migration program in May 2018 to address the high volume of applications. Closing programs as the annual allocations caps are reached and reopening in the following year has been a policy control for most jurisdictions.

In Queensland, applicants are granted nomination providing they meet the required criteria. There are caps on certain occupations on the occupation list which means when the program targets are met, the occupation will be closed and further applications will not be accepted. It is at Queensland’s discretion when program targets will be opened or closed. As of 17 July 2018 interstate applicants are no longer able to apply for Queensland state nomination and only Queensland residents are eligible for submitting an Expression of Interest.

Revised minimum eligibility criteria In Victoria, between 16 October 2017 to 4 February 2018, due to a large volume of applications received for engineering and building occupations, applications were not accepted unless they fell under a new set of criteria, requiring a minimum level of work experience, English test score and specialisation requirements. South Australia revised its requirements in February 2018 for the minimum points requirement to be automatically increased to 90 points for ‘high point’ category occupations when they are close to reaching their maximum quota, and close the program once the quota is fulfilled.

10 For every financial year Department of Home Affairs sets a limit on the number of invitations they are going to issue through SkillSelect program for some professions, which might be eligible for a Skilled Visa. These limitations or caps also apply for subclass 190 visa.

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10 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

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DISCUSSION PAPER | 11

ACTIn recent years, the demand for ACT 190 nomination has typically been managed by closing the program to various categories of applicants. In particular, closing off applications to overseas based applicants early in the financial year, has typically allowed the ACT to continue to accept applications for nomination from temporary ACT residents for the remainder of the year. However, the current demand pressures appear to have emerged from an increase in people moving to the ACT from interstate to seek access to this pathway. This led the ACT Skilled Migration 190 nomination program being temporarily restricted to applications from ACT residents who had an occupation listed as ‘open’ on the current ACT Occupation List on 29 June 2018. The ACT 190 nomination program also remained closed to overseas applicants with occupations in demand and was closed to overseas applicants with close ties to Canberra. The ACT currently does not apply caps on individual occupations.

Benefits and gapsA benefit of limiting the number of applications that can be lodged each year is the program’s ability to remain within the allocation provided by the Department of Home Affairs. However, it may be argued that this system does not allow the selection of the ‘best applicants’ and results in long queues or a large number of applicants being carried over to the next financial year. Moreover, the applicants who meet the eligibility criteria in any given year and are not able to apply before the program is closed, run the risk of not meeting the eligibility criteria in the next financial year given the eligibility may be changed by either the Department of Home Affairs and/or jurisdictions.

DISCUSSION POINT Assessing whether overseas applicants, with close family ties who are Australian citizens/residents living in Canberra, should be given priority over temporary residents living in Canberra.

Applying caps to individual occupations allows the states to further fine tune skilled migration programs to fill vacancies in the local economy and reduce skill wastage. The use of caps on individual occupations in demand allows the states to adjust intake in line with priority skills (i.e. skills in low-priority will have lower caps). However, this is only effective if supported by a robust approach to projecting skills in demand and analysis of the labour market.

Finally, frequent changes to eligibility criteria and abrupt program closure without advance notification leave potential applicants uncertain about their future and their prospects of meeting the eligibility criteria.

b. Use of eligibility criteriaMany factors influence a migrant’s likelihood of successful settlement, including English language ability, age, level of education, employment, and time spent in Australia and family connections. The primary eligibility criteria applied by all jurisdictions are the applicant’s ability and commitment to contribute to the local economy. This is ensured by matching the applicants’ skills with the occupations in demand in respective states and territories (except Tasmania where applications are accepted from Tasmanian graduates, applicants working in Tasmania or overseas applicants with job offers from a Tasmanian employer). Most states prioritise applicants who are already residing in Australia and/or have family members residing in Australia, acknowledging that they have a stronger commitment to living in the jurisdiction.

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12 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

Most jurisdictions apply requirements for residing in the nominating state for a minimum period after the visa is issued while some require the applicant to sign a written commitment prior to granting a nomination. The latter is difficult to monitor and enforce for state, which makes assessment of commitment prior to supporting nomination more crucial.

