Skilled Migrant Professionals December 2015 | Page 26
Migration
To measure the GDP premium by migration stream (per cent per
migrant), the chart illustrates that each visa stream with different visa
subclasses creates different economic impacts to Australia’s economy.
A significant positive impact is shown by visa holders of permanent and
temporary skilled, as well as student visa holders.
According to the findings, the younger average age and the higher human capital, common across these streams, drives their economic contribution. Roughly 63 per cent of skilled independent stream migrants possess language and technical skills, with a majority of them in
the prime working age group of 25–44.
On another note, migrants are who enter Australia on a student visa
are usually young and well educated, and provide the largest economic
benefit to Australia.
The other skilled visas and working holiday makers all make small, but
positive contributions to Australia’s economy.
The analysis of the various streams of visa types demonstrates that
policy decisions made have a long-term economic impact on Australia.
By 2050, each individual migrant will, on average, be contributing
approximately 10 per cent more to Australia’s economy than existing
residents and further provide savings across the population in expenditures on education, transfer payments and government network infrastructure. On average, migrants were also found to be more highly
educated, which paves the way forward for them to participate more in
areas like research and development – leading to economic growth and
disbursed benefits.
Additionally, it has been found that economic growth is more rapid
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www.smpmagazine.com.au | December 2015
with the migration policies. With the presence of migration, a larger
share of GDP is allocated to investment to support the rapid growth in
capital stocks. Therefore, in per capita terms, huge gains are derived
from residential, business and public enterprise investments.
The research also refutes the commonly held notion that migration reduces the capacity of Australians to find work. In reality, migration plays
a role in addressing inequality and generating opportunities for low-income workers. Overall, the distributional impact of migration on existing
Australian residents is highly positive. An improved employment to population ratio drives higher consumption as migrants draw less on government service provision and contribute a net fiscal benefit via taxes paid.
Migrants who initially enter Australia on a student visa pay the full
costs of their education, which provides a saving to the government
budget when compared to the subsidised places offered to Australian-born residents.
On average, migrants are more highly educated than existing residents, and this is particularly the case for migrants who initially enter
Australia on a student visa. By 2050, 60.4 per cent of the population
would have acquired a university education.
The report paints a comprehensive picture of the interdependence between Australia’s migration framework and economic fortunes. Findings
in the report demonstrate the critical role migration will continue to play
in Australia’s economic growth and wellbeing, and most importantly,
that it will ensure Australia remains a highly-skilled nation.
Extracted from The Economic Impact of Migration and is available at Migration Council of Australia