Australia: Migration Strategy Commits to Simplifying Immigration System and Creating New Visa for Skills Shortages

The key reforms include:

• New Skills in Demand visa. A new visa category to replace the existing Temporary Skill Shortage (TSS) subclass 482 visa program, with the following three pathways (depending on the foreign worker’s proposed earnings in Australia) will be implemented in late 2024:
• Update December 5, 2024: This visa will become available on December 7, 2024. 
  1. 1. The Specialist Skills pathway. For foreign nationals earning at least AUD 135,000 (excluding high salary trades workers, machinery operators and labourers). This visa will receive expedited processing.
     2. The Core Skills pathway. For the bulk of foreign workers with earnings between AUD 70,000 and AUD 135,000. Update December 5, 2024: The government has released the new Core Skills Occupation List that will apply to the Core Skills stream of the Skills in Demand visa.
     3. The Essential Skills pathway. For foreign workers in critical industries earning less than AUD 70,000, with a higher focus on regulation and compliance focused on combatting worker exploitation.

Thresholds for each of the three visa pathways will be indexed annually to average weekly ordinary time earnings.

Skills in Demand visa holders will have a pathway to permanent residence, and periods of employment with any approved employer (switching employers will be allowed under this visa) will count toward permanent residence requirements.

• Streamlining Labour Market Testing (LMT) requirements. The requirement for employers to advertise open positions on the Workforce Australia platform was eliminated on December 11, 2023; and the validity of LMT evidence will increase from four to six months in late 2024.

  • Update March 6, 2025: This is yet to be passed by Parliament. It is unlikely that this will be passed before the government enters caretaker mode ahead of the upcoming federal election. 

• System-wide simplification. The government plans to combine and eliminate some lesser-utilized visa categories, reduce visa classes and make the system easier to use.
• New agency to identify skills needs. In late 2024, a new Jobs and Skills Australia agency will start administering and assessing whether certain skills are in demand for the Core Skills Occupation List for the Core Skills pathway of the Skills in Demand visa.
• Tackling worker exploitation and misuse of the visa system. Starting mid-2024, the government will implement new legislation that protects migrant workers against visa cancellation by their employers. The government will also develop a public register of approved sponsors by late 2024.
• New points system. The government plans to explore a reformed points test for permanent skilled migration that uses factors such as education, English language skills, occupation and age instead of current factors that do not contribute to the country’s economic growth.
• New National Innovation visa. The new visa will be available for foreign nationals who can drive growth in sectors of national importance. No further details are currently available on this visa. Update November 7, 2024: The visa will be available to global researchers and thought leaders; entrepreneurs; innovative investors with a focus on the quality of investment, not simple thresholds; and athletes and creatives particularly those that represent Australia internationally. The stream will be available by invitation only with the Expression of Interest process, and will commence before the end of 2024.

• New rules for students. The government will adopt a package of measures to raise the standards for international students and education providers, while ensuring graduates help meet skills shortages and do not become permanently temporary. Specifically, at the end of 2023, the government will introduce a new Ministerial Direction to prioritise student visa applications based on the risk level of the educational institution. In early to mid-2024, the maximum age for Temporary Graduate visas will be reduced to 35 (from 50), repositioning the visa for early career professionals who can contribute to the Australian economy over a longer period. Additionally, the standard government processing time for Temporary Graduate Visa for ‘Post-Higher Education Work Stream’ will be 21 calendar days.

• Commitment to regional Australia visas. The government will ensure that visas for regional Australia are prioritised, and will evaluate regional migration settings and the Working Holiday Maker program to ensure migration supports development objectives in regional Australia.
• Deepening Indo-Pacific ties. The government plans to implement a direct pathway to citizenship for New Zealanders and increase mobility with Pacific Island and Southeast Asian countries.

Through the reforms, the government intends to address skills needs and promote worker mobility, reshape permanent skilled migration to drive long-term prosperity, raise the standards for international students, support regional Australia and its workers, and simplify the migration system.

Businesses sponsoring foreign nationals under the new Skills in Demand Visa will benefit from faster government processing times, and will not be bound by occupation lists, which will drive innovation and job creation in Australia.

The Migration Strategy will bring net migration levels back to sustainable and pre-pandemic levels, ensuring that Australia is delivering a transparent, simplified and efficient approach to visa processing to boost the economy and address labour shortages.

Targeted changes to temporary visas, including Student and Temporary Graduate visas, will feed into the broader skilled and talent and innovation visa programs and significantly increase the talent pool in Australia.

The Australian government will start consultations in early 2024 to seek views from key stakeholders, industry bodies and the public to assist in forming the conditions for each of the visa programs under review.

Implementation of the reforms is expected to take place in a phased approach throughout 2024.