Federal Budget 2024-2025: Key Changes to Australia’s Immigration Policies

On May 14, 2024, the Albanese Government released the Federal Budget for 2024-2025, introducing several significant adjustments to Australia’s immigration framework. Below is an overview of these changes and their implications.

Migration Planning Levels

The permanent migration program will experience a slight decrease, from 190,000 this financial year to 185,000 in 2024-25. Approximately 70% (132,200) of these spots will be dedicated to the Skilled Stream, aimed at addressing Australia’s long-term skill shortages. To further reform the immigration system and restore its integrity, the government will invest over $18 million. From 2025-26, 70% of migration places will continue to be allocated to the Skilled Stream to tackle ongoing skill shortages.

The Budget also projects a reduction in net overseas migration (NOM) by about 110,000 people, decreasing from an estimated 375,000 in 2023-24 to 260,000 in 2024-25. This is a significant drop from the record 528,000 net overseas migration recorded in 2022-23.

Temporary Skill Shortage (TSS) Visa

Changes to the TSS visa (subclass 482) include a reduction in the work experience requirement. Currently, applicants need two years of full-time work experience post qualification in relevant areas to be eligible for sponsorship by an employer. Starting November 23rd, 2024, this requirement will be reduced to one year, a significant change especially for onshore students, graduate 485 visa holders and working holiday visas holders. Interestingly while the Government are slashing new student visas from offshore, this is an attempt to keep the existing onshore visa holders who are skilled, in the country.

Business Innovation and Investment Visa Program and Global Talent Visa

The Business Innovation and Investment Visa Program (BIIP) and the Global Talent visa (subclass 858) will be discontinued. The BIIP, which includes streams for business innovation, investors, significant investors, entrepreneurs, and extensions, will cease, reflecting the significant decline in visa places offered under this program—only 1,900 in 2023-24.

The Global Talent visa will be replaced by a new National Innovation Visa (NIV) in late 2024. This new visa aims to attract exceptionally talented migrants who can drive growth in critical sectors. The transition to this new visa will be supported by a $1.4 million allocation.

New Ballot Program for Chinese, Vietnamese, and Indian Applicants

A new ballot program will be introduced in the 2024-25 financial year for visa applicants from China, Vietnam, and India. This program will include a $25 fee to manage visa processing times and demand.

Under the Australia-India Migration and Mobility Partnership Arrangement (MMPA), Indian nationals holding a business visitor visa (subclass 600) will have their stay extended from three years to five years. Additionally, a new Mobility Arrangements for Talented Early-Professionals Scheme (MATES) will be launched on November 1, 2024, benefiting 3,000 young Indian professionals. This scheme will allow them to live and work in Australia for up to two years. A $25 fee will apply for ballot entry, with a $365 fee for successful applicants.

To enhance engagement with Southeast Asia, the budget allocates $505.9 million. This will improve visa access and extend the validity of business and frequent traveler visas for ASEAN countries and Timor-Leste.

Employer Compliance

The government continues to focus on employer compliance and combating worker exploitation, allocating $18.3 million for these efforts. Over the next three years, $15 million will be used for initiatives providing information and education to migrant workers about workplace protections. Additionally, $1.9 million will fund a pilot program for data-sharing between the Department of Home Affairs and the Australian Tax Office to prevent exploitation.

Administrative Review Tribunal

The government will establish the Administrative Review Tribunal, replacing the current Administrative Appeals Tribunal, with a $1 billion allocation over five years. This new tribunal aims to address court backlogs due to the high number of migration and asylum decision reviews.

Additional Spending

The Leaving Violence Program, which supports victims of domestic and family violence, will be extended to temporary visa holders with a $925.2 million allocation over five years. This funding will provide financial support, safety assessments, and referrals to support pathways.

To address under-resourcing impacts, the government has allocated $1.8 billion over three years for more service delivery staff, aiming to reduce backlogs and improve visa processing capabilities. The budget also includes funding for the National Cyber Security Coordinator to enhance management and recovery from cyber incidents and additional support for the Counter Foreign Interference Taskforce to disrupt threats from foreign interference and espionage.

These changes reflect the Albanese Government’s commitment to refining Australia’s immigration system as part of the migration strategy to better meet the country’s economic and social needs.

Source: https://budget.gov.au/

Date posted: May 14,2024