There will be no further cuts to migration numbers
The Australian Govt. has announced that there will be no further cuts to migration numbers. However, the Govt. will focus on how to encourage migrants to move to the regional areas.
Julian Leeser, Liberal MP, said that Australia’s quality of life depends on solving the challenge of how to better redistribute Australia’s migrant population. The immigrant population in Australia will increase by 25% to 31.4 million in the next 15 years, as quoted by The Guardian.
Mr Leeser says that most of the population growth is expected in major cities like Melbourne, Sydney, Perth and Brisbane. The Govt. is not looking to make any further reductions in the immigration intake. However, the permanent visas places will be capped at 160,000 per year.
Mr Leeser also adds that it is not about how many people should be in the country. The bigger question is that where should all these people go. He says that the Govt. is trying to formulate policies which will encourage the immigrant population to move to regional areas. The goal of the Govt is to currently encourage more people to move to regional areas to address the skill shortages in these areas.
The Coalition Govt. has been focusing on pushing more people to the regional areas. However, many critics have raised concerns that the regional visa push is not workable.
A report by Infrastructure Australia found that it will cost $40 billion in annual infrastructure to cope with future population growth. The population in Australia is forecasted to grow to 31.4 million by 2034. The report points out that most cities are not equipped to handle the current rate of population growth.
Mr Leeser says that people of his electorate often complain that there are too many people in Sydney. However, even though these people agree with the annual cap on migration numbers, they also believe that more people should move to regional Australia. Many jobs go unfilled in regional Australia due to a shortage of labour.
Mr Leeser also adds that regional areas in Australia offer a high quality of life. There are many opportunities available in regional areas. Plus, the cost of living is much lower and getting around is much easier in the regional areas.
Extra 1 year visa for international graduates from regional institutions
The Department of Home Affairs has announced a new initiative for an additional Temporary Graduate visa with an extra year of post-study work rights for international students who:
- graduate from the regional campus of a registered university or institution with a higher education or postgraduate qualification; and
- maintain ongoing residence in a regional area while holding their first Temporary Graduate (subclass 485) visa
The second Temporary Graduate visa will require ongoing residence in a regional area.
The definition of regional Australia for this purpose will be the same as the definition for skilled migration – all of Australia except Sydney, Melbourne, Perth, Brisbane and the Gold Coast.
Increase in post-study work rights based on Australian qualification:
- Bachelor degree (including Honours ): 2 + 1 year
- Masters by coursework: 2 + 1 year
- Masters by research: 3 + 1 year
- Doctoral degree: 4 + 1 year
- Other course of study comprising at least 2 academic years: 1.5 + 1 year
In order to be eligible for this visa extension, students need to graduate from a regional institution and then spend at least two years residing in a regional area. The additional Temporary Graduate visa will be officially implemented in November 2019, and be available to the first eligible graduates from 2021.
Existing Temporary Graduate visa holders may be eligible, provided they can meet these requirements.
Regional areas may include Newcastle, Wollongong, NSW Central Coast, Adelaide, Hobart and Canberra.
Skilled Regional Visa Transition Update
In the lead up to the introduction of the new Skilled Regional visas in November, Immigration has announced further details on the implementation dates for the 491 and 494 visas, and transitional arrangements for Subclass 489 and RSMS visas.
Most importantly, Immigration advises that the last date to be invited for a Subclass 489 Skilled Regional (Provisional) visa will be 10 September 2019. The last date to then lodge an application based on an invitation would be 15 November 2019.
The last date to lodge a Subclass 187 Regional Skilled Migration Scheme nomination or visa through the direct entry stream will also be 15 November. Any direct entry RSMS nominations not finalised by 16 November will be automatically withdrawn unless the corresponding visa application has also been lodged.
The RSMS temporary residence transitional stream will remain open to certain 457 visa holders eligible through ‘grandfathering’ provisions, and those who held or had applied for a 482 visa prior to 20 March 2019.
Subclass 186 Employer Nomination Scheme (ENS) visa applicants will not be affected by these changes.
Regional Area Definition
The definition of ‘regional Australia’ will be simplified to include anywhere outside of Sydney, Melbourne, Brisbane, the Gold Coast, and Perth. Immigration will provide a list of postcodes to assist applicants to determine whether their area falls into the above metropolitan areas or if it is acceptable for regional migration.
Subclass 491 Skilled Work Regional (Provisional) visa
It will be possible to lodge an Expression of Interest for this visa from 16 November 2019, and States/Territories will also be able to nominate and invite applicants from this date.
