Australian government to increase permanent skilled migration cap to 195,000

The much talked about Australian Jobs and Skills Summit, held on the 1st and 2nd of September in Canberra, concluded with 36 key initiatives to address workplace relation reforms and worsening skill shortages across the country. Changes to migration planning has been a critical issue throughout the two-day discussions, and the resulting announcement of increasing the permanent skilled migration program ceiling, from 160,000 to 195,000, in 2022-23 has been the centrepiece of the Summit.

The deal to lift the permanent intake by 35,000 places will aim to allow more skilled migrants to enter Australia in the wake of the COVID-19 pandemic to aid Australia’s economic recovery and help ease widespread workforce shortages. In particular, the number of regional migration visas will increase by 9,000 places and State and Territory sponsored visas will have an additional 20,000 places allocated.

Addressing the Jobs and Skills Summit, Home Affairs Minister, Ms Claire O’Neil, says the increase will mean thousands more workers can enter and remain in Australia to fill critical skills gaps in healthcare, infrastructure and the technology sector. Ms O’Neil hoped this would result in “thousands more nurses settling in the country this year [and] thousands of more engineers”.

In addition to an increase in migration planning levels, the government will commit to:

  • extending visas and relaxing work restrictions on international students to strengthen the pipeline to a more skilled labour force
  • increasing the number of years that international students can work in Australia after completing certain degrees, i.e. select Bachelor’s degree holders will be able to work for four years, instead of two years, all Master’s degree students will be able to work for five years, up from three years, and PhD graduates will be able to work for six years, up from four years, after graduating. Nursing, Engineering, and IT degrees are at the top of the government’s agenda;
  • providing additional funding, to the amount of AU$36.1 million, to clear visa backlogs, which includes increasing staff capacity by 500 positions for the next nine months

These changes are welcomed for both existing onshore migrants, as well as prospective offshore skilled migrants who are looking to migrate to Australia on a more permanent basis.

Many of the ideas and suggestions put forward will be explored further in the next 12 months to see how it can be translated into a pragmatic and efficient manner, such that real changes can be achieved to help shape the future of Australia’s labour market.

Given the recent commitment to increasing Australia’s skilled migration intake, if you are an Australian business affected by the skills shortages and wondering how these changes can benefit you, or if you are a skilled overseas worker looking for permanent migration to Australia, get in contact with us to explore your options.

Update On Migration Planning Levels 2022-23

We knew in September that the planning levels were going to increase to 195,000 places. On 25 October, with the release of the Federal Budget, the government provided us with a breakdown of the migration planning levels, which sees an increase in General Skilled and Employer Sponsored, but a reduction in the Global Talent and Business Innovation and Investment, visa programmes. Below is a detailed table, compiled by Ashton Legal, to show (a) the difference in 2021-22 and 2022-23 planning levels; (b) planning level as of October 2022; (c) percentage of increase between Jun and Oct 2022 levels; and (d) percentage of increase between FY2022 and FY2023 levels.

The drastic increase in the General Skilled Migration programme (Skilled Independent Subclass 189, Regional Sponsored Subclass 491, and Skilled Nominated Subclass 190), as well as Employer Sponsored visas (like the TSS Subclass 482, SESR Subclass 494, and ENS Subclass 186), seems to reflect the current government’s effort to ease critical workforce shortages across all industries and improve the productive capacity of Australian business during the economic recovery.

Although we can see a reduction in the popular Global Talent visa programme, along side business investment visas, there’s no indication that these programmes will cease, altogether, in the future. In order for Australia to remain competitive on the international stage, and to maximise economic growth by shaping an enabling environment for the digital uptake across key sectors, the government will need to continue to attract highly skilled and talented individuals, as well as entrepreneurs and investors to facilitate this growth and competitiveness.

If you need assistance in finding out what the best pathway is for you, in light of the recent changes, please contact us for more information.

