It’s been a busy year for migration changes, and it’s time to provide an update about what’s been going on in the Australian migration space since borders re-opened after COVID.
Budget Announcements
Last night, the Federal Government announced the budget for Australia for 2024-25. Some changes to the Visa Program were flagged, and we have summarised these changes below. Budget announcements always contain only a brief description of the changes. In time, further detailed information will be released, and we can then provide more specific advice about these changes.
Migration Planning Program Level.
This is the number of permanent and provisional residency visas that can be granted in 2024-25. The number is set at 185,000, which is only 5,000 below the 2023-24 level of 190,000. Of the 185,000 places, around 70% will be allocated to the Skilled Stream. The remainder will be for the Family Stream.
A planned reduction in Net Overseas Migration.
The Government is aiming to halve the “Net Overseas Migration” (NOM) figure by the end of financial year 2025. NOM is the net gain or loss of population through people entering or leaving Australia – regardless of whether they are Australian or non-Australian. Pre-COVID, NOM was around 300,000. During COVID, when borders were closed, it dropped dramatically to -100,000, the first time since World War 2, that NOM has been negative. This resulted in a very tight labour market due to very few international students and working holiday visa makers. Since borders re-opened after COVID, and after a large influx of temporary visa holders, the NOM number has shot up to 500,000. The target figure for NOM is 260,000. We expect that a large part of the drop in numbers will come from tighter controls on student and visitor visas.
A new National Innovation Visa will replace the Global Talent and Business Skills Visas
The government wishes to target exceptionally talented migrants who will drive growth in sectors that are important to the future economy. Further, they have determined that the Business Skills Program will close from the 1st July 2024. The new National Innovation Visa is expected to commence in late 2024. In the meantime, Global Talent and Business Visas will continue to be processed, up to the planning levels as published.
Employer Sponsored Visas
There will be an increased allocation of Permanent Employer Sponsored Visas, to 44,000 places; which is an increase of 7,175 places. This will allow more people to transition to permanent residency through the Temporary Residence Transition Stream. This reflects the current Government’s initiatives to make it easier for people to become permanent residents through skilled visas.
Another positive announcement is that from November 2024, the required post-qualification work experience for a Subclass 482 visa will reduce from two years to twelve months. This will be beneficial for Australian graduates who obtain an 18 month graduate visa, as they will be able to apply for a 482 visa as long as they have had a year of relevant work experience while on the graduate visa.
Employer sponsored visas are considered “demand driven” migration, fulfilling critical job vacancies, as opposed to Skilled Visas, which are more “supply driven” and relate to nation building across several years.
Indian Citizen Visas – MATES and Visitor Visas
A mobility pathway for up to 3,000 Indian gradates and early career professionals will allow certain applicants to live and work in Australia for up to 2 years. Called “Mobility Arrangements for Talented Early Professionals Scheme” (MATES), this initiative is part of the Australia-India Free Trade Agreement.
Further, Indian citizens may apply for a Visitor Visa (Subclass 600) with up to 5 years validity.
Work and Holiday Visas from China, Vietnam and India.
Through new arrangements, a small number of Work and Holiday visas will be made available to young people from China, Vietnam and India. Applicants will have to be pre-selected through a ballot in order to apply.
Administrative Appeals Tribunal
The AAT, which hears appeals against visa refusals and cancellations, has experienced extreme backlogs in processing due to under-resourcing, meaning that many people wait years for a review of their application. New funding and structural arrangements will transition the AAT across to a new Administrative Review Tribunal, and will improve processing times for applicants.
Student Numbers to be Capped for each Education Institution
Education institutions will have a cap on overseas student numbers which correlates to their supply of purpose-built student accommodation. This is to reduce the impact of high student numbers on the already stretched rental housing market, and placing an onus on their education institution to offer accommodation.
Future Changes Ahead in Migration
Although not specifically mentioned in the Federal Budget, there is ongoing reform of the Migration Program in line with the recommendations of the Migration Review in 2023. We expect to see some of these changes gradually rolled out in 2024-25.
Changes to the Temporary Skills Shortage Program.
The Government is well underway with the consultation process for the creation of a new ‘Skills in Demand’ visa, to replace the current Temporary Skills Shortage (TSS) Program. Details of this visa are not yet available, and right now it’s business as usual for the Subclass 482 (TSS) visa.
Reform of Skilled Migration – The Points Test
The Skilled Migration Points Test was introduced through ‘Skill Select’ in 2012, and has not been materially altered since then. Consultation is taking place to establish how the Points Test can be amended, to attract the best candidates to Australia. This will apply to Skilled Visas – Subclasses 189, 190 and 491.
Parent Visa Reforms
The Federal Budget has made an allocation of 8,500 places to the Parent Visa Program in 2024-25, which is the same level as this year. The Migration Review made recommendations for some changes to the program, but we have not seen any movement at this stage on these recommendations, or on any other changes to the Parent Visas.
Student Visa Integrity
We are seeing more and more scrutiny placed on Student Visa applications, particularly from onshore students who are holding another temporary visa. A reduction in non-genuine students is seen as key to reducing net overseas migration.
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