Regulation Impact Statement – Department of Home Affairs
On 25 November 2021, the Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs and the Minister for Education and Youth announced Visa changes to support the reopening of Australia.
Large numbers of temporary visa holders working in Australia are returning home and not being replaced, with Treasury forecasting net overseas migration will be at its lowest since 1946. This is a problem because temporary visa holders make an important contribution to many businesses across Australia. It is costly for a business when a temporary visa holder leaves the country and creates a vacancy. The strength of the economic recovery, low unemployment, and the associated rise in vacancies across Australia make it a particularly difficult time for businesses to fill vacant positions.
This Regulatory Impact Statement (RIS) considers two options to address the problem of the continued departure of temporary visa holders. The policy problem and circumstances are such that fewer than three options are feasible for consideration. Option 2 includes measures for onshore visa holders as well as offshore visa applicants and holders, providing a holistic view as to how migration can address the problem. Relevant domestic measures to encourage Australians to address workforce pressures have been separated into work led by the Department of Education Skills and Employment. The two options are:
- No change in policy;
- Adjustments to visa conditions for temporary and provisional visa holders both onshore and offshore.
Consultation on Option 2 was undertaken with industry leaders and the Ministerial Advisory Council on Skilled Migration (MACSM). The consultation process made clear that workforce pressures resulting from the closed international border are a key concern for businesses and threaten to constrain growth. Option 2 is the recommended to support businesses in accessing the labour they need. Option 2 maximises the contribution of onshore visa holders and ensures priority migrants return to Australia and contribute to economic recovery.
The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Department of Home Affairs as adequate with the Government’s requirements but not consistent with good practice. The OBPR considers that the policy development process as described in the RIS departs from good practice as the RIS would have benefited from further analysis as to the magnitude and scope of the problem to be solved, and in turn a more detailed consideration of alternative options to achieve the intended outcomes. The RIS would also have benefited from a more thorough examination of the pros and cons of the identified option.
The RIS estimates the average annual regulatory savings at $14.9 million per year.