WHAT'S NEW

GSM Priority 5 Processing Update

DIAC has announced that it expects to commence allocating some General Skilled Migration (GSM) Priority Group 5 applications this program year (2011-12). This group comprises approximately 27 347 onshore applications, and 15 284 offshore applications. About 1000 priority cases are given to case officers each week. As of 18 November 2011 there were approximately 751 onshore applications and 5544 offshore applications in Priority Group 4 awaiting allocation.

DIAC has given the following advice on how processing of Group 5 will occur:

Processing of Priority Group 5 applications lodged in Australia will begin with the remaining applications in the visa subclasses in effect prior to September 2007, the oldest of which was lodged on 28 July 2005. There are approximately 756 cases in this group. Processing of Priority Group 5 applications lodged outside Australia will begin with applications in visa subclasses 495 and 496, which were lodged prior to 1 September 2007, the oldest of which was lodged on 10 July 2006. Unlike other GSM visa applications lodged from outside Australia, prior to 1 September 2007, these applications were not affected by the Minister's Cap and Cease arrangements. There are approximately 594 cases in this group. The number of Priority Group 5 applications processed this program year will ultimately depend on the number of higher priority applications received, and other factors including any change in the size of the Migration Program or variation of the Processing Direction. Many Priority Group 5 applicants still face a considerable wait until their application is allocated to a case officer for processing and may want to consider other options available.

Employers missing out on untapped talent pool: Report

Australian employers are missing out on an entire sector of the workforce, with limited pathways currently available to skilled migrants entering the professional workplace, according to a new report. Read Report

NZ : Changes to the Skilled Migrant Category - effective 25 July

On the 25 July 2011 a number of changes to the Skilled Migrant Category will be coming into effect.

What’s changing?
The following changes will be made:

Points awarded for recognised qualifications
Qualification on the NZ Qualification Framework (NZQF)	Current	From 25 July 2011
Levels 3-6*	50	40
Levels 7-8	50	50
Levels 9-10	55	60

        *Level 3 must be on the List of Qualifications Recognised as an Exception

Points awarded for partner's qualification
Qualification (NZQF)	Current	From 25 July 2011
Levels 3-6*	20	10
Levels 7-10	20	20

        *Level 3 must be on the List of Qualifications Recognised as an Exception

Bonus points awarded for New Zealand qualifications
2 years of full-time study in New Zealand completing a recognised bachelor degree (level 7) New Zealand qualification	10 points
1 year of full-time study in New Zealand completing a recognised post-graduate New Zealand qualification (levels 8 – 10)	10 points
2 years of full-time study in New Zealand completing a recognised post-graduate New Zealand qualification (levels 9-10)	15 points

• English for speakers of other languages (ESOL) qualifications will no longer meet the criteria for qualification points.
• Applicants who are in New Zealand and hold, or have held, Study to Work visas will no longer be eligible for a SMC Job Search Visa.
• Applicants with qualifications in an area of absolute skill shortage will no longer be able to automatically obtain residence without skilled employment.

• Settlement and contribution criteria will be weighted towards skilled employment.
• Partners and/or children of SMC Job Search Visas holders will no longer be automatically eligible for temporary visas related to the holder’s work visa.

Transitional provisions

Transitional provisions have been introduced as part of the changes so that holders of, or students who have already commenced study towards, a New Zealand qualification are not adversely affected.

PRIORITY PROCESSING FOR GENERAL SKILLED MIGRATION VISAS

From 1 July 2011, processing priorities (with highest priority listed first) are:

1. applications from people who are employer sponsored under the RSMS program or who have applied for a Skilled – Regional (subclass 887) visa
2. applications from people who are applying under the ENS program
3. applications from people who are nominated by a state or territory government agency for an occupation specified on that agency's state migration plan
4. applications from people who have nominated an occupation on the Skilled Occupation List (SOL) – Schedule 1 in effect from 1 July 2011
See: Annual Update of Skilled Occupation List (111KB PDF file)
5. all other applications.

