The major changes involve:

• The Migration Occupation in Demand List (MODL) is revoked immediately.
• GSM applications lodged before 1 September 2007 and not finalised will no longer be dealt with and those affected applicants will be given a refund of their visa application fee.
• A new Skilled Occupation List (SOL), to replace the MODL and the Critical Skills List (CSL) will be introduced later in 2010.
• There will be a review of the Points Test.
• Changes to priority processing.

Following is the Minister’s media release:

The Rudd Government is reforming the permanent skilled migration program to ensure it is more responsive to the needs of industry and employers and better addresses the nation’s future skill needs.

The reforms will deliver a demand rather than a supply driven skilled migration program that meets the needs of the economy in sectors and regions where there are shortages of highly skilled workers, such as healthcare, engineering and mining. The major reforms to the skilled migration program are:

20 000 would-be migrants will have their applications cancelled and receive a refund.

All offshore General Skilled Migration applications lodged before 1 September 2007 will have their applications withdrawn. These are people who applied overseas under easier standards, including lower English language skills and a less rigorous work experience requirement. It is expected about 20 000 people fall into this category. The department will refund their visa application charge at an estimated cost of $14 million. Average applications cost between $1500 and $2000 and most contain more than one person.

The list of occupations in demand will be tightened so only highly skilled migrants will be eligible to apply for independent skilled migration visas.

The wide-ranging Migration Occupations in Demand List (MODL) will be revoked immediately. The list is outdated and contains 106 occupations, many of which are less-skilled and no longer in demand. A new and more targeted Skilled Occupations List (SOL) will be developed by the independent body, Skills Australia, and reviewed annually. It will be introduced mid-year and focus on high value professions and trades. The Critical Skills List introduced at the beginning of 2009 which identified occupations in critical demand at the height of the global financial crisis will also be phased out.

The points test used to assess migrants will be reviewed to ensure it selects the best and brightest.

Potential migrants gain points based on their qualifications, skills and experience, and proficiency in English. The current points test puts an overseas student with a short-term vocational qualification gained in Australia ahead of a Harvard-educated environmental scientist. A review of the points test used to assess General Skilled Migration applicants will consider issues including whether some occupations should warrant more points than others, whether sufficient points are awarded for work experience and excellence in English, and whether there should be points for qualifications obtained from overseas universities. The review will report to Government later this year.

Certain occupations may be capped to ensure skill needs are met across the board.

Amendments to the Migration Act will be introduced this year to give the Minister the power to set the maximum number of visas that may be granted to applicants in any one occupation if need be. This will ensure that the Skilled Migration Program is not dominated by a handful of occupations.

Development of state and territory-specific migration plans.

Individual state and territory migration plans will be developed so they can prioritise skilled migrants of their own choosing. This recognises that each state and territory has different skills requirements. For example, Western Australia may have a shortage of mining engineers while Victoria may have a requirement for more architects. Under the new priority processing arrangements, migrants nominated by a state and territory government under their State Migration Plan will be processed ahead of applications for independent skilled migration.

The Minister for Immigration and Citizenship, Senator Chris Evans, said the new arrangements will give first priority to skilled migrants who have a job to go to with an Australian employer. For those who don’t have an Australian employer willing to sponsor them, the bar is being raised.

‘There are plenty of occupations where there is an adequate supply of young Australians coming through our schools, TAFE colleges and universities to take up new job opportunities. They must be given the opportunity to fill these vacancies first,’ Senator Evans said.

‘But there are some occupations where there will be high demand for skills. Hospitals can’t go without nurses, country towns can’t do without a local GP and the resources sector increasingly needs skills.

‘These latest changes will continue reforms already implemented by the government and result in a more demand-driven skilled migration program that attracts highly skilled migrants to Australia to work in areas of critical need.’

The government recognises that the changes will affect some overseas students currently in Australia intending to apply for permanent residence.

Those international students who hold a vocational, higher education or postgraduate student visa will still be able to apply for a permanent visa if their occupation is on the new Skilled Occupations List. If their occupation is not on the new SOL, they will have until 31 December 2012 to apply for a temporary skilled graduate visa on completion of their studies which will enable them to spend up to 18 months in Australia to acquire work experience and seek sponsorship from an employer.

The changes will in no way impact on international students coming to Australia to gain a legitimate qualification and then return home.

The following links will provide you with more information on this announcement.

