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Action

Policy changes

Key benefits and considerations

1. Targeting temporary skilled migration to address skills needs and promote worker mobility

Existing commitments:

• Raise TSMIT to $70,000 (implemented 1 July 2023)
• Provide pathway to permanent residency (PR) for all 482 visa holders (implemented 25 November 2023 – read our Newsflash)

New commitments:

• New Skills in Demand 4-year visa with full mobility and clear pathways to PR.
  
  
• A Specialist Skills Pathway (Stream) for highly skilled migrants earning at least $135,000 eg. tech/research sectors
  
  
• A Core Skills Pathway (Stream) earning at or above the TSMIT (to be retitled the Core Skills Threshold), with a simpler, regularly updated Core Skills Occupation List (CSOL).
  
  
• Streamline Labour Market Testing (LMT) by removing requirement to advertise positions through Workforce Australia and increasing validity period from 4 to 6 months
  
  
• Trailing employer fees (eg. monthly or quarterly payments) instead of upfront lump sum payments
  
  
• Public register of approved sponsors, including the number of migrants sponsored and their occupations
  
  
• Legislate to index income thresholds
  
  
• Formal role for Jobs and Skills Australia to define skills needs

Area for future reform:

• Consider how best to regulate migration for lower paid workers with essential skills

Employers:

• New Skills in Demand visa is likely to replace the 482 visa
  
  
• The new visa and consolidated occupation list should make sponsoring overseas talent workers easier and faster. The government will aim for a median turnaround of 21 days for the Skills in Demand visa and 7 days for the Specialist Skills Pathway. That’s extremely quick!
  
  
• Streamlined LMT: Should make it less onerous to prove local hiring efforts.
  
  
• Trailing employer fees (eg. monthly or quarterly payments): Since it will be easier for workers to move between employers, it’s fairer for the original sponsoring employer to NOT have to pay a huge fee upfront. Very positive for employers.
  
  
• Indexing income thresholds means minimum pay for overseas hires will increase with local market rates. Positive for workers, although it remains to be seen how this will impact employers in lower paying industries such as hospitality.
  
  
• Public register of approved sponsors: It’s not known if employers can opt out, but it will place a higher level of accountability on employers. Employers should revisit their compliance systems to ensure they meet tightened sponsorship obligations. See also Action 4.

Workers:

• Skills in Demand visa will provide workers with a guaranteed pathway to PR, unlike certain visa holders in the current 482 visa Short-term stream who cannot access PR. Migrants will also be able to apply for PR through self-nominated independent pathways (points test), not just employer sponsored pathways.
  
  
• If employment with a sponsor ceases, visa holders will have 180 days to find another employer, a significant increase on the current 60 days. They will also be able to work during this period.
  
  
• Employment with ANY approved employer will count towards PR. Great for workers, who must currently stay in the same position with the same employer for at least two years. The flexibility to change employers reduces vulnerability and workplace exploitation risks

2. Reshaping permanent skilled migration to drive long-term prosperity

Areas for future reform:

• Explore a reformed points test that better weighs work experience in Australia and offshore, deals effectively with age requirements and recognises the potential contribution of partners.
  
  
• Consider developing a new Talent and Innovation visa

Employers:

• A new Talent and Innovation visa would provide an additional tailored pathway for companies in knowledge industries and advanced tech looking to attract talent.
  
  

Workers:

• Simplifying the current complicated points test would make skilled PR easier to achieve for high-performing temporary migrants eg. international graduates working in skilled jobs.
  
  
• The Talent and Innovation visa may suit high performing entrepreneurs, major investors, and researchers.

3. Strengthening the integrity and quality of international education

Existing commitments:

• Closed loophole that allowed international students to switch to lower-quality education providers to facilitate work in Australia
  
  
• Student visa applicants now need to show $24,505 in savings, a big increase on previous levels.
  
  

New commitments:

• Higher English language requirements for international students and graduates
  
  
• More scrutiny of high-risk student visa applications. Higher risk providers will experience slower processing times.
  
  
• Restrict onshore ‘visa hopping’ that drives ‘permanent temporariness’ by using a new Genuine Student test
  
  
• Strengthen and simplify Temporary Graduate 485 visa (TGV)
  • Initial TGV duration will be shorter (2 years for Bachelor or Master by coursework, 3 years for Master by research and PhD). Only applicants who studied in a regional area will be eligible for extension;
  • Maximum eligible age reduced to 35;
  • TGV streams will be re-named as ‘Post-higher Education Work’ and ‘Post-Vocational Education Work’ streams.
  • Work experience requirement for a 482 visa (and future Skills in Demand visa) will be changed to give TGV holders more opportunity to move to a skilled visa.

Area for reform:

• Measures to support international students and graduates to realise their potential

International students and graduates:

• A big change will be stricter English requirements:
  • Increase in IELTS (or equivalent) requirement for 485 visa to 6.5
  • Increase in IELTS (or equivalent) requirement for student visa to 6.0
  • Increase in IELTS (or equivalent) requirement for ELICOS student to 5.0
  • Increase in IELTS (or equivalent) requirement for university foundation course to 5.5
    
    
• New Genuine Student test: Students will need to prove that their intended study will further their careers or academic aspirations. This is intended to filter out exploitation of students in the labour market and improve educational outcomes.
  
