Lyndal Curtis speaks with Immigration Minister
August 22, 2008
Immigration Minister Chris Evans speaks to Lyndal Curtis about a report which shows that with the exception of two groups, migrants contribute significantly to the economy.
Media Release, Chris Evans
Migration program boosts economy and eases skills shortage
A report by respected economic analyst Access Economics shows that new migrants to Australia deliver hundreds of millions of dollars to the Commonwealth budget and the broader economy every year.
In a speech to the Australian Mines and Metals Association in Perth today, the Minister for Immigration and Citizenship, Senator Chris Evans, said that the overall fiscal impact of migration is substantially positive and grows over time in real terms.
In its Migrant Fiscal Impact Model: 2008 Update, Access looked at the costs that migrants impose on health, education, welfare, employment and settlement services compared to the fiscal benefits from taxation and visa charges.
For the 2006-07 migration program, Access estimated a total benefit of $536 million in the first year, then another $856 million in year two, growing steadily over time to reach $1.34 billion by year 20.
‘Applying the same modelling to the 2007-08 migration program, the net fiscal benefit is $610 million in year one, $965 million in year two then growing to $1.5 billion by year 20,’ Senator Evans said.
‘The forecast for the 2008-09 migration program is for an $829 million benefit in the first year, $1.16 billion in the second year, then $1.8 billion by year 20.’
Senator Evans said the Access modelling dispelled the myth that new migrants imposed a huge impost on the taxpayer.
‘The positive fiscal impact is particularly pronounced for skilled migrants, which reflects their high rate of labour market participation and higher incomes which in turn leads to a high level of direct tax receipts,’ Senator Evans said.
‘Migrants also contribute to the broader economy through spending on goods and services.
‘As well as the economic benefits, skilled migrants help Australian employers fill critical labour gaps at a time many businesses are facing capacity constraints.
‘The bottom line is that our migration program is vital to keep the economy growing as well as helping Australian businesses overcome skills and labour shortages.
‘Australia is facing a demographic shift that will see more people retire than join the workforce so the permanent skilled migration program provides a stable, effective and targeted source of skilled workers.’
Australia’s migration program increased annually over the last decade under the previous government to the point where the 2007-08 migration program was the biggest provided by Australia since the 1960s.
The 2007-08 migration program comprised 108 540 places (68 per cent) in the skilled migration stream and 49 870 places (31 per cent) in the family migration stream. Another 13 000 refugee and humanitarian visas were granted in 2007-08.
Last year’s intake represents a seven per cent increase on the 2006-07 migration program which totalled 158 960 places, of which two thirds (97 920) were skilled migrants.
The 2008-09 migration and humanitarian program is expected to total 203 000 visa grants, with 133 500 allocated for skilled migrants, 13 500 places for refugee and humanitarian entrants and a further 56 500 places in the family stream.
The PDF report is at the above link. It's probably mostly propaganda. Ross Gittins says the per capita income gain from immigration is
chicken feed, and the case against immigration is
stronger than the rest of us realise. Ditto says the
House of Lords. Harvard economist George Borjas
said the debate over immigration actually shouldn’t be about the economic benefits, as they "seem much too small".
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