This is designed to replace the Subclass 489 visa, with both the State/Territory and Family sponsored pathways available. This visa will be valid for 5 years, with a number of compliance conditions including the requirement for all family members to live, work and study only in a designated regional area, and to notify Immigration of any reportable changes within 14 days. Immigration can also ask visa holders to provide evidence of their activities or attend an interview. Failure to comply with these conditions can lead to visa cancellation and/or loss of a pathway to permanent residency.
Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa
The Subclass 494 visa process mirrors the one for TSS applications as there needs to be a Business Sponsorship (or Labour Agreement), and a Nomination either approved or submitted before a visa application can be lodged.
From 16 November 2019, businesses will be able to use this current sponsorship to nominate employees and lodge the corresponding subclass 494 visa application.
Nomination applications must include evidence that Labour Market Testing has been undertaken, as well as advice from a Regional Certifying Body confirming that the market rate is acceptable for the local area. A Skilling Australians Fund (SAF) levy is payable. Applicants must be less than 45 years of age, and hold a successful skill assessment at the time of lodgement.
Once granted, the visa will be valid for 5 years with the same regional compliance conditions as the 491 visa. Holders are also eligible for Medicare, so private health insurance is not required.
Visa holders will also be subject to a work limitation condition similar to the TSS visa, in that they are only able to work for their nominating employer. Should this employment cease, the holder has 90 days to find a new sponsor or to depart Australia.
Permanent residency pathway
Migrants who hold a Subclass 491 or 494 visas must remain on these visas in a regional area for at least 3 years before they can be considered for any other skilled visa. This includes applications for other GSM visas (189, 190), Employer Nomination Scheme, and Business visas. In addition, applicants are barred from applying for an onshore Partner visa until the 3-year residence requirement is met.
In order to be eligible for the Subclass 191 Permanent Residence (Skilled Regional) visa, applicants must meet the 3-year residence requirement, along with evidence that they have earned a minimum taxable income for three years as the holder of a regional provisional visa (amount to be confirmed) and have complied with the conditions of their 491 or 494 visa.
Amended GSM points test
The current GSM points test will be updated on 16 November, giving Skilled visa applicants additional points as follows:
- Nomination by state or territory government or sponsorship by an eligible family member to reside and work in a specified/designated area – 15 points(currently 10)
- A Masters degree by research or a Doctorate degree from an Australian educational institution that included at least two academic years in a relevant STEM field – 10 points(currently 5)
- Partner skill qualifications – 10 points(currently 5)
- Partner with competent English but not eligible for Partner skill qualifications points – 5 points(currently nil)
- Single applicants (no partner) – 10 points(currently nil)
Migrants interested in applying for the Subclass 489 visa must ensure they are able to lodge an EOI as soon as possible, as there are now only 2 months remaining for his visa pathway (invitations must be issued by 10 September 2019).
Similarly, migrants and businesses interested in a direct entry RSMS visa should immediately start looking at the RCB, Nomination, and Visa application requirements. Regional Certifying Bodies often have different or additional requirements to those set out by Immigration, including the need for Labour Market Testing (advertising the role) in set locations and for set periods of time.
Australia immigration changes to watch out for July
The 1st of July marked the beginning of the new immigration program year for Australia. This is when the Australian Govt. sets quotas for skilled migration. The Govt. also plans levels for state sponsorship spots at the beginning of the immigration program year.
With the beginning of the new program year, here are the changes to watch out for:
- Visa fee increase
Beginning on the 1st of July, most visa subclasses will see a 5.4% increase in the Visa fee. Student Visa fee increases from $575 to $606. Skilled Migration Visa fee increases from $3,755 to $3,958 while Partner Visa fee increases from $7,160 to $7,547.
However, the Visa fee for Contributory Parent Visa (Subclass 143) and Visitor Visa (Subclass 600) will remain unchanged.
- Changes in the points-test system for skilled migration
The changes in the points-test system for skilled migration will come into effect from November 2019. Some noteworthy changes are extra points to single applicants and awarding points for partner English skills.
- Partner Visa rules to become tougher
The Partner Visa of Australia will undergo procedural changes from 1st July. Starting from July, Australian partners would need to be approved first before they can sponsor their spouse or common-law partner. The background and character assessment of the Australian sponsor has to be approved before lodging the Partner Visa application. These procedural changes will also make the processing time longer.
- DAMA (Designated Area Migration Agreements)
The DAMA allows employers from a particular region to recruit overseas workers. The DAMA allows them to sponsor workers who may not be on the Australian occupation list. The workers also receive a concession on salary, experience and English requirement. The DAMA also provides a pathway to Permanent Residence for these overseas workers.
