The Labor Government’s Federal Budget was announced on Tuesday 14th May. It comes as no surprise that the key theme of the budget was easing the cost of living. Along with measures to assist with cost-of-living pressures, many other factors were addressed in the budget.
The Budget Impacts on Immigration
The budget includes changes to various aspects of immigration. One of the most significant changes was the reduction in immigration numbers, however, there were many other details announced. So, how will the budget affect immigration?
Immigration Planning Levels
The Government has reduced migration levels by half compared to the current financial year. The 2024/25 permanent Migration Program planning level is set at 185,000 places with 132,200 places allocated (around 70 percent) to the Skill stream.
Maintaining around 70 percent of places for the Skill stream will help address Australia’s long-term skill needs. Extending the planning horizon for the permanent Migration Program from one year to four years should also enable better cross-government planning in the future.
Retaining the permanent migration program at 185,000 with 70 percent allocated to skilled workers is a positive outcome given the Government is looking to drastically cut net overseas migration in response to growing housing shortages.
International Student Measures
It was announced that the Government will set limits for how many international students can be enrolled by each university based on factors including how much student accommodation they can provide.
If universities want to increase their international student intake above the initial allocation, then the Government will require universities to establish new purpose-built student accommodation (PBSA). The aim of this is to increase the level of housing supply and help to ensure that increases in international student numbers do not put further pressure on the domestic housing market. This accommodation will be available to both local and international students.
Sc482 Reduced Work Experience Requirement
The Government will also reduce the work experience requirement for the Temporary Skill Shortage (subclass 482) visa from two years to one year for all applicants from 23 November 2024 onwards. Employer sponsors and potential employer sponsors need to be mindful that the reduction in work experience requirements will need to be passed in legislation for the change to be formally implemented.
National Innovation Visa
The Government announced they will implement a new National Innovation visa, to replace the current Global Talent (subclass 858) visa from late 2024. It will be targeted at exceptionally talented migrants who will drive growth in sectors of national importance.
The Business Innovation and Investment Program
Unfortunately, the Business Innovation and Investment visa program (BIIP) will cease. This will leave Australia without a pathway for prospective migrants who are high wealth, business owners, senior executives and entrepreneurs.
Better Education for Migrant Workers
In an effort to reduce exploitation of migrant workers, the Government has set aside an estimated $15 million over three years from 2024/25 for information and education activities to provide accurate and appropriate information about workplace safeguards, protections and compliance measures related to workplace laws.
In addition, $1.9 million will be allocated in 2024/25 to conduct a data-matching pilot between the Department of Home Affairs and the Australian Taxation Office of income and employment data. The goal is to mitigate exploitation of migrant workers and abuse of Australia’s labour market and migration system.
Mobility Arrangement for Talented Early-professionals Scheme (MATES)
From 1 November 2024, the Government will implement a new mobility pathway for Indian nationals. MATES will provide 3,000 Indian graduates and early career professionals (aged 18 to 30 years at the time of application), with knowledge and skills in targeted fields of study to live and work in Australia for up to two years.
The Government will also lengthen the validity of the Visitor visa (subclass 600) Business Visitor stream for Indian nationals from up to three years to up to five years.
Work and Holiday Measures – China, India and Vietnam
The Government will introduce a visa pre-application (ballot) process for the capped Work and Holiday (subclass 462) visa program for China, Vietnam and India from 2024/25. The ballot process will help manage program demand and application processing times for these countries.
Establishment of the Administrative Review Tribunal
The Government has allocated $1.0 billion over five years from 2023/24 to establish and support the sustainable operation of the Administrative Review Tribunal, and to address court backlogs associated with the high number of applications for judicial review of migration decisions. The Administrative Review Tribunal will replace the Administrative Appeals Tribunal.
Trade Recognition Australia ICT Improvements
Trade Recognition Australia ICT improvements will be proposed by the Government to aid in the development of a modern ICT solution for the assessment of trade skills for skilled migrants, resulting in making skilled workers more rapidly available to employers.
Reforms to Migrant and Refugee Settlement Services
The Government will provide $120 million over five years to improve the sustainability of settlement services for refugees and migrants.
Funding will support:
- The Humanitarian Settlement Program
- Extended targeted support including:
- Youth transition support services to assist refugee and migrant youths to access education, employment and government services
- Specialised support for refugee and migrant women experiencing domestic and family violence
There are many initiatives that have been announced, whether in regard to immigration or other aspects of the budget. As with any budget, the Government has a desired outcome in mind. Time will tell if these outcomes are achieved.
To learn more about any aspect of migration to Australia, contact the experienced team of registered migration agents at Visa Solutions Australia. Book a consultation.
