On Tuesday 9 May 2023, Treasurer Jim Chalmers MP unveiled the Federal Government’s second Budget since the Labor Party took the reins of power in May of last year.
As anticipated, the Budget made certain commitments within the Australian migration sphere following on from Minister Clare O’Neil’s initial announcement on 27 April 2023 and the subsequent media release on 5 May 2023. Here are some of the key takeaways we have identified in this Budget that will impact our clients:
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- Confirmation that of the 190,000 permanent places in the 2023/24 migration program, 70% will go to skilled workers to ease skills shortages.
WHAT DOES THIS MEAN FOR CLIENTS? If you’re a skilled migrant, this is great news for you. Start evaluating your skilled visa options NOW.
- Confirmation that of the 190,000 permanent places in the 2023/24 migration program, 70% will go to skilled workers to ease skills shortages.
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- Increased support for temporary visa holders experiencing family violence: $10 million over four years to expand the family violence provisions within the Migration Regulations 1994 (Cth).
WHAT DOES THIS MEAN FOR CLIENTS? At the moment, the family violence provisions apply to a limited number of visas only. We are hopeful that this change means temporary visa holders like Student and TSS visa holders will be able to access these provisions.
- Increased support for temporary visa holders experiencing family violence: $10 million over four years to expand the family violence provisions within the Migration Regulations 1994 (Cth).
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- In addition to the usual increase in line with CPI, visa application charges will rise as follows from 1 July 2023:
Visa Categories Fee Increase Visitor, Working Holiday, Work and Holiday, Training, Temporary Activity and Temporary Work (short-stay specialist) 15% Business innovation and investment visas 40% Other visas 6% WHAT DOES THIS MEAN FOR CLIENTS? If you can apply for a visa before 1 July, you should!
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- In addition to the usual increase in line with CPI, visa application charges will rise as follows from 1 July 2023:
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- An extra 2 years of post-study work rights to Temporary Graduate visa holders with select degrees to improve the pipeline of skilled labour in key sectors.
WHAT DOES THIS MEAN FOR CLIENTS? Additional time to gain work experience in Australia will improve permanent visa options. It also means employers may not need to rely on the TSS visa as much.
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- An extra 2 years of post-study work rights to Temporary Graduate visa holders with select degrees to improve the pipeline of skilled labour in key sectors.
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- Until 31 December 2023, international students working in the aged care sector will be exempt from the standard work limitations (40 hours per fortnight as per condition 8105).
WHAT DOES THIS MEAN FOR CLIENTS? This one is easy – if you’re an employer or an employee in the sector, this gives you relief until the end of the year.
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- Until 31 December 2023, international students working in the aged care sector will be exempt from the standard work limitations (40 hours per fortnight as per condition 8105).
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- An additional $75.8 million will be injected over the course of two years from 2023-2024 to support visa processing capacity. Of this, $48.1 million will be allocated to support 500 visa processing officers over the span of 12 months.
WHAT DOES THIS MEAN FOR CLIENTS? Hopefully, quicker processing!
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- An additional $75.8 million will be injected over the course of two years from 2023-2024 to support visa processing capacity. Of this, $48.1 million will be allocated to support 500 visa processing officers over the span of 12 months.
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- An additional $50 million over 4 years from 2023-24 (and $15.3 million/year, ongoing) to be allocated for additional enforcement and compliance activities so as to maintain the migration system's integrity.
WHAT DOES THIS MEAN FOR CLIENTS? Additional funding means additional scrutiny. If you’re an employer, it’s time to review your internal processes to ensure these are compliant with your sponsorship obligations.
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- An additional $50 million over 4 years from 2023-24 (and $15.3 million/year, ongoing) to be allocated for additional enforcement and compliance activities so as to maintain the migration system's integrity.
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- Over the span of 4 years, $5.5 million will be provided to support a pathway to permanent residency for individuals who satisfy the tripartite test as set out in Mabo v Queensland [No. 2] (1992) 175 CLR 1, as a result of the High Court of Australia's decision in Love v Commonwealth; Thoms v Commonwealth (2020) 270 CLR 152. Eligible individuals will be able to apply for the Resolution of Status (subclass 851) visa.
WHAT DOES THIS MEAN FOR CLIENTS? If you are an indigenous Australian, this will faciliate your ability to retain or confirm your status as a permanent resident.
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- Over the span of 4 years, $5.5 million will be provided to support a pathway to permanent residency for individuals who satisfy the tripartite test as set out in Mabo v Queensland [No. 2] (1992) 175 CLR 1, as a result of the High Court of Australia's decision in Love v Commonwealth; Thoms v Commonwealth (2020) 270 CLR 152. Eligible individuals will be able to apply for the Resolution of Status (subclass 851) visa.
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- Confirmation of the announced increase to the TSMIT - for more information, view our previous blog.
WHAT DOES THIS MEAN FOR CLIENTS? All TSS visa applicants will need to be paid a base salary of AUD70,000 per annum from 1 July onwards. It’s worthwhile considering how this will impact your hiring practices now.
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- Confirmation of the announced increase to the TSMIT - for more information, view our previous blog.
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- The Government will also be making changes to two Skills Assessment Pilots so as to provide onshore migrants with swifter results for Skills Assessments, free employability assessments and access to further training in order to improve their employment prospects. In addition, the Mechanism for the Mutual Recognition of Qualifications will ensure that students from India and Australia will have increased certainty that their qualifications will be recognised by both countries.
WHAT DOES THIS MEAN FOR CLIENTS? Skills assessments are complex. This measure is intended to improve the pool of skills within the labour market as well as the transfer of skills into the labour market.
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- The Government will also be making changes to two Skills Assessment Pilots so as to provide onshore migrants with swifter results for Skills Assessments, free employability assessments and access to further training in order to improve their employment prospects. In addition, the Mechanism for the Mutual Recognition of Qualifications will ensure that students from India and Australia will have increased certainty that their qualifications will be recognised by both countries.
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The Budget overview documents and papers can be read here.
*This is general information only, as at the date of publication, and should not be interpreted as legal advice. For an accurate and current assessment of your circumstances and visa options, please contact us to receive this advice.
