Immigration Minister Peter Dutton has said the government is considering the "policy settings" for family visas after the Productivity Commission urged the federal government to increase the fees for elderly parents.
Earlier this week, a report by the Productivity Commission said the fees for elderly parents should be increased as the current fees of $50,000 only cover a fraction of the cost which taxpayers have to bear.
The Productivity Commission report said that elderly parents cost Australia anywhere between $335,000 to $410,000 each.
According to the commission, 7200 people who arrive here every year on the family reunion visas, pay relatively little tax but require more government services and welfare.
At a speech to the Australian Strategic Policy Institute, Mr Dutton said the visa system is "overly complex and supported by ageing infrastructure" and in need of further changes.
"Work to simplify and reform the system must go further to better position us to deal with the increasing demand from travellers," he said.
He also said the costs of visas for the families of those on skilled migration visas was "significant".
"Each year around 130,000 places are made available for skilled persons and their families to migrate permanently to Australia, and around 60,000 places are available for families of Australians to do the same. These numbers are substantial and capable of having a significant impact on the labour force and welfare costs into the future," he said.
He then said there is a need to consider policy changes.
"It is therefore vitally important that we carefully consider the policy settings for the permanent skilled and family streams of the migration program. With the right settings these new entrants to the labour market can be an effective supplement to the labour force, and not a substitute for it," he said.
INDIAN COMMUNITY IN AUSTRALIA REACTS

Source: Supplied
Members of the Indian community have slammed this proposal.
Arvind Duggal, who started a petition for Long Stay Visa for Parents told SBS Hindi, “The current fees, over $100,000 to bring both parents is already too high. We have urged the government to therefore create an alternative where our parents can live here for longer periods without the government bearing the cost. This new proposal will not suit the Indian community.
Most of the people who support us have young children and old parents. Grandparents play an important role in supporting families. They help care for children when the couple goes to work.”
FECCA CHIEF CALLS IT 'NONSENSE'
The Federation of Ethnic Communities Councils of Australia has also rubbished the productivity commission’s suggestion. Joseph Caputo from the Federation of Ethnic Communities Councils of Australia dismissed the recommendation as "nonsense".
“When parents come out they usually look after the grandchildren and that's a great assistance to families in Australia, and it's been proven time and time again that family reunion is of great benefit to the Australian society," he told SBS.
"To actually make it more difficult or more expensive for migrants to come here, it is really nonsense. Do we really want only wealthy people to come to this country?”
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Federal government urged to hike visa fees for elderly parents