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IMPACT – MEDIUM
What is the change? Beginning 1 July, Australia will introduce a new permanent visa stream for certain New Zealanders residing in Australia. In other changes set for 1 July, the maximum age for Subclass 189 (Skilled – Independent) points-based applicants has been lowered to 45 years of age at the time of invitation, and outgoing passenger cards have been abolished.
What does the change mean? The new permanent stream under the Subclass 189 (Skilled – Independent) visa category will be available to New Zealanders holding a Subclass 444 (Special Category) visa, who were usually resident in Australia on or before 19 February 2016, who have continued to reside in Australia for at least five years and meet minimum income requirements.
Background: The new Subclass 189 New Zealand stream will require primary applicants to have been usually resident in Australia beginning on or before 19 February 2016 for a continuous period of at least five years immediately before the application date. Applicants must present tax returns demonstrating their taxable income for four of the previous five years met the applicable Temporary Skilled Migration Threshold (A$53,900 for years 2013/2014 through 2016/2017; A$51,000 for 2012/2013).The stream was first announced in February under a bilateral agreement recognizing the special relationship between the two countries.
In the other announced changes, Subclass 189 (Skilled-Independent) points-tested stream visa applications made on or after 1 July, will be subject to a lower maximum age limit of 45 years at the time of the applicant’s invitation. Exceptions include applications made in response to an invitation issued before 1 July 2017 where the application is made after 1 July or is made by dependent family members applying simultaneously with the primary applicant.
The other notable change is that beginning 1 July, travelers departing Australia will no longer be required to fill out outgoing passenger cards, as this information will be collected through other means.
BAL Analysis: The New Zealand stream will make it easier for tens of thousands of long-time Kiwi residents of Australia to become permanent residents of Australia and have a future pathway towards Australian citizenship.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 0101248
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Australia will introduce a new visa for parents of Australians and will adopt stricter residency rules before migrants can access pensions under proposals in the Federal Budget, which was released earlier this week.
What does the change mean? The Government plans on introducing the new parent visas in November. Officials will make 15,000 visas available to parents of Australian citizens, permanent residents and eligible New Zealand citizens. The Government also outlined plans in the Budget to adopt stricter rules for migrants attempting to access Australian pensions. Effective 1 July 2018, claimants will be required to have 15 years of continuous Australian residence before accessing pensions, unless an exception applies.
Background: The Federal Budget, released Tuesday, included proposals to create a Skilling Australians Fund, increase base visa application charges for skilled visa applicants and to adjust visa application charges for a number of visa subclasses beginning 1 July 2017.
The Budget also calls for creating a new visa for parents of Australians, in line with the Assistant Immigration Minister’s announcement last week regarding the introduction of the new visa. The visas will be valid for three to five years and will be renewable from outside of Australia, allowing for a cumulative stay of up to 10 years. Visa holders will not be eligible to apply in Australia for permanent parent visas, and visa holders’ sponsors (i.e., their children) will be financially liable for public health costs their parents incur. The visa programme will be reviewed after one year.
The Budget additionally proposes adjusting pension rules to restrict access migrants have to pension benefits. Claimants will be required to have 15 years of continuous Australian residence to collect benefits unless they (1) have 10 years of continuous Australian residence, including at least five years during their working life, (2) have 10 years of continuous Australian residence without receiving an activity-tested income support payment for at least five years of that time; or (3) qualify for existing Disability Support Pension (DSP) exemptions for people with disabilities acquired while in Australia.
Lastly, the Budget calls for investing in reforms to visa processing and a slight staffing decrease within the Department of Immigration and Border Protection (DIBP). The Government plans to invest $185.4 million over a four-year period to make changes to visa processing, including enhancing the visa framework to better meet economic and migration goals, improving some ICT systems and replacing other ICT systems to help the Government better verify the identity of people arriving in Australia. Some $35.4 million would be directed toward a long-term programme to enhance the visa system. The Government is also planning for a slight decrease in staffing levels in the DIBP from the current level of 14,000 employees down to 13,755.
BAL Analysis: On the whole, the changes announced in the Budget, in particular the creation of a Skilling Australians Fund and increases to base visa application charges for skilled visa applicants, reflect Australia’s move toward prioritising domestic workers over skilled foreign nationals in the national workforce. The introduction of a new visa for parents of Australians will provide a new route for temporary stays in Australia for qualifying parents. The changes to the pension system will restrict access for migrants living in Australia unless they meet the criteria outlined above.
