Implementation of the Skills in Demand visa has been delayed until early 2025, with the Australian government unable to pass through Parliament the Migration Amendment (Strengthening Sponsorship and Nomination Processes) Bill 2024 that establishes both the framework for the new Skills in Demand visa and also the public register of approved business sponsors.

The Senate completed its final sitting for 2024 last night, passing over 30 pieces of legislation. It will next sit on 4 to 6 February 2025, unless an early Federal election is called, which will trigger the government entering into caretaker mode. The election must take place no later than 17 May 2025 which gives only a small window for the legislation to pass.

Background

In 2023 the Australian government released its Migration Strategy, providing a roadmap to significant long-term reforms.

As part of this strategy, a new Skills in Demand visa was announced as a replacement to the existing Temporary Skill Shortage (TSS) subclass 482 visa program, with the following three pathways:

1. The Specialist Skills pathway. For foreign nationals earning at least AUD 135,000 (excluding high salary trades workers, machinery operators and labourers). 
2. The Core Skills pathway. For the bulk of foreign workers with earnings between AUD 73,150 and AUD 135,000.
3. The Essential Skills pathway. For foreign workers in critical industries earning less than AUD 73,150, with a higher focus on regulation and compliance focused on combatting worker exploitation.

The Minister also announced the validity of labour market testing evidence would increase from four to six months in late 2024.

What to expect

The Department may still make interim changes to the TSS visa requirements to give effect to its Migration Strategy roadmap, particularly to benefit high-income earners and streamline processes for employers.

Whilst we expect release of a new consolidated occupation list and new order of processing directions, it appears more likely most changes will be delayed until legislation is passed in early February 2025.

In the meantime, we anticipate that it is likely the Department will proceed with its stated intention to reduce the employment experience requirement for the TSS visa from 2 years to 1 year.

Next steps

Fragomen will closely monitor any announcements from the Department and/or changes to regulations and keep you updated on this.

Otherwise, the existing TSS criteria continue to apply, and applications can continue to be initiated, prepared and lodged.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Minister for Immigration has announced a new stream within the Temporary Work (International Relations) (Subclass 403) visa called the Mobility Arrangement for Talented Early-professionals Scheme (MATES) stream. This is to give effect to a commitment made under the Migration and Mobility Partnership Arrangement (MMPA) which was entered into between Australia and India in May 2023, and supports and promotes two-way migration and mobility between the two countries.

The Subclass 403 visa – MATES stream will allow Indian graduates and early career professionals with knowledge and skills in targeted fields of study to live and work in Australia for up to two years, encouraging mutually beneficial skills and knowledge transfer between Australia and India.

There will be 3,000 visa places available in the program annually.

Pre-application ballot process

The Subclass 403 visa – MATES stream is only available to applicants with an Indian passport between the ages of 18 and 30. Applicants must first register for the pre-application ballot and will be randomly selected and invited to apply for the visa.

This is designed to ensure a fair and objective method of accessing the MATES stream given the limited number of places under the program.

Eligibility requirements

An application can only be made from outside Australia. As the program is designed to create opportunities for skilled graduates and professionals, applicants must have recently graduated from an eligible educational institution with a bachelor degree or higher qualification. The qualification must relate to one of the following industries:

• Renewable energy
• Mining
• Engineering
• Information communications technology (ICT)
• Artificial intelligence
• Financial technology
• Agricultural technology

Successful applicants must also satisfy English language, health and character requirements.

There will be no requirement for sponsorship by an Australian employer in order to apply for a visa under this program.  Individuals who hold this visa may extend their stay in Australia by applying for another visa provided they meet the relevant eligibility requirements.

Next steps

Registrations for the first MATES ballot will open in December 2024.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Minister for Immigration has announced changes to Australia's migration regulations relating to the Health Requirement for Australian visas which came into effect on 16 October 2024.

The Health Requirement

Most visa applicants must meet minimum health standards before they can be granted an Australian visa. To meet the health requirement, an applicant must be free from any disease or condition that is likely to result in:

• A significant cost to the Australian community in the areas of health care and community service
• Limited access for Australian citizens and permanent residents to health care and community services that are in short supply.

The specific health regulations (PIC 4005 and PIC 4007) which apply to different visa subclasses determine whether a waiver can be obtained for applicants who are deemed not to meet this health requirement.

What is changing

Prior to the commencement of the Migration Amendment (Public Interest Criteria 4005 and 4007) Regulations 2024, a minor visa applicant was required to satisfy the Minister that they are free from a disease or condition which would necessitate the provision of health care or community services, where that would result in a significant cost to the Australian community or prejudice the access of an Australian citizen or permanent resident to that health care or community service.

The Amendment is changing the regulations so that a minor visa applicant born and ordinarily resident in Australia is not required to satisfy the Minister that they are free from a disease or condition which would necessitate the provision of health care or community services.

This amendment aims to ensure fair and equal opportunity for settlement in Australia by removing disadvantage in the visa grant process pertaining to minor visa applicants born and ordinarily residing in Australia with a health condition and/or a disability. The Amendment Regulations do not affect requirements that must be met by all other minors with a disability or health condition.

Next Steps

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

On 14 October 2024, the Australian Bureau of Statistics and Statistics New Zealand announced that each country will introduce their own tailored occupational statistical classifications.

For Australia, the new classification will be called the Occupation Standard Classification for Australia (OSCA), 2024, version 1.0 and will be released on Friday 6 December 2024.

ANZSCO

The Australian and New Zealand Standard Classification of Occupations (ANZSCO) provides a basis for the standardised collection, analysis and dissemination of occupation data for Australia and New Zealand.  ANZSCO is intended to provide an integrated framework for storing, organising and reporting occupation-related information in both statistical and other analytical applications. The latest ANZSCO classification was released on 22 November 2022.

In 2022, the Australian Government announced $23.7 million funding over four years for the ABS to undertake a comprehensive update of ANZSCO and commence an ongoing maintenance program in 2025.

Drivers for change

The decision by both Government Statisticians was made following discussions over several years noting the following:

• • The difference between Australia’s and New Zealand’s labour markets is greater than when a joint classification began in 2006. Where this is most visible is when ANZSCO was first published in 2006, all ANZSCO occupations had a common skill level between Australia and New Zealand.  Now, 56 of the current 1,076 occupations in ANZSCO have a different skill level in Australia and New Zealand.
  • Stats NZ has been unable to participate in the targeted 2021 and 2022 Australian updates, and the comprehensive review of the classification undertaken by the ABS over the past four years. As a result, the updated classification to be released on 6 December 2024 will reflect the contemporary Australian labour market and not the New Zealand labour market.
  • ABS and Stats NZ have identified different solutions to meet stakeholder demand. 

Next Steps

At this stage, there is no change to the way businesses use the ANZSCO classifications from an immigration perspective. Fragomen will continue to monitor and advise on the impact of the OSCA classifications implementation in due course.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

Please visit Fragomen’s dedicated microsite for the latest immigration updates.

The Department of Home Affairs opened pre-application visa ballots for China, India and Vietnam on 1 October 2024 for the Work and Holiday (subclass 462) visa program. These will allow eligible passport holders to register for the possibility to be randomly selected to apply for a first Work and Holiday visa.

 

On 14 May 2024, Treasurer Jim Chalmers MP handed down the Government’s Budget for the 2024-25 financial year, including the planned introduction of a pre-application ballot process for Work and Holiday (subclass 462) visas for nationals of China, India and Vietnam.

 

The ballot system provides an equitable, streamlined and transparent means of randomly selecting applicants from partner countries where number of registrations significantly exceeds number of places available in a program year.

 

The Department of Home Affairs (DHA) has now opened separate visa ballots for China, India and Vietnam, effective 1 October 2024. These will allow eligible passport holders to register for the possibility to be randomly selected to apply for a first Work and Holiday visa.

 

Ballot eligibility

To register for the ballot, the individual must:

• Be between the ages of 18 and 30 (inclusive) when they register
• Hold a valid passport issued by the People’s Republic of China, India or Vietnam
• Hold a valid national identity card issued by the People’s Republic of China, India (PAN card specifically) or Vietnam

 

Individuals can be in or outside Australia when they register, but if they are selected, they must apply for a first Work and Holiday visa from outside Australia.