Changes to the subclass 457 Visa

See our bulletin on changes to the subclass 457 Visa program.

457 Visa Holders in Australia - Join our LinkedIN Group.

If you want to know more about 457 visa and you use LinkedIN please search for our Group and request to join.

10 May 2011:
Skilled Migrant Selection Model

On 10 May 2011, as part of the 2011-12 budget allocation for the Department of Immigration and Citizenship, Minister Chris Bowen MP announced that funding has been allocated to assist with the development of a new Skilled Migrant Selection Model (the Model).

It is proposed that the Model will be a two stage process whereby potential applicants first register their claims for skilled migration through an online Expression of Interest (EOI), and subsequently may be invited to make an application for a visa. This is a significant change from the current situation, as applicants for independent or state/territory sponsored migration will require an invitation to lodge a visa application. The Model will ensure a match between the number of applicants and the number of available program places and consequently, the selection of the best and brightest migrants as well as streamlined processing times.

The following information relates to the government’s decision to implement a new skilled migrant selection model based on an Expression of Interest (EOI) and invitation to apply. The proposal is in an early stage of development and consultation. Although the key features are settled, further changes are possible and the following must not be taken as a final description of how the new selection model will operate. In particular, no action of any kind should be taken on the basis that this will be the final model. The minister may recommend to the Governor-General in-Council amendments to the Migration Regulations 1994 to give effect to the final model.

The Skilled Migrant Selection Model

The Australian Government has decided on a major reform in the way Australia selects skilled migrants, the Skilled Migrant Selection Model (the Model). The Model will build upon and draw together the suite of reforms to the skilled migration program over the past three years. In doing so it will deliver the skills Australia needs by matching the best and brightest migrants to the available places in the migration program.

The Model will be an electronic system based upon a two-stage process. Prospective applicants first submit claims for skilled migration through an online EOI and subsequently may be invited to make a visa application. This is a significant change from the current situation, as applicants for independent or state/territory sponsored migration will be required to receive an invitation in order to lodge a visa application.

Once invited, the Model will ensure a match between the number of applicants and the number of available program places. This will result in streamlined processing times.

Foundations and benefits of the Model

The fundamental principle underpinning the Model is that the skilled migration program is determined by the economic needs of Australia. As such, it is necessary for the Australian government to manage who is able to apply for skilled migration, when they are able to apply and in what numbers, on the basis of this need. It is proposed that the Model will allocate all places in the independent skilled migration program to the prospective migrants, those who score highest on the points test, in each eligible occupational group.

A key benefit of the Model is the ability to address regional skill shortages. The Model allows prospective migrants to nominate their willingness to live and work in regional Australia. This will be of particular benefit to employers experiencing regional skills shortages and state and territory governments attempting to settle migrants in regional Australia.

The Model will connect state and territory governments and Australian employers with potential skilled workers through a central database of prospective skilled migrants. This will help state and territory governments maximise the benefit derived from their state and territory Migration Plans. From the perspective of employers, the Model would assist in the resolution of skills shortages through quick and easy identification of prospective workers with the requisite skills and attributes, reducing advertising and recruitment costs to businesses.

Implementation of the Model

The Model is proposed to commence on 1 July 2012. As of this date, new applicants for independent, family or state/territory sponsored migration would need to submit an EOI and be issued with an invitation before lodging a visa application, unless eligible for transitional arrangements. The first round of invitations is expected to occur in January 2013.

Transitional arrangements currently apply to certain people who, on 8 February 2010, held or had applied for a Skilled – Graduate (subclass 485) visa. This group is able to apply for a permanent skilled visa under the previous system, until the end of 2012. There are no additional transitional arrangements in relation to the Model.

Visa subclasses affected by the Model

The visa subclasses which will be affected by the Model are:

• Skilled – Independent (Migrant) subclass 175
• Skilled – Sponsored (Migrant) subclass 176
• Skilled – Independent (Residence) subclass 885
• Skilled – Sponsored (Residence) subclass 886
• Skilled – Regional Sponsored (Provisional) subclass 475
• Skilled – Regional Sponsored (Provisional) subclass 487.

