Migration Strategy for Australia
We are excited to share the latest updates on the Australian Government’s new Migration Strategy, with a particular focus on temporary skilled migration and overseas students.
Essentially, the new strategy is a policy roadmap containing 8 key actions and over 25 new policy commitments and areas for future reform (you can read the 100-page document in this link). It points out the areas where changes will be implemented in 2024, as well as identifies future reforms for consultation in 2024.
The key announcements:
- Migration planning will be extended beyond the current 12 months
- Anticipated reduction in migration numbers for the next financial year, decreasing from 510,000 to 375,000, and stabilising this level
- Introducing a new Skill in Demand visa to replace the existing 482 TSS visa, with 3 pathways based on occupation and salary
- Streamlined requirements for labour market testing
- Development of a new visa category, Talent and Innovation visa focused on driving growth in sectors of national importance
- Comprehensive reforms to enhance student and temporary graduate visa programs
- Introduction of a new points system for permanent skilled migration
- Enhancements to Global Talent and Business Innovation and Investment Programs
- Strong commitment to regional Australia visas
The government aims to tackle skills requirements and enhance labour mobility, transform permanent skilled migration to drive long-term prosperity, raise standards for international students, support regional Australia and its workforce, and streamline the migration system through these reforms.
‘Skills in Demand’ visa to replace the TSS 482 visa
The government plans to introduce a ‘Skills in Demand’ visa to replace the current TSS 482 visa.
Key features of the Skills in Demand visa is planned as follows:
- Three pathways: The visa will offer three pathways, being Essential Skills, Core Skills, and Specialist Skills.
- Extended stay period: All pathways will provide a four-year stay period.
- Enhanced Pathways to Permanent Residency: Increased flexibility for changing employers and increased pathways to obtaining permanent residence. Periods of employment with any approved employer will count towards permanent residence requirements.
- Extended Sponsor Search Period: Applicants have 180 days to find another sponsor if the employment relationship with a sponsor ceases. This is up from the current 60-day period. During this period, visa applicants can continue working.
- Public Register of Sponsors: The government will develop a public register of approved sponsors, including the number of migrants sponsored and their occupations to assist migrants wishing to find a new sponsor.
- Processing Times: A commitment of a median service standard of 21 days for the Essential Skills and Core Skills pathway, and 7 days for the Specialist Skills Pathway
- Exploration of Trailing Charges Model for Sponsors: The government will explore a model for employers to pay trailing charges (e.g., monthly or quarterly) to make hiring a new migrant less onerous. Currently, employers are expected to pay an upfront fee (SAF levy).
The specific details of this new visa have not been disclosed yet. However, we will keep you informed of any updates as they become available. According to the current government roadmap, the introduction of this visa is scheduled for late 2024, pending the introduction of relevant legislation.
Essential Skills Pathway
Here’s what we currently know about the features and requirements of the Essential Skills Pathway:
- Applicable to occupations earning under $70,000 per year, provided they are identified as essential skills occupations.
- The government is contemplating sectors and occupations critical to maintaining Australians’ living standards, particularly those with persistent shortages. The primary focus is on the care and support economy, with specific mention of aged and disabled carers so far.
- This pathway is expected to be sector-specific, with a cap on the number of applicants. It will be accompanied by stronger regulations and minimum standards.
- The government is actively evaluating the most effective way to introduce and implement this pathway, with further assessments underway.
Core Skills Pathway
Here’s what we currently know about the features and requirements of the Core Skills Pathway:
- The Core Skills Pathway is anticipated to be the primary path for most temporary skilled migrants, such as Registered Nurses or Secondary School Teachers.
- Applicants must have an occupation featured on a new Core Skills Occupation list, managed by Jobs and Skills Australia. This list will be regularly updated.
- A requirement for this pathway is guaranteed annual earnings of at least $70,000 or the relevant average market salary where it is above the TSMIT (to be retitled the Core Skills Threshold). The TSMIT will be subject to annual indexing.
Specialist Skills Pathway
Here’s what we currently know about the features and requirements of the Specialist Skills Pathway:
- Unlike other pathways, there is no specific occupation list; however, trades workers, machine operators, drivers, and labourers are excluded.
- This pathway aims to attract highly skilled migrants crucial to Australia’s national productivity. Emphasis has been placed on their support for critical sovereign capabilities and the potential to grow the skills and expertise of the Australian workforce.
- The Specialist Skills Pathway adopts a streamlined approach to easily recruit top talent in areas of national needs. Examples so far include highly skilled Engineering Managers who develop electrolysers to help with Australia’s transition to a net zero economy, Cyber Specialists who assist banks in responding to cyber-attacks, and Software Engineers who help Australia embrace the artificial intelligence transformation.
- Applicants must have guaranteed annual earnings of at least $135,000, subject to annual indexing.
