Tonight the Federal Government handed down the 2023-24 Budget, and our focus is on the migration-related measures!

PR Grant Quota for 2023-24

The PR grant quota for the new financial year has been set at 190,000, which is 5,000 fewer than this financial year but still more than in previous years, so it remains broadly stable.

At the same time, the Labor Government has also confirmed that skilled migration still accounts for 70%, that is, a total of 137,100 places. The detailed breakdown was not released tonight, and we will keep following it closely

Please note: the quota above is the PR grant quota

– If a visa is lodged this financial year but not yet granted, a grant in the new financial year will draw on the new year’s quota, so it is rolling

– The PR quota determines the state-nomination allocation, but it is not a simple direct add/subtract relationship. Subclass 190 and Subclass 491 have more grant places, so the state governments can usually obtain larger state-nomination allocations

– Subclass 482 has no grant cap; the cap only applies once you transition to Subclass 186. Subclass 491 carries provisional PR, so a grant draws on the PR quota, which means a later transition to Subclass 191 will no longer consume a grant place (the same applies to Subclass 887)

Steep Increase in Visa Fees

The effects of inflation have also flowed through to visa fees. From 1 July 2023, visitor visas and some temporary visas (including working holiday, training and temporary activity categories) will rise by 15%, business and investor migration categories by 40%, and all other categories by 6%.

The fee increases are expected to generate AUD 665 million in revenue for the Government over the next five years

Visa fees rise every financial year, but the increase for the coming year is genuinely on the high side. The 40% for business and investor migration is clearly a deliberate, manual adjustment rather than a simple CPI indexation. On the bright side, business and investor migration has at least been retained for the coming year.

The only real response to the fee increase is to lodge as soon as possible. Skilled migration, however, is not within your control, as you must first be invited, after which the visa is lodged within 60 days. So the main takeaway is to lodge parent migration and visitor visa applications as soon as you can!

From 1 July, Subclass 500 student visa holders may work up to 48 hours per fortnight, which had already been announced. What today’s Budget added is that student visa holders who were working in the aged care sector as at 9 May may continue to work full-time until 31 December 2023, that is, six months longer than for other sectors.

Overall, there was not a great deal of fresh news in tonight’s Budget. That said, Labor has stayed consistent with its earlier stance and continues to deliver on its commitments step by step. Next, we are looking forward to the grant-quota breakdown for each visa category, the detailed rules for the easing of employer sponsorship, and more.

We will keep following it all closely, together with you!

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