All prospective applicants for these visas will need to submit an EOI and receive an invitation before they can apply. Prospective applicants interested in employer sponsorship would not be required to submit an EOI if they already have a sponsor. However, submitting an EOI allows employers to view their details and contact prospective applicants to discuss sponsorship opportunities. It would also allow prospective migrants who are sponsored on a temporary basis to be invited for either independent skilled migration or state/territory sponsored migration if eligible.

For those who have already lodged a visa application prior to the implementation of the Model and are pending processing, the department would process this application in accordance with any priority processing direction in effect at that time. A prospective migrant who has already lodged a visa application may want to submit an EOI in order to be connected to an employer or state/territory government.

Would an EOI be required?

The following table outlines when an EOI would be required.

February 2011

Gillard: Expedited 457s for Flood Areas

Prime Minister Julia Gillard last week announced a comprehensive rebuilding program of spending cuts and a levy for flood affected areas, which included the promise to:

Establish a special team within the Department of Immigration to deliver employer-sponsored temporary visas (457 visas) within five days (where applications are decision ready) for employers genuinely involved in Queensland flood reconstruction work.

November 2010

New Points Test for General Skilled Migration (GSM) Announced

The Minister for Immigration and Citizenship, the Honourable Chris Bowen MP, has today announced the new Points Test for General Skilled Migration (GSM).

Designed to complement the new Skilled Occupation List (SOL) that came into effect on 1 July, the Points Test is "proposed to take effect from 1 July 2011, subject to passage of supporting legislation through the Parliament. It will apply to anyone lodging an application from 1 July 2011."

Amongst its features:
• Distinction between 40/50/60 point occupations abolished, those points removed from test
• Age cut off raised from 45 to 50years. Age points adjusted to reflect productive working years rather than youth
• Additional 10 point differential introduced for “Superior English” language ability (IELTS 8)
• Additional points for extended periods of employment in Australia
• Additional points for longer periods of professional experience generally
• Considerable additional points for university graduates, particularly for applicants with PhDs
• Relative advantages of trade and degree qualified occupations have been reversed
• Regional nomination and family sponsorship points reduced
• No indication of difference between independent and sponsored pass marks at this stage
• Pass mark of 65

More about the Points Test:

>> Introduction of New Points
>> New Points Tes -FAQ

 

Immigration New Zealand (INZ) will be formally introducing a new Immigration Act on 29th Nov 2010. Many of the changes in the new Act are administrative rather than to the substance of visa classes. But if you do have any specific queries please contact our office.

 

Victorian Government releases it's State Migration Plan and re-opens skilled state sponsorship
>> List of occupations eligible for Victorian Government state sponsorship consideration
The Australian Government recently introduced changes to the skilled state sponsored visa scheme which required state and territory governments to develop a State Migration Plan.  The Plan identifies those occupations and skill sets eligible for sponsorship, supported by labour market evidence.

The Victorian State Migration Plan has now been implemented and the Victorian Government has a formal agreement with the Australian Department of Immigration and Citizenship, concerning the state sponsorship of skilled migrants to Victoria under the Skilled - Sponsored (176 and 886) and Skilled - Regional Sponsored (475 and 487) visas.

Under the agreement, the number of skilled migrants that the Victorian Government can sponsor against each occupation listed on the State Sponsorship Eligibility Lists is limited by a quota, For 2010-11 Victoria’s cap is 4,500 visa grants, which includes primary and secondary applicants.

To inform you when the limit has been reached for an occupation, advice will be placed against the relevant occupation/s on the State Sponsorship Eligibility Lists stating that applications are not currently being accepted for that occupation.  