The below regions are currently eligible for DAMA:
- South Australia
- Northern Territory
- Far North Queensland
Starting 1st July 2019, employers are able to submit applications for participating in the program.
This Australian sector is struggling with a massive labour shortage
Australia is planning a number of rail and infrastructure projects around the country. Once completed, they will make commuting much easier for passengers in Australia. However, the Building and Construction industry is struggling with a massive labour shortage. They are having a tough time filling in job vacancies to get these projects off the ground.
There is a major dearth of electricians and talented engineers in this industry. Building Contractors are finding it hard to find the right guys to connect the signalling systems to the new train lines.
As per the 2018 data from Seek, electricians were the most sought-after professionals in Australia in 2018. Electricians have the highest demand in the state of Victoria.
There are a number of current and projected infrastructure projects in the state of Victoria. This has significantly increased the demand for electricians in the state. With a large number of projects running, there is a huge demand for electricians with industrial and specialized experience.
Sebastian Fleury is the Regional Head of Rail Project Delivery of Aecom. He said that he could double his workforce provided he found enough skilled people to fill in the vacancies. He also said that Aecom currently has 40 to 50 open jobs. These are mostly civil, structure and geo-technical jobs.
With a large number of infrastructures projects, companies are competing with each other to attract and retain skilled workers. Companies often pay or steal workers from other contractors when they win two or three projects.
Joe Barr, CEO of John Holland, says that finding the right people especially in the engineering domain is a tough task. He said that his company focuses on developing and retaining the engineers that are currently working with them. His company gives them new opportunities and moves them into new projects when their old projects get over.
Pathways is an industry-first program in Melbourne. It helps skilled engineers from marginalized backgrounds get a foot in the door of the construction industry. These engineers are usually refugees or come from displaced industries.
It is not always possible to transfer skills from one industry to another. For example, domestic electricians are not qualified to work on railway tunnels. This is further forcing companies in Australia to look overseas for skilled workers.
What are the health requirements of an Australian Visa?
The Migration Regulations 1994 outlines the health requirements for an Australian Visa. This is under Schedule 4 of the Public Interest Criteria.
As per the Govt, there are 3 major objectives:
- To ensure public safety and to safeguard Australians against infectious diseases like TB
- To safeguard access for Australians to medical supplies which are in short supply like organ transplants
- To limit the spending on community and health services
The present protocol for enforcing the policy states that it is crucial for the country and its visa programs. It is to ensure that public health risks and health costs do not spike due to incoming travellers and migrants.
Advocates have, however, been critical of the cost of health requirement. They believe that it targets those with a permanent disability. This is a breach of the international human rights that Australia is obligated to follow. This is under the United Nation’s Convention on the Rights of Persons with Disabilities.
The Australian Govt. decides if the health costs need to be increased or not on something called the “Significant cost threshold” policy. Visa applicants who have a disability or medical condition do not meet the requirement. This happens when a Medical Officer of the Commonwealth deems that the cost of the medical condition is higher than that of the threshold. Australia has currently fixed the “significant cost threshold” at $40,000, as per SBS News.
For a Temporary Australian Visa, the probable cost of services is assessed for the validity of the visa. For example, an Australian Student Visa is usually valid for a period of 4 years. Thus, the predicted health costs are calculated at approximately $12,000 per year. Someone who does not meet this threshold will not be able to fulfil the requirement.
For Australia PR applicants who are under 75 years, whether the cost is exceeded or not is calculated by the costs incurred over 5 years. For Australian PR applicants who are above 75 years, the cost is calculated by the costs incurred over a period of 3 years.
Post-Election Immigration Update
The Australian federal election is over, and we expect that the Liberal National Party coalition will retain government for the next three years. There has been no announcement on changes to the Minister for Immigration as yet, so we will need to wait and see.
A retained LNP government means some assurance that the announced subclass 491 Skilled Work Regional (Provisional) visa and the subclass 494 Skilled Employer Sponsored visa will commence in November 2019 as advised. The push to prioritise the movement of migrants into regional Australia will remain strong on this government’s agenda.
Designated Area Migration Agreements (DAMA)
Further DAMAs are in the works, supporting the regional push and assisting businesses in these areas to access skilled and semi-skilled overseas workers to meet their operational needs. There is greater flexibility in DAMA arrangements than in the Standard Business Sponsorship pathway, including access to a broad range of occupations, threshold salary concessions, and age concessions for permanent residency.
The Cairns Chamber of Commerce in North Queensland is currently in negotiations and is likely to announce a new DAMA in the coming months.
The South Australian Government has entered into two DAMAs with the Department of Home Affairs which are expected to come into effect on 1 July 2019:
- Adelaide Technology and Innovative Advancement Agreement– supports Adelaide Metropolitan region employers in the defence, space, and advanced manufacturing and technology industries with the ability to access and retain a highly-skilled workforce.
- South Australian Regional Workforce Agreement– covering the entire State of South Australia, this DAMA provides employers in the regional growth areas of agribusiness, health and aged care, hospitality and tourism, mining, and construction, with the ability to access and retain a skilled workforce.
Nomination Refusals – 457 and 482 (TSS)
Some interesting data has been released under the Freedom of Information Act, showing the subclass 457 or 482 nomination outcomes for applications lodged between 1 November 2016 to 31 January 2019.
According to the report, almost 10% of all nominations were refused, and a further 7% were ‘otherwise finalised’ or withdrawn.
Occupations with a high chance of refusal include Customer Service Manager (47%), Massage Therapist (40%), and Web Administrator (32%).
The greatest number of failed applications were in the hospitality occupations of Cafe or Restaurant Manager (1385 refusals, 698 withdrawn), Cook (1296 refusals, 788 withdrawn), and Chef (802 refusals, 496 withdrawn).
Skilling Australians Fund (SAF) Review
The released data also shows that there may be a large number of Australian businesses out of pocket, as the SAF levy is not refundable if the nomination is refused. Thankfully, the Skilling Australians Fund levy legislation is due to undergo a review in around November 2019, with many parties advocating for a change of the refund provisions.
Senate Inquiry into Temporary Skill Shortage visas
A report assessing the effectiveness of the current temporary skilled visa system was released in April 2019, with a focus on the temporary skilled visa system’s capacity to address genuine skill shortages. The Legal and Constitutional Affairs References Committee – who released the report – made a number of recommendations, including:
- Increasing the Temporary Skilled Migration Income Threshold (TSMIT) to a minimum of $62,000 indexed annually
- Reviewing and updating the health policies to ensure that temporary visa applicants will not be rejected on health grounds where there is no possibility of health and social services costs accruing to the Commonwealth or state and territory governments
- Greater transparency in the Government’s administration of skilled occupation lists, including publishing reasons for adding and removing occupations
- Greater scrutiny into skills assessments and licencing and more stringent requirements for labour market testing
There has been no formal response from the Government at this stage, so we will wait and see if any of these recommendations will be implemented.
Accreditation through Major Investment
Earlier this year, Immigration announced a potential new category to become an accredited sponsor for Temporary Skills Shortage visas. The business would need to show an investment of at least AUD$50 million, though if the investment is of significance and will generate employment, a lower level may be considered on a case by case basis. No further policy information is available at this stage.
Immigration and the Budget
The Australian Government presented the 2019/2020 budget on Tuesday 2 April 2019, and as usual there were plenty of changes announced affecting the Immigration portfolio.
Lodgement Fee Increase
From 1 July 2019, visa application charges will increase for all visas except the Subclass 600 Visitor visas. The planned increase of 5.4% will see base application fees for a permanent skilled visa rise by just over $200 for a primary applicant, for a Graduate visa the increase will be just over $80, and for Partner visas there will be a whopping increase of $386.
Second Visa Application Charges, such as those for Parent visas and non-functional English for dependents will not be affected.
Cut to Immigration Numbers
The maximum number of visas available for the 2019/2020 program year will be lowered to 160,000, with the most significant cuts from the Skilled Independent and Employer Sponsored visa types. This is to make way for 23,000 places in the new regional visa program announced for November 2019.
Push to regional Australia
As we reported earlier, Immigration plans to introduce three new visas aimed at attracting migrants to regional areas of Australia. From 1 November 2019, the provisional employer sponsored and provisional work visas would be available, with the permanent Skilled Regional visa available from November 2022.
The definition of ‘regional’ will be simplified to include anywhere outside of Brisbane, Gold Coast, Sydney, Melbourne and Perth, so migrants can look at places like Queensland’s North coast and Toowoomba, New South Wales’ Northern Rivers, Central coast, and Hunter Valley, Geelong and the Grampians region in Victoria, and anywhere in South Australia, Tasmania, and the Northern Territory.
Closure of existing regional visas
The current permanent Regional Sponsored Migration Scheme (subclass 187) visa and the State Nominated temporary regional visa (subclass 489) will be discontinued when the new regional visas come into effect. Existing visa holders and applications lodged before this date will not be affected.
For people considering regional options, this means that the current regional visa subclasses will be replaced by new regional visa subclasses. The major change proposed so far is that requirement to live in the region will increase from 2 to 3 years.
Longer stay for International Graduates
From 2021, International Students who complete their studies in regional Australia and continue to remain in regional Australia on their graduate visa will be able to apply for a further one-year post study work visa.
New scholarships will be available for international and domestic students to study in regional areas, for higher education and vocational education qualifications.
GSM Points Test Changes
From 1 November 2019, the skilled migration points test will be adjusted to award additional points to applicants where their partner has competent English but cannot meet the other requirements for skilled partner points. Single applicants will not be disadvantaged as there will be other additional points available, however, there is no detail on how these points are to be gained.
SAF revenue down
The budget reported that the revenue from the Skilling Australians Fund levy is forecast to be $126 million less than originally forecast for the four years to 2022-23, due to lower than expected demand for employer sponsored visas. However, a number of large infrastructure projects were also announced in the budget which may well require employers to bring in more skilled workers from overseas.
People interested in applying for a RSMS visa or 489 visa should ensure these are lodged by the end of October to be eligible under the current rules.
Everyone else who is looking to apply for a visa should try to lodge before 1 July 2019 (if possible) to avoid the fee increases, or start making plans to cover these additional costs.
Regional Skilled Visas and New Points Test
New Subclass 491 Skilled Work Regional visa
Even though it will not come into effect until 16 November 2019 , the legislation for the new visa is now available. This is great news as it will allow people to really plan for the end of the year. There are still some gaps in the information (such as what the occupation list will look like) but here are the highlights.
There will be a new definition for what is a regional area in Australia and this will apply to all references to a regional area, including the points allocated for regional study in Australia. The area appears to be defined as all of Australia outside the metropolitan areas of Brisbane, Gold Coast, Sydney, Melbourne and Perth; though no postcodes are available as yet so we are not sure what a metropolitan area will mean.
Most of the requirements for the visa will be similar to the current subclass 489 visa (which will cease when this visa comes in). The applicant will still need to be nominated by a state or territory or sponsored by a family member living in a designated area as defined above. There will be an invitation to apply for the visa, the applicant has to be under 45 years old, have competent English, and meet the points test.
Changes to the points test
There are some exciting changes for all points-tested Skilled visa applications from 16 November 2019 . New points will be available as follows:
- If you have a partner who is skilled with competent English (current requirement) there will be 10 points rather than 5
- If you do not have a partner or your partner is an Australian citizen or permanent resident, you will also get 10 points
- If you have a partner who has competent English only, there will be 5 points to be gained
- Specialist education points (where you study in Australia in a Master or PhD course with certain broad and narrow fields as defined in CRICOS) will increase from 5 to 10 points
- Designated regional nomination or sponsorship points will also increase from 10 to 15 points
The visa will be valid for 5 years but have strict reporting and compliance conditions to ensure that the main applicant and all family members only live, work and study in a designated regional area.
After three years of holding the subclass 491 visa, you can apply for a Subclass 191 Permanent Resident (Skilled Regional) visa. You must have complied with all the conditions of your visa, and provide three years of tax assessment notices showing a taxable income above a certain level (the amount has not yet been announced).
Migration program planning levels
The Migration program is designed to achieve a range of economic and social outcomes. The program is set annually, with the total places available capped at a ceiling of 160,000 for 2019-20. The total program is broken down into the following streams:
- Skill – designed to improve the productive capacity of the economy and fill skill shortages in the labour market, including those in regional Australia. The majority of the places in the program are in the Skill stream (108,682 places in 2019-20, 69.5 per cent of the program).
- Family – is predominately made up of Partner visas, enabling Australians to reunite with family members from overseas, and provide them with pathways to citizenship (47,732 places in 2019-20, 30.5 per cent of the program).
- Special Eligibility – this covers visas for those in special circumstances. This can include permanent residents returning to Australia after a period away, and is the smallest stream (236 places in 2019-20).
- At least 3,350 Child places will be available in 2019-20.
|Stream and Category||2019-2020|
|Skilled Employer Sponsored||9,000|
|Skilled Work Regional||14,000|
|Business Innovation & Investment program||6,862|
|Child (estimate; not subject to a ceiling)||3,350|
Program size and composition
The size and composition of the Migration program is set each year through the Australian Government’s Budget process. It is informed following broad public consultations with state and territory governments, business and community groups and the wider public. Community views, economic and labour force forecasts, international research, net overseas migration and economic and fiscal modelling are all taken into account when planning the program.