Visa Stream Visa Category 2021-22 2022-23 Oct-22 Δ Jun v Oct 22 Δ FY 22 v 23
Skill Employer Sponsored 22,000 30,000 35,000 17% 59%
Skill Skilled Independent 6,500 16,652 32,100 93% 394%
Skill Regional 11,200 25,000 34,000 36% 204%
Skill State/Territory Nominated 11,200 20,000 31,000 55% 177%
Skill Business Innovation & Investment 13,500 9,500 5,000 -47% -63%
Skill Global Talent (Independent) 15,000 8,448 5,000 -41% -67%
Skill Distinguished Talent 200 300 300 0% 50%
Family Partner 72,300 40,500 40,500 0% -44%
Family Parent 4,500 6,000 8,500 42% 89%
Family Child 3,000 3,000 3,000 0% 0%
Family Other Family 500 500 500 0% 0%
Special Eligibility Special Eligibility 100 100 100 0% 0%
Total 160,000 160,000 195,000 22% 22%

Partner visa and child visa are demand driven, the numbers are estimates, visa grants are not subject to ceilings

October 22 is the post October Budget adjustment

Labour Market Update Identifies Top 20 Occupations in Demand Nationally

Jobs and Skills Australia (JSA) has, in the February 2023 Labour Market Update, identified the top 20 occupations in demand in Australia. With Registered Nurses being the most in demand occupation, other occupations included those from the IT, Engineering, Health and Welfare Support Workers, and Trade professions:

  1. Registered Nurses
  2. Software and Applications Programmers
  3. Aged and Disabled Carers
  4. Child Carers
  5. Construction Managers
  6. Motor Mechanics
  7. Retail Managers
  8. Generalist Medical Practitioners
  9. Metal Fitters and Machinists
  10. ICT Business and Systems Analysts
  11. Civil Engineering Professionals
  12. Electricians
  13. Early Childhood (Pre-primary school) Teachers
  14. Contract, Program and Project Administrators
  15. Advertising and Marketing Professionals
  16. Physiotherapists
  17. Gardeners
  18. Mining Engineers
  19. Database and Systems Administrators, and ICT Security Specialists

According to the JSA report, skills shortages increased significantly compared to those assessed in 2021. It is also not surprising that this list consists of skills shortages in healthcare, ICT and engineering industry. It reflects the Ministerial Direction 100, released by the Department of Home Affairs in October 2022, which prioritises the processing of skilled applications where the nominated occupation is in healthcare or teaching. This, in part, demonstrates the Australian government’s continual commitment to fill skills shortages in critical industries by looking to the “offshore” labour market to fill those gaps.

Ministerial Direction 100 determines the government’s processing priorities and, at present, skilled visa applications are processed in the following order of priority:

  1. Visa applications in relation to a healthcare or teaching occupation.
  2. For employer sponsored visas, visa applications where the applicant is nominated by an Approved sponsor with Accredited Status.
  3. Visa applications in relation to an occupation to be carried out in a designated regional area.
  4. For permanent and provisional visa subclasses, visa applications that count towards the migration program, excluding the Subclass 188 (Business Innovation and Investment (Provisional)) visa.
  5. All other visa applications.​

Within each category above, for provisional and permanent skilled visa applications, priority is given to visa applications where the primary applicant is located outside Australia at the time the visa application is made.​

With the shift in focus away from popular permanent visa programmes, like the Global Talent Independent visa, the government is now giving priority to the General Skilled Migration (e.g. Subclass 491/189/190), and Employer Nominated (e.g. Subclass 482/494/186) visa programmes, in response to the skills shortage crisis. Where it once took up to 12 months to process visa applications in these categories, it is now taking a few weeks (especially for applications nominated by accredited sponsors).

If anyone is looking for advise on how to migration temporarily, or permanently, to Australia – either through general skilled or employer sponsored migration – please get in contact with us for further advice.