8 November 2010

ACT releases ACT Migration Plan (SMP)

>> ACT State Migration Plan (SMP) Occupation List

In summary, the main changes are:

 VERIFICATION OF ‘LIMITED’ OCCUPATIONS
The SMP Occupation List will be updated on a regular basis to show the current status of the demand against each occupation. A ‘limited’ occupation indicates that the current ACT target for this occupation is almost met.  Applicants seeking nomination of a ‘limited’ occupation must have the occupation verified by the SBM Unit before an application for nomination is lodged. ‘Limited’ occupations that have not being verified will be refused without further processing.

Occupations not on the SMP Occupation List
Canberra residents who do not have an occupation on the SMP Occupation List may still apply for nomination if:
·     their occupation is on the DIAC Skilled Occupation List (Schedule 4);
·     they have been employed full time in Canberra for at least twelve months before applying; and
·     the position is available for at least two years and located in Canberra.

English language ability.
-       for ANZSCO Major Group 1 – hold a current IELTS result with a score 7 in each band (regardless of passport held);
-            for all other ANZCO Major Groups (2, 3, 4, 5, 6 or 7), either:
¨       hold a passport from the United Kingdom; Canada; New Zealand; United States of America; Republic of Ireland; or
¨       hold an IELTS result with a minimum score of 7 in speaking and 7 overall.

PROCESSING OF COMPLETE APPLICATIONS
A ‘complete’ application includes all the required forms, fee and supporting documents when it is lodged. A checklist of required documents is at Attachment C.
·       If an application is ‘complete’ the case officer can make a decision without having to contact the client for further information.
Applications which are submitted ‘incomplete’ will be recommended for refusal. 

PRIORITY OF PROCESSING
Complete applications for nomination will generally be processed within 60 working days. Applicants should note that this timeframe may vary depending on demand.

October 2010

19/10 - Constuction industry braced for upturn
A shortage of skilled workers could restrict an expected upturn in the construction industry, a new survey has found. The Australian Industry Group (Ai Group)/Australian Constructors Association construction outlook survey expects the value of of construction work to rise by 5.9 per cent during 2010-11 and then 7.9 per cent in 2011-12. This follows just 1.5 per cent growth in 2009-10.

Read more

July 2010

Processing priorities now being followed by DIAC
Please find below a summary of the processing priorities now being followed by DIAC at the ASPC for all Skilled Migration applications as of 14 July 2010. This is operating in conjunction with the new Skilled Occupations List introduced on 1 July 2010. The processing priorities apply not just to new applications but to all lodged applications as well.

Applications are now being processed as follows:

1. Applications from people who are employer sponsored under the ENS & the RSMS
   
2. Applications from people who are nominated by a state or territory government agency with a nominated occupations that is on a State Migration Plan.
   
3. Applications from people who have a nominated occupation on the new Skilled Occupations List (SOL) - Schedule 3 in effect from 1 July 2010.
   
4. All Other Applications. These will be processed in the order in which they were received.
   

State Migration Plan will be developed by state/ territory governments in consultation with DIAC. Currently there are NO state migration plans in place with any state or territory in Australia. It is expected that these will be finalised in the second half of 2010. The Federal Election in Australia on 21/8/2010 will also slow this down as the Government is currently in caretaker mode. An important point to note is that applicants that have already lodged an application which has been nominted by a state or territory government in an occupation that is subsequently on that state or territory Migration Plan will receive processing under priority group 2.  

Applicants with nominated occupations in priority group 4 will have a long wait for visa processing. DIAC has not committed to a time frame unfortunately.

If you have any questions please contact our office.

SKILLS SHORTAGES ARE RAPIDLY RETURNING
Skills shortages are rapidly returning in the construction and engineering sectors, according to the latest Clarius Skills Index, but the overall labour market is presently hovering in a rare state of equilibrium.

The national skills index is currently 99.6, down by 0.1 point from the previous quarterly index, but still very close to a balanced labour market.

(A score of 100 indicates a perfect balance between labour supply and demand, less than 95 signals a surplus, and greater than 105 indicates an extreme shortage. The index is calculated by adding the figures for total employment (ABS) plus skilled vacancies (DEEWR), and dividing by total employment plus unemployment.)