  
• 485 TGV visa holders: While the changes mean TGV duration is reduced, clearer expectations around required work experience following study completion will allow graduates to better plan for transitioning to a skilled visa and eventually PR.
  
  
• Shorter processing times for TGVs (21 days) will also give employers more confidence in a student’s post-study options.

4. Tackling worker exploitation and the misuse of the visa system

Existing commitments:

• A comprehensive suite of penalties and policies to punish unscrupulous employers and restore integrity to the migration system. Includes introducing protections against visa cancellation for migrants reporting exploitation.
  
  
• The Migration Amendment (Strengthening Employer Compliance) Bill 2023 is already before Parliament.
  
  

New commitment:

• Develop a public registry of approved sponsors with possible extension to all businesses that employ temporary migrants.
  
  

Areas for future reform:

• Strengthen integrity in the approved sponsor application process
  
  
• Improve post-arrival monitoring and compliance including through coordination with the tax system.

Employers:

• A new public register of approved sponsors will enable greater visibility and oversight of which organisations are recruiting migrant workers.
  
  
• More robust sponsor eligibility criteria could increase compliance obligations for sponsors. Being vigilant about ticking all the boxes and clear record-keeping will be more important than ever.
  
  
• Current proposed legislation aims to implement greater penalties for employer coercion or mistreatment of migrant staff.

Workers:

• Provisions guarding against unfair visa cancellations will empower exploited staff to speak up about employer misconduct.

5. Planning migration to get the right skills in the right places

New Commitments:

• Plan migration over a longer-term horizon. 2024/25 will have an annual plan, but a longer term plan will kick in from 2025/26.
  
  
• Greater collaboration with states and territories to ensure population planning is based on best data and forecasts
  
  
• Establish a formal role for Jobs and Skills Australia in defining Australia’s skills needs, in particular the new Core Skills Occupation List (CSOL).
  
  
• Improve the approach to skills recognition and assessment

Employers:

• A longer-term approach would allow employers to better plan hiring strategies based on genuine short- and long-term skills gaps, rather than have to react to fluctuating year-to-year visa quotas and outdated occupation lists.
  
  
• Once the initial CSOL is published, employers should leverage it as a focal point when undertaking workforce planning. This may also involve analysing which existing visa holders in your organisation fall into occupations that may be removed under the list's more targeted approach. Start preliminary conversations to smooth potential pathway shifts.
  
  

Workers:

• Steps to strengthen credential assessments would allow faster and more consistent recognition of international qualifications.

6. Tailoring regional visas and the Working Holiday Maker Program to support regional Australia and its workers

Existing commitment:

• Increased skilled migration to help meet labour shortages in regional Australia.
  
  

New commitment:

• A new Ministerial Direction to ensure regional visas receive the highest priority visa processing
  
  

Areas for future reform:

• Evaluate regional migration settings and the Working Holiday Maker program to ensure migration supports development objectives in regional Australia and does not contribute to exploitation of migrant workers.
  
  
• Consideration of the Essential Skills Pathway (Stream).

Regional employers:

• Prioritising regional visa processing will expedite access to critical workers for regional industries facing pressing labour shortages that threaten growth and operations.
  
  
• A review into workings holiday arrangements will aim to reduce exploitative dimensions currently enabling mistreatment of vulnerable workers. Improved safeguards can ease compliance risks.
  
  

Regional skilled visa holders and Working Holiday makers:

• Potential changes to regional visa setting might look to expand mobility options and transition pathways.

7. Deepening regional ties

Existing commitments:

• Direct pathway to citizenship for NZ citizens
  
  
• Increased mobility with Pacific Island and Southeast Asian countries.

Direct citizenship for NZ citizens expands the potential talent pool for Australian employers, while NZ citizens with established Australian residencies gained a streamlined citizenship route.

Increasing access for specific Southeast Asian countries through measures like multi-entry visas may enable more business travel and commerce relationships.

8. Simplifying the migration system to improve the experience for migrants and employers

New commitments:

• Abolish unnecessary and duplicative visas, including reducing 20+ visa subclasses by merging offshore and onshore visas
  
  
• Embed simplification as a key objective of all actions in the Migration Strategy. Includes:
  • Single new occupation list for Core Skills
  • Clear pathways to PR
  • Streamlined LMT
  • Improved skills assessment approach
  • Clearer guidelines for labour agreements
  • Better descriptions of visas and pathways

Employers:

• Consolidating visas will create a simpler system with fewer categories to navigate. This should make determining the most appropriate visa for sponsoring workers more straightforward.
  
  
• Enhanced processing efficiency. Targets like 7-day turnaround times for priority visas promises to reduce delays and bottlenecks hampering recruitment urgency for employer sponsors.
  
  

Workers:

• Fewer visa types and clearer descriptions will allow migrant workers to identify which categories their skills and backgrounds best align with.