How Could The Points Test Be Reformed? What Did Different Stakeholders Say At The Australian Parliamentary Hearing?

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On 21 August 2026, the Joint Standing Committee on Migration held a public hearing as part of the Inquiry into the Value of Skilled Migration to Australia. One of the key issues raised was whether Australia’s Points Test for skilled migration should be reformed to better identify applicants who are more likely to contribute successfully to the Australian labour market

It is important to note that these are not new policy settings. However, the views presented by organisations participating in the hearing highlight several possible directions for future reform.

How Could The Points Test Be Reformed?
How Could The Points Test Be Reformed?

Joint Standing Committee on Migration: Is the Points Test helping Australia select the right candidates?

During the hearing, the Chair asked whether the Points Test could be reformed to more accurately identify the strongest candidates with the skills Australia needs, while also making the system more responsive to the needs of businesses and applicants.

The Committee also raised the situation of Temporary Graduate visa holders who are already working in areas experiencing skills shortages: could there be a more streamlined pathway for this group to transition into skilled migration rather than having to move through multiple visa stages?

Business Council of Australia: Greater focus on “labour market outcomes”

Representatives of the Business Council of Australia (BCA) said the Points Test remains a critical part of independent skilled migration, but argued that it should be more clearly geared towards labour market outcomes.

According to the BCA, the assessment of applicants could place greater emphasis on factors such as:

- Australian work experience

- Actual employment in Australia

- Salary income, considered as a possible indicator of the likelihood of achieving positive labour market outcomes in the future

This does not mean that salary will necessarily become a points-tested factor. The BCA only raised salary income as one possible factor that could be considered as part of future Points Test reform.

The BCA also suggested that the Points Test could play a greater role in assessing Australian graduates.

For example, rather than simply recognising that an applicant has completed an Australian qualification, the system could also consider whether the person:

graduated in an area of skills shortage + gained work experience with an Australian business.

According to the BCA, these factors could provide a clearer indication of whether an applicant is likely to achieve strong outcomes in the Australian labour market.

Australian Computer Society: Not just “how many years of experience do you have?” but “are your skills still current?”

From the perspective of the Australian Computer Society (ACS), one issue with the current Points Test is that it still relies heavily on a “legacy framework” centred on the duration of experience, relevant industry exposure and education.

ACS cho rằng yếu tố “currency” – tính cập nhật của kỹ năng cần được coi trọng hơn.

Đại diện ACS đưa ra một góc nhìn rất đáng chú ý: việc một người có bằng đại học từ 20 năm trước có thể không quan trọng bằng việc họ đã làm gì trong 5 năm gần đây, đã cập nhật kỹ năng ra sao và có thể chứng minh rằng mình sẵn sàng tham gia vào đội ngũ nhân sự hiện tại hay không.

ACS argued that “currency” - how current a person’s skills are - should be given greater importance.

Australian Information Industry Association: Both “currency” and “relevancy” matter

The Australian Information Industry Association (AIIA) agreed with this view and further emphasised “relevancy” - how relevant a person’s skills are to the current labour market.

According to the AIIA, the technology sector changes rapidly. An occupation or specialist skill that is relevant when a person begins their permanent migration process may no longer accurately reflect market demand by the time the visa is granted.

The system therefore needs to be more flexible and dynamic so that it can better respond to developments in AI and emerging specialist skills that Australia needs.

Notitia: Qualifications on paper do not always reflect practical capability

At the same IT and digital sector roundtable, representatives of Notitia provided an employer perspective.

The company said that some occupation classifications in the technology sector are already outdated compared with the realities of the current market. It also noted that, in recruitment, applicants with multiple qualifications but limited practical experience are not always the strongest fit for a role

Notitia said employers are increasingly placing greater value on skills such as:

critical thinking, communication, empathy, design, conflict resolution and project management - in other words, the ability to apply knowledge effectively in a real business environment.

Notitia did not directly propose a new Points Test framework, but its comments support the broader discussion that skilled migration may need to place greater emphasis on practical capability and the relevance of an applicant’s skills, rather than relying primarily on qualifications and years of experience.

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