 

Ballot registration period

Each program year will have a specific ‘registration period’ for each country ballot. Registration cannot be done before or after this period.

 

The Ballot registration periods for the 2024/25 program year are:

 

Country	Registration Open Date	Registration Close Date
China	01 Oct 2024	08 Nov 2024
India	01 Oct 2024	31 Oct 2024
Vietnam	01 Oct 2024	08 Oct 2024

 

Ballot selection and ballot selection period

The selection of registrations is a random automated process. It is not based on any criteria.

 

The ‘selection period’ is the period the Department of Home Affairs has to randomly select registrations to apply for a first Work and Holiday visa.

 

 The Selection periods for the 2024/25 program year are:

 

Country	Selection Open Date	Selection Close Date
China	14 Oct 2024	30 Apr 2025
India	14 Oct 2024	30 Apr 2025
Vietnam	14 Nov 2024	30 Apr 2025

 

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Country Caps

There is an annual limit or 'cap' on the number of first Work and Holiday (subclass 462) visas that can be granted each program year (1 July to 30 June) for applicants who hold a passport from certain countries.

 

The Country Caps do not apply to registration. They will be considered during the selection process.

 

For China, India and Vietnam, the annual caps are 5,000, 1,000 and 1,500 respectively. The full list of country caps can be found on the Department’s website.

 

Next steps

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

 

Please visit Fragomen’s dedicated microsite for the latest immigration updates.

 

 

 

As of 1 July 2024, Visa Application Charges (VAC) for most visas have been increased in line with the 2024-25 forecast Consumer Price Index (CPI).

The below table provides a summary of the new VACs that apply from 1 July 2024 to the most common visas types used by our clients:

 

Visa type	Fee from 1 July 2024 (AUD)	Previous Fee (AUD)
Temporary Skill Shortage (subclass 482) visa – Short term stream	·         $1,495 (Main applicant) ·         $1,495 (Adult dependant) ·         $375 (Child under 18)	·         $1,455 (Main applicant) ·         $1,455 (Adult dependant) ·         $365 (Child under 18)
Temporary Skill Shortage (subclass 482) visa – Medium term & Labour Agreement streams	·         $3,115 (Main applicant) ·         $3,115 (Adult dependant) ·         $780 (Child under 18)	·         $3,035 (Main applicant) ·         $3,035 (Adult dependant) ·         $760 (Child under 18)
Skilled Employer Sponsored Regional (subclass 494) visa	·         $4,770 (Main applicant) ·         $2,385 (Adult dependant) ·         $1,190 (Child under 18)	·         $4,640 (Main applicant) ·         $2,320 (Adult dependant) ·         $1,160 (Child under 18)
Temporary Work (Short Stay Specialist) (subclass 400)	·         $415 (Main applicant) ·         $415 (Adult dependant) ·         $105 (Child under 18)	·         $405 (Main applicant) ·         $405 (Adult dependant) ·         $105 (Child under 18)
Training (subclass 407) visa	·         $415 (Main applicant) ·         $415 (Adult dependant) ·         $105 (Child under 18)	·         $405 (Main applicant) ·         $405 (Adult dependant) ·         $105 (Child under 18)
Employer Nomination Scheme (subclass 186) visa	·         $4,770 (Main applicant) ·         $2,385 (Adult dependant) ·         $1,190 (Child under 18)	·         $4,640 (Main applicant) ·         $2,320 (Adult dependant) ·         $1,160 (Child under 18)
Global Talent (subclass 858) visa	·         $4,840 (Main applicant) ·         $2,425 (Adult dependant) ·         $1,210 (Child under 18)	·         $4,710 (Main applicant) ·         $2,360 (Adult dependant) ·         $1,180 (Child under 18)

 

Increase to Fair Work High-Income Threshold

Additionally, Fair Work has increased the High-Income Threshold from $167,500 to $175,000, commencing from 1 July 2024. Clients are reminded that this is relevant for certain exemptions for employer sponsored visas, including the Employer Nomination Scheme (subclass 186) and the Skilled Employer Sponsored Regional (Provisional) (subclass 494) visas. 

Other fee increases from 1 July 2024

 Australian Citizenship Applications

In addition to the increases to the Visa Application Charges, Australian Citizenship application fees have also increased.

The below table provides a summary of updated application fees for the most commonly used Australian citizenship application by our clients:

Application type	Fee from 1 July 2024 (AUD)	Previous Fee (AUD)
Citizenship by conferral – general eligibility	·         $560	·         $540
Citizenship by descent	·         $360	·         $345
Citizenship by descent (applications made at the same time by 2 or more siblings)	·         $360 for the application by the first sibling ·         $150 for applications made by the second and subsequent siblings	·         $345 for the application by the first sibling ·         $145 for applications made by the second and subsequent siblings
Evidence of Australian citizenship	·         $275	·         $265

 

Administrative Appeals Tribunal

Certain applications to the Administrative Appeals Tribunal (AAT) have also increased from $3,374 to $3,496. The fee applies to applications for review of decisions relating to visas other than protection visas, and includes decisions in relation to sponsorships and nominations.

Next steps

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

Changes to visa conditions for temporary employer-sponsored visas (Subclass 482, 457 and 494 visas) will come into effect from 1 July 2024 to support the labour market mobility of temporary migrants.

The Department of Home Affairs (the Department) has announced key changes to visa conditions that apply to the Subclass 482 - Temporary Skill Shortage (TSS) visa, its predecessor the Subclass 457 visa and the Subclass 494 - Skilled Employer Sponsored Regional (Provisional) visa.

The relevant visa conditions to be amended are:

• 8607 – Subclass 482 visa
• 8107 – Subclass 457 visa
• 8608 – Subclass 494 visa

These changes are set to commence on 1 July 2024.

The changes are in response to the Australian Government’s Migration Strategy and to address the Government’s commitment to tackle worker exploitation and drive productivity.

What are the current visa conditions?

The above visa conditions restrict the primary 482, 457 or 494 visa holders to working for the sponsoring employer (or in some circumstances, an associated entity of the sponsor – with some limited exceptions) and only in the nominated occupation.

If a primary visa holder ceases employment with the sponsor, they currently have a grace period of 60 consecutive days to find a new employer to take over the sponsorship of their visa, apply for a different visa or arrange to depart the country.

During this grace period, the visa holders are not able to work for any other employer as this would be in breach of the terms of the current visa conditions.

What are the changes?

From 1 July 2024, visa holders who have ceased working with their sponsoring employer will be given more time to find a new sponsor, apply for a different visa or arrange to depart Australia. They will have up to:

• 180 days at a time, or
• A maximum of 365 days in total across the entire visa grant period.

During this time, visa holders will be able to work for other employers, as well as work in occupations not listed in their most recently approved nomination.

Can a visa holder work for another employer before they cease employment with the sponsor?

A primary subclass 482, 457 or 494 visa holder cannot work for another employer unless they have ceased work with their sponsoring employer. They must also remain in their nominated occupation whilst working for their existing sponsor.

Are there any changes to sponsorship obligations?

No, as a sponsor of a subclass 482, 457 or 494 visa holder, the obligation to notify the Department of certain events such as cessation of employment or change in work duties continues to apply. The notifiable timeframe remains at 28 calendar days as per the Sponsorship obligations.

Do the changes apply to existing visa holders?

Yes, the changes will apply to existing visa holders, as well as those granted a visa on or after 1 July 2024. In addition, if a visa holder ceased working for their sponsor before 1 July 2024, this will not count towards the new time periods of 180 or 365 days respectively as mentioned above.

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Next steps

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

As highlighted in the Government’s Migration Strategy, the Temporary Skilled Migration Income Threshold will increase in line with the Wage Price Index.

From 1 July 2024, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $70,000 to $73,150.

From this date, new nomination applications under the Temporary Skill Shortage subclass 482, Skilled Employer Sponsored Regional subclass 494 and Employer Nomination Scheme subclass 186 visa programs will need to meet the new TSMIT level or the annual market salary rate, whichever is higher.

The Department of Home Affairs has confirmed that the change will not affect existing visa holders and nominations lodged before 1 July 2024.

