On Tuesday 14 May 2024, the federal budget was released to the public by Treasurer Jim Chalmers MP. During his speech, the Treasurer highlighted the Government’s main priorities for this budget that included addressing the rising cost of living, the building of more homes in Australia, strengthening Medicare and responsible economic management. As always, the budget also addressed issues within the immigration space.
Below are some of the key immigration takeaways from this budget that are likely to impact our clients:
Improving the System
The Government will inject some much-needed funds ($18.3 million) into Australia’s migration system over the next four years from the 2024-25 migration year so as to improve the system that will help drive economic prosperity while restoring integrity to the program. A majority of these funds ($15 million) will be earmarked for the purpose of providing migrant workers with accurate information and education concerning workplace safeguards, protections and compliance measures relating to migration law. In addition, Staffing Australia will also receive a boost to continue their efforts in aiding DHA to address the significant backlog of applications – this continued support, which began in the 2023-24 migration year, should allow DHA to speed up processing times for applications.
- WHAT DOES THIS MEAN FOR CLIENTS? Greater clarity for both employers as well as employees in relation to migrant workers, which means a more equitable playing field for all concerned. The focus on employer compliance is also going to continue, meaning that all employers should remain vigilant in respect of their obligations towards visa holders. Also, hopefully increased staffing will mean shorter waiting times from lodgement to decision – a welcome improvement for all!
Temporary Migration Program changes
The Temporary Skill Shortage (‘TSS’) (subclass 482) visa has been a cornerstone of Australia’s temporary migration program and has allowed many overseas nationals the opportunity to work and live in Australia thanks to their skills. In support of this successful visa pathway, the Government will reduce the work experience requirement from two years to one year for all applicants who lodge their application from 23 November 2024 onwards.
- WHAT DOES THIS MEAN FOR CLIENTS? This reduction should mean the TSS visa is available to a greater cohort of applicants, including recent graduates.
Permanent Migration Program changes
The Government has now released its program numbers for the 2024/25 year. Of the 185,000 places for permanent residency available, 132,000 of those (approximately 70%) will be allocated to the skilled stream. Also, in late 2024, we will see the introduction of a new National Innovation visa which will replace the existing Global Talent (subclass 858) visa – this new visa will be specifically targeted at talented migrants who will drive national growth in key economic sectors. In addition, the Business Innovation and Investment Program (‘BIIP’) will cease, with refunds for visa application charges provided from September 2024 for those wishing to withdraw their BIIP application.
- WHAT DOES THIS MEAN FOR CLIENTS? This is in keeping with Australia’s current economic and labour market needs. It’s good news for skilled migrants seeking permanent residence in Australia, and bad news for business owners and others who had been considering the BIIP program. The new National Innovation visa will be one to watch.
Introduction of the Administrative Review Tribunal (‘ART’)
The Government will provide $1 billion over the course of five years from the 2024-25 migration year (then $210.8 million/year from ongoing from 2028-29, in addition to $194.2 million/year from 2028-29 to 2035-36) to see the proper establishment of the new Administrative Review Tribunal (‘ART’) which is set to replace the existing Administrative Appeals Tribunal (‘AAT’). This new entity will help address the sizeable backlog of migration decisions before the court seeking judicial review. The Government has also pledged that $854.3 million of the four-year investment will be towards establishing a capped, demand-driven and flexible funding model for the new ART that will allow the finalization of 100% of case lodgements in each year.
- WHAT DOES THIS MEAN FOR CLIENTS? A more accessible and swifter turnaround for people seeking review, which will be a welcome relief to the many review applicants who are currently waiting for an AAT decision.
The Leaving Violence Program
In an effort to address the continuing rise in family violence in Australia, to which migrants are sadly not immune, the Government has decided to extend the existing Escaping Violent Payment trial and Temporary Visa Holders Experiencing Violence Pilot to 30 June 2025 due to the success and information garnered by the existing trial and pilot. Following that, the Leaving Violence Program (‘LVP’) (which will receive $952.2 million over the first five years and then $263.3 million/year thereafter) will be initiated in mid-2025. Of these funds, $152.3 million over three years will help expand the Escaping Violent Payment and Temporary Visa Holders Experiencing Pilot trials to mid-2025 until they are replaced by the LVP, $16.5 million over five years from 2023-24 (and then $5.1 million in 2028-29) will be put towards providing legal assistance to temporary visa holders experiencing violence in a relationship, and $6.1 million over four years from 2024-25 (and $1.6 million/year thereafter) will be provided for ongoing specialized support for temporary visa holders experiencing domestic and family violence.
- WHAT DOES THIS MEAN FOR CLIENTS? Temporary visa holders (e.g. those holding a temporary Partner visa) will have increased support if they experience family violence.
The new MATES program
The Government plans to introduce the MATES initiative (Mobility Arrangement for Talented Early-professionals Scheme) for citizens of India from 1 November 2024, which will allow a new mobility pathway for 3,000 Indian graduates and early career professionals (aged between 18 and 30 at the time of application) to live and work in Australia for up to two years if they have the knowledge and skills in targeted fields of study. In addition, the length of validity for the Visitor (subclass 600) [Business Visitor] visa for Indian nationals will increase from three years up to five years.
- WHAT DOES THIS MEAN FOR CLIENTS? New and improved pathways to Australia for Indian nationals, which will result in economic benefits for Australia.
Changes to the Work and Holiday Visa program for Chinese, Vietnamese and Indian nationals
In the new migration year, the Government will introduce a visa pre-application (ballot) process for the capped work and Holiday (subclass 462) visa program for Chinese, Vietnamese and Indian nationals. This new ballot process will help manage program demand and keep processing time short for applicants from China, Vietnam and India. An additional $25 ballot charge will apply in addition to the visa application charge.
- WHAT DOES THIS MEAN FOR CLIENTS? Chinese, Vietnamese and Indian nationals should be able to expect expedited processing of Work and Holiday visa applications.
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Overall, the Government is keenly focused on reducing net overseas migration (which is set to halve from 528,000 places to 260,000 places in the 2024-25 program year) and making sure the migration program is fit for purpose. This is very much in line with what we have already heard from the Ministers, and in the Migration Strategy released last year.
There was, however, no mention of the new Skills in Demand visa (discussed extensively in the Migration Strategy) in the Budget. Given that the changes to the work experience requirement for TSS visas is anticipated in late November 2024, the Skills in Demand visa is likely to be implemented next year.
There was also no discussion of the permanent employer and skilled migration pathways. Given that Jobs and Skills Australia is currently in the middle of a consultation process on the occupation lists for employer sponsorship and the Department has recently released a discussion paper on proposed reforms to the permanent skilled migration points test, it seems like the timeline for these changes is likely to also extend into 2025.
*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.
