Migration patterns to and from Australia are becoming complex with migration programmes increasingly targeted towards meeting the needs of the labour market and regional development. This paper provides an analysis of the permanent and temporary movements of people to and from Australia in the last three years and their impact on the skilled labour supply in Australia. The paper also provides an analysis of occupational mobility of permanent immigrants. The results are consistent with previously published results of initial downward occupational mobility among immigrants. The consequence of this is wastage of skills which the country can least afford in times of reported skills shortages. Skills wastage can be minimised by making available to newly arrived immigrants appropriate programmes for recognising previously acquired qualifications and occupational licenses; updating occupation-specific skills; and providing up-to-date information on the labour market and its operation. In this respect, the TAFE (Technical and Further Education) system in Australia is uniquely placed to play a key role. (Contains 7 footnotes, 1 figure, and 21 tables.)