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Australian Immigration Update –

Three-tiered Skills in Demand Visa and the National Innovation Visa

Correct as at 11 November 2024

Overview

This brief details immigration changes, expected to be implemented before the end of 2024, consistent with the roadmap – the Migration Strategy Action Plan –  to implement the Government’s Migration Strategy,  outlining a new vision for Australia’s migration system. The changes will be introduced via the Migration Amendment (Strengthening Sponsorship and Nomination Processes) Bill (‘the Bill’) which aims to establish a framework for a new temporary skilled worker visa, the Skills in Demand visa; and establish a public register of approved sponsors who have nominated skilled workers for entry to Australia.

Expected Amendments to the Migration Act
  • Provide that labour market testing be completed within six months prior, updating the timeframe from four months prior, to the sponsor of a skilled migrant worker lodging a nomination.
  • Legislate income thresholds for the Skills in Demand visa
  • Provide the annual indexation of the income thresholds that would be implemented on 1 July each year. The indexation will reflect changes in the trend figure for Average Weekly Ordinary Time Earnings (AWOTE).
  • Provide that the income threshold for an applicant with essential skills will be worked out in accordance with the Migration Regulations, unless the Minister has specified an amount in writing that an employer must pay in relation to the applicant.
  • Provide for the publication of a register of approved standard business sponsors and accredited sponsors who have nominated skilled workers for entry to Australia, including the sponsor’s business name, Australian Business Number and postcode, the number of individuals nominated under the sponsorship approval process and the occupations of the nominated workers.

The amending law will commence on a day to be fixed by proclamation or six months and one day after the relevant legislation receives royal assent.

It is important to note that there is no change to the Migration Act yet. The Bill passed the House of Representatives on 6 November 2024.

The Bill has yet to pass the Senate. Although this is expected before the end of the year, this is not guaranteed.

Further changes will be required to the Migration Regulations – it is the Regulations that set out nomination criteria, visa criteria, sponsorship obligations. The details of these changes and accompanying instruments are expected to become available shortly.

There is no official information yet about the List of Occupations. We understand that Jobs and Skills Australia has provided the Minister with its proposed Core Skills Occupation List (CSOL) but the Minister will be the ultimate decision-maker on the final composition of the CSOL. This is yet to be released.

Recapping changes introduced over the past 12 months
  • Temporary Skilled Migration Income Threshold (TSMIT) raised to $73,150
  • Fair Work High Income Threshold raised to $175,000
  • A change to visa conditions 8107, 8607, and 8608 for subclass 457, 482, and 494 visa holders permitting up to a maximum of 180 days at a time or 365 days across the visa period to find a new sponsor after ceasing employment
    • The visa holder can work for another employer during this period
    •  The visa holder is not required to work in their nominated occupation with another employer during this period
    • Sponsors must still notify Australian Border Force within 28 days of cessation
    • Whilst working for an employer that is the sponsor of their visa, at all times, the employee may only work in the nominated occupation – even if ceasing work and then returning to the sponsor
  • Age threshold for Graduate Temporary (subclass 485) visa decreased to 35 years or under, apart from for Masters by Research and PhD graduates, as well as Hong Kong and British National Overseas passport holders, where it remains as less than 50 years
  • Labour Market Testing (LMT) changes to requirements
    • Advertising on Workforce Australia is no longer mandatory as part of required LMT
    • LMT required to be undertaken on two national platforms
    • LMT required to be continuous for a minimum 28-day period
  • Removal of the limit on the number of Short-term stream Temporary Skill Shortage (TSS) visas that visa holders can make in Australia
  • For the purpose of eligibility for permanent residence via the Temporary Residence Transition (TRT) stream of the subclass 186 visa, a nominated person
    • Must have held their TSS (subclass 482 or 457) visa for two out of the last three years prior to nomination
    • Must have been employed in an occupation that appears on either the Medium and Long-term Strategic Skills List (MLTSSL), the Short-term Skilled Occupation List (STSOL) or the Regional Occupation List (ROL)

 

Key changes expected once the Bill becomes Law
  • Increasing the validity period of LMT from 4 months to 6 moths
  • Developing a Core Skills Pathway to meet targeted workforce needs that relies on the currently under development Cores Skills Occupation List
  • Introducing a new Skills in Demand visa, with full mobility and clear pathways to permanent residence – salary threshold expected to be above $135,000
  • Introducing the National Innovation Visa (NIV) replacing the Global Talent visa

