KPMG welcomes the opportunity to provide a submission in response to the Department of Home Affairs Discussion Paper: Review of the Points Test.
The points test plays an important role in attracting and retaining the right mix of foreign talent. The visa pathways that currently are subject to the points test as part of the assessment criteria attract talented migrants who are seeking to make a long-term commitment to Australia, and who often have limited alternative pathways to remain in Australia, such as via company-sponsored options.
With the planned reduction in net overseas migration announced in the 2024-25 Budget, it has never been more important to ensure that skilled migrants are prioritised.
KPMG also broadly agrees with the Government's migration strategy findings released in December 2023 that the points test is not operating in a way that will lead to the selection of migrants best able to contribute to Australia’s long-term needs.
Having stated this, we have focused our observations and suggestions to reform the points test on areas where we believe there will be the greatest return for the Australian economy. The points test can play an important role in driving the right economic outcomes for Australia, while also incentivising decisions of skilled migrants that benefit both the migrant and the Australian economy.
To ensure benefits are maximised, we consider the following areas should be the focus of reform:
- Attracting a younger age demographic to remain in Australia;
- Ensuring that Australia attracts and retains talent with strong employment prospects, or who have skills which are in demand and deliver economic benefit to Australia; and
- Incentivise skilled talent to live and work in locations where their skills and attributes are most needed.
