The New Migration Strategy: A Focus on Skills in Demand and Student Visa Reforms

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Table of Contents

• 1. Temporary Skilled Migration to Address Skills Needs and Promote Worker Mobility
• 2. Simplification of the Visa System and Technological Advancements
• 3. Student Visa Changes: Strengthening Integrity and Quality
• 4. Temporary Graduate Visa Reforms: Pathways to Skilled Employment
• 5. Global Talent and Business Innovation Programs: Enhancing Economic Outcomes
• 6. Migration Strategy – Action Plan
• Key Takeaways

Australia’s immigration system is always evolving as it responds to global and domestic changes. A new Migration Strategy was announced on 11 December 2023 by the current Labour Government, with a renewed focus on addressing skill shortages by simplifying the immigration system and refining student visa pathways. This article explores the latest developments, particularly the introduction of the Skills in Demand visa and its streams, alongside significant changes to student and graduate visas.

1. Temporary Skilled Migration to Address Skills Needs and Promote Worker Mobility

The new migration strategy targets Temporary Skilled Migration to address skills needs and promote worker mobility. The proposed measures include: 

• developing a new Skills in Demand visa, with full mobility and clear pathways to permanent residence that is comprised of three pathways;
• legislating indexation of income thresholds to maintain system integrity;
• taking a coordinated, evidence-based, tripartite approach to identifying skills needs;
• streamlining Labour Market Testing to reduce complexity;
• establishing a best practice service level agreement for processing times and a modernised accreditation pathway to better compete for talent; and
• considering how to best regulate migration for lower-paid workers with essential skills.

Central to these reforms is the introduction of the Skills in Demand visa. This will replace the Temporary Skills Shortage visa (subclass 482). This visa will have a four year validity period and will consist of the following three pathways:

• Specialist Skills: to drive innovation and job creation;
• Core Skills: to meet targeted workforce needs; and
• Essential Skills: a more regulated pathway for lower-paid workers with essential skills.

Let us explore each of these in further detail below.

Skills in Demand Visa: Specialist Skills Pathways

The Specialist Skills Pathway is designed to quickly recruit top talent in areas of critical need, such as: 

• engineering managers;
• cyber specialists; and 
• software engineers. 

It targets professionals in non-trade occupations, with a focus on those earning at least $135,000 (excluding superannuation). This will be known as the Specialist Skills Threshold and will replace the current TSMIT. 

The Specialist Skills Threshold will continue to be indexed annually. This initiative addresses immediate skills gaps, particularly in sectors crucial for Australia’s transition to a net-zero economy and digital transformation​​. In addition, the Government will commit to a seven day processing time.

Skills in Demand Visa: Core Skills Pathways

The Core Skills Pathway targets professionals whose occupations are critical for maintaining the Australian standard of living by providing necessary goods and services, such as: 

• tradespeople;
• machinery operators; 
• drivers; and 
• labourers. 

Eligibility for this pathway will be determined by occupations listed on the new Core Skills Occupation List (CSOL). The approach to constructing the CSOL will involve a forward-looking and evidence-based methodology led by Jobs and Skills Australia while also taking into account commitments made in international trade agreements. 

Additionally, candidates will need to earn the higher of:

• a salary at or above the TSMIT, which will be renamed the Core Skills Threshold for this visa stream; or
• the relevant average market salary rate.

The Core Skills Threshold will also be annually indexed. The Government commits to a median processing time of up to 21 days for this visa stream.

Skills in Demand Visa: Essential Skills Pathways

In contrast, the Essential Skills Pathway is still under development for future consideration. It will cater to lower-paid workers with essential skills. This pathway arises from the recognition that certain lower-paying sectors are experiencing growing labour needs that the domestic workforce may not fully meet. There is an ongoing commitment to consulting with stakeholders, including state and territory governments, unions, businesses, and migrant workers, to refine the design of this pathway.

Other Noteworthy Changes

The Government aims to simplify labour market testing by immediately removing the requirement to advertise through Workforce Australia from 11 December 2023 and extending the validity period of job advertisements from 4 to 6 months. Plans are underway to transition from employer-conducted testing to independent verification of labour market needs.

Consequently, TSS 482 visa holders will have 180 days, instead of 60 days, to find a new sponsor.

There are also plans to modernise the sponsor accreditation pathway, enabling approved sponsors, particularly start-ups with venture capital from registered funds, to access migrant workers more efficiently. This initiative aims to level the playing field for startups. It will foster innovation while simultaneously bolstering the integrity of the sponsor application process.

2. Simplification of the Visa System and Technological Advancements

The Government is simplifying its visa system by reducing the number of visa types and investing in technology to streamline processes. This initiative aims to make the system more navigable for applicants and efficient for administrators​​. For example, different visa streams for offshore and onshore applications will be merged into one.

3. Student Visa Changes: Strengthening Integrity and Quality

Student visa reforms are underway to strengthen the integrity and quality of Australia’s international education sector. These changes aim to ensure that students are genuinely pursuing education aligned with their academic and career progression.

4. Temporary Graduate Visa Reforms: Pathways to Skilled Employment

Reforms to the Temporary Graduate visa (TGV) include:

• reducing the duration of initial TGVs to two years for Bachelor Degrees and Masters by Coursework and three years for Masters by Research and PhD;
• reducing the maximum eligible age for a TGV from 50 to 35 years. It is still unsure how this measure will affect mature students currently enrolled in higher-education courses, unless specific transition provisions are announced;
• only allowing applicants studying in regional areas to extend their TGV; 
• renaming the TGV streams as ‘Post-higher Education Work’ and ‘Post-Vocational Education Work’ streams; and
• abolishing the ‘Replacement Stream’ of the TGV and the subclass 476 visa.

In addition, the work experience requirement for a TSS 482 visa (and the future Skills in Demand visa) is indicated to change. This will ensure a more fluid transition for retaining TGV holders in Australia’s labour market.

5. Global Talent and Business Innovation Programs: Enhancing Economic Outcomes

Past reviews of the Global Talent Visa and the Business Innovation and Investment Program (BIIP) indicate they may not be delivering the desired impact. Accordingly, they are both being reevaluated to improve their economic outcomes. The Government is considering a new, single Talent and Innovation visa and has confirmed that it will not provide any new allocations for the BIIP visa. This essentially means that the BIIP is no longer available to new applicants.

Consultations for designing the new Talent and Innovation Visa are likely to begin in mid-2024. This process will involve various stakeholders to ensure that the new visa category effectively meets the evolving needs of Australia’s economy while maintaining a competitive edge in the global landscape for talent and innovation

6. Migration Strategy – Action Plan

The Government has provided a full and detailed Action Plan.

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Key Takeaways

The new Australian Migration Strategy, announced in December 2023, introduces the Skills in Demand visa with Specialist, Core, and Essential Skills pathways, targeting specific labour market needs and providing clear routes to permanent residence. Significant reforms in student and temporary graduate visas focus on aligning education with genuine career progression and addressing the issue of ‘permanent temporariness.’ Additionally, the strategy simplifies the visa system, enhances labour market testing procedures, and commits to re-evaluating the Global Talent and Business Innovation Programs to serve Australia’s economic interests better.

If you need help understanding how these changes affect 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.