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Dear Clients and Readers,

With the end of 2022 upon us, we wanted to give you a rundown of current trends and key takeaways, as well as provide some useful insights on what employers and skilled migrants can expect for 2023.

Two things in 2022 had outsized impact on major shifts in skilled visa priorities and regulations this year. The first was a continued ‘return to normal’ as COVID restrictions – and consequently the visa concessions introduced in response to the pandemic – were rolled back. The second was a change in government following Australia’s federal election, and with it, a significant realignment of migration priorities.

Applicants previously given preferential treatment, including entrepreneurs and highly skilled professionals under the Global Talent and Business Investment and Innovation Programs, will no longer be prioritised. Meanwhile, other types of skilled visas and applicants, most notably offshore applicants and those sponsored by Accredited Sponsors, will be processed with more urgency. On our end, we’ve already seen a marked improvement in processing speed for decision-ready applications lodged by Accredited Sponsors. If you haven’t yet explored whether becoming an Accredited Sponsor is an option for you, we urge you to get in touch with us so we can help with that.

Looking ahead to 2023, we can expect visa concessions and employer requirements to continue fluctuating as the government forges ahead with implementing new priorities. Employers should ensure they work with qualified migration agents and lawyers to not only stay in compliance with their legal obligations, but to also take advantage of new opportunities arising out of this transition period.

Abacus Visa will be closed from 23 December 2022 and return to office on 9 January 2023. We wish you a happy holiday season, and look forward to working with you in the new year.

Kind regards,

Linda McCreath
Principal Lawyer & Managing Director
Abacus Visa Immigration Lawyers

Accredited Sponsors and offshore applicants win, PMSOL occupations and Global Talent lose out

Employers to note: COVID-era student and backpacker visa concessions to be rolled back

Uncertainty over permanent residency concessions for Temporary Skill Shortage visa holders

Broad review of Australia's migration system and ANZSCO

What next for 2023?

Accredited Sponsors and offshore applicants win, PMSOL occupations and Global Talent lose out

A new Ministerial Direction implemented at the end of October means priorities for processing skilled visas will be very different moving forward into 2023. We gave a more detailed summary of this major policy shift in our recent Newsflash. The Direction aims to allow the Department of Home Affairs (DHA) to simplify and speed up the visa application process. Losers included:

• those with occupations on the Priority Migration Skilled Occupation List (PMSOL), which was completely removed, and
• applicants under the Global Talent and Business Innovation and Investment programs, who will no longer be given special priority. While applications will continue to be processed in line with Australia’s migration quotas, they can no longer expect the fast-tracked applications they once enjoyed.
  
  

On the flip side, key winners of the policy change who will now receive greater priority include:

• Accredited Sponsors. Applications sponsored by larger employers and businesses who are approved to access streamlined visa processing will benefit greatly.
  
  
• Offshore permanent and temporary skilled visa applications. The government wants more workers to enter Australia to ease labour shortages – meaning those who apply from overseas will be prioritised.
  
  
• Small businesses recruiting overseas workers. With a less complicated process, accessing critical skilled workers will be easier for small businesses, particularly those looking to hire workers using the Temporary Skill Shortage (Subclass 482) visa.
  
  
• Businesses and applicants with occupations in regional areas. This is great news for both employers and skilled workers, who have had to deal with long delays caused by the backlog that built up during the period when COVID restrictions were in place.

Key Takeaway

If you’re a sponsor or potential sponsor, contact us for advice on whether becoming an Accredited Sponsor is an option for you. The benefits are significant – Accredited Sponsors are given priority processing and have their applications processed faster, which translates into a much more hassle-free experience for employers.

Alternatively, if you’ve been thinking of coming to work in Australia, now is a great time to explore the opportunities available and which visa options would suit you best. Travel restrictions have lifted, but more importantly the current Australian government’s renewed focus on filling critical skill shortages means offshore applicants are no longer being overlooked in favour of onshore ones.

Employers to note: COVID-era student and backpacker visa concessions to be rolled back

Several visa concessions were introduced during COVID to allow certain temporary workers to remain in Australia more easily for the purpose of addressing workforce shortages. Now that COVID restrictions have been relaxed, those same concessions are scheduled (or are likely) to be rolled back.

To begin with, caps on international student work hours will be reintroduced. After 30 June 2023, student visa holders (Subclass 500) will once again only be allowed to work a maximum of 40 hours per fortnight.

