11 December 2023
Immigration
Impact: High
Summary
The much anticipated final Migration Strategy has today been unveiled by the Minister for Home Affairs, including details of the new 4-year Skilled in Demand visa which will replace the Temporary Skilled Shortage visa program.
The Detail
In response to the Review of the Migration System to the Government report, the Minister for Home Affairs has today released the final Migration Strategy, an ambitious roadmap to structural reform of Australia’s migration system with eight key actions, including a new approach to migration planning with the goal to reduce migration numbers back to pre-pandemic levels.
New tiered risk approach for temporary skilled migration which promotes worker mobility
Adopting the Review Panel’s recommendation of a tiered risk approach for temporary skilled migration, the new 4 year Skills in Demand visa will be comprised of three eligibility pathways:
Specialist Skills pathway for highly paid applicants in any occupation earning at least $135,000 per annum. As this pathway is intended to attract highly skilled workers (the Migration Strategy provides the example of workers in the technology or green energy sectors), trades workers, machinery operators and drivers, and labourers will be excluded. Streamlined and expedited 7 day median visa processing will apply to this pathway;
Core Skills pathway for workers in skill shortage areas (based on a simpler and regularly updated Core Skills Occupation list) paid between $70,001 to $135,000 per annum. A median processing service standard of 21 days will apply;
Essential skills pathway for lower paid workers in sector specific roles paid less than $70,000 per annum. This will be a more regulated pathway and will be developed in consultation with state and territory governments, unions, and businesses.
A pathway to permanent residence will be guaranteed for Skills in Demand visa holders with the ability to count periods of employment with any approved employer towards permanent residence.
Other key features of the Skills in Demand visa
The Government will index the new Core Skills and Specialist Skills Thresholds in line with annual movements in Average Weekly Ordinary Time Earnings.
Formal role for Jobs and Skills Australia to define skills needs.
Streamlined Labour Market Testing (LMT) requirements – as noted in our recent client alert, the requirement to advertise on the Workforce Australia website has now been removed from the current LMT requirements. Building on this, the advertising validity period will be increased from 4 months to 6 months, with the commitment to consider moving away from employer conducted LMT as Jobs and Skills Australia’s role further matures.
New public online register of employers who sponsor overseas workers, including number of workers sponsored and their occupations
All skilled visas will be mobile between employers to help tackle worker exploitation. Skills in Demand visa holders will also have a 180 day period to find another sponsor.
Upfront Visa Application Charges and fees may be replaced by trailing charges and fees (eg paid by employers on a monthly or quarterly basis)
Enhanced compliance and integrity units to combat worker exploitation.
Opening up the Accredited Sponsorship program to start ups that have received venture capital funding from a registered venture capital fund.
Other proposed reforms
Other proposed reforms in the Migration Strategy include:
Reshaping permanent skilled migration – a commitment to consider a reformed points test for skilled migration and a new Talent and Innovation visa to attract entrepreneurs to drive growth in sectors of national importance.
A package of stronger integrity measures for international students and graduates, including increasing English language requirements, greater scrutiny of high-risk student visa applications, restrictions on onshore visa renewals to combat ‘permanent temporariness’ and strengthened and simplified Temporary Graduate visa settings.
A suite of legislation, powers and penalties to address worker exploitation and restore integrity to the migration system.
Rejigging regional visas and the Working Holiday Maker program to support regional Australia – commitments include a new direction to ensure regional visas are afforded the highest priority in visa processing.
Strengthening Indo-Pacific ties through a direct pathway for Citizenship for New Zealand citizens and increased mobility programs with Pacific Island and Southeast Asian countries.
Improving experience for employers and migrants by simplifying the migration system through streamlining visa settings and reducing the number of visa classes.
Where to from here?
As expected, a phased approach to the reforms will be undertaken. With the release of the final Migration Strategy, the Minister has also unveiled a Migration Strategy Action Plan which provides an implementation and consultation timeline for areas of future reform. As part of the next phase of consultation, early in 2024 the Government will publish discussion papers on permanent skilled migration and regional migration, including the evaluation of the Working Holiday Maker program.
Attached is a summary of the migration reforms for your use.
Vialto Partners is closely monitoring developments and will provide updates as further information is released. Please also visit our dedicated site for the latest updates on the Australian migration reforms. Please reach out to your Vialto Partners point of contact with any questions, or alternatively:
Contact us
Stacey Tsui
Partner & Principal Solicitor
stacey.tsui@vialto.com
Cherie Wright
Partner
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Annalisa Symons
Director
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Fariha.Islam
Director
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John O’Brien
Director
john.d.obrien@vialto.com
Arathi Tekkam
Director
arathi.tekkam@vialto.com
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