Sydney: On Thursday, Australia proposed changing its immigration policy to expedite the entry of highly skilled workers and to make it easier to obtain permanent residency.

The points test, which is currently used to choose skilled immigrants, will be changed, according to the federal Labour government, to better identify people who have the skill sets that the Australian economy will need in the future.

"Our immigration system is dysfunctional. Both our businesses and the migrants themselves are failing as a result. In the end, it is failing Australians most importantly. Home Affairs Minister Clare O'Neil made this statement during a speech at the National Press Club.

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With an ageing population exacerbating the rise in demand, Australia has been competing with comparable nations like Canada and Germany to entice more skilled migrants.

The government promised to streamline and simplify the high-skilled professional visa application process while also taking steps to keep international students in the country.

By the end of this year, O'Neil predicted, temporary skilled visa holders who had previously been denied even the chance to apply for permanent residency will be able to do so. However, she said, it won't increase Australia's yearly influx of permanent migrants.

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In order to assist businesses dealing with severe staff shortages, Australia increased its annual intake of permanent migrants by 35,000 to 195,000 in September. They also promised to increase staffing and resources to expedite the visa application process.

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The government announced it would increase the migrant wage threshold for temporary skilled workers from A$53,900, which had remained at the same level since 2013, to A$70,000 ($46,250), effective July 1.
The government claimed that since 90 percent of full-time jobs in Australia are now paid higher than the going rate, migrant workers are being taken advantage of.