The 2009-2010 Immigration budget measures reduce Australia's overall migration program and continue the shift towards favouring employer and State/Territory sponsored migrants and those with higher level English language skills who are 'job ready'. The budget measures also significantly increase the cost of certain visa applications. Reductions in Department of Immigration & Citizenship (DIAC) staffing levels may impact on processing times.
Migration Program 2009-2010
A total of 168,400 places are planned for 2009-2010, of which:
- 108,100 will be in the skilled stream. This represents a further reduction of 25,400 places (20%) in skilled migrants from the original planning figure of 133,500. A revised planning figure of 115,000 had already been announced in March 2009.
The skilled stream comprises applicants applying for permanent visas who are employer sponsored, or applying individually on the basis of their skills or business expertise. The cuts will affect those applying under the General Skilled Migration Program (GSM) on the basis of their skills. Employer sponsored applicants will not be cut. - 60,300 will be in the family stream (partners, parents, children and other relatives). Family stream places have been increased by 3,800.
- 300 will be for certain former Australian permanent residents or people in Australia on long term temporary visas who will be allowed to remain on humanitarian grounds ('Special Eligibility').
General Skilled Migration Program
Applicants with trade skills will be required to achieve higher scores on the International English Language Test System (IELTS) test. For permanent GSM visa applicants, the required IELTS score has been increased from 5 on each of the four parts of the test to 6 on each of the four parts of the test. For temporary GSM visa applicants, the current 'concessional English' provision available to trade skill applicants applying for a temporary GSM visa will be removed, and these applicants will have to score an average band score of 6 (up from 5.5) on the IELTS test. These measures will be progressively introduced from:
- 1 July 2009 for offshore visa applicants, and
- 1 January 2010 for onshore visa applicants.
In addition, a 'job readiness' test will be introduced from 1 January 2010 for onshore applicants who apply on the basis of trade skills. While no details of this test are currently available, we expect that it will involve a technical interview and a practical assessment similar to that which currently applies to some offshore trade skill applicants.
It is expected that the number of GSM visas granted to people with trade skills will decline in the current economic climate, with further changes to eligibility criteria anticipated.
The priority processing guidelines announced in March 2009 will continue for the foreseeable future in response to the economic downturn. In effect this means that processing has effectively been halted for applications other than employer or State or Territory government sponsored applications.
This continues a shift towards employer and government sponsored GSM applicants from a historical level of 20-25% to an expected 50% in 2009-2010. Independent, non-sponsored GSM applications are expected to decline proportionately.
Other budget measures
Visa application fees for some visas, including 457 visas, are expected to increase by some 20% on 1 July 2009, in a departure from previous practice which saw annual fee increases according to the CPI. Application fees for Australian citizenship and resident return visas are also expected to rise by more than the CPI. Details are not yet available.
The operating budget for DIAC has been reduced and a significant reduction in staff numbers is expected, which may affect the capacity to process visa applications in a timely manner.
Holders of the now abolished subclass 410 temporary retirement visa will be able to work for more than 20 hours a week and visa renewals will be extended to ten years as opposed to the current four years.
457 news
Although not announced as part of the budget, the Minister for Immigration announced that effective 15 May 2009, regional employers located in regional or low population growth areas in Australia can no longer sponsor applicants with occupations that fall within Australian Standard Clasification of Occupations (ASCO) Groups 5-7 inclusive, as was possible previously. These groups comprise clerical, sales, service, production and transport occupations.
Conclusion
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Migration Services team offer strategic advice and practical assistance by registered migration agents. We provide advice and assistance with temporary and permanent visa applications for work, training or other purposes; develop risk strategies to ensure compliance with sponsorship obligations and immigration laws; and formulate appropriate HR policies and employment contracts for expatriate employees.