
The CEO of the Migration Institute of Australia attended an event with the Minister for Immigration today, 15 March, and shared some federal information regarding next financial year’s PR quota:
The Minister for Immigration said he cannot yet disclose the total number or the specific allocation breakdown for next financial year’s migration quota (expected to become known after the 29 March budget announcement), he indicated it is unlikely that the total will return to pre-COVID levels, but the overall allocation could potentially shift to two-thirds for skilled migration and one-third for family migration (this financial year has been roughly a 50/50 split, with the skilled stream only about 2,000 places ahead of family migration)
Additionally, once the federal election is over, his top priority will be to review the migration occupation list and add more occupations to the MLTSSL.
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As it happens, today (16 March) Victoria has again begun sending out batch refusal letters, and South Australia announced yesterday that the Subclass 491 quota is nearly exhausted, so, taking this new information about PR quotas as our starting point, let us discuss the issue of state nomination quotas for the next financial year.
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Victoria Again Issues Batch Refusal Letters
This round includes both Subclass 190 and Subclass 491 refusals — and it has become even more efficient: they are issued in batches, all with the same stated reason:
the occupation does not fall under STEMM skills, or the role is outside a target sector — and applicants have been directly told to try again next financial year.
Based on our internal data, those who received refusals in this round are as follows:
190:
Speech Pathologist – 252712 95 points
Chemical Engineer – 233111 90 points
Registered Nurse (Surgical) – 254424 80 points
ICT Business Analyst – 261111 100 points
491:
Accountant (General) – 221111 90 points
Accountant (General) – 221111 100 points
Yesterday, 15 March, Victoria issued a new round of ROI invitations — the second round for March — and we have gathered details of those who received invitations as follows:
Secondary school teacher (teaching Mathematics and Science) — 85+5 points
Resident medical officer (working at a hospital in a regional area) — 85+5 points,
Digital (energy sector) — 90+5 points
Actuary — 90+5 points
Invitations and refusals are going out simultaneously, while nomination processing continues, which suggests the Victorian government is not about to exhaust its nomination quota entirely, but it is not particularly abundant either, so they are filtering out a portion of applicants broadly before selecting more carefully from those that remain.
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South Australia Officially Announces Subclass 491 Quota Nearly Exhausted
Under the current processing arrangements, the quota will certainly be exceeded, so the processing team will prioritise the following applications:
– Subclass 190 applications (the Subclass 190 quota for this financial year is also 2,600 places)
– Applicants holding a Subclass 485 visa expiring within this financial year
– Highly skilled onshore applicants who can demonstrate full-time employment in a nominated occupation in South Australia
– Subclass 491 applicants are encouraged to consider the talent & innovators programme
The state government has requested additional quota from the federal government, and if additional quota is granted, any further processing adjustments will be communicated.
Three and a Half Months Remaining — Multiple States Running Low on Quota
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With three and a half months left in the 2021–22 financial year, multiple states have announced or are effectively already experiencing a shortage of nomination quota, and as of 5:00 pm on 16 March 2022, the approximate situation across each state is as follows:
New South Wales:Subclass 190 insufficient, Subclass 491 critical
Victoria: not officially announced as critical, but batch-filtering applicants
Queensland:announced around the Lunar New Year that sufficient quota remained
Canberra (ACT):Subclass 190 insufficient, managing the volume of Matrix invitations, using the quota steadily; as of 1 March 2022, remaining nomination
Tasmania:Subclass 190 still available, Subclass 491 critically short; as of 7 March 2022, remaining Subclass 190 quota is 315 places and Subclass 491 is 901 places; has applied for additional federal quota — no update yet
Western Australia:Both Subclass 491 and Subclass 190 quotas exhausted early; has applied for additional federal quota — no update yet
South Australia:Subclass 190 still available, Subclass 491 nearly exhausted; has applied for additional federal quota — no update yet
Northern Territory:announced that the Subclass 491 quota is fully exhausted; Subclass 190 status unclear
The second half of the 2021–22 financial year is an especially busy period for the federal government — the budget has been brought forward to 29 March 2022, when next financial year’s PR quota will be announced, and May brings the Australian federal election, so additional quota approvals may be even more…
And even if additional quota is granted, it will likely be a drop in the ocean — certainly not enough to satisfy all applicants currently waiting. Based on past experience, extra quota has typically been in the hundreds; we have never seen an allocation as large as the 5,000 extra places Western Australia has requested.