Another lever to manage intake includes different eligibility requirements based on place of residence, with some jurisdictions setting more selective criteria for interstate residents. For example, Queensland allows those applicants already working in Queensland with six months work experience to apply for more occupations than the 35 available to overseas applicants, who are required to demonstrate two years of work experience.

DISCUSSION POINT Whether working in their nominated occupation before they are eligible to apply for ACT 190 nomination should be mandatory (or highly rated) for all applicants.

ACTThe application process for ACT nomination of subclass 190 requires the applicant to submit a SkillSelect EOI through the Department of Home Affairs followed by completing an online application to the ACT nomination program demonstrating that the applicant’s job is in demand and ‘open’ on the ACT occupation list (for overseas applicants) or demonstrate that the applicant and their dependent are living in Canberra and their occupation is on the Department of Home Affairs list of eligible skilled occupations. Eligibility for ACT nomination will vary depending on which visa the applicant currently holds, or last held if they are on a bridging visa. Applicants must also provide evidence of financial capability to fund their migration and settlement in Australia along with research and evidence of employability in the ACT (overseas applicants). Applicants are required to commit to living in Canberra for at least two years.

Benefits and gapsMost eligibility criteria applied by states and territories allow them to ensure the economy benefits from the skilled migration program by aligning it with labour market needs. Nonetheless, inconsistency in eligibility criteria applied by different states and territories leaves room for interstate migration among the temporary residents who seek permanent residency pathways.

c. Prioritising by ranking of applications A ‘ranking’ process of applications is used by some states to prioritise the best applicants. New South Wales, Victoria and Western Australia are able to manage the increase in demand as they operate an ‘invitation only’ system. New South Wales selects and invites the highest ranking applicants in each occupation to apply for nomination. Victoria also ranks applications with each candidate assessed individually against the assessment criteria, particularly the suitability of their skills in meeting the needs of Victoria’s labour market. Western Australia uses a pass mark of 65 points and then ranks the qualifying applications.

Interstate students not eligible to be invited in these states may be moving to Canberra to access ACT nomination after 12 months residence.

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DISCUSSION PAPER | 13

ACTACT does not currently rank applications. Nominations are based on evidence of meeting the eligibility criteria.

Benefits and gapsStates preferring a ranking system founded on a score-based matrix to determine the applicants’ suitability of skills, employability and commitment argue that it can maximise the program’s flexibility. The score-based matrix helps reduce backlog or long queues, as applications that score highest are selected for nomination and the program does not have to close or be restricted to particular cohorts of applicants (like those based overseas) due to high demand.

An alternative to ranking applications while maintaining fairness can be drawn from the United States. The United States model - whose immigration program is less skills focussed than Australia’s - uses a ‘diversity lottery’ to allocate up to 50,000 places a year to applicants from countries with low rates of immigration to the United States.This model promises definitive equality, but has been criticised for not being merit based.

DISCUSSION POINT Assessing whether temporary 457/482 visa holders working for an ACT employer be given priority over international students.

CONSULTATIONConsultations are being held with groups who will be impacted directly or indirectly by the changes in the ACT skilled nomination program. Groups invited to participate may include:

▷ Migration agents

▷ Education providers

▷ Other ACT Government agencies

▷ Migration experts/academics

▷ Migrant and Refugee settlement services

▷ UnionsACT

▷ Migration Council of Australia

▷ International Organisation for Migration

▷ Migration Institute of Australia

▷ Migration Alliance

The consultation combines a number of methods ranging from face-to-face interviews, focus group discussions, surveys and emails. The consultation will run in early September 2018. A summary of the consultation feedback will be published on the Directorate’s website at the time of announcement of the reforms.

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14 | Program Review – ACT Skilled Nominated Sub Class 190 Visa

GLOSSARY

ACT The Australian Capital Territory

BIIP Business Innovation and Investment Program

CIT Canberra Institute of Technology

CRICOS Commonwealth Register of Institutions and Courses for Overseas Students

EOI Expression of Interest

ENS Employer Nominated Scheme

FINE Forecasting of Industry Needs and Entitlement

RSMS Regional Sponsored Migration Scheme

SAF Skilling Australians Fund

TSS Temporary Skill Shortage