Australia migration policy changed by Coronavirus

Due to the outbreak of Coronavirus, Australia had decided to shut the border since March 2020, which made the non-citizens and non-residents cannot enter the country. With the gate closed, it seems impossible for inter-national movements. With the pandemic struck, the economy is now expecting to shrink over two consecutive quarters due to the immigration matters.

Migration is the major driver behind Australia’s population growth. By an open-door immigration policy, it drew skilled workers, students and manual labour to the nation. During the 2021-22 financial year, the country’s population growth will drop to just 0.2 percent while the fertility rate is expected to drop to 1.58, from the 1.9 predicted in 2019-20 budget. Australia is facing an ageing population which relies on immigration in gaining workforce to contribute the tax base, which pays for future infrastructure and spending. It is predicted that the net migration loss of 2020-21 financial year is 72,000. The high dependency of immigration on population growth led to the prediction of shrink economy. While foreign education is Australia’s fourth-largest export, which worth about $20 billion a year. Economist Chris Richardson said the forecast of immigration numbers drop by 85 percent next year could bring $50 billion away from national income. Unfortunately, the international borders are expected to remain close until late 2021. Meanwhile, the Australia government is facing the largest deficit in history — $213.7 billion.

According to the budget revealed on 6th October, the government introduced changes to Migration Program planning in the recovery of Australia’s economy. As the migration cap remains 160,000 places as introduced in 2019-20. The skilled stream, the allocation of Global Talent Independent program have tripled to 15,000 places and the allocation of the Business Innovation and Investment Program also increased to 13,500 places. Under the family stream, 72,300 of 77,300 places will be allocated to partners applicants, there will be an additional requirement to undergo mandatory English language testing.

Migration is the lifeblood for Australia. Would the changes help relief and bring innovation to future Australia? We will keep eyes on it.