If you have any questions or wish to discuss management strategies for any in progress cases, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

In line with the Government’s Migration Strategy, the Department of Home Affairs has confirmed that the provisional Business Innovation and Investment subclass 188 visa program (BIIP) will close permanently to new applications and expressions of interest from July 2024.

The BIIP was created to provide opportunities to individuals with successful backgrounds in owning or managing a business or investments to migrate to Australia.

Applications already in queue

BIIP visa applications already lodged will continue to be processed in line with government processing priorities and migration planning levels.

The Government has reduced the planning level for the BIIP from 1,900 places in 2023-24 to 1,000 for the 2024-25 permanent Migration Program.

While BIIP places are generally allocated amongst all Australian States and Territories, in 2023-24, no new allocations were given for the BIIP as the Department of Home Affairs had sufficient applications on hand to meet the 2023-24 planning level.

Our view is that if there was demand for the BIIP that exceeded the 1,900 allocated places in 2023-24, it is likely that the excess applications will be rolled over into the 2024-25 financial year until the allocated 1,000 places are filled.  

As announced in the Government’s Federal Budget on 14 May 2024, BIIP applicants seeking to withdraw their visa application can also seek a refund of the associated visa application charge from September 2024.

Current provisional BIIP visa holders transitioning to permanent residency

Individuals holding a provisional BIIP visa will still be able to apply for the permanent BIIP subclass 888 visa after July 2024, subject to meeting all eligibility criteria.

If eligible, provisional BIIP holders may apply for the extension stream if they require additional time to meet the permanent BIIP requirements.

Looking ahead

The Government will be replacing the BIIP with the new National Innovation visa due to be released at the end of 2024.

As the new National Innovation visa program is intended to supersede the Global Talent subclass 858 visa program as well, the Department of Home Affairs has advised that it will introduce arrangements to ensure that existing applicants of the Global Talent visa will not be adversely affected by the transition.

Existing Global Talent applicants will be assessed against the eligibility criteria at the time of their application but the Government has reduced the number of places under the Global Talent visa to 4,000 for 2024-25 (down from 5,000).

The Global Talent visa was introduced as a direct permanent residency pathway for exceptionally talented and prominent individuals who could raise Australia’s standing in targeted future-focused sectors.  

Fragomen will monitor and advise of any further information released by the Department of Home Affairs relating to the new National Innovation visa.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

On 14 May 2024, Treasurer Jim Chalmers MP handed down the Government’s Budget for the 2024-25 financial year.

The Government has confirmed its ongoing commitment to migration system reforms to drive greater economic prosperity and restore its integrity, implementing actions outlined in the Migration Strategy.

The Government will set the 2024-25 permanent Migration Program planning level at 185,000 places and allocate 132,200 places (around 70 per cent) to the Skill stream. Employer Sponsored planning levels will be increased to 44,000 places, up from 36,825. Total visa places are slightly below the current 2023-24 program year, whilst the percentage allocation to the Skill stream remains consistent to the current year.

From 2025-26, the Government will extend the planning horizon for the permanent Migration Program from one year to four years to enable better cross-government planning in the future.

Government actions are estimated to reduce net overseas migration by 110,000 people over the forward estimates from 1 July 2024. Net overseas migration is forecast to approximately halve from 528,000 in 2022-23 to 260,000 in 2024-25, with student visas numbers expected to decrease significantly.

Budget highlights

Some of the key migration measures to be implemented include:

• Introduction of a new National Innovation visa in late 2024 to attract exceptionally talented migrants and replace the Global Talent visa and the Business Innovation and Investment visa programs (BIIP). While we await further details, we understand that refunds of the Visa Application Charge under the BIIP can be requested from September 2024. These actions complement reforms being developed for the points test used for certain skilled visas;
• Reduction of Temporary Skill Shortage (TSS) subclass 482 work experience requirement from two years to one year from 23 November 2024. This change will likely carry across to the new Skills in Demand visa set to supersede the TSS visa program in late 2024, and will also open up opportunities for graduates and early career professionals to meet eligibility criteria for the Skills in Demand visa;
• Introduction of a new Mobility Arrangement for Talented Early-professionals Scheme (MATES) program for Indian nationals from 1 November 2024;
• Extension of Business Visitor visa validity periods for Indian nationals from up to three years to up to five years;
• Assessment and consideration of a modern technological solution for the assessment of trade skills for skilled migrants by Trades Recognition Australia to make skilled workers more rapidly available to employers;
• Introduction of a ballot process for Work and Holiday visas for nationals of China, India and Vietnam;
• International student intake numbers to be capped for all educational providers;
• Investment of $1 billion over five years to establish and support the operation of the new Administrative Review Tribunal , set to replace the current Administrative Appeals Tribunal and $115.6 million to address court backlogs associated with higher numbers of applications for judicial review of migration decisions;
• Investment of $100 million to the Department of Home Affairs to support the performance of core functions including Australian Border Force operations and immigration compliance activities;
• Allocation of $15 million over three years from 2024-25 for information and education activities about workplace safeguards, protections and compliance measures relating to migration laws; and
• Allocation of $1.9 million for a data-matching pilot with the Australian Taxation Office of income and employment data to be used to crack down on migrant worker exploitation and abuse of Australia’s labour market and migration system.

Visa Application Charges from 1 July 2024

As is the Department of Home Affairs’ usual practice at the commencement of each financial year, most visa application charges will be increased in line with the Consumer Price Index as of 1 July 2024.

Temporary Skilled Migration Income Threshold from 1 July 2024

As highlighted in the Government’s Migration Strategy, the Temporary Skilled Migration Income Threshold (TSMIT), currently set at $70,000 per annum, is likely to increase on 1 July in line with the Wage Price Index.

With the next increase due on 1 July 2024, we anticipate that TSMIT will rise by approximately 4.2%.

Fragomen will monitor the TSMIT and visa application charge increases and advise of our clients once these details have been announced.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

In December 2023, the Australian Government announced its Migration Strategy to reform Australia’s migration system. As part of these reforms, the Government has established a formal role for Jobs and Skills Australia (JSA) in defining Australia’s skills needs by using data-driven evidence and advice from tripartite mechanisms.

JSA has developed a Migration Labour Market Indicator Model which will be used alongside stakeholder engagement to provide advice and recommendations to the Government for the Core Skills Occupation List (CSOL) which will form a central part of the proposed Skills in Demand visa due to supersede the Temporary Skill Shortage subclass 482 visa program in late 2024.

JSA has now released a draft Core Skills Occupation List (CSOL) for consultation purposes only and is seeking feedback from a range of stakeholders, including businesses, state and territory governments, unions, skills assessing and licensing authorities and Australian and migrant workers and job seekers.

The draft CSOL has been categorised into three groups:

• Group 1: Skilled occupations the JSA Migration Model is confident should be on the CSOL;
• Group 2: Skilled occupations the JSA Migration Model suggests should not be on the CSOL and targeted for consultation;
• Group 3: Skilled occupations the JSA Migration Model suggests should be targeted for stakeholder feedback.

Fragomen will be providing submissions in response to the draft lists, however we strongly encourage clients potentially impacted by the proposed Group 2 and Group 3 outcomes to also participate in JSA’s consultations. Your industry knowledge and expertise will supplement the labour market analysis used by JSA to provide advice to Government on the CSOL.

In the meantime, if you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Department of Home Affairs confirms that certain categories of United Kingdom nationals and permanent residents are eligible for grant of a four-year TSS visa.

As a result of the Australia-United Kingdom Free Trade Agreement (A-UKFTA) coming into force on 31 May 2023, certain United Kingdom nationals and permanent residents seeking to enter Australia were eligible to nominate a four-year visa period under the Temporary Skill Shortage (TSS) subclass 482, even if applying under the short-term stream which generally imposes a two-year limit on visa duration.

The A-UKFTA specifies that the following categories of business persons can enter Australia for a period of up to four years:

• Intra-corporate transferees who are executives, senior managers and specialists with advanced trade, technical or professional skills and have been employed by their overseas employer for at least two years immediately prior to date of application;
• Independent executives who intend, or are responsible for the establishment in Australia of a new branch or subsidiary of an enterprise which has its head operations in the United Kingdom;
• Contractual service suppliers with trade technical or professional skills and experience who intend on supplying a service under contract within Australia.

