Australia's 1999-2000 Migration Program places emphasis on attracting new migrants who have education or work skills which will contribute to Australia's economic growth. Usually they have:

a high level of education and occupational skills; or
a good track record in business; or
outstanding talents in a particular field.

Half of the 70, 000 places in the Migration Program is allocated to these skilled migrants. The balance is made up of family-sponsored migrants (32, 000 places) and those qualifying under special eligibility arrangements (3, 000 places).

In addition, Australia has a Humanitarian Program (12 000 places) which caters for refugees and other people who have left their homes and countries because of war or civil strife or who have experienced human rights abuses.
For a summary of migration requirements, see DIMA Form 1126 Migrating to Australia

Migration Categories
Migrants come to Australia as:

1. Skilled Migration

Those who have work skills or abilities that will benefit Australia;
The skilled stream of Australia's Migration (non-humanitarian) Program is specifically designed to target migrants who have skills or outstanding abilities that will contribute to the Australian economy.

Skilled Migration Categories:

General
Independent Category - for those who do not have a sponsor, or who choose not to be sponsored.
1. Skilled - Independent - you must be highly skilled and have education, skills and employability which will contribute to the Australian economy. You must pass the points test as well as satisfy basic migration requirements.
2. Skilled - State/Territory Nominated Independent - if you pass the points test or meet the pool mark, you can also complete the skill matching part of your application form and the details will be placed in a skill matching database for possible nomination by a State or Territory government or employer.

Skill Matching
This category is not points test. Consider this category if you are not certain or it is unlikely you will pass the points test but you satisfy the basic requirements for skill, age and English language proficiency.