In response to surging migration numbers and increasing pressure on housing markets, the Australian government has announced significant changes to its immigration policies. These measures are aimed at controlling the influx of international students and skilled workers, while ensuring the sustainability of the country’s migration framework.
Australia has recently announced a series of substantial changes to its immigration policies, set to take effect in 2024 and 2025. These reforms aim to address skill shortages, boost economic growth, and maintain the integrity of the migration system.
New Limits on International Student Enrolments
The Australian government has set a cap on international student enrolments, limiting the number to 270,000 for the year 2025. This decision is part of a broader strategy to manage record migration levels, which have been exacerbated by a post-pandemic surge in foreign students and workers. Education Minister Jason Clare highlighted that the reforms are designed to create a more sustainable and fair international education sector, which is crucial for Australia’s economy, contributing A$36.4 billion in the 2022-2023 financial year.
New Skills in Demand Visa
The Australian government will introduce a new Skills in Demand visa in late 2024, replacing the current Temporary Skill Shortage (TSS) visa. This visa will feature three pathways:
- Specialist Skills Pathway: For highly-skilled migrants earning at least AUD 135,000 annually.
- Core Skills Pathway: For occupations on a new Core Skills Occupation list.
- Essential Skills Pathway: For workers paid below AUD 70,000 with essential skills.
Changes to Permanent Migration Program
In addition to student enrolment caps, Australia has implemented several updates to its skilled migration policies. As of July 1, 2024, the Temporary Skilled Migration Income Threshold (TSMIT) has been increased to $73,150, and the Fair Work High Income Threshold (FWHIT) has been set at $175,000. These changes aim to attract highly skilled professionals while ensuring fair wages and working conditions.
The 2024-25 Permanent Migration Program will be set at 185,000 places, with a 70:30 split between Skill and Family streams. Key changes include:
- Increased planning levels for Employer-Sponsored, State/Territory Nominated, and Regional categories.
- Reduction in the Skilled Independent (subclass 189) visa quota.
- Introduction of a new Talent and Innovation visa.
International Student Reforms
Significant changes are coming to the international education sector:
- A cap of 270,000 new international student commencements for the 2025 calendar year.
- Higher English language requirements for student visas, increasing from IELTS 5.5 to 6.0.
- Restrictions on “visa hopping,” preventing visitor visa holders from applying for student visas onshore.
Introduction of New Visas and Termination of Old Programs
The work experience requirement for the Temporary Skill Shortage (subclass 482) visa will be reduced from two years to one year of full-time work, effective from November 23, 2024. To address worker exploitation and improve system integrity, the government will introduce a public register of employer sponsors.
Regional and Indo-Pacific Focus
The government plans to prioritize regional visas and deepen people-to-people ties in the Indo-Pacific region.
These sweeping changes reflect Australia’s commitment to reshaping its immigration system to better meet the country’s economic needs while maintaining the integrity of its visa programs. As these reforms are implemented over the coming years, they are expected to have a significant impact on Australia’s migration landscape.
Australia’s latest immigration reforms reflect a strategic shift towards sustainable migration levels, balancing economic benefits with social and infrastructural capacities. As the country prepares for an upcoming election, immigration remains a pivotal issue for policymakers and voters alike.
