Australia: Federal Budget for 2024-25 Released; Commitment to Migration System Reforms Reaffirmed
May 20, 2024
At a Glance
The Australian government released its federal budget for the year 2024-25, in which it reaffirmed its ongoing commitment to migration system reforms by implementing the plans outlined in its Migration Strategy. Some key measures include:
- The introduction of immigration programs such as the new National Innovation Visa;
- Changes to existing immigration policies, including relaxation of the work experience requirement for the Temporary Skill Shortage subclass 482 visa; and
- Budget allocation for immigration-related programs and offices.
The situation
On May 14, 2024, the Australian government’s Budget for the 2024-25 financial year was announced. The government reaffirmed its ongoing commitment to migration system reforms by implementing the plans outlined in its Migration Strategy.
A closer look
The table below lists some of the migration measures proposed:
Proposed Plan | Impact |
Permanent migration program planning level. Consistent with the previous year’s allocation, the government plans to set out 185,000 permanent migration spots, with 70% allocated to the Skill stream. Within the Skill stream, the Skilled-Independent visa program places have been reduced to 16,900 (from 30,375) and the Employer-Sponsored visa program places have been increased to 44,000 (from 36,825). |
Employer-sponsored skilled foreign nationals benefit from the high allocation of permanent migration slots to the Skill stream as it opens more opportunities to permanently reside and work in Australia. Fewer invitations will be issued by the Department of Home Affairs and a higher level of competition is expected amongst individual applicants with the significant reduction of places under the Skilled-Independent visa program.
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Introduction of new immigration programs. With the aim of attracting more highly skilled foreign talent to Australia, the government introduces new visa programs, including the following:
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Relaxed rules for existing immigration policies. The government will relax the following existing immigration policies:
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New rules for holiday visas and students.
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Budget allocation for immigration-related programs and offices. The government allocated AUD 100 million to the Department of Home Affairs to support the performance of its core functions, including immigration and Australian Border Force operations. Separately, it also allocated the following amounts to different immigration-related programs and offices:
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Background
Consistent with its Migration Strategy, the government intends to address skills needs, reshape permanent skilled migration to drive long-term prosperity, raise the standards for international students, protect foreign workers, and simplify the migration system.
Looking ahead
The Australian government has progressively commenced consultations to seek views from key stakeholders, industry bodies and the public to assist in forming the settings for each of the visa programs under review.
To date, consultations have opened on the draft Core Skills Occupation List set to be used in the Core Skills stream of the proposed Skills in Demand visa and review of the Points Test used in the General Skilled Migration visa program.
Consultations on developing the new National Innovation visa, strengthening integrity in the approved sponsor application process and evaluating regional migration settings for the Working Holiday Maker program will be released throughout 2024.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected]