Hi everyone it's the former-case officer/current migration agent again. I didn't think I'd be making another post again so soon, but we're getting so many questions about the bombshell from earlier this month, so I figured it's worth making one so we can discuss the changes in one spot.

I've also found that people are unclear about what these changes mean for them, so I've tried to add my thoughts about the situation too. It's clear the new government is really keen on overhauling what they consider to be a flawed set up by the previous government - and there will be some winners and some losers. Hope this helps you determine which side of the coin you're on.

Please leave a comment below if you have questions and we'll be happy to answer them. I'm sometimes busy so my colleague u/SpringAutumnW (MARN: 1790941) will help reply.

General

• Projected net overseas migration is anticipated to decrease from 510K in the last fiscal year to 375K this fiscal year (-26%), and further down to 250K in FY25 (another -33%). It's expected that these figures will then remain consistent at this reduced level going forward.
• As I'd mentioned in my previous posts, migration numbers are expected to drop from the unprecedented levels in FY22 & FY23, but this is more than I'd expected.
• Depending on how they decide on the allocations between the different visa categories, this will have a huge impact on skilled visas - and many hopeful applicants may find themselves not being able to get an invitation without first taking deliberate steps to maximise their chances.

Employer-Sponsored

• Overall, the employer sponsorship process will become more tailored and streamlined for various types of work. The abolition of the non-PR and PR occupation lists from earlier is also being carried forward into the new program, which is a welcome change.
• If you've got a potential sponsor for a skilled occupation, I don't think much changes, except knowing you'd have a decent pathway to PR and that the process is easier. But this process will still remain relative complex and generally the employers/applicants will need to engage professionals for the process to reduce risk of stuffing something up.

Announced Changes

• The standard employer-sponsored visa (current the 482 TSS) will be split into 3 streams:
  • "Essential skills"
    • Salary < $70K
    • Union oversight (perhaps will be similar to the Entertainment stream of the 408 visa where a union needs to approve of the arrangement by seeing that more Australian jobs will be created by the entertainer).
    • Capped and be restricted to specific sectors - only aged care and disability has been mentioned so far
  • "Core skills"
    • Salary $70K - $135K
    • Pseudo-occupation list determined by government employment body (Jobs and Skills Australia)
  • "Specialist skills"
    • Salary $135K+
    • No occupation list
    • 7-day processing time
    • Capped at 3K places
    • No trades, machinery operators, drivers, labourers
• The minimum salaries will be indexed annually.
• Visas will be granted for 4 years, and all streams will have a pathway to PR.
• There will be a public register of employers to facilitate switching employers. Currently, employers have to go through at least the nomination application process again in order to "take over" a sponsorship.
• They're considering splitting the SAF levy (the levy that employers must pay for this process) into smaller increments, rather than charging a huge lump sum upon application. I really hope they follow through with this, because it'll make employers more willing to go through the process for you. It's also really unfair on employers when you guys leave early on in the sponsorship for another company (unless of course they were insufferable to begin with).
• Labour Market Testing (employers having to prove they can't find another Australian for the role) will be made easier:
  • validity of the ads will increase from 4 to 6 months
  • Workforce Australia will no longer be a mandatory platform (this is a real godsend...you'd understand if you've had to do this process)

Students/General Skilled Migration

• GSM sounds like it will get harder for 2 key reasons:
  • Decreased availability of places
  • Much higher requirements for the 500 Student and 485 Temporary Graduate visas, which are common "stepping-stone" visas for GSM strategies that have a high chance of success. Key changes here that would impact a GSM strategy are the restriction on course changes and the new age limit for the 485 visa.
• This makes it essential for you to plan properly if you're planning to undertake study in Australia for PR, which is generally the recommended pathway for GSM as it's most reliable and will most likely result in a visa invitation.
• Other changes have been announced specifically for the GSM/independent skilled visas themselves, but still seem very vague at the moment. I'm hoping they are positive changes, as they mention changing the roles that state governments and skills assessment authorities play in the process, which hopefully will make things more simple or catered to the needs of students/prospective skilled migrants.
• If you're an prospective offshore GSM application, note that your chances of getting an invitation will reduce. Having that said, for most occupations, it may still be worth a shot "being in it to win it" if the cost/effort of applying for the skills assessment + EOI/ROI isn't prohibitive for you.
• Remember that chances of actually getting an invitation when applying for nomination directly from offshore is low. The principles of maximising your chance of getting a visa invitation that were prevalent pre-COVID become increasingly important: https://www.skylarkmigration.com.au/post/how-to-get-australian-pr-in-4-minutes
• It was quite shocking to hear that they will cap the age eligibility of the 485 Temporary Graduate visa to 35! This is concerning for me because many clients that come to us after trying to plan their own PR pathway often do so after being on the 485 visa for a few years. This new requirement will obviously severely restrict the time you have before you realise you don't have a realistic pathway, so this would really emphasise doing proper research & planning BEFORE coming to Australia to study.
• Note that our preferred strategies wouldn't require the 485 visa anyway, and there are other ways to extend your stay in Australia after graduation, so don't be discouraged from planning for your PR even if you're above 32 years old!
• They also plan to greatly reduce Student visa numbers through increased requirements (as opposed to placing a cap). The education providers are also incentivised to look for evidence of these requirements being met, so it'd be worth paying attention to this even if you're not interested in PR.

Announced Changes

• Increased English proficiency requirements:
  • 500 visas with ELICOS: from 4.5 IELTS overall to 5 IELTS overall, or equivalent
  • 500 visas for foundation programs/"reputable" English training programs: 5 IETLS ➡️ 5.5 IELTS
  • Other 500 visas: 5.5 IELTS ➡️ 6.0 IELTS
  • 485 visas: 6.0 IETLS ➡️ 6.5 IELTS
• New "Genuine Student" test, which sounds like a beefed-up version of the current GTE requirement, some key points below that directly affect GSM migration strategy:
  • It will become much harder for 485 visa holders to "go back" onto Student visas. This was already hard previously, but doable, so was a good way to get back on track towards PR for graduates who didn't fully understand their PR prospects and didn't study the "right course". It sounds like this 2nd chance won't be as easy to obtain so I would emphasise again the importance of planning your study properly if you want PR.
  • Doing additional studies after your first course sounds like it will become virtually impossible if it's in a different field to what you previously studied. This means if you've chosen a course that's not suitable for PR, you're kinda stuffed unless you get it through relevant employment.

DISCLAIMER:

We will try to be as specific as possible with our answers, but can only provide advice based on the information you are providing to us in your questions. It's always best if you have a formal consultation with us to cover all bases. For compliance purposes, our answers constitute an "initial consultation", which we're only to provide once without a formal service agreement. If you have a follow-up question, we can only provide generic answers (non-advice) unless we engage you properly as a client.