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Australia’s slow and outdated migration system is weakening the nation’s influence in the Pacific.Credit:Joe Armao

“Regional business and political leaders report they find it too difficult to travel to Australia,undermining Australia’s influence and trade connections within the Indo-Pacific region,” the review says,as well as finding the system is reducing opportunities “to strengthen ties in our region”.

“The migration system has not assisted Australia to build diaspora communities from our closest neighbours in South-East Asia and the Pacific,again limiting people-to-people connections.”

The lengthy delays faced by Indonesians applying for visas to visit Australia – blowing out by several weeks for a simple tourist visa at times – has been raised repeatedly by Indonesian President Joko Widodo,and was a key talking point when Prime Minister Anthony Albanese visited the archipelago last year.

The review comes at a time when Australia is looking to strengthen economic and cultural ties with Asian and Pacific neighbours to ward off China’s approaches.

“There is growing international competition for highly skilled migrants,and Australia risks falling behind without more innovative and attractive visa products and service delivery,” the review says,finding the skilled occupation lists and points tests used to select working migrants were not fit for purpose.

Home Affairs Minister Clare O’Neil is expected to pose some solutions to the dilemmas facing the migration system at the National Press Club on Thursday.

According to multiple sources familiar with the report,it will urge the government to consider overhauling labour market testing rules that require businesses to advertise locally before recruiting skilled migrants.

One growing problem is recruiting the thousands of workers needed to fill lower-paid jobs in aged care and childcare. The review says Australia “lacks an explicit migration policy focusing on lower-paid workers and has taken a piecemeal approach that is not meeting our needs or protecting vulnerable migrant workers”.

It says inflexible visa conditions that tie temporary migrants to a single employer boost the risk of exploitation,and the temporary skilled migration income threshold – currently about $54,000 a year – adds to that risk. The union movement has called for it to be raised to more than $90,000.

“Family reunion is an important component of a strong and stable community. Australia facilitates family reunion for partners and dependent children. However,migrants can wait up to 40 years to have their parents join them in Australia on a permanent basis,” the review says.

It also warns Australia is letting international graduates languish on temporary work rights,hindering their ability to prove their worth in the local jobs market.

Former top immigration official Abul Rizvi said Australia needed a fundamental rethink in its approach to international students. “We need to think of them of potential citizens,” he said.

Rizvi also said a key question was what the government would do about adopting a net migration target.

Consultancy KPMG said in a submission to the review last year lifting net overseas migration by a total of 265,000 over the next five years would boost the Australian economy by up to $35 billion.

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