- The pathway offers priority processing, with a commitment to a 7-day median visa processing time.
Skilling Australians Fund (SAF) Levy
The Department will be exploring a revised payment model for the SAF, possibly enabling smaller increments to be made over time.
New ‘Talent and Innovation’ visa to drive growth in sectors of national importance
The government plans to develop a new Talent and Innovation visa aimed at driving innovation investments and entrepreneurship in sectors of national importance. The new visa aims to establish a single, streamlined pathway to attract a limited but highly talented pool of migrants, including high-performing entrepreneurs, major investors, and global researchers, to contribute to Australia’s growth.
At present, specific details about this visa are not yet available. However, consultations for its development are scheduled to commence in early to mid-2024.
Recalibration of the points system
A reformed points test is in the works to sift through skilled applications, providing a faster pathway to permanent residency in Australia for skilled migrants.
The government is considering an overhauled points tests for permanent migration. This new approach would assess factors that directly contribute to the country’s economic growth. The goal is to ensure a more efficient and streamlined process for skilled migrants seeking permanent residency.
Enhancements to Global Talent and Business Innovation and Investment programs
The Global Talent and the Business Innovation and Investment visa will undergo a shift towards applicants capable of making a significant and specific contribution to Australia.
To further drive innovation investments and broaden entrepreneurship opportunities, the Department is contemplating the introduction of a new ‘Talent and Innovation’ visa. Additionally, the Significant Investor stream (SIV) within the Business Innovation and Investment (subclass 188) visa is expected to continue, with additional changes yet to be disclosed.
Streamlining labour market testing requirements
The government is introducing a streamlined approach to LMT:
- The immediate removal of the requirement to advertise on the Australian government website, Workforce Australia.
- Plans to extend the validity period from 4 to 6 months in late 2024.
Commitment to regional Australia visas
The Australian government has consistently emphasised its commitment to supporting regional areas through various visa programs. With the new Migration Strategy, there will be an increased focus on prioritising regional Australia.
The government plans to collaborate closely with regional areas to accurately assess population needs and skills shortages. As part of this commitment, regional visa applications will receive expedited processing. The government is dedicated to giving priority to visas in regional Australia and will adjust regional migration settings and the Working Holiday Maker program to align with development objectives in regional areas.
Strengthening the integrity and quality of international education
The government is implementing several measures to raise the standards for international students and education providers while ensuring graduates help meet skills shortages and do not become permanently temporary.
- English Language Requirements: In early 2024, the government will increase English language requirements for the Student and Temporary Graduate visas. The required IELTS (or equivalent) score for a Temporary Graduate visa will increase from 6.0 to 6.5. For Student visas, the required score will increase from IELTS (or equivalent) 5.5 to 6.0 (with students undertaking an ELICOS before their main course increasing from 4.5 to 5.0).
- New Genuine Student Test: A Genuine Student Test will replace the current Genuine Temporary Entrant requirement for all international students, acknowledging available post-study temporary migration pathways. Implementation is expected in early 2024.
- Regulatory Assistance: The government will support regulators in addressing unscrupulous provider behaviour through additional legislative changes.
- Additional Scrutiny for Student Visa Transfers: International students applying for another student will face heightened scrutiny. Temporary Graduate visa holders will be restricted from transferring back to student visas while onshore. Implementation is expected in mid-2024.
- Temporary Graduate Visa Changes: The initial Temporary Graduate visa duration will be shorted, with post-study work rights no longer extendable. Only those who studied in a regional area will be eligible for an extension.
- Age Restriction: The maximum eligible age for a Temporary Graduate visa will be reduced to 35, positioning the via as suitable for early career professionals contributing to the Australian economy over a longer period.
Final Thoughts
Under the new Skills in Demand visa, businesses supporting foreign workers will enjoy expedited government processing times, whilst employers will have increased mobility to move employers. This approach aims to stimulate innovation and job creation in Australia.
The Migration Strategy is designed to return net migration levels to sustainable, pre-COVID norms, ensuring Australia adopts a transparent, simplified, and efficient visa processing system to bolster the economy and alleviate labour shortages.
Specific changes to temporary visas, such as Student and Temporary Graduate visas, will contribute to the overall enhancement of skilled, talent, and innovation visa programs, substantially expanding the talent pool within Australia.
Commencing in early 2024, the Australian government will commence consultations to gather input from crucial stakeholders, industry bodies, and the public. This input will be instrumental in shaping the conditions for each of the visa programs currently under review. The planned reforms are anticipated to be implemented gradually in a phased approach throughout 2024. The indicative timeline for these future reforms can be found here.
Changes to the migration program can occur without notice. The above information is not intended to be legal advice and is correct as of the date of writing this article.
Contact Migrations Affairs to speak with our immigration experts for tailored advice on the circumstances and eligibility.
