Federal Budget 24-25: Immigration Key Highlights

The Migration Strategy, released in Dec 2023, highlighted the need to reform Australia’s migration system that will help fill skills shortages in priority sectors and prioritise visa processing for regional Australia. After extensive consultation with business, unions and other stakeholders it provides a policy roadmap containing key actions, new policy commitments and areas for future reform.

With the new planning level set at 185,000 places, 70 percent of it is allocated to the Skill stream with State/Territory Nominated visa category making up 50 percent of that. Temporary migrants who are on the Employer sponsored visa category can secure permanent residence in a timely manner through the Temporary Residence Transition Stream.

International Student Program

After engaging with stakeholders, the government plans to implement quotas for international student enrollments at universities, taking into account various factors such as available student accommodation. Universities seeking to exceed their allotted quota will need to construct new, specialized student housing. These accommodations will be accessible to both local and international students.

The objective of this reform is to increase the availability of student housing, alleviate strain on housing costs in Australian urban areas, and enable universities to sustainably leverage the international student market.

Australia’s international education sector is a national asset. But for too long, enrolments have grown without being matched by an increase in student housing supply. This puts pressure on prices and rents, especially in our cities and suburbs. It makes finding housing harder for everyone. We have a more substantial, more sustainable approach. If universities want to take more international students, they must build more student accommodation. We will limit how many international students can be enrolled by each university based on a formula, including how much housing they build.

In his federal budget speech, Treasurer Dr Jim Chalmers addresses the housing crisis for students.

Temporary Skilled Shortage Visa

Commencing November 23, 2024, the government intends to lower the work experience requirement for the Temporary Skill Shortage (Subclass 482) visa from two years to one year. Consequently, more foreign nationals, including recent graduates, will meet the criteria for applying for this visa.

Business Innovation and Investment Program (BIIP) visa category

From July 2024, the BIIP will be closed permanently and a new National Innovation visa will be available by the end of 2024. Applications for the Subclass 188 BIIP visa that have already been submitted will proceed according to Government priorities and the planned levels of the Migration Program. Policy guidance for the BIIP will be strengthened to ensure that all business migrants entering Australia through this program have demonstrated a successful business history and will contribute positively to the Australian economy.

Individuals holding a subclass 188 visa and meeting the necessary criteria for obtaining the Business Innovation and Investment (Permanent) (subclass 888) visa will retain the opportunity to pursue this pathway beyond July 2024.

By lowering the planning level for BIIP, the 2024–25 permanent Migration Program aims to prioritize highly skilled individuals who can contribute to fostering a more resilient and prosperous economy.

Work & Holiday visa

Starting in 2024-25, the government plans to implement a visa ballot system for the capped Work and Holiday (Subclass 462) visa program for candidates from the People’s Republic of China, Vietnam, and India. This process aims to regulate the demand for the program and streamline application processing times in these countries. A nominal fee of $25, subject to annual CPI adjustments, will be levied for participation in the ballot.

Global Talent Visa

The Global Talent visa, a direct permanent residency pathway to Australia for exceptionally talented and highly skilled individuals, will transition to the new National Innovation visa by the end of 2024.

Under this new visa, the Government aims to establish a permanent pathway for exceptionally talented migrants, including top-tier entrepreneurs, significant investors, and leading global researchers. Notably, National Innovation visas issued in 2024-25 will contribute to the Global Talent visa Program’s quota.

Home Affairs will oversee the transition to the National Innovation visa. Current Global Talent visa applicants will receive adequate support throughout the application process. Importantly, the transition will not negatively impact existing Global Talent visa applicants. All visa applicants will undergo assessment based on the eligibility criteria applicable at the time of their application.

Sources: KPMG, Department of Home Affairs

Amitava Deb

• Amitava is a gold medallist from India’s premier technical institute, IIT Kharagpur.
• He has worked with some of the world’s top companies such as Sony Australia Pty. Ltd., Siemens AG Germany, Clarity International Ltd., Reliance Communications and Optus Sydney.
• Amitava is a Chartered Professional Engineer accredited by Engineers Australia. He is a full member of this esteemed association.
• He is a member of the Australian Computer Society, Tele Management Forum and Worldwide Institute of Software Architects.
• Amitava is a well-recognised name in the ICT Professional Community in Australia.