Changes to the General Skilled Migration Program

Revoking the Critical Skills List (CSL)
The Critical Skills List (CSL) will be revoked when the new Skilled Occupation List (SOL) comes into place in mid-2010. The CSL was an interim administrative measure adopted while the Migration Occupation in Demand List (MODL) review was being undertaken, to ensure skilled migration outcomes were driven by the demands of the labour market.

Changes to the current Skilled Occupation List (SOL)
The government is replacing the current Skilled Occupation List (SOL) with a more targeted list of occupations to better meet the medium and long-term future skill needs of the Australian economy. The new SOL will be based on advice from ‘Skills Australia’ and it will deliver a General Skilled Migration (GSM) Program more focused on high-value skills across the professions and trades.

Changes to offshore General Skilled Migration (GSM) visa applications received before 1 September 2007
All offshore General Skilled Migration applications lodged before 1 September 2007 will have their applications withdrawn.
Please note that this only applies to applications that have not been finalised by the Department. If you have been granted visas you are not affected by this change.

Outcomes of the Migration Occupation in Demand List review—frequently asked questions
On 8 February 2010 the Minister for Immigration and Citizenship, Senator Chris Evans, announced the revocation of the MODL from 8 February 2010. This change applies to all GSM applicants except those who, at the date of announcement:
• hold a Skilled—Graduate (subclass 485) visa, or had a pending subclass 485 visa application and had not yet lodged an application for a provisional or permanent GSM visa and who make an application by 31 December 2012, or
• have a pending GSM visa application.

Revocation of MODL does not affect applicants sponsored by an Australian employer.

General Skilled Migration (GSM) Points Test Review
The GSM Points Test Review will be undertaken in the first half of 2010. A discussion paper will be placed on the department’s website by 12 February 2010 and be open for public comment until 12 March 2010. Government will consider the recommendations made. It is not known if the government will decide to make changes to the GSM Points Test. If the government decides that changes are necessary, they will determine when they are to take place and who they will apply to.

Onshore international students
If you wish to apply for a permanent or provisional GSM visa after you complete your studies you must meet the criteria applicable at the time you apply. Requirements for particular visa classes change from time to time and it is important that you ensure you meet all criteria before you lodge your application.

Changes to Priority Processing
The Minister for Immigration and Citizenship, Senator Chris Evans, has set new priority processing arrangements for certain skilled migration visas. These arrangements are designed to address the needs of industry and state and territory governments. The current priority processing ministerial direction began on
8 February 2010.

The direction applies to applications in the pipeline that have not been finalised, and to applications lodged with the Department of Immigration and Citizenship on or after 8 February 2010.

The following GSM visas are affected by priority processing:

• Skill Matching (subclass 134)
• Skilled—Independent (subclass 136)
• Skilled—State/Territory-nominated Independent (subclass 137)
• Skilled—Australian-sponsored (subclass 138)
• Skilled—Designated Area-sponsored (subclass 139)
• Skilled—Independent (subclass 175)
• Skilled—Independent (subclass 176)
• Skilled—Regional Sponsored (subclass 475)
• Skilled—Regional Sponsored (subclass 487)
• Skilled—Independent Regional (subclass 495)
• Skilled—Designated Area-sponsored (Provisional) (subclass 496)
• Skilled—Graduate (subclass 497)
• Skilled—Onshore Independent New Zealand Citizen (subclass 861)
• Skilled—Onshore Australian-sponsored New Zealand Citizen (subclass 862)
• Skilled—Onshore Designated Area-sponsored New Zealand Citizen (subclass 863)
• Skilled—Independent Overseas Student (subclass 880)
• Skilled—Australian-sponsored (subclass 881)
• Skilled—Designated Area-sponsored Overseas Student (subclass 882)
• Skilled—Independent (subclass 885)
• Skilled—Sponsored (subclass 886).

The following visa subclasses are exempt from priority processing:

• Skilled—Recognised Graduate (subclass 476)
• Skilled—Graduate (subclass 485)
• Skilled—Designated Area—Sponsored (Residence) (subclass 883)
• Skilled—Regional (subclass 887).

Changes to the skills assessment requirements for GSM applicants nominating a trade occupation
There is some concern among international students and stakeholders regarding the amendments introduced on 1 January 2010 to support the commencement of the Job Ready Program (JRP). These amendments require certain GSM applicants who nominate a trade occupation to provide a skills assessment dated on or after 1 January 2010 in order to make a valid application. It is intended that in the future, applicants nominating a trade occupation for permanent migration will be able to provide an existing skills assessment when applying. This includes assessments predating 1 January 2010 and will mean that applicants will no longer be required to obtain a further skills assessment. It is intended that these arrangements commence in the first quarter of 2010.