Today belongs to Australian migration reform

There is a lot of news, and we have done our best to lay it out for you

To make sense of it, you need to read it alongside the review report and the Minister’s remarks

The Migration Review report: arguably the biggest migration reform in 30 years, this review began in September last year, and the report was handed to the government earlier this year. It raises problems and sets out recommendations and views

The Minister for Home Affairs’ remarks at the NPC today: After receiving the report, the government considered it for some time, and the Minister for Home Affairs announced on 27 April a set of staged decisions and directions, note that these are staged. Many decisions cannot be made straight away.

So, in the section below covering the Minister’s remarks —

On timing of implementation:

if you can see a point in time, even just a window, then it is something that can already be decided

if you cannot see one, then it means there is no answer for now — even the Minister himself may not know

On the various reform proposals:

if you can see that the Minister has touched on a topic, especially in some detail, then the government has at least given it preliminary consideration.

if the Minister speaks in “official-speak” or does not mention it at all — for example “we will consider it” or “we are looking into it” — then it is still a long way from taking shape

Please keep this relationship in mind.

The Minister for Home Affairs’ remarks: TSMIT to rise on 1 July, the points test to be reformed, and reforms to the GTI and investor migration

1. From 1 July, the TSMIT threshold will rise from AUD 53,900 to AUD 70,000.

This will affect visa applicants under the employer-sponsored categories.

It may also affect applicants moving from a Subclass 491 to a Subclass 191. It should be stressed that the specific income requirement for the 491-to-191 transition has still not been clearly legislated; TSMIT and the AUD 53,900 figure were first mentioned when the Subclass 491 policy was introduced. We hope the government will clarify the relevant legislation as soon as possible, take into account applicants who have already been granted a Subclass 491, and at the very least provide possible transitional arrangements.

Those who hold or are applying for a Subclass 491, as well as those who may move from a 491 to a 191, should keep an eye on the relevant updates, because the three-year annual income requirement for the 491-to-191 transition also uses the TSMIT threshold of AUD 53,900.

This is the only change with a confirmed, specific timeline at this stage.

Someone asked whether there would be any transitional or compensatory arrangements. The Minister for Home Affairs replied that there would be (mainly in relation to employer sponsorship) — a new visa, possibly intended to bridge and transition. The other details are still being decided.

But since this policy takes effect on 1 July, many of the details should emerge soon

2. By the end of 2023, all temporary skilled migrants (likely referring mainly to employer-sponsored workers) will have a pathway to PR. Three pathways are currently out for consultation:

The first is a fast-track pathway for highly skilled, highly specialised professionals

The second will be the mainstream pathway, based on skills needs, which includes an employer-sponsored pathway with raised requirements

The third is for areas of critical demand

3. The points test will be reformed (no timeline for this).

It was said that the current requirements are set too low. Which skills and work experience the points test prioritises will depend on actual skills needs, rather than simply being based on the occupation list.

4. The student visa system will face tighter scrutiny, with stricter checks on the genuineness of students and a higher student visa threshold (no timeline).

5. The GTI will be reformed, and the Department of Home Affairs will set up a new team to identify Australia’s genuine top-tier talent

6. The Minister for Home Affairs said that investor migration would not necessarily be abolished, but there would be structural reform, and that views from many quarters still need to be heard.

Below are the key recommendations from the Migration Review report

These are what the government saw in the report. Many of the recommendations were not necessarily mentioned by the Minister, because they are probably still some way from being ready to be “made public”.

1. The annual permanent migration intake should be set with a long-term perspective (for example, a 10-year strategy)

2. Plan migration based on net overseas migration (including both permanent and temporary residents), rather than simply managing a cap on permanent migration.

3. The Commonwealth and state governments should cooperate more effectively to make migration location-targeted, particularly to support regional areas

4. Reconsider the scale and role of investor migration within the permanent skilled migration programme, for example how to make the AUD 5 million Significant Investor visa deliver better, more positive outcomes.For example, consider how to manage the allocation of state-nomination places, including consolidating these programmes

5. Recalibrate the points-tested skilled migration system to select migrants with high human capital.

6. Consider changing the existing GTI to improve the clarity of the selection criteria and remove the requirement for a nomination, [the Minister for Home Affairs has mentioned this]

7. Abolish labour market testing

8. Raise the Temporary Skilled Migration Income Threshold (TSMIT), index it to the Wage Price Index, and consider an age-adjusted threshold.[the Minister for Home Affairs announced this today]

9. Introduce risk-based regulation within temporary labour migration

10. Allow temporary migrant workers (mainly employer-sponsored) to leave their current job and move to a role within the same sector or job family, giving them 6 months to find new work

11. Introduce a ballot system for parent migration to prevent further backlogs. Launch cheaper and more attractive temporary visas for parents, which in the long run may replace the permanent parent programme.