Detail Currently Available from Home Affairs on the New Visa Frameworks

Once legislated, we expect the features of the Skills in Demand (SID) visa and the National Innovation Visa (NIV) to be:

Skills in Demand (SID) Visa – subclass 482

The Skills in Demand Visa will have three streams and will replace the Temporary Skill Shortage (TSS) visa. It will remain subclass 482. This temporary skilled worker visa will:

  • Be a visa with up to 4 years validity
  • Provide a clear pathway to permanent residence
  • Have three streams:  – Specialist Skills, Core Skills, and Labour Agreements
    • Specialist Skills stream: Will be for highly skilled migrants earning at least $135,000 in any occupation except trades workers, machinery operators, drivers, and labourers
    • Core Skills stream: Will be for skilled employees and there will be a new Core Skills occupation List and a Core Skills Income Threshold
    • Labour Agreement stream: The TSS Labour Agreement stream will be renamed the Skills in Demand Labour Agreement stream
  • Have a work experience requirement which will be reduced to one year

As the TSS visa will be replaced by the SID visa, existing short-term and medium-term streams of the TSS visa will close to new applications. TSS applications already lodged, are expected to be processed under the existing legislation governing that pathway.

National Innovation Visa (NIV) – subclass 858

The National Innovation Visa (NIV) is expected to replace the Global Talent Independent (GTI) visa but remain a subclass 858 visa. It will be a fast-tracked permanent residence visa for internationally recognised exceptional and outstanding leaders in their field. This visa program will:

  • Cater for a broad range of high calibre talent with a diversity of backgrounds such as:
    • Global researchers and thought leader e.g. published in leading journals, high levels of publications and citations, recipients of top of field awards
    • Entrepreneurs both established and emerging with lessons taken from successful State and Territory led initiatives
    • Innovative Investors with a focus on the quality of investment, not simple thresholds
    • Athletes and creatives particularly those that represent Australia internationally
  • Be by invitation only. The invitation will be secured via an Expression of Interest (EoI) process but unlike the previous EoI process for Global Talent, the NIV EoI process will more closely reflect that of other invitation only visas pathways. A key difference is that only invited applicants are expected to hear back in response to their EoI.

Once the NIV is introduced the Global Talent Independent Program will cease, apart from visa applications with invitations that are already lodged. Global Talent Program EoIs already submitted will be assessed in accordance with the NIV requirements. The Department of Home Affairs (DHA) is advising that applicants update their pending EoIs to ensure they address requirements of the NIV rather than the GTI requirements.

Comparison of temporary and permanent options for eligible Specialist Skill Stream Applicants

For those applicants eligible to apply under the SID’s Specialist Skills Stream visa, the Department of Home Affairs (DHA) has provided a comparison between the SID and the NIV. This is detailed in the table below:

Key Features Skills In Demand (SID) Visa – Subclass 482 Specialist Skills Stream National Innovation Visa (NIV) – Subclass 858
Applicant profile Highly skilled, earning at least $135,000, with an employer sponsor Internationally recognised record of exceptional talent, prominent in their field
Visa length Up to 4 years (with pathway to permanent residency) Direct to permanent residence
Sponsorship requirement Must have an approved sponsor Must be nominated via approved Form 1000
English Competent English Functional English or pay secondary visa application charge
Age Any age (PR requirements are separate) Any age but there may be some additional requirements depending on age
Occupation restrictions Almost any occupation except trades workers, machinery operators and drivers, and labourers No occupation restrictions
Grant number per program year Demand driven Planned program and must be invited to apply

Summary

Through the introduction of the Specialist Skills Pathway and the NIV, the Government has stated its aim to drive growth in sectors of national importance and to attract highly talented migrations to Australia, including global researchers, high performing entrepreneurs, and innovative investors. In particular, the NIV will be a small, exclusive program with an increased focus on high-calibre talented migrants. Its is positioned to support productivity growth by attracting migrants with skills in areas such as advanced robotics, quantum computing, and clean energy to come to Australia.

DHA are currently working to implement these changes, once legislated, and indications are that this is on track to commence before the end of 2024.