Temporary Work Visas
At the Jobs and Skills Summit 2022, the Government committed to introducing a package of reforms to address migrant worker exploitation in Australia. The following changes form a critical part of this package.
Increase of TSMIT
The TSMIT had been frozen at $53,900 since mid-2013 for approximately 10 years. To restore the threshold to approximately where it would have been had it been indexed annually, the TSMIT was then increased to $70,000 on 1 July 2023. The Government is committed to continue to index this amount annually. As a result, the TSMIT has been increased to $73,500 on 1 July 2024.
Increase of Maximum Consecutive Days of Work Cessation
One of the visa conditions of the Subclass 482 (Temporary Skill Shortage) visa and the Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) visa is that the visa holders must not cease to work outside of their nominated sponsor for more than 60 consecutive days. Effective 1 July 2024, the period of 60 consecutive days has increased to a maximum period of 180 consecutive days and up to a maximum of 365 days over the visa grant period.
This is done with an aim to reduce the dependency of visa holders on their nominated employer to maintain their lawful status in Australia. With the previous visa condition of only a short period of 60 consecutive days to find a new nominated sponsor, visa holders are more hesitant to leave their employment despite any unfavourable workplace conditions that they may be subject to. This change addresses the existing power imbalance between the nominated sponsor and the visa holder. It will provide visa holders with confidence to raise workplace issues, leave exploitation and support investigations into employer conduct.
Changes as a Response to Reduce Workplace Exploitation
In the same light, amendments have been made to increase the maximum penalties and include new employer sanctions, in relation to current work-related and employer-sponsored related breaches. Further amendments have been made to include workplace exploitation as one of the matters that the Minister must have regard to when considering cancellation of temporary visas for breach of a visa condition. This is the Government’s continued efforts to reduce the exploitation of temporary migrant workers in Australia and strengthen the protections available to visa holders to give them confidence to report any workplace exploitation matters.
417 Working Holiday Visa
Effective 1 July 2024, passport holders of United Kingdom, where their indicated nationality is British Citizen or British National (Overseas), are exempt from having to undertake ‘specified work’ for a period of 3 months in order to obtain a second or third working holiday visa.
End of Business Innovation and Investment Programme (‘BIIP’)
Effective 1 July 2024, the BIIP has been ceased, due to it delivering poor economic outcomes for Australia. Studies have shown that “skilled migrants are estimated to contribute $300,000 more in fiscal benefits over their lifetime compared to a BIIP visa holder.” Therefore, a more sharply targeted visa needs to be introduced that will play a valuable role in the venture capital industry.
Student Visas
The Federal Government has implemented various changes related to student visa holders that came into effect post the migration review and on 1 July 2024.
The publication summarises some of those fundamental changes that may concern student visa holders.
Ending Onshore Visa Hopping
Temporary graduate, visitor and maritime crew visa holders are unable to apply for Student visas onshore.
The complete list of visa holders that are unable to apply for student visas onshore following the changes are:
- Temporary Graduate (Sc 485)
- Visitor (Sc 600)
- Electronic Travel Authority (Sc 601)
- Medical Treatment (Sc 602)
- e-Visitor (Sc 651)
- Transit (Sc 771)
- Maritime Crew (Sc 988)
- Diplomatic Temporary (Sc 995) – primary visa holders only
- Temporary Work (International Relations) Sc 403 – Domestic Worker (Diplomatic or Consular) stream
- Domestic Worker (Temporary)– Diplomatic or Consular (Sc 426)
Furthermore, Graduate visa holders are no longer able to apply for Student (Sc 500) visas onshore.
English Language Changes
In March 2024, the following changes were implemented for English Language:
Student Visa (sc 500)
- The minimum English proficiency score for the student visa applicants increased from 5.5. to 6.0 (or equivalent);
- The minimum score to undertake a packaged English Language Intensive Course for Overseas Students (ELICOS) course increased from IELTS 4.5 to 5.0 (or equivalent);
- Students undertaking recognised university foundation or pathway programs that deliver reputable English language training require a score of IELTS 5.5. (or equivalent);
- For students studying English only through ELICOS, there has been no change.
Temporary Graduate 485 Visas
- The minimum score required increased from IELTS 6.0 to 6.5 (or equivalent) with a minimum score of 5.5 for each component of the test (reading, writing, speaking and listening);
- Passport holders from Hong Kong and British National Overseas (BNO) are not required to meet this increases minimum English language requirement. The settings for such applicants remain at IELTS 6.0 (or equivalent), with a minimum score of 5.0 for each component of the test (reading, writing, speaking and listening);
- The test validity window for all Temporary Graduate visa applications decreases from three years to one year. Applicants must provide evidence that they have completed an English language test no more than one year immediately before the date of the visa application.
