In Short
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The Australian government is increasing employer-sponsored visa places from 36,825 to 44,000.
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New National Innovation Visa (NIV) will attract talent in critical sectors such as technology and healthcare.
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Immigration reforms aim to improve skills availability and address industry-specific talent shortages.
Tips for Businesses
Stay informed about the upcoming immigration reforms, especially the increase in employer-sponsored visa places. The introduction of the National Innovation Visa (NIV) could help you access high-level talent in critical sectors. Review your recruitment strategies to take advantage of these changes and address skills shortages effectively.
Table of Contents
- Permanent Migration Program: A Long-Term Planning Approach
- Migration System Reforms: Enhancing Integrity and Economic Prosperity
- Introducing the National Innovation Visa
- Changes to the Temporary Skill Shortage Visa
- Mobility Arrangement for Talented Early-Professionals Scheme (MATES)
- Work and Holiday Visa Program: Streamlining Access
- Security Upgrades for Immigration Detention Centres
- Administrative Review Tribunal and Migration Backlogs
- Support for Migrants and Refugees
- Key Takeaways
- Frequently Asked Questions
The Australian federal government’s 2024/2025 budget introduces several significant reforms to the immigration system. These changes align with the December 2023 announcements in the New Migration Strategy. Overall, the reforms aim to drive economic growth, address skill shortages, and ensure the integrity of the migration process. This article provides an overview of the key announcements and their implications.
Permanent Migration Program: A Long-Term Planning Approach
The 2024-25 permanent Migration Program planning level is set at 185,000 places, with approximately 71% allocated to the Skill stream and 28% to the Family stream. This is relatively consistent with the previous year’s allocation of 190,000 places but with a few important changes.
Comparison with Previous Year
| Employer Sponsored visas | Increased from 36,825 to 44,000, reflecting a significant boost in opportunities for your business to hire overseas talent directly. |
| Skilled Independent visas | Decreased from 30,375 to 16,900, indicating a shift towards more employer-driven and state-nominated migration. |
| State/Territory Nominated visas | Increased from 30,400 to 33,000, emphasising the importance of regional skills needs. |
| Global Talent (Independent) visas | Slightly decreased from 5,000 to 4,000, maintaining a focus on attracting top-tier talent with a more targeted approach. |
This long-term approach will, overall, align migration with Australia’s evolving economic needs and provide your business with a reliable pipeline of skilled workers.
Overall Migration Numbers
The budget documents project net overseas migration (NOM) as follows:
| 2023/2024 | 395,000 |
| 2024/2025 | 260,000 |
| 2025/2026 | 255,000 |
These figures are a decrease from the pandemic recovery high of 528,000 in 2022/2023. This reflects a return to more sustainable migration levels.
Implications for Businesses and Migrants
For migrants, the steady planning level ensures continued opportunities for permanent residency, particularly for those with skills in demand. Additionally, the reduction in the Skilled Independent category means potential migrants might need to consider employer sponsorship or state nomination pathways more seriously.
Overall, these projections and planning levels reflect Australia’s strategic approach to balancing economic growth, skill shortages, and migration system integrity. As a business owner, you can look forward to a stable and skilled workforce. At the same time, migrants have clear pathways to contribute to and benefit from Australia’s labour market.
Migration System Reforms: Enhancing Integrity and Economic Prosperity
To strengthen the migration system and support Australia’s economic objectives, the government has allocated $18.3 million over four years. This funding will focus on:
- Information and Education Activities: The government is investing $15 million into providing migrant workers with accurate information about their rights and workplace protections. This initiative aims to prevent exploitation and ensure compliance with employment standards.
- Data-Matching Pilot: $1.9 million will support a pilot program for data matching between the Department of Home Affairs and the Australian Taxation Office, further protecting migrant workers from exploitation.
Introducing the National Innovation Visa
Replacing the Global Talent visa (subclass 858), the new National Innovation visa will target exceptionally talented migrants, particularly in sectors crucial to national growth. This change is part of a broader strategy to attract high-calibre talent and drive innovation within Australia’s key industries.
In addition, the budget confirms the cessation of the Business Innovation and Investment visa (subclass 188/88) program. The government states that this will streamline the migration process, with application charge refunds available from September 2024.
Changes to the Temporary Skill Shortage Visa
From 23 November 2024, the work experience requirement for the Temporary Skill Shortage (subclass 482) visa will be reduced from two years to one year. Overall, this adjustment will facilitate quicker access to skilled overseas workers, helping address immediate skill gaps more efficiently.
Mobility Arrangement for Talented Early-Professionals Scheme (MATES)
Starting 1 November 2024, the MATES program will allow 3,000 Indian graduates and early career professionals to live and work in Australia for up to two years. This initiative is designed to bolster the workforce in key sectors and grow a pool of young, skilled professionals.
Work and Holiday Visa Program: Streamlining Access
Furthermore, the immigration reforms introduce a new pre-application ballot process for the capped Work and Holiday (subclass 462) visa program. This applies to applicants from China, Vietnam, and India starting in 2024-25. A $25 ballot charge will apply, simplifying the process and ensuring a fairer allocation of visas.
Security Upgrades for Immigration Detention Centres
Over the next three years, the government will fund security improvements at the Yongah Hill Immigration Detention Centre. This measure underscores the government’s commitment to maintaining a secure and orderly immigration system.
Sponsoring overseas workers as an Australian business is complicated. Let us simplify it for you with this free employer guide.
Administrative Review Tribunal and Migration Backlogs
Additionally, a significant allocation of $1 billion over five years will establish the new Administrative Review Tribunal (ART), replacing the Administrative Appeals Tribunal (AAT). This investment aims to address migration backlogs in the courts, ensuring faster and more efficient resolution of cases.
Support for Migrants and Refugees
Furthermore, the budget includes $35.4 million for various support services for migrants and refugees. Specifically, this funding will aid the settlement of Afghan humanitarian entrants and extend Medicare access to Ukrainians holding Bridging visa E, enhancing their integration and well-being in Australia.
Key Takeaways
The new reforms reflect a strategic shift in Australia’s immigration policy. There is now a strong emphasis on attracting skilled talent to support economic growth and innovation.
Key implications include:
- Streamlined Hiring Processes: The reduction in work experience requirements for the Temporary Skill Shortage visa and the introduction of the National Innovation visa will simplify the process of hiring overseas talent, enabling quicker filling of critical roles.
- Long-Term Planning: The extended planning horizon for the permanent Migration Program allows for better alignment of long-term workforce planning with migration policy, ensuring a steady pipeline of skilled workers.
- Access to Emerging Talent: Programs like MATES and changes to the Work and Holiday visa scheme will provide access to young professionals offering fresh perspectives and skills.
- Enhanced Compliance and Protection: The focus on protecting migrant workers and improving data matching maintains compliance with employment laws, fostering a fair and ethical work environment.
- Support Services for Migrants: The government’s investment in support services will aid the integration of new migrants, making it easier for your business to onboard and retain overseas talent.
If you require legal advice regarding the Australian government’s new immigration reforms, our experienced corporate immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
The budget increases employer-sponsored visas from 36,825 to 44,000 places, enhancing opportunities for businesses to hire overseas talent directly.
The NIV prioritises exceptional achievements in critical technologies, health industries, and renewables, streamlining talent acquisition aligned with Australia’s strategic and economic goals.
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