Of the 20 occupation groups Clarius measures, eight are now in a state of shortage - almost all of them related to the construction, building and engineering industries.

The index is over 100 for building and engineering professionals (101.1), IT professionals (100.2), building and engineering associate professionals (100.2), chefs (105.3), metal trades (104.5), automotive trades (101.5), construction trades (101.7) and wood trades (101.8).

The rise in demand for building and engineering associate professionals during the latest quarter reflected both a recovery in the residential building sector, and the ongoing impact of the government's schools stimulus package, the report said.

While the score for building and engineering professionals actually dropped slightly, it said, the sector was still in shortage, and the decrease "can be attributed to a strong supply response, as opposed to a fall in demand (indeed, demand actually rose over the June 2010 quarter)".

The report said the latest index translated to an oversupply of just 15,000 skilled workers, in an Australian labour market of more than 11 million people.

While the index for professional staff had fallen slightly in the past quarter (down 0.5 points), the indices for both associate professionals and trades were up, by 0.2 and 0.3 points respectively.

The biggest rise of any sector was in construction trades, it said, which went from 100.0 in the March quarter to 101.7 three months later - amounting to a shortage of 6,300 people.

Skilled immigration easing wage pressure, for now

The report noted that according to the latest ABS data, national wage growth in the March quarter was 5.7%, year-on-year.

"Stronger economic conditions have led to higher consumer confidence levels, emboldening employees to seek pay rises, either with their current employers, or by shopping around for better jobs.

"However, wages are not currently under heavy upwards pressure, because wage growth is being buffered by the flow of skilled foreign personnel entering Australia."

"Although migrant intakes have slowed over the last year, migration rates still remain high by historical standards, and the inflow of overseas workers is alleviating the likelihood of more intense pressures in the current business
climate."

Clarius Group chief operating officer Kym Quick said the results of the latest index were timely, given the federal election debate over immigration policy.

"The developments have some implications on interest rates, the population growth debate and decisions about temporary skilled worker visas," Quick said.

"The clear message for employers is that they need to be prepared for a war for talent... We also need policy makers to develop and implement initiatives that will address the potential skills shortages immediately, and not wait for it to happen before taking action."

June 2010

1 June: NEW SKILLED OCCUPATIONS LIST ANNOUNCED
DIAC will be using the Australian and New Zealand Standard Classification of Occupations (ANZSCO) as of 1 July 2010. This will replace ASCO. This means that all occupations on skilled occupations lists will now have a new ANZSCO code. This code has to be used when lodging all applications from 1 July 2010 onwards.

This has meant that new Skilled Occupations Lists have been released for Skilled Migration, the Employer Nominated Scheme (ENS), and the temporary residence subclass 457 Employer Sponsored Scheme. There is not always an exact match between ASCO and ANZSCO. So it is very important that the correct code is used for a person’s skills as there are changes.
The legislative instrument has 4 schedules, with the lists in each schedule based on the 4 schedules in Legislative Instrument IMMI 10/026:

• Schedule 1 – This list is, in effect, the pre-1 July 2010 SOL (in ASCO) that applies to all General Skilled Migration (GSM) visa applications that were not finally determined (that is, are in the pipeline) as at 1 July 2010. It lists the ASCO occupations, the skills assessing authority and the occupation points.
  
  
• Schedule 2 – This list is based on the pre-1 July 2010 SOL, which can be used for transitional arrangements. As applications made after 1 July 2010 must be in terms of ANZSCO, this list has the ANZSCO occupations and their correlated ASCO occupations, the relevant skills assessing authority, and the occupation points. The transition arrangements apply to:
   - Applications made on or before 31 December 2012 for a Subclass 885 (Skilled – Independent), 886 (Skilled – Sponsored), or Subclass 487 (Skilled – Regional Sponsored) visa by an applicant who held a Subclass 485 visa on 8 February 2010, or had applied for a Subclass 485 visa that was not finally determined on 8 February 2010. People to whom this transition arrangement applies may nominate an occupation on the pre 1 July 2010 SOL or the new SOL that commences from 1 July 2010; and
   - Applicants who held a student visa in subclasses 572, 573 and 574 on 8 February 2010 and who apply for subclass 485 visa on or before 31 December 2012.
  
