Reports

Australia has always been a nation of immigrants. More than one quarter of its population in 2015 was born abroad. Immigrants make an important economic and demographic contribution and help address skill and labour shortages. Labour migration is managed through a complex, but well-functioning and effective system which sets and respects annual migration targets. In recent years, the labour migration system has shifted from a mainly supply-driven system to a system where demand-driven migration represents close to half of the permanent skilled migration programme and demand-driven temporary migration has also risen sharply. In addition, two-step migration has gained ground in recent years. The review examines the implications of these changes for the composition of immigrants and their labour market outcomes. Moreover, it discusses recent changes in the tools used to manage labour migration and provides a detailed analysis on the impact of the introduction of SkillSelect on the efficiency of the system. Finally, the review discusses the extent to which the current labour migration system responds to the labour market needs of Australia's States and Territories.

This book presents an in depth analysis of the contribution of services to the Australian economy, the regulatory environment of the services sector and its performance in an international context. The analysis highlights the importance of co-ordinated domestic policy action, priorities for promoting behind-the-border regulatory reforms in strategic international markets, and the benefits of an ambitious bilateral, plurilateral and multilateral trade policy agenda that contributes to rules-based certainty and predictability in services trade globally.

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 1 peer review of the implementation of the Action 14 Minimum Standard by Australia, which is accompanied by a document addressing the implementation of best practices which can be accessed on the OECD website: http://oe.cd/bepsaction14.

The costs of persistent misalignment between the supply and demand for skills are substantial, ranging from lost wages for workers to lower productivity for firms and countries. Addressing skills imbalances has become a pressing priority as OECD governments reflect on the implications of technological progress, digitalisation, demographic change and globalisation for jobs and work organisation. In light of these challenges, the OECD has undertaken new research to shed light on how countries measure changing skill needs while ensuring that employment, training and migration institutions are responsive to the emergence of new skill requirements. The Getting Skills Right in Australia review offers an in-depth analysis of the existing skill assessment and anticipation system in Australia, and makes recommendations for how it could be further improved. In addition to providing a summary of the state of skill imbalances in Australia, the report provides an assessment of practices in the following areas: i) the collection of information on existing and future skill needs; ii) the use of skill needs information to guide policy development in the areas of employment, education and training, and migration; and iii) the effectiveness of governance arrangements in ensuring strong co-ordination among key stakeholders in the collection and use of skill needs information.

Australia has abundant energy resources. It is a leading exporter of coal, uranium and liquefied natural gas (LNG), much of which is destined for Asia’s growing markets. At home, Australia’s energy sector is undergoing a significant transformation. The power system is seeing higher shares of variable wind and solar power; South Australia leads the deployment. Yet despite this wealth of resources, energy security concerns are on the rise. As domestic oil production is dwindling, dependency on oil product imports and the oil supply chain are growing steadily. Gas supply in the east coast market has become tight, leading to higher prices in that market. Australia’s power system finds itself exposed to concerns over reliability, particularly amid extreme weather events. While its carbon intensity is in decline, it is still the highest among IEA countries. For natural gas to play a role as a transition fuel to a low-carbon economy, resource development, additional pipeline capacity and market integration are critical. The government is implementing reforms to foster reliability and security of supply, prompted by the South Australia system wide blackout of September 2016 and the Finkel Review. However, a consistent energy and climate framework up to 2030/50 is needed at the Commonwealth level to ensure continued and adequate investment in the energy sector. With the intention of helping to guide the country towards a more secure and sustainable energy future, this 2018 in-depth review analyses these and other energy policy challenges facing Australia, and provides recommendations for further policy improvements.

Australia has a strong voice on the global stage. It actively and consistently advocates for the interests of small island developing states and the Pacific region and on issues such as disaster risk reduction and gender equality. In line with this focus, the government has introduced a clear overarching policy vision and associated strategies and guidance for development co-operation. A robust performance framework reflects Australia’s strategic orientations, with value for money at the forefront. Among other issues, this review also looks at how the Australian government has managed the integration of aid within the Ministry of Foreign Affairs and Trade, and the resulting opportunities and challenges.