The Department of Home Affairs has since clarified that if United Kingdom nationals or permanent residents do not fall under the intra-corporate transferee or independent executive categories, they will be able to rely on the contractual service supplier category which is intended to capture all remaining natural persons.

While the A-UKFTA provides a clear benefit in relation to longer visa durations for UK nationals and permanent residents, businesses should note that where a TSS application is lodged under the short-term stream, the genuine temporary entrant criteria will continue to apply.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

 

The Australian Government has introduced new legislation to strengthen the legislative framework in the Migration Act to improve employer compliance and protect temporary migrant workers from exploitation.

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In 2023, the Australian Government announced additional funding of $50 million to facilitate thorough review and development of legislative powers and enforcement tools that will assist visa holders in speaking up about exploitative workplaces.

Fragomen supports the Australian Government’s ongoing initiatives to address worker exploitation and, through our Government Relations team, welcomed the opportunity in 2023 to provide submissions on proposed Employer Compliance legislation prior to its passage through parliament.  

On 20 February 2024, the Migration Amendment (Strengthening Employer Compliance) Act 2024 received royal assent and will come commence on 1 July 2024.

The provisions within the Act ensure that temporary migrant workers are appropriately empowered to address unlawful conduct in the workplace. Additional provisions were introduced to improve rates of employer compliance through both deterrence and remediation, and to protect temporary workers from employers that have been found to have engaged in serious, deliberate or repeated non-compliance. 

The Act includes the following measures:

• New criminal offences and associated civil penalties for employers who unduly influence, pressure or coerce a non-citizen to breach a work-related visa condition or accept an exploitative work arrangement to meet a work-related visa condition;
• Introduction of a mechanism to allow the Department of Home Affairs to prohibit an employer convicted of these offences, or who have contravened certain migration or Fair Work laws from employing additional temporary migrant workers for a specified period;
• Publication of the names of prohibited employers on the Department of Home Affairs Website;
• Increased powers and tools provided to Australian Border Force, including compliance notices;
• Repeal of s235 of the Migration Act which currently makes it an offence for temporary migrant workers to breach work visa conditions or unlawful non-citizens who work.

Looking ahead

As part of the broader roll out of the Migration Strategy, the Australian Government’s commitment to deterring workplace exploitation will continue to be an ongoing area of focus.

Other proposed initiatives will include:

• introduction of a Workplace Justice visa to protect individuals who have spoken up about an exploitative employer and resigned from their place of  employment;
• increasing the timeframe that a Temporary Skill Shortage (TSS) subclass 482 visa holder can be without an employer from 60 days to six months;
• establishing a public register of approved sponsors to enable monitoring and oversight; and
• creation of a united intelligence, investigations and compliance capability in the Department of Home Affairs.

Fragomen has a specialist Advisory and Compliance practice that can assist employers with preparing for these changes by conducting internal audits, reviewing current systems and processes and providing guidance on best practice in immigration compliance.

If you have any questions or would like to arrange a discussion with our Advisory and Compliance Practice, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Australian Government has delivered its Migration Strategy which provides a roadmap to the significant areas of reform to be implemented from 2024 and beyond.

The Migration Strategy outlines the Government’s strategic approach to adjusting the settings of Australia’s migration system to reach target wages and productivity growth, build a skilled workforce to transition to a net zero economy, manage the pressures of an ageing population and return net migration to pre-pandemic levels.

Reform commitments for employer-sponsored visa programs

In addition to the expanded pathway to employer-sponsored permanent residency implemented on 25 November 2023, the Government’s Migration Strategy provides additional targeted reforms for the employer-sponsored visa programs to be rolled out in a phased approach throughout 2024.

The key reforms include:

• Development of new Skills in Demand visa with three separate pathways dependent on the foreign worker’s proposed earnings in Australia to be implemented in late 2024.
  1. The Specialist Skills pathway will be for foreign nationals earning over $135,000 (excluding high salary trades workers, machinery operators and labourers) and will receive expedited processing.
  2. The Core Skills pathway will be for the bulk of foreign workers with earnings between $70,000 and $135,000.
  3. The Essential Skills pathway will be for foreign workers in critical industries earning less than $70,000, with a higher focus on regulation and compliance focused on combatting worker exploitation.
• Legislating indexation of income thresholds to maintain system integrity. Thresholds for each of the three visa pathways will be indexed annually to average weekly ordinary time earnings.
• Streamlining Labour Market Testing (LMT) requirements to do away with advertising on the Workforce Australia platform effective 11 December 2023, with the view to increasing the validity of LMT evidence from four to six months in late 2024.
• Tasking a coordinated, evidence-based, tripartite approach to identifying skills needs in late 2024. The Jobs and Skills Australia body will administer and assess whether certain skills are in demand for the data-driven Core Skills Occupation List for the Core Skills pathway of the Skills in Demand visa program.
• Tackling worker exploitation and misuse of the visa system by introducing legislation, new powers and penalties, and supporting migrant workers by introducing protections against visa cancellation in mid-2024. Amongst other measures, the development of a public register of approved sponsors to enable monitoring will also be implemented by late 2024 in line with the new Skills in Demand visa.

Key Actions in the Migration Strategy

The Government has categorised its strategy for the wider migration program through eight key actions.

Key Action	Existing and new commitments
1.      Targeting temporary skilled migration to address skills needs and promote worker mobility	Introduction of a new Skills in Demand visa with three targeted pathways, and visa settings that encourage worker mobility in the labour market.
2.      Reshaping permanent skilled migration to drive long-term prosperity	Commitment to exploring a reformed points test for permanent skilled migration, and a new Talent and Innovation visa for migrants who can drive growth in sectors of national importance.
3.      Strengthening the integrity and quality of international education	A package of integrity measures to lift the standards for international students and education providers while ensuring graduates help meet skills shortages and do not become permanently temporary.
4.      Tackling worker exploitation and the misuse of the visa system	A comprehensive suite of legislation, powers, penalties and policies to combat worker exploitation.
5.      Planning migration to get the right skills in the right places	A longer-term evidence-based approach to planning immigration that closely collaborates with States and Territories and ensure population planning is based on the best available population data forecasts.
6.      Tailoring regional visas and the Working Holiday Maker program to support regional Australia and its workers	A new direction to ensure visas for regional Australia are prioritised, and a commitment to evaluating regional migration settings and the Working Holiday Maker program to ensure migration supports development objectives in regional Australia.
7.      Deepening people-to-people ties in the Indo-Pacific	A direct pathway to citizenship for New Zealanders and increasing mobility with Pacific Island and Southeast Asian countries.
8.      Simplifying the migration system to improve the experience for migrants and employers	A system-wide simplification agenda that will streamline visa settings, reduce visa classes and make the system easier to use.

 

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Department of Home Affairs (DHA) has amended the Labour Market Testing (LMT) requirements to support the Government’s Migration Strategy and overall commitment to streamlining visa processes for Australian businesses. Effective immediately there is no longer a requirement to advertise on the Government’s Workforce Australia platform.

What are the new LMT requirements?

Unless certain exemptions apply, employers are required to advertise nominated positions for at least four weeks on two recruitment platforms with national reach in the four months immediately prior to lodgement of a Temporary Skill Shortage Subclass 482 (TSS) or Skilled Employer Sponsored Regional Subclass 4949 (SESR) nomination application.

There is no longer a requirement to advertise on the Workforce Australia platform.

Further to our Newsflash of 8 November 2023, the DHA has also clarified in the new LMT legislative instrument that advertisements must run for at least four consecutive weeks, or be provided as two or more overlapping advertisements. Multiple back-to-back advertisements will no longer be accepted.

Which applications will benefit from the LMT changes?

All applications lodged on or after 11 December 2023 and those lodged before this date but not yet decided will benefit from the LMT changes.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

On 25 November 2023, the Department of Home Affairs implemented the long-awaited reforms to the Employer Nomination Scheme permanent residence program. The reforms reflect the Government’s commitment, as discussed during the Jobs and Skills Summit in September 2022, to provide more equitable access to permanent residence for temporary skilled workers.  

 

Key changes under the new regulations

The new regulations expand access to the Temporary Residence Transition (TRT) stream under the Employer Nomination Scheme Subclass 186 (ENS) visa program. The changes also apply to certain transitional applicants under the Regional Sponsored Migration Scheme Subclass 187 (RSMS) visa program.