Update on Australia’s migration system: A need for ‘major reform’

At the National Press Club today, the Hon. Clare O’Neil, Minister for Home Affairs, provided an update on Australia’s current ‘broken’ migration system, highlighting the urgent need to reform existing programmes, processes, and pathways, as well as announcing two key actions to be implemented by the end of 2023. This includes an increase to the Temporary Skilled Migration Income Threshold (TSMIT), and pathways for permanent residency, in order to attract the best workers, drive economic growth, and protect against exploitation (of workers, and of the system).

The Minister stated that historical migration success was rooted in permanent residency and citizenship – not ‘permanent temporary residence’ – and that today’s system is dominated by large temporary migration programmes that are not well designed, complex, difficult to navigate, and not attractive enough to compete for highly skilled migrants with other developed nations.

Based on the 200-page Review of the Migration System: Final Report 2023, the Minister identified that the existing migration system is not delivering the skills needed to meet the challenges of Australia’s national endeavours. There are currently hundreds of visa subclasses, 1300 separate labour agreements, and rigid occupation lists that are incapable of adjusting to changing demands; it is a system laden with rules, forms, and bureaucracy.

Minister O’Neil expressed a need to redesign the system to “get more skills to Australia”, suggesting that a new Australian Migration Strategy should consider three new pathways, tightly tailored to include:

  1. Fast and simple pathway for specialised skilled workers who will build Australia’s innovation and job creation industries.
  2. Mainstream skilled pathways that is informed by, and focuses on, evidence-based data on labour shortages
  3. Reformed points test system to emphasise on skills and experience, and leverages off skilled partners, rather than ‘persistent’ migrants (think those who resit and resit English tests to obtain high scores, and points for being single, etc).

Of note is the government’s commitment to reduce the number of visa subclasses to facilitate more streamlined processing and reduction in processing times. Migration reforms would also include giving skilled migrants more flexibility to change employers and enforce their workplace rights. It would also ensure that high performing students have options to stay permanently, whether this translates to faster pathways, or other alternatives, for this cohort. This would incentivise, and retain, high performing international student who are highly employable when they enter the workforce and start contributing to the Australian economy.

Most importantly, the Minister – to show commitment and the urgent need for reforms – announced two key actions:

  1. As of 1st July 2023, the TSMIT will increase to AU$70,000 from AU$53,900.
  2. By the end of 2023, all skilled temporary workers will have a pathway to permanent residency.

How these two actions will be implements and legislated remains to be seen but Ashton Legal is optimistic that this will permit more migrants to seek permanent residency and be protected from worker exploitation under the current system. More information will be provided as they become available so watch this space.

From the Minister’s address today, it seems there are more changes to coming to the migration system. Ashton Legal will advise our fellow readers as soon as we know.

If you have any questions, queries or concerns, please contact us.

Expanded Pathways to PR for TSS Subclass 482 Visa Holders

Following from our article on 27th April, discussing the Government’s intentions to increase the Temporary Skilled Migration Income Threshold (TSMIT) to AU$70,000 and expand pathways to permanent residence for employer sponsored temporary skilled visa holders, today we look at what the latter changes will actually mean.

Increase in the TSMIT

We know that the Government will increase the TSMIT to AU$70,000 as of 1 Jul 2023. This will not affect nominations lodged before 01 July 2023. That is, people who already hold a Temporary Skills Shortage (Subclass 482) or Skilled Employer Sponsored Regional (Provisional) (Subclass 494) visa, or businesses who have lodged a nomination before 01 July, will not be impacted by this increase. Whether or not the new TSMIT will impact on other visa pathways, like the Permanent Residence (Skilled Regional) Subclass 191 visa and eligible applicants, remains to be seen. More information will be provided once Ashton Legal is made aware of the legislative changes and its impact on current and prospective clients.