12. Review the student visa work-hour cap, including whether unpaid work integrated with study, internships and work experience count towards the cap.

13. After completing study that fully meets the requirements, international students would automatically receive a Graduate Work visa

14. Align the duration of the temporary graduate visa with the time needed to identify high-potential graduates who will successfully obtain a permanent skilled visa. Within these parameters, minimise the time former students can remain in Australia temporarily[the Minister for Home Affairs has mentioned this]

15. Explore options to provide a specific and direct pathway to permanent residency for very narrowly defined groups of students.

16. Align the English language requirement for student and/or postgraduate visas with that for skilled visas — that is, also reaching four 6s

17. Replace the current GTE requirement for student visa applications with a Genuine Student test (GST)[the Minister for Home Affairs has mentioned this]

18. Have the Commonwealth, states and territories lead a strategy to oversee the streamlining of skills recognition (skills assessment), particularly for occupations that can bring the greatest benefit to Australia.

Newstarsec’s commentary

As you can see, the recommendations in the Migration Review report are very detailed and direct, and many that are not directly relevant to you have not been listed here. Meanwhile, the Minister for Home Affairs’ remarks are more general and more directional.

This is all because the changes are so significant that the government cannot make decisions right now, or decide exactly how to adjust things, even though they know what the problems are.

You can think of it like this:

Your house (the current migration system) has problems everywhere. A few months ago you called in experts to inspect it and recommend repairs, and about 2 months ago they delivered their findings and recommendations (the Migration Review report), which contain at least 100 problems to fix — and it is up to you to decide.

After thinking it over for two months, you now decide to fix the door first and right away (TSMIT), then resolve the window issues by the end of the year (a PR pathway for skilled workers), and the front garden also has plenty of problems you want to deal with (the points test, GTI and so on) — but you are still working out how.

As for the other problems, you know they are all problems, but there are simply too many recommendations and you need more time to consider them (the remaining problems and views in the Migration Review report).

What to wait for first:

most likely the detailed implementation rules for TSMIT.

For example, do Subclass 491 holders have to reach AUD 70,000 from 1 July? Is AUD 53,900 acceptable for financial years that have already passed?

We are all waiting for answers

A lot of what everyone has been waiting for should become clearer step by step.The Budget will also be handed down on the evening of 9 May, and there should be more news then!

So, for anyone who needs real-time updates, you can still add our consultant and join the group, please note: Reform

Past articles worth revisiting

Major Migration Reform Officially Announced on 27 April!? These People Can Become Australian Citizens Directly!

Which Are the Top Go8 Master’s Programmes for Studying in Australia?

Major Migration Reform Officially Announced on 27 April!? These People Can Become Australian Citizens Directly!

Migration News Sharing Group

2023

Step 1: Press and hold to add our consultant

Step 2: After adding, please

Study Abroad, Migration & Visas — We Are the Professionals

Attention!Please verify a genuine Newstarsec consultant!

Study & Migration Enquiries — Consultants by Location

Sydney

Melbourne

Canberra

Brisbane

Adelaide

Hobart

Beijing

Guangzhou

Follow the Newstarsec Official Account

Reply in the official account with one of the numbers below or any keyword (not in the comments at the bottom of the article) to get the most timely and professional migration news!Reply [A] to view the directory (covering all topics)!

Reply: 0000 → view the 16 November new-policy news (Subclass 491 + skilled migration points)

[Everything You Need to Know About Today’s Major Australian Migration Reforms] Points Test / Employer / 500 / 485 / Parents / GTI / Investment All Covered! $53,900 Rising to $70,000 Next Financial Year!

Major Migration Reform Officially Announced on 27 April!? These People Can Become Australian Citizens Directly!

Which Are the Top Go8 Master’s Programmes for Studying in Australia?

Major Migration Reform Officially Announced on 27 April!? These People Can Become Australian Citizens Directly!

Quick Links

Popular Services

Our Offices

Follow Us