  
• Schedule 3 - The list is based on the new SOL, effective from 1 July 2010, which applies to all General Skilled Migration (GSM) applications lodged from 1 July 2010, except for those for whom the transitional arrangements (see Schedule 2 above) apply. Note that these people can choose to apply using the new SOL if they wish. This list has the ANZSCO occupations and their correlated ASCO occupations, the relevant skills assessing authority, and the occupation points.
  
  
• Schedule 4 - This is the list from which State and Territories can choose occupations for their State Migration Plan occupation lists. It remains to be seen if states will be able to list occupations not on this Schedule 4 list. It applies to applicants for subclasses 176 (Skilled – Sponsored), 886 (Skilled – Sponsored), 475 (Skilled – Regional Sponsored) and 487 (Skilled – Regional Sponsored) visas who are nominated by a State or Territory government agency.

With regards to the impact this will have on Skills Assessments:

1. An applicant with a relevant valid skills assessment in an ASCO occupation should map it to the relevant ANZSCO occupation;
2. Skills assessment obtained before 1 July 2010 can only be used for visa applications from the 1 July 2010 and onwards if all the following apply:
• There is a DIAC endorsed ASCO-ANZSCO correlation for that occupation;
• The occupation continues to be an acceptable occupation for skilled visa program purposes; and
• The skills assessment is still valid (validity periods differ between occupations and authorities).

You may need to contact the relevant skills assessing authority if you are unsure whether your skills assessment is still valid. Check first to see if that information is available on the skills assessing authority’s website;

3. Transitional arrangements
   Transitional arrangements will be in place to allow, under certain circumstances, a mix of ASCO and ANZSCO based documents and information (for example, a nomination in ANZSCO and a valid skills assessment in ASCO, or vice versa) to be accepted in the one application.

It is very important that you ensure your application is prepared properly before lodging under the new regulations.

The States & Territories have not yet released their State Migration plan. So we still have to wait for those to get the full picture of the new system. So currently only occupations on the new SOL can lodge applications come 1 July 2010, but at least applications will be open again. State & Territories without a State Migration Plan in place are still able to sponsor candidates under the STNI program as long as their occupation is on the new SOL.

May 2010

17 May: NEW SKILLED OCCUPATIONS LIST ANNOUNCED
The new Skilled Occupatons List (SOL) that comes into force on 1 July 2010 was announced today by DIAC - see attached. There is a new classification system being used which works with ANZSCO and not ASCO any longer. This means that certain occupations on the old SOL will now be classified slightly differently under ANZSCO. There is about a quarter of the number of occupations on this list compared to the previous one. Interested people with occupations not on this list will now need to wait until the States & Territories release their "Migration Plans". These plans approved by DIAC will contain occupations not on the new SOL. It is not expected that these will be announced until closer to the 1 July 2010 start date.

11 May: MIA Notice
The Migration Institute of Australia (MIA) welcomes the Government’s measured approach to the Migration Program within the context 2010-2011 Federal Budget, and compliments the Minister for his recognition that “Foreign skilled labour is an important driver of economic growth.”

However, this Budget does little to alleviate the uncertainty surrounding the migration program and the lack of confidence in Australia as a destination for highly skilled people overseas. The patchwork changes made to the skilled migration program over the past year have left many thousands adrift without consistency or regularity.

It is disappointing that the 2010-2011 Migration Program reduces the family migration stream levels by 5750 program places, downgrading what was historically a significant element in the development of a cohesive Australian society and one that will be sorely missed. The visitation allowance for family members that replaces these spots is a poor substitute and one which needs to be supported by sensible and sensitive policy changes.