It was also announced that concessions for backpackers on the Working Holiday (Subclass 417) or Work and Holiday (Subclass 462) visas will continue until at least 31 December 2022 – with no guarantees they will continue after that point. These concessions include being allowed to work for more than 6 months with the same employer without requesting permission, as well as waived visa fees for workers already in Australia.

Key Takeaway

Businesses with employees who are international students or backpackers should plan accordingly for the eventual rollback of these COVID-era concessions. For example, failing to comply with the 40 hour per fortnight limit for international students would put you in breach of your employer obligations, resulting in potential fines and sanctions.

Uncertainty over permanent residency concessions for Temporary Skill Shortage visa holders

Earlier in July, concessions were introduced that meant certain onshore Temporary Skill Shortage (Subclass 482) visa holders in the short-term STSOL stream could apply for permanent residency via the Subclass 186 Temporary Residence Transition (TRT) stream of the Employer Nomination Scheme (ENS). 

There’s a slight catch – the concessions will only be in place for 2 years, until 1 July 2024. That means applicants who were granted their first TSS482 visa on or after 1 July 2021 (or transferred to a new sponsor) are likely to be ineligible to meet the required 3 years’ full-time work within this limited 2-year timeframe.

Still, this was great news for eligible 482/457 visa holders, who suddenly gained a pathway to permanent residency where previously there was none, and employers, who can retain workers more easily.

While the DHA has said this pathway will be available to TSS visa holders until 1 July 2024, no legislation has been passed confirming this to date. It therefore remains possible these concessions will change or even be removed by the government in line with new migration priorities.

Key Takeaway

Concessions granting TSS visa holders in the short-term stream a pathway to permanent residency seem to be rather limited in scope. However, given the Australian government’s stated commitment to filling critical skill shortages, we remain cautiously optimistic that concessions for STSOL visa holders to apply for permanent residency might be extended at some point in the future.

Whether you’re an employer or a skilled worker on a TSS visa in Australia, we encourage you to seek advice on how you might be able to take advantage of these concessions while they remain in place. For employers, being able to offer permanent residency sponsorship can form part of a useful retention strategy for valuable and skilled employees.

Broad review of Australia's migration system and ANZSCO

A comprehensive review of Australia’s migration system – including how ANZSCO, the official classification system for occupations, will be used by Australian government agencies – was announced in September by the Minister for Home Affairs, the Hon. Clare O’Neil MP.

The ANZSCO is used to inform and support government policy and programs. Significantly, the DHA refers to the ANZSCO when assessing applications to skilled visa programs – in particular, whether a visa applicant’s experience meets the requirements for a specific nominated skilled occupation.

The latest Australian update to the ANZSCO suggests that technicians, trades workers, and highly skilled ICT professionals will continue to be in demand. However, these new occupations have yet to be included on the Skilled Occupation List, which determines which occupations are eligible to receive Australian work visas.

While the review is ongoing and details are scarce, any reforms that come out of this review will likely impact which skills and occupations are prioritised going forward and how they will be assessed. A report is due sometime in early 2023. We will continue to monitor the situation and report on any new developments as they arise.

What next for 2023?

Several key developments and trends will shape both the challenges and opportunities for employers and skilled workers navigating Australia’s skilled visa system in 2023 and beyond:

• Employers will need to prepare for the rollback of COVID-era concessions and ensure they keep up with shifting requirements and obligations.
• Workers on Temporary Skill Shortage visas who currently benefit from existing concessions that open a pathway to permanent residency should be aware that such concessions aren’t guaranteed to last much longer.
• The shift to more streamlined applications for certain categories of applicants – most notably Accredited Sponsors and offshore skilled workers – presents great opportunities for businesses looking to fill critical positions with overseas talent.
• Overall uncertainty of how new government priorities will be implemented, and how quickly, means the extent to which further policy changes impact the outlook of any visa application will depend heavily on your individual circumstances. Advice from qualified migration professionals who can carry out comprehensive eligibility assessments that takes into consideration the shifting regulatory landscape will be invaluable.

We’ve seen that changes in visa policies and legislative requirements can occur suddenly and unexpectedly. 2023 was no different. This year, we’re happy to have helped many of you weather the ups and downs of your visa application process. We look forward to continuing to provide timely and honest immigration advice so that we can help you achieve the best possible outcomes.