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After months of difficult negotiations, the Gillard government has finally clinched its refugee swap deal with Malaysia.

Rogue employers could face fines of $10,000 for each worker employed illegally as the federal government announces new laws to combat a black market estimated to be as many as 100,000 people.

Penalties will increase for employers who hire illegal workers, as Immigration Minister Chris Bowen today launches a crackdown on criminal and exploitative employment practices.

Far fewer overseas students will be able to parlay Australian qualifications into skilled migrant visas under tough new rules, Monash University researcher Bob Birrell says.

The Federal Government is set to announce measures to address a chronic shortage of workers in Western Australia.

Australia's Immigration Minister Chris Bowen says he expects to make an announcement soon about a deal with Malaysia over asylum seekers.

Australia will adjust immigration laws to help businesses in resource powerhouse Western Australia state plug a skills gap threatening to crimp exports, by bringing more workers from overseas, the government said on Tuesday.

The International Organisation for Migration, one of the four parties central to the Gillard government's proposed refugee swap with Malaysia, has confirmed that a draft agreement between Canberra and Kuala Lumpur has been struck.