Contrary to the assumptions, yet another change is sending shock waves across the Australian migration industry. The Migration Occupations in Demand List (MODL) is no more in existence. One would wonder how this is possible; a change overnight that will make thousands of applicants ineligible to make permanent visa applications. We are very much accustomed to drastic changes made by the Department, which has always been substantiated by a valid reason.

The good news is, applications lodged prior to February 8 2010 will not be affected by the changes. However, in my experience there ought to be a very large amount of applicants who have entered into the migration process, assuming that their occupation is in the MODL. This means, under the previous law if the occupation was in the MODL, 15 extra points were awarded towards the total point calculation. Accordingly, the applicants will not be able to claim the said points, resulting in most applicants not being able to meet the pass-mark of 120 for an independent visa.

Impact on the revocation of the MODL

The MODL review did take place, consisting of two stages and was concluded in December 2009. The proposal to revoke the MODL was long overdue and the impacts were debated. The MODL was introduced in 1999 to remedy the situation where someone with skills needed in the Australian labour market fell just shy of the points needed to be awarded permanent residence, for example, a highly skilled tradesperson whose age counted against him.

Eventually the MODL has come to be seen more as a general instrument for addressing skills shortages, and was given added weight in the Points Test. At the same time, it was identified the MODL is much less effective in addressing skills shortages than sponsored skilled migration, and contributes to the distortions in the migration programme.

The previous structure of the Points Test makes the acquisition of MODL points more important to offshore than onshore applicants. A survey conducted by the Department of Immigration and Citizenship reveals that the reliance on the MODL points amongst the independent applicants in year 2008-2009 was as high as 73.1 percent. As the occupations rose to 106, the amount of applications lodged for GSM visas claiming MODL points sky rocketed. With the revocation, most of the independent applicants will have to seek alternative options.

Other Major Changes

GSM applications lodged before September 1 2007
There are two more proposed changes to the procedures in existence. The Minister for Immigration has made a decision to cap the amount of applications received prior to September 2007.

Once the number is reached any decision pending application will be returned and it will be assumed that these applications have not been made. At the same time, the visa application charge (VAC) will be refunded. The mechanism of acceptance and refusal is not yet known. However, given the fact that the future trend of Australian migration is targeted towards the highly skilled and those proficient in English language, it is likely the applicants falling under generic occupations with low English levels can face issues.

There are a number of unanswered questions; such as what if the applicant has reached 45 years and has no opportunity beyond this. Alongside the opportunity lost, the shattered dreams of thousands of families and the social responsibility towards the applicants are some of the issues that will be debated in due course.

New Skills Occupation List from mid 2010

The current Skills Occupations List (SOL) will be replaced with a new skills list in the mid 2010. The new list will be applicable only for the applications lodged after the new list comes into effect.

The new SOL will comprise of a more targeted list of occupations designed to meet the medium and long-term needs of the Australian economy. States/ Territory governments and employers will still be able to sponsor applicants who have nominated an occupation that is not included in the new SOL.

At this stage, the announcement made by the DIAC is effective on the said date. However, there are unclear areas such as the directions for the pre September 2007 applications and lodging visa applications according to the new SOL. I will be closely monitoring the situation and keep readers updated.

FAQ is an extract from the DIAC media release

Q: 1 When will the MODL be revoked?

On February 8 2010 the Minister for Immigration and Citizenship, Senator Chris Evans, announced the revocation of the MODL from February 8 2010. This change applies to all GSM applicants except those who, at the date of announcement:

• hold a Skilled-Graduate (subclass 485) visa, or had a pending subclass 485 visa application and had not yet lodged an application for a provisional or permanent GSM visa and who make an application by December 31 2012, or
• have a pending GSM visa application.

Q: 2 Will there be a new MODL?

No. Applicants planning to claim additional points for an occupation on MODL to meet the Points Test pass mark should consider other options for additional points, for example, improving their English language score.

Q: 3 When will the new SOL come into effect?

It is expected that the new SOL will be announced by April 30 2010 and placed on the Department of Immigration and Citizenship website and take effect from mid-2010. Publication of the new SOL in advance of it taking effect is designed to assist clients.

Q 4 What is the effect of removing an occupation from the SOL?

The new SOL will have a more targeted list of occupations designed to meet the medium to long-term needs of the Australian economy. Applicants for GSM visas that are not state/territory government nominated will have to nominate an occupation on the new SOL if they apply after mid-2010.

Employers and state and territory governments will still be able to sponsor applicants who have nominated an occupation that is not included in the new SOL to meet the needs of a particular employer or state/territory if the occupation is included in a state migration plan.

Q 5 Who will the new SOL apply to?

The new SOL will apply to all new GSM applicants from mid-2010, except those applicants who, at February 8 2010:

• hold a Skilled-Graduate (subclass 485) visa, or had a pending subclass 485 visa application and had not yet lodged an application for a provisional or permanent GSM visa and who make an application by December 31 2012, or
• had a pending GSM visa application.

Q 6 I have a satisfactory skills assessment for my nominated occupation which is currently on the SOL, but I do not wish to apply for a GSM visa until late 2010. Will the Department of Immigration and Citizenship accept this skills assessment?

Yes, provided the skills assessment is for an occupation that is on the new SOL which will start in mid-2010, and you are not required to complete the JobReady Programme.

Q 7 Will state and territory governments be able to nominate applicants if their nominated occupation is not on the new SOL?

Yes, provided the nomination is in accordance with a state migration plan approved by the Minister for Immigration and Citizenship.

Q 8 What are my options if my occupation is not on the new SOL?

If your nominated occupation is not on the new SOL you may wish to consider your eligibility for a permanent employer sponsored visa under the Employer Nomination Scheme, or the Regional Sponsored Migration Scheme.

Q 9 Why is the minister capping and ceasing General Skilled Migration visa applications made before September 1 2007 visas?

The number of places in the Skilled Migration Programme available to applicants who are not sponsored by an employer continues to decline, as the government's priority is to support demand driven migration. At the same time, the number of pending GSM applications continue to grow as the demand for GSM places exceeds the available supply.

The Australian Government has decided to end the ongoing uncertainty for offshore GSM visa applicants who applied prior to September 1 2007, by capping and ceasing these visa classes.

Q 10 I lodged my offshore GSM visa application before September 1 2007 and have provided all documents requested by the department including medical reports and police checks. Will the change affect me?

Yes, if your GSM application is not decided before the cap is reached, you will be subject to the capping and ceasing arrangements and your VAC will be returned. You will no longer have an application under consideration.

Q 11 What will be the role of the Critical Skills List when the new Skilled Occupation List is introduced?

The Critical Skills List (CSL) will be revoked when the new Skilled Occupation List (SOL) comes into place in mid- 2010. The CSL was an interim administrative measure adopted while the Migration Occupation in Demand List (MODL) review was being undertaken, to ensure skilled migration outcomes were driven by the demands of the labour market.

Q 12 My nominated occupation is currently on the CSL. Will I continue to receive priority processing?

Yes, priority processing arrangements for applications for permanent skilled migration will continue until they are reviewed in mid-2010.