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The Federal Government has released a draft strategy to overhaul Australia's "broken" and "crazily complex" migration system, with a major review confirming it is "not fit for purpose" and that some elements, such as labour market testing, should be scrapped entirely.

A review panel's final report into the migration system notes the process for obtaining employer-sponsored visas is "complex, costly and often slow", and it expresses concerns about the "out of date and unresponsive" skilled occupation lists.

"The Panel is of the view that fundamental reform is needed to ensure the system targets the skills the nation needs," it says...