michael wall - kpmg - skilled migration policy – winding back the clock?

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1 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Agenda The role of migration policy in supporting economic development A greater role for the business in shaping migration policy Emerging trends in global mobility

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Michael Wall delivered the presentation at the 2014 Skilling Australia Summit. The 8th Annual Skilling Australia Summit considered the current policy framework and examined state and national challenges for skilling the Australian economy at this time. Current skilled shortages within industry groups were addressed and debated. For more information about the event, please visit: http://www.informa.com.au/skillingoz14

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Page 1: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

1 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Agenda

The role of migration policy in supporting economic development

A greater role for the business in shaping migration policy

Emerging trends in global mobility

Page 2: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

2 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

A message from Arthur Calwell

Page 3: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

3 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

•  Net growth in working age population aged 15-64 in Australia based on 2008 outlook with different annual migration assumptions

1972 2056 2012

- 100,000

- 50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050 2053 2056

ERP Proj - 0k NOM Proj - 70k NOM Proj - 180k NOM

Australia is moving from baby boom to baby bust … the effect of Net Overseas Migration

Source: Based on Australian Bureau of Statistics data; KPMG Demographics

Estimated Resident Population

Page 4: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

4 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Japan’s prime tax-paying population has been in decline for 20 years

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000 19

51

1953

19

55

1957

19

59

1961

19

63

1965

19

67

1969

19

71

1973

19

75

1977

19

79

1981

19

83

1985

19

87

1989

19

91

1993

19

95

1997

19

99

2001

20

03

2005

20

07

2009

20

11

2013

20

15

2017

20

19

2021

20

23

2025

20

27

2029

20

31

2033

20

35

2037

20

39

2041

20

43

2045

20

47

2049

20

51

Demographic Faultline

1951 2051 2012

Net change in working age population (15-64) over 100 years in Japan

Source: KPMG Demographics, utilising data from United Nations, Department of Economic and Social Affairs, Population Division (2011). World Population Prospects: The 2010 Revision, CD-ROM Edition

Page 5: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

5 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

China must manage its demographic faultline later this decade

-15,000,000

-10,000,000

-5,000,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000 19

51

1953

19

55

1957

19

59

1961

19

63

1965

19

67

1969

19

71

1973

19

75

1977

19

79

1981

19

83

1985

19

87

1989

19

91

1993

19

95

1997

19

99

2001

20

03

2005

20

07

2009

20

11

2013

20

15

2017

20

19

2021

20

23

2025

20

27

2029

20

31

2033

20

35

2037

20

39

2041

20

43

2045

20

47

2049

20

51

1951 2051 2012

Net change in working age population (15-64) over 100 years in China

Source: KPMG Demographics, utilising data from United Nations, Department of Economic and Social Affairs, Population Division (2011). World Population Prospects: The 2010 Revision, CD-ROM Edition

Demographic Faultline

Page 6: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

6 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Australia’s migration programmes

Permanent Migration Programme ■  Set by government on an annual basis

■  Wide Industry consultation and labour market research

■  Main components

–  Family

–  Employer sponsored

–  General Skilled Migration

–  Business Innovation and Investment

■  Humanitarian programme

Temporary Programme ■  Ongoing policy revision

■  Demand-driven – no quotas

■  Main components

–  Subclass 457 visa

–  Student visa

–  Working Holiday visa

Page 7: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

7 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Skilled migration – Australian Government’s stated objectives

■  To build economic growth through addressing skills shortages, preventing labour force decline and ameliorating our declining aged dependency ratio (workers to retirees)

■  To assist the three ‘P’s’ of economic growth – Population, participation and productivity

■  To attract the best and brightest skilled migrants

■  To complement but not displace Australian workers (jobs and training for Australians remains the government’s top priority)

■  To ensure that skilled migration is only used to fill genuine skill shortages

Page 8: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

8 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Skilled migration – Key features

■  Makes up 67.7% of the Migration Programme for 2013 – 2014*

■  Increased 19% from 107,868 in 2009 – 10 to 128,973 in 2012-2013*

■  Employer sponsored increased 15% from 40,987 to 47,250 in same period*

■  Introduction of SkillSelect in 2012 - A move to a demand driven program

■  Increased focus on regional programs leading to an increase in visa numbers

Source: 2012-13 Migration Program Report DIBP

Page 9: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

9 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

SkillSelect

■  Introduction of the Skilled Occupation List (SOL) cutting eligible occupations under General Skilled Migration from around 400 to 180

■  SOL developed and maintained by the Australian Workforce and Productivity Agency (Department of Industry from 1 July 2014)

■  Thorough skills assessment process required through Government appointed assessing authorities deemed appropriate for the nominated occupation

■  Quotas set for each occupation

■  Individuals must be invited to apply

■  Ability for employers to directly access SkillSelect applicants via the Employer Portal of SkillSelect

Page 10: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

10 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

A greater role for the business

■  Significant industry consultation including:

–  457 integrity review

–  SIV review

–  BIIP review

–  Offshore Resources Act

–  Migration Programme Consultations

■  Increase in employer sponsored migration as a key policy initiative.

Page 11: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

11 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Employer sponsored outcome from 2003-04 to 2012-13

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Offshore Onshore

Source: 2012-13 Migration Program Report DIBP

Page 12: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

12 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Regional Sponsored Migration Scheme (RSMS) outcome from 2003-04 to 2012-13

Source: 2012-13 Migration Program Report DIBP

2,183 3,166 3,454 3,784

5,062

8,811 10,213

11,120

16,471

20,510

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Page 13: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

13 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Emerging trends in global mobility

■  Global mobility pushing up the Boardroom Agenda

■  Mobility on the rise but taking a different form

■  A move away from the traditional 2-4 year international expatriate assignment

■  Increase in short term assignments and business travellers due to factors including:

–  Cost control

–  Speed of deployment

–  Technology advancements

–  Family commitments

■  Increase in international mobility of the below 35 year age bracket

■  Greater focus on linking talent with mobility

Page 14: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

14 © 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Emerging trends in global mobility (continued)

■  Increased compliance focus by Governments around the world and the corporate response

–  Global centralisation of immigration programs

–  Greater use of technology to track international assignments

–  Linking the tax and immigration functions – the two areas of greater risk

Page 15: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?
Page 16: Michael Wall - KPMG - Skilled Migration Policy – Winding back the clock?

Thank you

Michael Wall Partner

National Leader – Immigration Services

KPMG Australia +61 2 9335 8625

[email protected]

MARN 9576974