Expanded pathway to permanent residency for TSS 482 visa holders

Some clarity has been provided by the Department about the extended pathways to permanent residency, which will be available to all TSS visa holders by the end of 2023. The Temporary Residence Transition (TRT) stream under the Employer Nomination Scheme (Subclass 186) visa will be for all Temporary Skills Shortage visa holders whose employers wish to sponsor them. The key changes will be:

  1. TSS holders with occupations on either the Short Term Skilled Occupation List (STSOL) or the Medium Long-Term Strategic Skills List (MLTSSL) will be able to transition under the TRT stream of the ENS Subclass 186 visa.
  2. Eligibility will be reduced to two years working for the sponsoring employer, instead of three years; and
  3. Interim measure to remove limits on the number of Short-term stream TSS visa applications (which is currently limited to two TSS visas in the Short-term stream).

This comes as welcomed news for TSS visa holders who’s occupation are only on the Short Term Skilled Occupation List (STSOL) and who, previously, did not have a pathway to transition to permanent residency. This essentially means that if you hold a TSS 482 visa, regardless of whether your nominated occupation is in the STSOL or the MLTSSL, you will have a pathway to PR. This creates certainty for both sponsored migrant workers and Australian businesses to create stability and opportunities for growth in their business. These changes represents the Government’s commitment to address critical skills shortages and to keep skilled migrants in Australia with a clear pathway to permanent residency.

More information will be provided as legislative changes come into place. If you’re seeking advice on your current situation, please contact us for a detailed consultation.

Global Talent vs. Distinguished Talent

The Australian Government announced that the planning level for the 2023-24 permanent Migration Program will be set at 190,000 places, with 52,500 places allocated to the Skill stream, of which the Global Talent visa program belongs. We had previously speculated that there may be a reduction in the quota for the GTI (Independent) visa stream, but it’s good to see that it remains at 5,000 places for the 2023-24 program year (01 Jul to 30 Jun). In contrast, the Distinguished Talent visa stream is allocated only 300 places.

The main difference between the Global Talent and Distinguished Talent stream (both of which are classified as Class BX, Subclass 858, visas) is Direction 89. This ministerial direction gives the highest priority to Subclass 858 visa applications made in relation to target sectors (or related sectors) where:

  • There is written communication from an Australian employer offering employment in Australia, with an annual salary equivalent to or higher than the Fair Work High Income Threshold (FWHIT); or
    • The primary applicant’s current earnings are an amount equal to or greater than the FWHIT; or
    • There is evidence the primary applicant is likely to attract a salary that is equal to or greater than the FWHIT.

Applications that fall into the above purview (i.e. the Global Talent Independent stream) will be given priority processing under Direction 89. Applications that are not made under the target sectors, without evidence of current or future earnings equal to or above the FWHIT, will not receive priority processing. With the invitation, applications can be made only in the Distinguished Talent Stream, and the processing time usually exceed 12 months.

What is not mentioned in Direction 89 is that, to receive priority processing, applications for the Global Talent stream would also require an invitation, from the Department of Home Affairs after applicants submit an online Expression of Interest. The EOI process is subject to heightened competition due the attractiveness and popularity of the programme. Only candidates of the highest calibre, who meet (and even exceed) all eligibility requirements, will be invited to apply under the Global Talent stream. Without the invitation code – and regardless of whether applicants are in the target sector and meet the FWHIT – their application would not be prioritised under Direction 89.

At one stage in 2022, we had advice from the Department that a Distinguished Talent Visa Stream application may be converted to a Global Talent Stream application, if the visa applicant later submits an EOI and receives an invitation. However, the practicality of this process seems uncertain and the process is subject to policy changes.

Why apply under the Distinguished Talent Stream

  1. If the candidate’s achievements can not be aligned with a target sector, but in other areas such as arts, sports, academia.
  2. If the candidate’s earnings is far under the FWHIT or they are not able to demonstrate capacity to achieve an earning above the FWHIT level.