MARN: 0850984
IMPACT – HIGH
What is the change? Employers that sponsor or nominate foreign workers for Temporary Skill Shortage (TSS) visas or for the permanent Employer Nomination Scheme (subclass 186) or Regional Sponsored Migration Scheme (subclass 187) visas from March 2018 will be required to pay into a new ‘Skilling Australians Fund’ under a proposal released Tuesday in Australia’s Federal Budget. The budget also calls for steep increases to visa application charges for certain TSS visa applicants, as Australia continues to take steps toward prioritising domestic workers over skilled migrants.
What does the change mean? Effective March 2018, affected employers will be subject to levies of A$1,200 or A$1,800 per year (or part thereof), depending on the company’s size, for every primary TSS visa applicant. Employers will also be required to make one-off levy payments of A$3,000 or A$5,000, depending on company size, for every primary subclass 186 visa or subclass 187 visa applicant. Base visa application charges (primary applicant charge) for the TSS visa programme will be set at A$1,150 for short-term (two-year) visas and at A$2,400 for medium-term (four-year) visas.
Additional information: The release of the Federal Budget Tuesday followed Australia’s announcement in April that it would abolish the 457 temporary skilled visa programme in favour of a new TSS visa stream that will more tightly control migration and the hiring of skilled workers.
Plans for a Skilling Australians Fund date back to a 2014 review of the Subclass 457 visa programme. The fund will replace current training benchmark requirements and support skill development and apprenticeship programmes for Australian workers. The levies will apply not just to TSS visas, but also to the permanent Subclass 186 and Subclass 187 visas. Levies will be assessed as follows:
The base visa application charges for the proposed TSS visa, meanwhile, represent a significant increase over current levels for the existing Subclass 457 visa programme. The base visa application charges will increase to A$1,150 for the Short-Term (up to two years) TSS visa stream and A$2,400 for the Medium-Term (up to four years) TSS visa stream. By contrast, the current base visa application charge for Subclass 457 visas is A$1,060 and is set to increase modestly to A$1,080 on 1 July 2017.
Visa Application Charge Increases from 1 July 2017
The Federal Budget includes moderate Visa Application Charge (VAC) increases for a number of Australian visa subclasses beginning 1 July 2017, including the following:
A complete list of the VAC increases is available on this Department of Immigration and Border Protection fact sheet.
BAL Analysis: The changes announced in the budget further reflect Australia’s move toward prioritising domestic workers over skilled migrants in the national workforce. The Skilling Australians Fund levies and new visa application charges will impose significant costs on businesses bringing skilled migrants to Australia. The replacement of the 457 visa programme is expected to further narrow the eligibility criteria for companies to recruit foreign skilled workers, even after Australia recently took steps to limit eligibility for 457 visas. Eligible foreign skilled workers, who are interested in applying for Australian permanent residency through the employer-sponsored Subclass 186 and Subclass 187 visa programmes, should seriously consider applying prior to the proposed March 2018 reforms, as their future Australian permanent residency options may become limited. BAL is closely following developments and will update clients as additional changes are announced.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com
What is the change? Australian officials announced Wednesday that they will make it more difficult to obtain Australian citizenship.
What does the change mean? Applicants for citizenship will be required to meet more difficult English-language requirements, will need to have lived in Australia for at least four years as a permanent resident and will be given a revamped test that includes questions aimed at assessing their commitment to Australian “values and responsibilities,” among other changes.
Background: Officials made the announcement closely after unveiling a plan to abolish the Subclass 457 Temporary Skilled Work visa programme and replace it with a new Temporary Skill Shortage (TSS) visa stream that will more tightly control the hiring of foreign workers. Officials said the citizenship application changes will include:
Prime Minister Malcolm Turnbull and Minister for Immigration and Border Protection Peter Dutton said that “conduct that is inconsistent with Australian values” would be counted against applicants in the citizenship process. Such activity may include criminal activity, including domestic violence and involvement in gangs or organised crime.
BAL Analysis: Both the visa and citizenship changes reflect the Turnbull Government’s renewed emphasis on promoting Australian workers and values. Taken together, the changes will make it more difficult for foreign nationals to work and obtain citizenship in Australia. BAL is in ongoing consultation with the Government to ensure that client needs and requirements are protected to the maximum extent possible.