Temporary Graduate Visas
The Australian Government has implemented significant modifications to the Temporary Graduate visa program, effective from 1 July 2024. These changes are part of the broader Migration Strategy aimed at refining the alignment of visa streams with levels of education and addressing evolving immigration needs. The Migration Strategy, released on 11 December 2023, outlines a comprehensive vision for Australia’s migration system, featuring a policy roadmap with eight key actions and over 25 new policy commitments and areas for future reform. This strategy is informed by extensive consultation with businesses, unions, and other stakeholders, and over 450 submissions received as part of the Review of the Migration System.
Stream Re-alignment and Renaming
The visa streams have been realigned and renamed to better reflect the educational qualifications of applicants. The former Graduate Work stream is now the Post-Vocational Education Work stream, while the Post-Study Work stream has been renamed the Post-Higher Education Work stream. This re-alignment ensures that the visa categories correspond more accurately with the educational achievements of the applicants, thereby simplifying the application process and ensuring that the right qualifications are recognized appropriately.
Qualification-Based Eligibility
A critical change is that eligibility for these streams is now determined solely by the qualification used to meet the Australian study requirement. This means that only the primary qualification relevant to the application will be considered, excluding any other qualifications held by the applicant. This adjustment ensures that the visa process remains focused and relevant to the applicant’s field of study and intended occupation.
Age Limit Adjustments and Exceptions
To standardize the age criteria, the maximum eligible age for both the Post-Vocational Education Work and Post-Higher Education Work streams has been reduced to 35 years or under at the time of application. However, exceptions have been made for certain applicants under 50 years of age, specifically those holding Hong Kong or British National Overseas passports, as well as applicants using a Masters (research) or Doctoral Degree (PhD) to meet the Australian study requirement. These exceptions recognize the unique circumstances of these applicants and maintain Australia’s commitment to specific international agreements.
Stay Period Modifications
The stay periods for visa holders have also been revised. Applicants under the Post-Vocational Education Work stream can now stay for up to 18 months (about 1 and a half years), while those under the Post-Higher Education Work stream have varied stay periods depending on their qualifications:
- Bachelor degree (including honours) – up to 2 years
- Masters (coursework and extended) – up to 2 years
- Masters (research) and Doctoral degree (PhD) – up to 3 years
Moreover, Hong Kong and British National Overseas passport holders are granted a stay period of up to 5 years. For Indian nationals, as per the Australia India – Economic Cooperation and Trade Agreement (AI-ECTA), the stay periods are as follows:
- Bachelor degree (including honours) – up to 2 years
- Bachelor degree (with first class honours in STEM, including ICT) – up to 3 years
- Masters (coursework, extended and research) – up to 3 years
- Doctoral degrees (PhD) – up to 4 years
Impact on Specific Visa Streams
The Second Post-Higher Education Work stream has seen similar age adjustments. The maximum eligible age is now 35 years or under, with exceptions for those under 50 using a Masters (research) or Doctoral Degree (PhD) for their initial visa or holding Hong Kong or British National Overseas passports. Additionally, the Replacement stream has been discontinued, but family members of primary visa holders can still apply to join them as subsequent entrants.
The primary goal of these changes is to streamline the visa process, making it more efficient and aligned with the educational and occupational needs of applicants. By focusing on specific qualifications and adjusting age limits, the Australian Government aims to attract and retain skilled individuals who can contribute significantly to the Australian economy. Furthermore, these modifications reflect Australia’s ongoing commitment to international agreements and the need to adapt to the evolving global immigration landscape.
In conclusion, the changes to the Temporary Graduate visa program from 1 July 2024 signify a strategic approach to better align visa categories with educational qualifications, simplify the application process, and ensure that the program meets the current and future needs of the Australian labor market.
Other Changes to be Introduced by the End of 2024
There have been discussions surrounding changes that will be implemented by the end of 2024 in the Migration Strategy documents but has not been finalised as of right now. We look forward to seeing these changes be implemented.
- A new Skills in Demand visa is to be implemented by late 2024, to replace the current Subclass 482 Temporary Skill Shortage visa. This new visa will be a 3-tiered system with the aim of full mobility and clear pathways to permanent residence.
- There is an aim to reshape the permanent skilled migration by reforming the points test system to better identify migrants who will drive Australia’s long-term prosperity.
- There have been discussions around developing a new Talent and Innovation Visa to drive growth in sectors that Australia deems as national importance. The goal is to create a single, streamlined pathway to attract highly talented migrants to Australia to boost economic results for Australia (e.g., high-performing entrepreneurs, major investors and global researchers).
Footnotes Available Upon Request.