Changes to the TRT stream nomination requirements apply to new nomination applications lodged, as well as applications that are yet to be finally determined at the time the new regulations commenced.

The TRT changes are summarised below:

 

Key change	Summary
Expanded access to the TRT streams of ENS and RSMS visas	All holders of the Temporary Skill Shortage Subclass 482 (TSS) and 457 visas can access the ENS TRT visa, regardless of the stream in which their visa is held.
Reduction of employment period	The required employment period has been reduced to two years out of the three years immediately before the ENS nomination is made. Previously, the requirement was three out of four years.
Removal of requirement for the occupation identified in the nomination to be on the skilled occupation list	There is no longer a requirement for the TRT stream for the occupation to be listed on the Medium and Long-term Strategic Skills List (MLTSSL) or the Regional Occupation List (ROL). The occupation must still be listed on the Australian and New Zealand Standard Classification of Occupations (ANZSCO) dictionary and be in the same ANZSCO unit group code which formed the basis for granting the visa applicant’s TSS or 457 visa.
Introduction of discretionary refund	A refund of the first instalment of the Visa Application Charge (VAC) may be given if the ENS or RSMS application under the TRT stream is withdrawn. This new provision will allow for a refund of the VAC where an ENS or RSMS nomination application was lodged prior to the visa applicant meeting the two-year employment requirement.
Removal of limit on the number of TSS visa applications in the short-term stream made in Australia	The requirement that an applicant must be offshore to lodge their third or subsequent TSS visa has now been repealed to reflect the decision that all streams of the TSS visa will have a pathway to permanent residence.

 

Other notable announcements

 

End date to COVID-19 Concession Period

At the onset of the COVID-19 Pandemic, the Department of Home Affairs introduced a ‘COVID-19 Concession Period’ commencing from 1 February 2020. The end date for the concession period has now been set as 25 November 2023.

The COVID-19 Concession Period was introduced to assist certain temporary and provisional visa holders who were disadvantaged by consequences of the pandemic, including border closures, restrictions imposed on business and the general economic downturn. 

Despite the announcement of the end date for the COVID-19 Concession Period, concession provisions will remain in effect for applicants who applied for a visa during the concession period but have not yet received a visa decision.

 

Upcoming office closure

Fragomen’s Australia and New Zealand offices will be closed from 25 December 2023 to 5 January 2024 inclusive.

The Department of Home Affairs will also be closed on the scheduled public holiday dates of 25-26 December 2023 and 1 January 2024. Over this period and into January 2024, there is likely to be a reduced number of Departmental staff available to continue visa processing and as such processing times will be impacted.

We recommend that you plan ahead and work with your Fragomen immigration professional to submit visa applications well ahead of the closure period.

 

Next steps

Please also reach out to us if you require guidance on how the expanded TSS and ENS requirements will impact your existing sponsored employees and if you would like us to assess their eligibility.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

 

Organisation / Department: Department of Home Affairs

Date of Submission: 17 November 2023

 

Summary:

1. 1. 1. General support for the Department’s proposal to review the SCT and to consider recommendations by expert health economists to increase and change how the SCT is calculated.
      2. Recommendation to abolish PIC 4005 to allow 4007 to be applied across all skilled visa categories, allowing applicants to access the waiver under PIC 4007.
      3. The statutory interpretation principle of “specific provisions prevail over general principles” should be applied to the definition of “dependent children” under regulation 1.03.
      4. The SCT should not be applied to dependent children in visa applications
      5. Expansion of the “hypothetical person” test to include more factors in assessing the SCT.

Website: https://www.homeaffairs.gov.au/reports-and-publications/submissions-and-discussion-papers/review-of-australias-visa-significant-cost-threshold

In a landmark decision this week, the High Court of Australia has ruled against the concept of indefinite detention. The Australian Human Rights Commission reported that at the end of August 2023 there are 124 individuals that have remained in immigration detention for over five years. Those individuals are typically individuals who are stateless or owed protection by Australia and cannot be returned to their country of origin due to international law obligations.

In 2004, the validity of indefinite immigration detention was challenged in the High Court but was ultimately upheld as being constitutionally valid. The implication of the decision was that provided the Government intended to eventually remove a person from Australia, it could continue to detain individuals indefinitely, regardless of whether or when removal might be possible. Subsequent challenges to overturn the decision have since been unsuccessful.

This week’s legal challenge has resulted in the majority of judges of the High Court overruling the 2004 decision. The decision made by the High Court is that it would be unlawful and unconstitutional for the Government to continue to detain a person where there is no real prospect that they could be removed from Australia.

Fragomen will continue to monitor the Government’s response to this decision, and the impact this may have on the Department of Home Affairs’ future strategies to manage its compliance, enforcement and border security operations.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Department of Home Affairs (DHA) is now applying stricter policy interpretation to the duration of advertised positions for Labour Market Testing (LMT) purposes under the Temporary Skill Shortage subclass 482 (TSS) and Skilled Employer Sponsored Regional (Provisional) subclass 494 visa (SESR) programs.

 

What are the LMT requirements?

Unless certain exemptions apply, employers are required to advertise nominated positions for at least four weeks on three recruitment platforms with national reach, including Workforce Australia, in the four months immediately prior to lodgement of a TSS or SESR nomination application.

 

How have the LMT requirements been met in practice?

Most employers have been in a position to provide evidence of three advertisements that have run for four consecutive weeks or longer for LMT purposes.

Historically, employers have also been able to successfully rely upon non-consecutive advertising run for a total period of four weeks within the last four months immediately prior to lodging a nomination application.

 

How will the new policy impact nomination applications?

The DHA has since advised that they will no longer accept evidence of non-consecutive advertising for LMT purposes, and have provided the following illustrative examples:

• • • Overlapping advertisements: An advertisement is run on a recruitment platform from 2 May 2023 to 24 May 2023 (21 days). A duplicate advertisement is run on the same platform from 23 May to 14 June 2023 (21 days). This example would comply with LMT requirements as it is possible to ensure, through the use of overlapping advertisements, that applications or expressions of interest can be accepted for a continuing period of at least four weeks.

• • • Back-to-back advertisements: An advertisement is run from 2 May 2023 to 24 May 2023 (21 days). A duplicate advertisement is run from 25 May 2023 to 5 June 2023 (12 days). This example would not comply with LMT requirements as it is not being carried out over a continuing period of time.

 

Next steps

Fragomen will review the DHA’s new position of the LMT policy requirements and report on any further developments.

We encourage all employers to ensure that nominated positions are being advertised for at least four consecutive weeks to meet the DHA’s new position on LMT policy requirements.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

As previously reported, the Department of Home Affairs (DHA) announced reforms to the Employer Nomination Scheme (ENS) to provide more certainty to employers and equitable access to permanent residency for all Temporary Skill shortage (TSS) visa holders.

The reforms are expected to commence from 25 November 2023, subject to the approval of new legislation.

The Department of Home Affairs has now provided additional details on the ENS reforms, and associated TSS program reforms which are summarised below.

 

Changes to the TSS visa program

The limit on the number of short-term TSS applications that visa holders can lodge whilst in Australia will be removed for all TSS applications lodged on or after 25 November 2023.

Visa holders wishing to lodge a third or further short-term stream TSS visa can do so from within Australia. However, Fragomen will monitor for any amendments made to migration policy, specifically in relation to the Genuine Temporary Entrant criteria which currently requires short-term TSS visa holders to demonstrate that they genuinely intend to stay in Australia temporarily for work purposes.

Short-term TSS visa holders with visas expiring before the changes are implemented will still need to lodge their third short-term TSS visa from outside of Australia.

 

Changes to nomination requirements for the Temporary Residence Transition stream of the ENS program

Eligible occupation streams: From 25 November 2023, employers will be able to nominate holders of all TSS visa streams, including the short-term and Labour Agreement streams, as long as the 457 or TSS visa holder has worked for their employer for 2 out of the last 3 years in their nominated occupation.

Nominated occupations: Nominated occupations will no longer be assessed against the skilled occupation list. Instead, the nominated occupation need only be listed in the Australian and New Zealand Standard Classification of Occupations (ANZSCO).