At this point in the year, it is entirely reasonable to start looking ahead to the next financial year. And so, many people have asked:Do you think the state nomination quota will be higher next financial year?
Today we will walk through the logic behind this (this is not a prediction)
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The Most Fundamental Basis for State Nomination Quotas
The most fundamental basis for state nomination quotas is the overall PR quota for each financial year — specifically, the quota allocated to the state-nominated category.
As a rough guide, the more PR places allocated to the state-nominated category in a given financial year, the greater the opportunity for each state to receive a larger nomination quota. However, it is not a direct one-to-one relationship, nor is it distributed equally.For example, the state-nominated PR quota for 2021–22 is the same as in the previous financial year, yet several states have seen their nomination quotas increase somewhat this year.
This brings us to another key factor:State Government Intent + State Population and Scale
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What Is the State Government’s Position?
The general process for arranging state nomination quotas is as follows:
The state government submits a request (covering mainly the total number and the Subclass 491/190 split) → the Department of Home Affairs approves it before or at the start of the financial year (at this stage, the Department takes an overall view, balancing the total state-nominated PR quota against each state’s needs, etc.) → during the financial year, the state government issues nominations→ as the end of the financial year approaches, the state government may find the quota insufficient and can request more from the Department→ and the Department then approves or declines the request.
It is therefore a collaborative, back-and-forth process.
The state government’s intent is a subjective factor, for instance, in our communications with certain state governments, some have indicated they are hoping for a larger quota next financial year — subject to federal approval. Generally speaking, states that actively seek more quota tend to achieve at least the same allocation as the previous year, if not more — even if the federal government does not necessarily meet the full amount requested. Alternatively, some states may want a greater proportion of Subclass 190 or Subclass 491 places — for example, compared to last financial year, Victoria has focused mainly on Subclass 190 this year, while Canberra has increased the proportion of Subclass 491.
Larger states that are less vocal in their advocacy will not necessarily receive very few places either — it is evident that quota allocations broadly align with each state’s actual application demand.
At the moment, subjective factors — state intent — appear to carry more weight; Tasmania and Canberra are good examples of this (even though both have still found their quotas somewhat tight this financial year).Ultimately, the state government’s attitude depends on the state’s own development trajectory and government planning, and some larger states may not request a very large skilled-migration state nomination quota, but may instead apply for a significant business and investor migration quota.
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The ‘Hangover Effect’ When Quota Runs Out at Year-End
As the end of each financial year approaches, it is common for state governments to find themselves wanting to issue invitations but unable to, or wanting additional quota that the federal government has not yet — or will not — approve. At this point, even a willing state government cannot act, but the impact does not stay confined to the current financial year.
In the past, states have responded to running out of quota by mass-rejecting applications and telling people to try again next financial year. In recent years, as state nomination has grown in importance, the process has become more considerate — many states have adopted a two-step approach (Expression of Interest followed by a formal nomination), and the more common scenario now is receiving a pre-invitation, the applicant lodges complete documentation, but due to quota constraints no formal nomination can be issued — the state government continues to process the application but simply waits until additional nomination quota becomes available, which may mean waiting until the new financial year, which means a portion of the new financial year’s nomination quota will be taken up from the outset — or a backlog of waiting applicants will have accumulated in the pool at the start of the year. How this plays out depends largely on the state government’s approach.
Why Is 29 March Important?
The PR quota for next financial year will be announced by the end of this month — the exact breakdown by category may not be immediately available, but at least the total — whether it is 160,000, 190,000, or some other figure — should become clear.
Australia’s shortage of population and labour is well known to all, but both the incumbent Coalition government and the Labor Party have remained vague on the question of migration quotas. It is a complex issue — as we have noted previously, different groups have different interests, and even within the same group, opinions are sharply divided.
That said, compared to the previous period, the sweeping impact of the pandemic may have eased concerns about cost of living and pressure on cities, to some extent highlighting the indispensable role of migration — this is what is meant by the relatively positive broader environment.
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Past Articles
Work Overseas + Australian PR — Without the 457 Visa Scramble!
Work Overseas + Australian PR — Without the 457 Visa Scramble!
Victoria Still Has Quota but Is Sending Batch Refusals to IT and Others!?
Right now is the moment — give your migration journey ‘one more chance’!
Right now is the moment — give your migration journey ‘one more chance’!
The Department of Home Affairs Has Confirmed This Type of ‘Skilled’ Migration Will Be Prioritised and Fast-Tracked
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