Benefit of a Global Talent visa granted in the Distinguished Talent Stream

The main benefit for people holding a global talent visa granted in the Distinguished Talent Stream is that they are able to access the concession residence requirements for the purpose of qualifying for Australian citizenship.

Under current arrangements applicants for citizenship must meet the general residence requirement which provides that they have lived in Australia on a valid visa for the past 4 years and were absent for no more than 12 months in that time. They must also have been a permanent resident or eligible New Zealand citizen and absent from Australia for no more than 90 days during the 12 months before applying.

Currently, the special residence requirement, announced by the Department in 2021, may apply for a range of Global Talent visa holders in the Distinguished Talent Stream, who due to their work undertake significant international travel and where it is in the Australian national interest including Australian representative sportspeople, ships’ crew, senior businesspeople, research scientists, and distinguished artists.

The special / concessional residence requirement provides that an applicant has held a valid visa for the last four years, living in Australia for at least 480 days during that time, and must have been a permanent resident and in Australia for 120 days in the year immediately before applying. The concessional residence requirement will now also apply to past, present and future Distinguished Talent stream visa holders.

Global Talent stream visa holders continues to be subject to the general residence requirements for citizenship.

If you are thinking about, or are in the process of, submitting an EOI under the Global Talent stream, or if you need assistance in deciding the best stream to apply for the Global Talent visa, please email us on [email protected] or call us on +61279009570.

Global Talent or General Skilled Migration / Business Migration?

Australian Government announced that the planning level for the 2023-24 permanent Migration Program will be set at 190,000 places, with 137,100 places for the Skill stream.

On 24 August 2023, the Department of Home Affairs published additional information on how the State and Territory allocations has been distributed. Below is the nomination allocation table, which can also be found on the Home Affairs website.

2023–24 State and Territory nomination allocations

State Skilled Nominated (Subclass 190) visa Skilled Work Regional (Subclass 491) visa Business Innovation and Investment Program (BIIP)
ACT 600 600 0
NSW 2,650 1,500 0
NT 250 400 0
QLD 900 650 0
SA 1,100 1,200 0
TAS 600 600 0
VIC 2,700 600 0
WA 1,500 850 0
Total 10,300 6,400 0

Subclass 189/190 visas – general skilled migration

The State and Territory allocation levels has been reduced back to pre-pandemic levels. Potential applicants can expect a reduction in the number of invitations issued by the state/territory governments, as well as longer waiting time and increased competition.

Subclass 188 visas – business migration

You will also note that there is no current allocation to any state or territory government for the business innovation and investor visa programme. ​The Department advised that this is because it has enough applications on-hand to meet the 2023–​24 planning level for the BIIP.​

Global Talent visa – subclass 858

In contrast, Global Talent visa program has been allocated 5,000 places for 2023-24 program year. The GTI program offers direct permanent residency and does not depend on any points system, skilled occupation list, State or Territory nomination.

Nevertheless, the threshold to be invited to apply for the GTI visa is much higher than that of the GSM program. It may be the only pathway for very senior technical leaders, executives or entrepreneurs in the target sectors who are over 45. With the global talent visa, although the age limit is 55, candidates who can provide strong evidence of actual or potential but realistic extraordinary contribution to Australia may still be granted a global talent visa even if they are over 55.

We have helped highly skilled migrants secure the Global Talent visa who thought they were only eligible for the business skilled migration or employer nominated / general skilled migration programmes.

Whether you are onshore or offshore, email us on [email protected], or call on +61412357238 or +61279009570 to find out if you’re eligible for the Global Talent visa pathway and let us help you secure your future in Australia.

“COVID Visa” Subclass 408 – Pandemic Event Stream closing

From February 2024, the ‘COVID’ visa will be closed to all applicants.