Age exemptions: Regional medical practitioner and high income earning applicants aged 45 years and over will be able to access age exemption provisions after 2 years (down from 3 years).

Changes to the ENS Temporary Resident Transition (TRT) stream nomination requirements will apply to new ENS nomination applications, as well as those that are yet to be finalised as at 25 November 2023.

 

Next steps

Fragomen will be holding client webinars covering the changes and what is involved when nominating a person under the ENS visa program in the coming weeks.

Please also reach out to us if you require guidance on how the expanded TSS and ENS requirements will impact your existing sponsored employees.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Department of Home Affairs has announced an implementation date for the proposed expansion to the employer-sponsored permanent residency program. The reforms are part of the Government’s long-term strategy to transform and strengthen the skilled migration program. 

 

Further to Minister Clare O’Neil’s media address on 27 April 2023 regarding the Government’s strategy to reform the Australian skilled migration program, the Department of Home Affairs has committed to the expansion of eligibility criteria under the Employer Nomination Scheme (ENS) subclass 186 visa program.

The implementation date for the ENS reforms is expected to be 25 November 2023.

 

Pathway to permanent residency for short-term TSS visa holders

Once the ENS reforms have been implemented, short-term Temporary Skill Shortage (TSS) visa holders will gain access to permanent residency under the Temporary Residence Transition (TRT) stream of the ENS visa program.

Eligible occupations will not be limited to the Medium and Long-term Strategic Skills list.

The following criteria will need to be met by visa applicants:

• continue to work in the nominated occupation specified on their TSS visa;
• demonstrate a period of employment for 2 years with the sponsoring employer (reduced from 3 years); and
• all other nomination and visa requirements under the TRT stream of the ENS visa program must also be met.

 

The Government’s new Migration Strategy

Fragomen expects the Government’s new Migration Strategy to be released in early December 2023.

The new Migration Strategy will outline Australia’s new temporary skilled migration system and define three clear pathways for temporary skilled workers:

• a fast, simple pathway for specialised, highly skilled and highly paid workers;
• a mainstream temporary skilled pathway to bring core skills, using an improved approach to determining skills needs, informed by advice from Jobs and Skills Australia (JSA);
• further consideration of a regulated pathway for workers with essential skills, such as in sectors in the care and support economy.

The Migration Strategy will also outline areas for further work on how permanent residents are selected under the General Skilled Migration program, including exploring reforms to the points test to better select for migrants who will best drive Australia’s long-term prosperity.

The Migration Strategy will also outline measures that will support international students to speed up their transition from study to skilled work.

 

Next steps

The ENS reforms will result in a significant increase to those visa holders eligible to apply for employer-sponsored permanent residence. Fragomen will be holding client webinars covering the changes and what is involved when nominating a person under the ENS visa program, so look out for invitations to these sessions in the coming weeks.

Please also reach out to us if you require guidance on how the expanded ENS requirements will impact your existing employees sponsored under the TSS visa program.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

In October 2022, the Department of Home Affairs implemented interim measures to exempt certain temporary visa applicants in Australia from having to complete health examinations. This post-COVID-19 pandemic initiative was introduced by the Department of Home Affairs to assist in clearing the backlog of visa applications.

When will the concession come to an end?

The health examination concession will come to an end on 31 October 2023.

From 1 November 2023, the Department of Home Affairs will revert to pre-pandemic health examination policy settings.

Any visa applicants lodging applications on or after 1 November 2023 may be required to complete health examinations depending on:

• the visa subclass being applied for;
• length of proposed stay in Australia;
• planned activities in Australia;
• the country the applicant is from; and
• any special circumstances and/or any significant medical conditions.

How will in-progress applications be impacted?

Applications lodged but undecided prior to 1 November 2023 will be afforded the health examination concession if it applies to their circumstances. 

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

As part of the Australia-United Kingdom Free Trade Agreement (A-UKFTA) the Innovation and Early Careers Skills Exchange Pilot (IECSEP) creates two new faster and cost-effective opportunities for UK citizens to work in Australia, and providing greater security for employers.

 

The pilot program will be open to applications from 25 September 2023, with limited places.

 

What is the IECSEP?

The IECSEP aims to build on the existing connections between Australia and the UK, by establishing two new streamlined mobility pathways for UK citizens, one for early career professionals and the other for demonstrated innovators:

1. Early Careers Skills stream: allows UK citizens aged 21-45 to undertake a placement, secondment, or intra-corporate transfer in Australia for up to 1 year in a position relevant to their field of work in the sending organisation
2. Innovation stream: allows UK citizens of any age to undertake employment for up to 3 years in Australia where they have demonstrated a contribution to innovation in specified priority areas, including:
   • Research and Development
   • Renewable Energy
   • Artificial Intelligence
   • Medical Technology
   • FinTech
   • AgriTech
   • Audio-visual and Cultural industries

The IECSEP program will provide 1,000 places in the first year, and 2,000 in the second year of operation, during which the program will be reviewed.

Participants will need to meet specific criteria. They will be unable to bring family members as part of the program, and will be required to remain with their employers whilst participating in the IECSEP.

What is the process?

Applications under the IECSP involve two stages.

Applicants under both streams must first apply to the Department of Foreign Affairs and Trade (DFAT) for endorsement before then applying for the visa. Applications to DFAT will be accessible on 25 September 2023, 9am (GMT).

As part of the DFAT application, the applicant will need to provide documentation to demonstrate they meet the eligibility criteria, which includes demonstrating relevant experience as well as offer of employment in Australia.

If the application for endorsement is successful, DFAT will issue a letter of support to accompany the visa application, which will be made under the Temporary Work (International Relations) Subclass 403 visa (Government Agreement Stream). 

What are the advantages?

By accessing this program, individual UK nationals and their Australian employing organisations will have the benefit of a faster and more cost-effective process than other skilled visa options.  In addition, the Early Career Skill Stream will allow access for individuals who may not be able to demonstrate the required work experience for sponsored skilled visas.

What is the processing time?

DFAT will undertake to process submitted applications as quickly as possible.

Processing time for the Subclass 403 visa application is as follows:

• 25% of applications within 2 days
• 50% of applications within 8 days
• 75% of applications within 17 days
• 90% of applications within 24 days

Next steps

If your business is considering to use the IECSEP for a UK passport holder, please contact the immigration professional with whom you work at Fragomen for guidance, or email [email protected].

The Australian Government has announced the closure of the Temporary Activity Visa (subclass 408) Australian Government endorsed events (COVID-19 Pandemic Event) visa (Pandemic Event visa).

Why is the Pandemic Visa closing?

The Pandemic Event visa was introduced in 2020 to enable temporary migrants to remain in Australia during COVID-19 Pandemic border closures. As Australia’s borders have re-opened and temporary visa holder numbers have returned to pre-COVID levels, the Pandemic Event visa is no longer required.

Who will the changes impact?

From 2 September 2023, the Pandemic Event visa will only be available to existing Pandemic Event visa holders. This cohort will continue to be eligible for subsequent Pandemic Event visas up until the visa is fully closed on 1 February 2024.

All other visa holders will not be able to apply for the Pandemic Event visa from 2 September 2023.

Details of the staged closure plan

As part of the staged closure, the following will be implemented:

• Period of stay reduced to 6 months for all visa applications lodged on or after 2 September 2023;
• Visa application charge introduced for all applications lodged on or after 2 September 2023. The charge will be $405.00;
• At the time of lodgement of an application, an applicant must hold a Pandemic Event visa that expires in 28 days or less, rather than the previous 90 days;
• Period of stay in Australia will be up to 12 months (or 2 years for Temporary Graduate visa holders) for applications lodged before 2 September 2023;
• Complete closure to all new applications on 1 February 2024.

Next steps

If your business is considering the lodgement of a Pandemic Event visa or has any employees currently holding a Pandemic Event visa, please contact the immigration professional with whom you work at Fragomen for guidance, or email [email protected].

 

The Australian Government has released planning levels for the 2023-24 permanent Migration program, bringing numbers back to pre-COVID pandemic levels.

The Government has designed the program, with a focus on addressing ongoing and emerging skills shortages, and attracting and retaining individuals with specialist skillsets.

