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 26 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