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In the aftermath of the pandemic and border closures, Australia has been slow to bounce back. The Minister of Home Affairs, Honourable Clare O’Neil MP, describes the current situation as a “broken migration system”. Part of the issue involves an overwhelming visa backlog, the dismantling of our international student cohort and education system, rife labour skills shortages across every sector/industry, and a historical emphasis on temporary migration versus permanent migration. This article will explore what is in store for Australian Migration in 2022/2023.
You can review the Australian migration planning program for 2020/2021.
Migration Planning Levels
Migration planning is at the forefront of Australia’s Federal Budget. In September 2022, the Australian Government announced that the permanent migration program would increase from 160,000 to 195,000, with a continued emphasis on attracting much-needed skills to the country. To address labour shortages, employer-sponsored and skilled independent migration programs will drastically increase, together with family migration.
Visa Planning Levels
| Visa Stream | Visa Category | 2022-23 Planning Levels |
| Skill | Employer-Sponsored | 35,000 |
| Skilled Independent | 32,100 | |
| Regional | 34,000 | |
| State/Territory Nominated | 31,000 | |
| Business Innovation & Investment | 5,000 | |
| Global Talent (Independent) | 5,000 | |
| Distinguished Talent | 300 | |
| Skill Total | 142,400 | |
| Family | Partner | 40,500 |
| Parent | 8,500 | |
| Child | 3,000 | |
| Other Family | 500 | |
| Family Total | 52,500 | |
| Special Eligibility | 100 | |
| Total Migration Program | 195,000 |
Migration Quotas
The composition of the current migration planning levels has effectively seen a doubling in quota/places for the following visa programs:
| Employer-Sponsored program | Subclass 482 and employer-nominated Subclass 186 | 35,000 places |
| Skilled Independent | Subclass 189 | 32,100 places |
| Regional | Subclass 494 and Subclass 187 | 34,000 places |
| State/Territory Nominated | Subclass 190 and Subclass 491 | 31,000 places |
For the State/Territory nominated visa program, the Department of Home Affairs has allocated the following nomination ceilings to each state:
In summary, there are a total of 142,400 places across all the above-named visa programs. The increase in places aims to improve the economy’s productive capacity and fill skill shortages in the labour market, including those in regional Australia.
The Government anticipates that some of these places will be occupied by visa applications that have been processing or pending since the last fiscal year. However, the Australian Government has clarified that at least 90% of these places will be new places for skilled migrants. Additionally, more than a quarter will be targeting regional areas.
Family migration will also increase to reunite family members and expedite processing time frames. A total of 52,500 places have been allocated to this visa program, with a substantial part allocated to partner visas (40,500), a decrease from the last fiscal year’s allocation. Although this does not appear positive for partner visa applicants, this allocation is not capped, and the Department of Home Affairs may exceed these places. Parent visas have increased from 4,500 places to 8,500 places.
Ultimately, only time will tell how effectively the Australian Government has met these objectives.
Decline of Global Talent and Business Innovation and Investor Visas
In the 2020/2021 Migration planning program, significant emphasis was placed on increasing and maintaining the global talent and business innovation and investor visa programs. For 2022/2023, these visa programs have more than halved, signalling a shift in priorities to addressing skills shortages and less about attracting global talent and high-net-worth individuals.
Considering the limited State/Territory nomination allocations for the business innovation and investor visa programs (BIIP), we anticipate that competition will increase for these desired places, and many applicants will be unsuccessful in receiving an invitation. This can present challenges for high-net-worth applicants, whose only migration pathway is via the BIIP.
Similarly, prospective global talent visa applicants will face the same challenges.
Continue reading this article below the formExpanding Permanent Residence Pathways
In March 2022, the Australian Government introduced new legislative provisions creating permanent residence pathways for previously excluded applicants. The eligible cohorts include:
- legacy 457 visa holders; and
- some 482 visa holders with occupations on the short-term and regional occupation lists.
Permanent Residence Pathways for 457 and 482 Visa Holders Nominated in the Short-Term Stream
Visa Backlogs
The Australian Government has committed $42.2 million to address the visa backlog and accelerate visa processing times. In June 2022, the labour government inherited a 1 million visa backlog that has since been reduced to 600,000. The objective is to clear that backlog by April 2023. A commendable effort, no doubt. However, this has not curbed an unprecedented number of new visa applications since border closures lifted and the return of temporary visa programs (student visas, visitor visas and working holiday visas).
Incentivising Students to Stay Longer in Australia
Student visa holders and secondary applicants to training visas (subclass 407) could only work 40 hours per fortnight. However, a temporary relaxation of these conditions remains until 30 June 2023, allowing these visa holders to work full-time and support Australian businesses across all industries/sectors experiencing unprecedented labour shortages.
From 1 July 2023, there is more good news for student visa holders, including:
- work rights for student visa holders will increase permanently from 40 hours to 48 hours per fortnight; and
- certain eligible graduate student visa holders can stay longer in Australia.
Work Rights Update on Student and Graduate Visa Holders
Working Holiday Visa Holders
Working holiday visa holders can work for more than 6 months with 1 employer until 30 June 2023.
Sponsoring overseas workers as an Australian business is complicated. Let us simplify it for you with this free employer guide.
Pacific Workers
The Australian Government is scaling up its aged care training pathway for the Pacific Australia Labour Mobility scheme with an additional 500 places in 2022/2023.
Key Takeaways,
Overall, the theme for 2022/2023 is consistent. The focus of Australia’s Migration Program is on the following:
- attracting skilled migrants;
- addressing labour shortages;
- increasing the temporary visa holder cohorts’ (students, working holiday and secondary applicants) work limitations; and
- creating more sustainable and achievable permanent residence pathways for migrants that have desired skills and have significantly contributed to the Australian economy.
Simultaneously, fewer resources, allocation and priority are going to the global talent and BIIP scheme. Consequently, this will attract less investment and interest from high-net-worth and internationally recognised applicants.
If you have any questions about what these changes mean for you, our experienced 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
From 1 July 2023, student visa holders can work 48 hours per fortnight.
In September 2022, the Australian Government announced that the permanent migration program would increase from 160,000 to 195,000.
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