Of the 190,000 available places for the 2023-24 financial year, the majority of places will be split between the following streams:

• Family stream 52,500 places (28 per cent of the program); and
• Skill stream: 137,000 places (72 per cent of the program).

Under the Skill stream, places for all visa categories have been decreased or maintained from 2022-23 levels, except for the employer-sponsored visa category which has seen a slight uplift.

 

Visa category – Skill stream	2022-23 Planning levels	2023-24 Planning levels
Employer-Sponsored	35,000	36,825
Skilled-Independent	32,100	30,375
Regional	34,000	32,300
State/Territory Nominated	31,000	30,400
Business Innovation & Investment	5,000	1,900
Global Talent (Independent)	5,000	5,000
Distinguished Talent	300	300

 

The Government continues to focus its efforts on managing the number of visa applications on-hand by increasing capacity and funding in its visa processing units. For 2023-24, the Government has also committed to investing $27.8 million over two years to upgrade visa ICT systems, with the view to improve service delivery efficiency. 

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

 

The Department of Home Affairs confirms that the Australia-United Kingdom Fair Trade Agreement provides a blanket Labour Market Testing exemption for employers of UK nationals and permanent residents.

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As a result of the Australia-United Kingdom Free Trade Agreement (A-UKFTA) coming into force on 31 May 2023, Australian employers sponsoring UK citizens or permanent residents under the Temporary Skills Shortage subclass 482 visa program will benefit from a Labour Market Testing (LMT) exemption.

After the A-UKFTA came into effect, there was some uncertainty as to application of the LMT provisions, with differing views held by a number of stakeholders across the country.

Fragomen held the view that the provisions had the same effect as a number of other Fair Trade Agreements (FTA) which had been interpreted as exempting nationals and permanent residents of the other Party to the FTA from LMT, and made submissions to advocate for this position.

The Department of Home Affairs has since confirmed that they agree with that interpretation, and that the LMT exemption applies to all UK nationals and permanent residents applying for a visa under the Temporary Skills Shortage subclass 482 visa program.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

TOEFL iBT will no longer offer English language tests for Australian visa purposes until further notice.

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Changes to English language test through TOEFL iBT

The Department of Home Affairs has announced that from 26 July 2023, the Test of English as a Foreign Language (TOEFL iBT) will no longer offer English language tests for Australian visa purposes until further notice.

The decision has been made in response to a Request for Expression of Interest process whereby the suitability of English tests managed by English language test providers are assessed.

Fragomen recommends that visa applicants, who have booked an English language test through TOEFL iBT, contact their immigration professional to discuss alternate options.

Limitations on the acceptance of certain English tests

Some English test providers offer alternative versions of their tests that can be taken at home or online.

The Department of Home Affairs has advised that it does not accept scores from these tests for Australian visa purposes.

Additionally, it should be noted that the International English Language Testing System’s (IELTS) One Skill Retake (OSR) option is not accepted for Temporary Skill Shortage (subclass 482), Skilled-Recognised Graduate (subclass 476) or Temporary Graduate (subclass 485) visa applications. For these visa subclasses, visa applicants must complete an approved English language test and achieve the required scores in a single sitting.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The announcement that Australia is embarking on a once-in-a-generation reform to the country’s migration system has sparked significant interest and discussion within the migration industry and throughout corporate Australia and migrant communities.

Following the announcement by the Minister for Home Affairs, The Honourable Claire O’Neil MP in April 2023, the Government released its draft migration strategy and has committed to creating a more targeted and simpler migration system that serves migrants but also enhances Australia’s economic prosperity and security.

However, reforms of this scale will take time and prior to the rollout of major legislative changes, there will inevitably be a raft of additional announcements by Government, with the introduction of some interim measures to assist visa holders who may not yet have a pathway to a longer-term or permanent visa.

As these announcements and interim measures, coupled with COVID-19 pandemic concessions can be overwhelming and confusing we have set out a summary below.

Changes to come into effect in 2023

Change	Additional commentary
Labour Market Testing exemption for UK citizens and permanent residents	From 31 May 2023, Australian sponsor employers of UK citizens and permanent residents applying for the Temporary Skill Shortage (TSS) subclass 482 visa will no longer be required to meet prescribed Labour Market Testing (LMT) requirements. As at the date of writing this article, there have been administrative delays with Government incorporating the amendment into the relevant LMT legislative instrument. However, Fragomen has received confirmation from the Department of Home Affairs that the LMT exemption is in effect and can be used by employers.
The Temporary Skilled Migration Income Threshold will increase from $53,900 to $70,000 for employer-sponsored visa programs	This change will not impact existing visa holders or nominations lodged before 1 July 2023. New visa applicants or visa holders who require a renewal of their temporary employer-sponsored work visa from 1 July 2023 will need to meet the new TSMIT. Employers should also look at the Annual Market Salary Rate (AMSR) range which applies to the nominated role. As such, if the lower range of the AMSR falls below $70,000, this could be flagged as an issue during processing. Positions which attract a salary around the $70,000 mark should be monitored in case the TSMIT is increased on an annual basis.
Increase to upper age limit from 30 to 35 for UK citizens under the Working Holiday Subclass 417 visa program	From 1 July 2023, the upper age limit will increase to 35 years. UK passport holders can lodge an application for a Working Holiday visa until midnight (AEST) on the day before their 36th birthday. It is only from 1 July 2024 that UK passport holders will be able to apply for second and third Working Holiday visas without having to complete ‘specified work’.
Direct pathway to Australian citizenship for New Zealand citizens	From 1 July 2023, New Zealand citizens will no longer need to apply for and be granted a permanent visa before becoming eligible for Australian citizenship. These changes apply to New Zealand citizens holding a Special Category Subclass 444 visa (SCV) who arrive in Australia after 26 February 2001. All New Zealand citizens holding an SCV will be considered permanent residents for citizenship purposes. New Zealand citizens granted an SCV before 1 July 2022 will have their period of permanent residence for citizenship purposes backdated to 1 July 2022. New Zealand citizens granted an initial SCV on or after 1 July 2022 will be considered a permanent resident for citizenship purposes from the date of SCV grant.
Extension of visa duration for Temporary Graduate (Post-Study Work Stream) subclass 485 visa	From 1 July 2023, the period of stay for the Temporary Graduate visa in the Post-Study Work stream for eligible graduates of listed qualifications will increase as follows:  4 years for Bachelor degree graduates (up from 2 years)  5 years for Master degree graduates (up from 3 years  6 years for doctoral graduates (up from 4 years) The extension is in addition to the existing 1-2 years of work rights for eligible students who study, live and work in regional areas. Individuals who hold a Temporary Graduate visa in the Post-Study Work stream that expires before 1 July 2023 and do not hold an eligible qualification may be eligible to apply for a 2-year Australian Government Endorsed Events (COVID-19 Pandemic) subclass 408 visa.
Pathway to permanent residency for short-term TSS visa holders	By the end of 2023, short-term TSS visa holders will gain access to permanent residency under the Employer Nomination Scheme subclass 186 visa (ENS) Temporary Residence Transition (TRT) stream. TSS visa holders will need to demonstrate that they have worked in the nominated occupation on their TSS visa for a period of 2 years with the sponsoring employer (reduced from 3 years). All other nomination and visa requirements under the TRT stream of the ENS visa program must also be met.
Visa application charges	From 1 July 2023, the Visa Application Charges (VAC) for most visas will be increased in line with the 2023-24 forecast Consumer Price Index (CPI) of 3.25%. Select visitor and temporary visas, including Temporary Activity and Temporary Work (Short Stay Specialist) visas will be increased by further 21% in addition to CPI. Business Innovation and Investment visas will be increased by a further 46% in addition to CPI. Remaining visas will be increased by 6% in addition to CPI. It is intended that these indexation amendments will continue to be made on an annual basis
Superannuation Guarantee rate	On 1 July 2023, the Superannuation Guarantee percentage rate will increase from 10.5% to 11% and thereafter will annually increase in increments of 0.5% for the next 2 financial years up to 12%. Employers are reminded that Guaranteed Annual Earnings (GAE) for employees sponsored under the TSS subclass 482 and Skilled Employer Sponsored Regional subclass 494 visa programs must not drop below the GAE as specified in the approved nomination. Importantly, GAE does not include mandatory superannuation contributions.
Medical examinations	From 1 July 2023, urine tests will no longer form part of the medical examination. Instead, visa applicants will require a blood test to be taken. Applicants aged 15 years or older, who have not completed their medical examinations prior to 1 July 2023, will be required to undertake a blood test. The change will be implemented to assist panel physicians with the screening for chronic kidney disease. The blood test replaces a less accurate urine test.

