The Australian permanent skilled migration programme is going through a reform to ensure that it becomes demand driven, rather than supply driven. The changes were announced by Immigration Minister Chris Evans, and mean that up to 20,000 potential migrants will see their applications cancelled.

Under the new scheme, highly skilled workers in areas such as healthcare, engineering and mining will be amongst those most sought and prioritised. 

Evans has announced that the list of occupations in demand will be tightened so that only highly skilled migrants will be eligible for a visa. The points test used to assess the migrants’ eligibility will also be under review, to ensure only the best are selected. Certain occupations may be capped.

Skilled migrants who already have a job lined up with an Australian employer prior to submitting their visa application will be given first priority. "There are plenty of occupations where there is an adequate supply of young Australians coming through our schools... to take up new job opportunities," said Evans, in a statement, adding that “they must be given the opportunity to fill these vacancies first.”

The cancelled applications will apply to all offshore general skilled migration claims lodged before September 2007. Refunding those applications will cost taxpayers about $14 million. 

The government will introduce transitional arrangements that will apply until 2012.

Cooks and hairdresses are amongst the occupations that may suffer from these changes. The new list will favour skilled workers such as nurses, GPs, mechanical engineers and teachers.

“The changes should result in a better connect between permanent residency and addressing Australia's critical skills needs,” commented Heather Ridout, chief executive of the Australian Industry Group, as quoted by The Age.