What is the change? In a surprise announcement aimed at “putting Australians first,” Prime Minister Malcolm Turnbull announced Tuesday that the Government will abolish the Subclass 457 Temporary Skilled Work visa and replace it with a new Temporary Skill Shortage (TSS) visa stream that more tightly controls the migration and hiring of skilled foreign workers.
What does the change mean? Employers should expect significant changes to take effect immediately and additional changes as the 457 visa criteria are narrowed and the program is phased out. Existing 457 visa holders are not affected.
Key dates:
19 April 2017: Employers should expect an immediate elimination of 216 occupations eligible to be filled by foreign nationals under the 457 visa program and caveats attached to 59 additional occupations. As of 19 April, two new occupations lists – the Medium and Long-term Strategic Skills List (MLTSSL) and the Short-term Skilled Occupation List (STSOL) – will take effect and replace the previous Skilled Occupation and Consolidated Sponsored Occupation lists. Applicants with pending 457 visa applications whose occupation is no longer eligible will have the opportunity to withdraw their application and request a refund. 457 visas granted on or after 19 April (regardless of filing date) will be valid for only two years unless the occupation is on the MLTSSL, in which case it will be valid for four years.
1 July 2017: In July, additional changes will be introduced, including the requirement that 457 visa applicants provide police clearance certificates, possible additional adjustments to eligible occupation lists, elimination of the English language exemption for high-salary earners (i.e. base salary of at least A$96,400), an expansion of applicants required to perform mandatory skills assessments, minor changes to training benchmarks for 457 sponsors and new information fields added to the 457 application form .
March 2018: The Temporary Skill Shortage visa will replace the Subclass 457 visa. The new visa stream will have stricter criteria, shorter validity periods and will require that employers undergo labour market testing for Australian candidates before hiring a foreign candidate, among other changes.
Background: Turnbull made the announcement Tuesday, saying that the 457 visa program had lost its credibility and that the new visa stream would help ensure that “foreign workers are brought in to fill critical skill gaps, not brought in simply because an employer finds it easier to recruit a foreign worker than go to the trouble of hiring an Australian.”
“We must ensure that our migration system works in the national interest and that Australian jobs are filled by Australians whenever possible,” he said.
The Temporary Skill Shortage (TSS) visa will introduce the following reforms:
BAL Analysis: The Subclass 457 visa program has faced ongoing calls for reform. Its elimination is likely to dramatically narrow the eligibility criteria for companies to recruit foreign skilled workers across a range of occupations. BAL is closely following developments and will update clients as additional changes are announced. The release of information is fluid and the above is based on current available information at the time of publishing.
What is the change? Following a two-week suspension of certifications for the Regional Skilled Migration Scheme (RSMS) and State Nominations for the Skilled Nominated (subclass 190) and Skilled Regional (provisional) subclass 489 visas, Western Australia is now accepting new applications to certify positions for RSMS nominations. Authorities have also released a new interim Western Australian Skilled Migration Occupation List (WASMOL).
What does the change mean? Except for the Perth region, new applications to certify positions for RSMS nominations are now being accepted for Western Australia. The full review of the WASMOL is expected to be completed in May, after which a new consolidated list will be made available by the Western Australian State government. Meanwhile, new applications for Western Australian State Nomination will be subject to the interim WASMOL.
Next steps: The interim skilled occupations list is available on the State Government’s website. Foreign nationals working in occupations identified on the interim WASMOL may be eligible to seek Western Australian state nomination for a subclass 190 or subclass 489 visa.
Background: Further to BAL’s client alert from earlier this month, Western Australia’s Department of Training and Workforce Development suspended the Regional Skilled Migration Scheme on 13 March pending review of the region’s skilled occupations list that identifies priority occupations in demand in Western Australia.
Regional certifying bodies are now accepting new applications for RSMS certification for positions in Gascoyne, Great Southern, Kimberley, Mid West, Peel, Pilbara, South West and Wheatbelt. Applications remain suspended for the Perth region at this time.
BAL Analysis: Foreign nationals should consult the interim WASMOL to determine if they are eligible to seek state nomination in Western Australia. Employers looking to nominate individuals for a subclass 187 visa for a position in Western Australia (other than the Perth region) will now be able to proceed with submitting applications for certification.
