Federal Budget For 2024-25 Released; Commitment To Migration System Reforms Reaffirmed
The Australian government released its federal budget for the year 2024-25, in which it reaffirmed its ongoing commitment to migration system reforms by implementing the plans outlined in its Migration Strategy.
Australia
Immigration
At a Glance
The Australian government released its federal budget for the
year 2024-25, in which it reaffirmed its ongoing commitment to
migration system reforms by implementing the plans outlined in its
Migration Strategy. Some key measures include:
- The introduction of immigration programs such as the new
National Innovation Visa;
- Changes to existing immigration policies, including relaxation
of the work experience requirement for the Temporary Skill Shortage
subclass 482 visa; and
- Budget allocation for immigration-related programs and
offices.
The situation
On May 14, 2024, the Australian government's Budget for the
2024-25 financial year was announced. The government reaffirmed its
ongoing commitment to migration system reforms by implementing the
plans outlined in its Migration Strategy.
A closer look
The table below lists some of the migration measures
proposed:
Proposed Plan |
Impact |
Permanent migration program planning level.
Consistent with the previous year's allocation, the government
plans to set out 185,000 permanent migration spots, with 70%
allocated to the Skill stream. Within the Skill stream, the
Skilled-Independent visa program places have been reduced to 16,900
(from 30,375) and the Employer-Sponsored visa program places have
been increased to 44,000 (from 36,825).
|
Employer-sponsored skilled foreign nationals benefit from the
high allocation of permanent migration slots to the Skill stream as
it opens more opportunities to permanently reside and work in
Australia.
Fewer invitations will be issued by the Department of Home
Affairs and a higher level of competition is expected amongst
individual applicants with the significant reduction of places
under the Skilled-Independent visa program.
|
Introduction of new immigration programs. With
the aim of attracting more highly skilled foreign talent to
Australia, the government introduces new visa programs, including
the following:
- In late 2024, the government will launch the new National
Innovation visa, a replacement to the Global Talent visa and the
Business Innovation and Investment visa programs (BIIP).
- Starting November 1, 2024, the new Mobility Arrangement for
Talented Early-professionals Scheme (MATES) program will be opened
specifically for Indian nationals. We will monitor and report as
further information is released.
|
- The new National Innovation visa would give exceptionally
talented individuals an opportunity to live and work in Australia
without an employer or family member's sponsorship. It will
open a path for foreign investors to invest in Australia.
- The MATES program provides Indian university graduates and
early-career professionals an opportunity to live and work in
Australia for up to two years, while gaining valuable work
experience.
|
Relaxed rules for existing immigration
policies. The government will relax the following existing
immigration policies:
- Starting November 23, 2024, the work experience requirement for
the Temporary Skill Shortage (TSS) subclass 482 will be reduced
from two years to one year. This change will likely carry across to
the new Skills in Demand visa (set to supersede the TSS visa
program in late 2024).
- The government will extend the validity period of Business
Visitor visas issued to Indian nationals from three years to up to
five years.
- Trades Recognition Australia (a national skills assessment
service that recognizes trade skills for migration purposes) will
provide a modern technological solution for the assessment of trade
skills to benefit both skilled workers and employers.
|
- The relaxation of work experience requirements gives
opportunities for graduates and early-career professionals to meet
eligibility criteria and easily obtain a work visa in
Australia.
- The extension of the Business Visitor visa gives Indian
nationals more flexibility in travelling and conducting business in
Australia.
- Skilled foreign nationals will benefit from a quicker and more
efficient skills assessment process powered by modern
technology.
|
New rules for holiday visas and students.
- A new ballot process for Work and Holiday visas will be
implemented for nationals of Mainland China, India and
Vietnam.
- Student visa slots for international students will be capped
for all educational providers.
|
- Applicants impacted by the changes in policies on Work and
Holiday visas (new ballot process) and student visas (setting a
cap) will find it more challenging to obtain these visas.
- Indian nationals will benefit from being included in the Work
and Holiday visa program for the first time.
- Education providers who seek to offer additional slots above
the imposed cap will need to demonstrate a new supply of
purpose-built student accommodation to benefit both international
and domestic students and free up pressure on the rental
market.
|
Budget allocation for immigration-related programs and
offices. The government allocated AUD 100 million to the
Department of Home Affairs to support the performance of its core
functions, including immigration and Australian Border Force
operations. Separately, it also allocated the following amounts to
different immigration-related programs and offices:
- AUD 1 billion over five years to establish and support the
operation of the new Administrative Review Tribunal (soon to
replace the current Administrative Appeals Tribunal which
adjudicates on immigration matters);
- AUD 115.6 million to address court backlogs due to high volume
of immigration applications for judicial review;
- AUD 15 million over three years towards information and
education about workplace safeguards, protections and compliance
measures relating to migration laws; and
- AUD 1.9 million for a data-matching pilot with the Australian
Taxation Office of income and employment data to prevent migrant
worker exploitation and to deter abuse of Australia's labor
market and migration system.
|
- The government's efforts to invest in immigration-related
programs and offices ensure that Australia's immigration system
is transparent and efficient.
- Foreign workers will benefit from new policies imposing strict
compliance responsibilities to employers as measures against
workplace exploitation.
|
Background
Consistent with its Migration Strategy, the government intends
to address skills needs, reshape permanent skilled migration to
drive long-term prosperity, raise the standards for international
students, protect foreign workers, and simplify the migration
system.
Looking ahead
The Australian government has progressively commenced
consultations to seek views from key stakeholders, industry bodies
and the public to assist in forming the settings for each of the
visa programs under review.
To date, consultations have opened on the draft Core Skills
Occupation List set to be used in the Core Skills stream of the
proposed Skills in Demand visa and review of the Points Test used
in the General Skilled Migration visa program.
Consultations on developing the new National Innovation visa,
strengthening integrity in the approved sponsor application process
and evaluating regional migration settings for the Working Holiday
Maker program will be released throughout 2024.
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