The right to immigrate to Australia for sale, under new proposal

Entry fees, not skills or family connections, would be the primary determinant for who gains entry to Australia as an immigrant, under a proposal being examined by the Productivity Commission.

A price-based immigration system could bring in tens of billions of dollars in extra revenue, helping the federal government rein in the budget deficit and trim the number of public servants administering the current system, the Sydney Morning Herald reports.

The proposal, contained in an issues paper released on Friday, involves creating a HECS-style payment system for immigrants to pay back their entry fee.

The issues paper says one option for an immigration fee would be setting a price and then letting demand dictate the size of the intake.

The other option under review is setting a cap on the intake and allowing demand to determine the price of entry.

Business groups and unions say tackling skills shortages should remain the focus of Australia's immigration policy, however.

And ethnic community groups say they would oppose any moves that would hinder poorer would-be immigrants form reuniting with their families in Australia.

The commission is due to release its final report next March.