What is the change? Western Australia’s Department of Training and Workforce Development has announced that it (1) has temporarily suspended new applications to certify positions for Regional Skilled Migration Scheme (RSMS) Subclass 187 visas and (2) is conducting a review of the Western Australian skilled migration occupation list (WASMOL).
What does the change mean? For the duration of the suspension, new applications to certify positions through the Direct Entry stream of the RSMS for a position in those regions of Western Australia, for which Skilled Migration Western Australia (SMWA) has been gazetted as the Regional Certifying Body (RCB), will not be accepted. Western Australia state government nominations for the Skilled Nominated visa (subclass 190) and the Skilled Regional (Provisional) visa (subclass 489) will also be suspended until the review of the WASMOL is finished.
Background: The changes follow Western Australia’s 11 March election, won by Mark McGowan’s Labor Party. The McGowan Labor Government is now working to implement its ‘WA Jobs First’ programme, which not only includes the changes above, but also seeks to remove Perth from being considered a ‘regional area’ of Australia for the purpose of the RSMS.
BAL Analysis: There is no indication at this point of how long the temporary suspension will last or how long the review of the WASMOL will take. BAL will continue to follow developments on this matter, however, and will update clients on any significant developments.
What is the change? Australia and Vietnam have reached a reciprocal Work and Holiday visa arrangement.
What does the change mean? Under the agreement, 200 individuals aged 18 to 30 from Australia and Vietnam will be able obtain Work and Holiday visas. The visas will allow for Australian and Vietnamese nationals to travel, work and study in each other’s countries for up to a year.
Background: Once the arrangement is implemented, Vietnam will join a host of countries that have work and holiday arrangements with Australia.
The countries that currently have reciprocal work and holiday visa arrangements in place with Australia include Argentina, Bangladesh, Chile, China, Hungary, Indonesia, Israel, Luxembourg, Malaysia, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Thailand, Turkey, the United States and Uruguay. Australia and Ecuador signed a reciprocal work and holiday visa arrangement in January, but that agreement has yet to take effect.
Australia’s current work and holiday program allows foreign nationals to visit for up to one year, during which time they may study for up to four months and work for up to six months for an employer.
BAL Analysis: The Work and Holiday visas provide an opportunity for employers with global programs to employ Australian or Vietnamese nationals.
What is the change? Australia’s shadow government has submitted a bill to the Federal Parliament that would expand labour market testing requirements, change work and labour agreement standards and create an Australian Jobs Test to hold employers responsible for helping develop training in skills shortage areas.
What does the change mean? The proposed legislative amendments would place new responsibilities and additional evidentiary requirements on employers utilising the 457 visa programme. However, because it was proposed by the opposition party, it is unlikely the bill will receive Royal Assent and take effect, at least in its current form.
Background: The shadow government said the premise of its bill was to reflect that Australia’s temporary skilled migration programme “provides a vehicle for responding to skills shortages in the domestic labour market rather than for bypassing suitably qualified and experienced local workers.”
The bill would:
BAL Analysis: While the shadow government’s bill includes a bevy of new proposals that would impose new responsibilities on employers in the 457 visa programme, it is unlikely that the bill will receive majority support in the Federal Parliament. BAL will continue following the issues covered in the bill and will alert clients to any changes to the 457 or other Australian visa programmes.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
A host of changes to Australia’s immigration system took effect on 18 and 19 November 2016.
The changes include (1) an overhaul of the temporary activity visa framework; (2) reducing the amount of time subclass 457 visa holders can stay in the country after ceasing work with their sponsoring employer; (3) restricting the number of people who can qualify as a ‘member of the family unit’ to obtain dependent visas; (4) introducing a requirement for sponsors of certain family visas to complete a character assessment; (5) development of a frequent traveller stream for certain nationalities; (6) new checks to ensure visa holders’ information is correct and up to date and (7) a change that allows Work and Holiday visa holders to apply for new Work and Holiday visas in certain circumstances.
Key developments:
B·A·L Analysis: Employers and foreign nationals should familiarise themselves with the changes to Australia’s immigration systems. The changes that took effect on 18 and 19 November affect a wide range of Australian immigration programs. Contact B·A·L with any questions about how the changes might affect your immigration programs or recruitment efforts. B·A·L Australia will be holding a seminar in early 2017 on the immigration changes through 2016 and the recent amendments to Australia’s immigration programmes. Further details will be announced.