COVID-19 Concessions coming to an end

Concession	What rules apply from 1 July 2023?
Working Holiday Makers can work for any employer for the duration of their visa without making a written request up until 30 June 2023.	The standard 6-month work limitation rule will apply to all Working Holiday Makers. However, Working Holiday Makers will be permitted to work for any employer for up to an additional 6 months, even if they worked for that same employer prior to 1 July 2023.
Work hours limitation removed for Student Visa holders until 30 June 2023	The work hours limitation will be re-instated for Student Visa holders. However, the Government will increase the allowable work rights cap from 40 hours per fortnight to 48 hours per fortnight.  An exception remains in place for students already working in the Aged Care sector on 9 May 2023. This cohort will continue to enjoy unrestricted work rights until 31 December 2023.
Temporary Graduate subclass 485 (Graduate Work stream) visa holders not required to nominate an occupation on the Medium/Long-term Strategic Skills List (MLTSSL) and not required to obtain a positive skills assessment outcome.	Temporary Graduate subclass 485 (Graduate Work stream) visa holders will be required to nominate an occupation on the MLTSSL and obtain a positive skills assessment outcome.
Ability to apply for third Temporary Skill Shortage (TSS) subclass 482 visa under short-term stream while in Australia	The ability to apply for a third TSS visa in the short-term stream while in Australia will come to an end on 30 June 2023. We are waiting on the Government to confirm whether this concession will be extended beyond 30 June 2023. Although the Government has confirmed that it will introduce interim measures to remove the limitation on the number of onshore TSS visas under the short-term stream that can be applied for, this provision has not yet been implemented through a change in legislation.

For further information and advice on upcoming changes to the Australian migration system, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

The Department of Home Affairs has provided further information on the two key changes to be implemented in 2023 as part of the Government’s long-term strategies to transform and strengthen the skilled migration program.

 

Further to Minister Clare O’Neil’s media address on 27 April 2023 regarding the Government’s strategy to reform the Australian skilled migration program, the Department of Home Affairs has provided further details on the following changes:

• Expanded employer-sponsored permanent residency pathway for short-term Temporary Skill Shortage (TSS) subclass 482 visa holders; and
• Increased Temporary Skilled Migration Income Threshold (TSMIT).

Pathway to permanent residency for short-term TSS visa holders

By the end of 2023, short-term TSS visa holders will gain access to permanent residency under the Temporary Residence Transition (TRT) stream of the Employer Nomination Scheme (ENS) subclass 186 visa program.

Eligible occupations will not be limited to the Medium and Long-term Strategic Skills list.

The following criteria will need to be met by visa applicants:

• Continue to work in the nominated occupation specified on their TSS visa;
• Demonstrate a period of employment for 2 years with the sponsoring employer (reduced from 3 years); and
• All other nomination and visa requirements under the TRT stream of the ENS visa program must also be met.

As an interim measure, the Department of Home Affairs will remove limits on the number of short-term TSS visa applications that a visa holder can make in Australia. This measure will assist individuals that are currently onshore who would normally need to go offshore to make a further visa application.

Temporary Skilled Migration Income Threshold

From 1 July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $53,900 to $70,000.

New nomination applications from this date will need to meet the new TSMIT level or the annual market salary rate, whichever is higher.

The Department of Home Affairs has confirmed that the change will not affect existing visa holders and approved nominations lodged before 1 July 2023. Fragomen will monitor and advise of further announcements on the impact of these changes to nomination applications lodged but not finalised prior to 1 July 2023.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

Minister O’Neil has announced a new migration system for Australia’s future by unveiling two key changes to be implemented in 2023 and further long-term strategies to transform and strengthen the skilled migration program. Minister O’Neil has announced a new migration system for Australia’s future by unveiling two key changes to be implemented in 2023 and further long-term strategies to transform and strengthen the skilled migration program.

In a media address on 27 April 2023, Minister for Home Affairs, The Hon Clare O’Neil, announced the Government’s strategy to reform the Australian skilled migration program.

The strategy is informed by the independent Review of the Migration System report led by Dr. Martin Parkinson and in which Fragomen’s submissions were considered and referenced.

The Government’s first action in response to the review will be to:

• • • Increase the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000 effective 1 July 2023; and
    • Create of a pathway to permanent residency for Temporary Skill Shortage (TSS) short-term stream visa holders by the end of 2023.

Broader reviews on the following areas will also be addressed by Government:

• • • Creation of a three-tiered system for temporary skilled migration, catering for:
      • • Specialised, highly skilled and high-income workers, including intra-corporate transferees;
        • Mainstream skilled workers;
        • Essential Skilled workers, including aged care workers;
    • Simplification of the visa system to reduce the number of visa categories;
    • Radically changing the approach to how current labour market testing requirements and occupation lists are applied under temporary skilled visa program by adopting a data-driven approach managed by Jobs and Skills Australia to keep up with skill shortages;
    • Recalibration of the points test for the general skilled migration program;
    • Tightening up of the student visa program and creating access to longer-term residency options;
    • Reform of the Global Talent visa program;
    • Transfer of skills of secondary visa holders into the local labour market;
    • Restructure of the Business Innovation and Investment visa program.

The Government will consult with State and Territory governments and key stakeholders on the proposed strategies and policy shifts with the view to releasing the final Migration Strategy in late 2023.

Fragomen welcomes the Government’s reform of the Australian skilled migration system and will continue to monitor the proposed changes and its impact on our clients.

If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to [email protected].

In recognition of the long-standing bi-lateral relationship between Australia and New Zealand, the Department of Home Affairs will be introducing a direct pathway to Australian citizenship for New Zealand citizens living in Australia.

As announced by the Australian Prime Minister, Minister for Home Affairs and Minister for Immigration, Citizenship and Multicultural Affairs on 22 April 2023, New Zealand citizens living in Australia will be eligible to apply directly for Australian citizenship.

When will the changes come into effect?

From 1 July 2023, New Zealand citizens will no longer need to apply for and be granted a permanent visa before becoming eligible for Australian citizenship.

Who will benefit from these changes?

These changes apply to New Zealand citizens holding a Special Category (subclass 444) visa (SCV) who arrived in Australia after 26 February 2001.

Protected SCV holders will continue to be eligible to apply directly for citizenship. Protected SCV holders include:

• • • New Zealand citizens who were in Australia on 26 February 2001; or
    • New Zealand citizens who were in Australia for at least 12 months in the two years immediately prior to 26 February 2001.

Once in effect, the provisions will apply to New Zealand citizens in Australia and New Zealand citizens who are overseas, but held an SCV immediately before last departing Australia.

It is anticipated that more than 300,000 New Zealand citizens currently residing in Australia will benefit from these changes.

Eligibility requirements for direct pathway to citizenship

In order for an applicant to become eligible for Australian citizenship by conferral, they must demonstrate that they have been lawfully resident in Australia for four years, including 12 months as a permanent resident, immediately before the date of application. There are also limitations on periods of absences from Australia.

New Zealand citizens who are long-term residents in Australia will be able to achieve the residence requirement based on their period of permanent residence being backdated.

From 1 July 2023:

• • • All New Zealand citizens holding an SCV will be considered permanent residents for citizenship purposes;
    • New Zealand citizens granted an SCV before 1 July 2022 will have their period of permanent residence for citizenship purposes backdated to 1 July 2022; and
    • New Zealand citizens granted an initial SCV on or after 1 July 2022 will be considered a permanent resident for citizenship purposes from the date of their SCV grant.

The backdating of permanent residence for SCV holders will also benefit any children born in Australia on or after 1 July 2022 to an SCV holder. This cohort may automatically acquire Australian citizenship from birth. From 1 July 2023, children who meet these circumstances can apply for evidence of citizenship.

If you have any questions or you would like to connect with our Private Client Practice to assess your eligibility for Australian Citizenship, please send an email to[email protected].