On 1 September 2023, the Department of Home Affairs released the amendment instrument Migration (COVID-19 Pandemic event for Temporary Activity (Subclass 408) visa Amendment Instrument (LIN23/061) 2023. This legislative change will close the ‘COVID’ – Pandemic Event – stream under the Temporary Activities Subclass 408 visa to new applications from 2 September 2023, and for subsequent applications by current ‘COVID visa’ holders until 1 February 2024.

What does this mean for you?
The new instrument will affect current Subclass 408 – Pandemic event – visa holders and prospective applicants for this visa:

  • applications made up to, and including on, 1 September 2023 will continue to be assessed under the relevant criteria
  • visa applications lodged before 2 September 2023 will be considered for 12 months validity and 2 years for Temporary Graduate visa holders
  • a visa application charge will be imposed for eligible applications lodged from 2 September 2023 (AU$405)
  • those lodging a visa application on or after 2 September 2023 must hold a Pandemic Event visa that expires in 28 days or less
  • visa applications lodged on or from 2 September 2023 will be considered for up to 6 months stay only.

If you are affected by these changes, please get in contact with us to discuss your options.

Philippines to be added to Australia’s Work and Holiday Visa programme

During his visit to Manila on 8 September, Australian Prime Minister Anthony Albanese signed a Strategic Partnership with President of the Philippines, HE Ferdinand R Marcos Jr.

The new Strategic Partnership establishes an enduring framework for closer cooperation with the Philippines, one of Australia’s key partners in Southeast Asia, based on a strong alignment of strategic interests.

One of the initiatives that will be implemented is a new reciprocal Work and Holiday visa for Australians and Filipinos. This means the inclusion of Filipino nationals into Australia’s Work and Holiday visa programme under the Subclass 462 visa.

The legislation is yet to be updated to reflect this initiative but we will keep our readers informed of when these changes will take effect.

If you’re in need of Australian migration advice, please get in contact with us.

Australia & India: New MATES Visa Pilot Programme

India and Australia signed a partnership known as the Migration and Mobility Partnership Arrangement (MMPA) on 24 May 2023. As part of this Agreement, Indian nationals graduating from Australian higher education institutions, beginning on 1 Jul 2023, will be eligible for extended post-study work visa options for up to eight years.

Furthermore, a new pilot programme called the Mobility Arrangement for Talented Early-professionals Scheme (MATES) was introduced to encourage a mutually-beneficial skills and knowledge transfer. This programme has a quota of 3,000 visa places (for primary applicants), which will allow eligible Indian university graduates and early career professionals to stay temporarily in Australia for up to two years. Further eligibility for the visa includes:

  • Age:Applicants need to be aged 30 or younger at time of application (i.e. be below 31 years of age when they apply for the visa)
  • English:Applicants need to have at least proficient English (overall IELTS – or equivalent – score of at least 6, and no band less than 5 for each of the four test components).
  • University of Graduation:Applicants must have graduated within 2 years from an eligible and well-recognised Indian university at the time of application (list of recognised Universities yet to be confirmed).
  • Educational qualifications:The graduates must have at least a Bachelor degree or higher in one of the following eligible fields:
    • Renewable Energy
    • Mining
    • Engineering
    • Information Communications Technology (ICT)
    • Artificial Intelligence (AI)
    • Financial Technology (FinTech)
    • Agricultural Technology (AgriTech)

Other benefits of the MATES visa includes no requirement for applicants to be sponsored by an Australian employer, and applicants are also permitted to bring their dependent family members.

The visa will allow applicants to live and work in Australia for up to two years. Although there will be no strict requirement for visa holders to work in their nominated field of study, the programme is intended to allow young professionals to develop their skills and networks in the eligible sectors listed above. Applicants can only participate once in the MATES programme but will be able to extend their stay should they be eligible for other visas.

It is expected that more information will be released about this pilot programme in the coming months, especially surrounding the legislative requirements, visa subclass, costs, conditions, and processing times. Once Ashton Legal has more information we will be sure to share it with our audience. In the meantime, if you have any migration queries, please get in contact with us.