It also suggested another $9 billion per year could be generated for each yearly migrant intake if employer-sponsorships were offered to workers earning $80,000 a year or more, as outlined in a new paper from public policy think tank, Grattan Institute.

The government's current policy, the report said, had moved in the wrong direction by focusing on expanding the permanent skilled intake of migrants towards older, less-skilled migrants.

The paper's lead author, economic policy program director Brendan Coates, said it was important the government took into account the best bang for buck when it came to skilled migrants.

"When we reopen the borders, Australia should unashamedly select permanent skilled migrants for their long-term economic potential," Mr Coates said.

"Skilled migrants tend to be younger, have more skills, and earn higher incomes than the typical Australian - so they generate a fiscal dividend for Australians because they pay more in taxes than they receive in public services and benefits over their lifetimes."

The report also called for the Global Talent visa program to be assessed for its viability, the Business Investment and Innovation visa program to be cancelled and for an independent review of the points-tested visas.

The report's findings suggested additional funds of around $3 billion could be generated from the changes.

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It also added the Department of Home Affairs should be required to improve its systems in order to accelerate visa processing times.

The pause on migrant intake caused by the COVID-19 pandemic meant now was a good time for the government to consider a policy reset to achieve better outcomes for the economy and the country, Mr Coates said.

"One positive from the Covid catastrophe is the unique opportunity for Australia to reset and improve our skilled migrant intake," he said.

"Our report shows how we can seize this moment to make Australia an even better place - for those of us who already live here and for those who aspire to come here."

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