It is now a Schedule 1 requirement that the applicant must not have turned 45 at the time of invitation to apply for the visa.
It seems that the Treasury and DIBP may not be singing from the same hymn sheet. A person of 45 years of age is a long way from retirement age, and will contribute potentially another 25 years of skilled labour to the Australian economy (and to their superannuation funds).
The visa system does not exist in isolation; it sits in a system of markets such as the local labour market, and increased longevity. Australia’s Future Tax Review discussed an increase in the preservation age for superannuation to 67 years to be phased in from 2024. For immigrants, there could be a greater need to work for longer to make up for a potential shortfall in retirement income through Australian superannuation.
The previous 189 points system provided 0 points for the age group 45–49 years, with the opportunity to make these points up in other areas. I suggest that removing this age group is overly prescriptive, and out of touch with the broader market. There is no need to interfere so heavily in a competitive market.
I think there are 3 important factors involved
1. Immigration is an important source of growth of the working-age population (source: The Treasury: Intergenerational Report 2015: Pg. 10)
2. Australia is above the OECD average in the workforce participation of mature aged workers (Source: HILDA)
3. An aging population is a potential strain on GDP growth, if it leads to a decline in workforce participation and greater consumption of welfare.
This arbitrary and ill-conceived change means that there are skilled people waiting for an invitation that will never come. This change has been made without taking into consideration the potential value of these waiting applicants, and their family units to the Australian economy. And again there has been no transparent consultation process, which is not representative of good governance.
I would love to hear what people think.
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