Similarly, the humanitarian program is disappointing as – in the time of significant world turmoil – Australia can afford to be more generous to refugees and asylum seekers around the globe. We need a humanitarian and settlement program that responds to asylum needs and enables people to integrate well into Australian society. The scant 200 spot increase in the business skills visa category are also unsatisfactory. If properly handled, this stream could make a significant contribution to Australian economic development.

In relation to the administrative budget of the Department of Immigration and Citizenship (DIAC), the MIA had hoped for resources greater than a mere $250,000 devoted to research, especially in context of the current population and migration debates. The MIA had hoped for a Federal Budget which provided some answers for potential migrants, but instead the importance of migration has been overshadowed. The MIA has written to the Minister to urge him to move quickly to announce the new Skilled Occupation List (SOL), now weeks overdue, and a revised Points Test, which underpins the overall program.

The MIA has also raised the implications of these sudden regulatory changes, especially capping and suspension of applications, on the viability of established Australian businesses, including migration agents' practices.

7 May:
The Australian Department of Immigration (DIAC) made an announcement on Friday 7th May 2010 temporarily suspending new applications under the General Skills Migration program. The temporary suspension applies from 8th May 2010. From this date we cannot lodge new applications for subclass 175 & 176 applications. It is expected that this temporary suspension will be lifted at the end of this visa year - 30 June 2010. This means that from 1 July 2010 we will be able to lodge these applications once again. This will tie in with the release of the new Skilled Occupations List (SOL) to be released in May 2010, but only operational from 1 July 2010. DIAC said that the implementation of the new SOL together with an oversupply of applications is the reason for the temporary suspension. Please see attached press release.

April 2010

19 April: Changes to the Business Skills Migration Program

Changes were announced on 19 April 2010 and will affect all new application made on or after this date.

(i)    Increased net assets. The minimum net business and personal assets required for the State Sponsored Business Visas - subclass 163 & 164 - have been increased from A$250,000 to A$500,000.

The minimum net business and personal assets required for the Business Visas - subclass 160 & 161 - have been increased from A$500,000 to A$800,000.

(ii)    Increased Business Ownership. Business migrations will now be required to own a substantial or controlling interest in a business. The minimum business ownership percentage has been increased from 10% to:
51% where the business turnover is less than A$400,000
30% where the business turnover is A$400,000 or more; OR
10% where the business is a publicly listed company

This applied to all business owner visas. A transitional provision will be available for onshore visa applicants who have purchased a business in Australia prior to the change and are applying for a permanent onshore business owner visa (subclasses 890,892,845,846)

(iii)    Senior Manager option removed from the subclass 163 visa.

2.    Australian Government tightens rules regarding foreign investment in Australia. In a stunning about face, Assistant Treasurer Nick Sherry, has announced that temporary residents will now have to seek approval from the Foreign Investment Review Board (FIRB) to buy any real estate in Australia.

6 April:
Matthew Garvey of Four Corners has been granted an Immigration Advisers license from the Immigration Advisers Authority of New Zealand.
Adviser Number: 201000601
MARN: 9789880

March 2010

30 March:
The On Hire Labour Agreement Application made to the Department of Immigration (DIAC) and Department of Employment (DEEWR) by Four Corners on behalf of our client Innovative People Solutions Pty Ltd has been approved. The 3 year agreement will allow Innovative People Solutions Pty Ltd to sponsor offshore IT candidates to work in Australia on subclass 457 visas and be on hired to their clients. They are one of a small number of companies in Australia that have been granted access to the On Hire Labour Agreement.

February 2010

8 Feb: Changes to the Skilled Migration Program

On the morning of 8th February 2010 DIAC has announced extensive changes to the Skilled Migration Program. A summary of them is as follows:

1.    Migration Occupations in Demand List (MODL) no longer exists as of 8/2/2010. This does not affect lodged cases and only applies to applications to be lodged on or after 8/2/2010. These cases will no longer be able to claim the additional 15pts that were awarded for being on the MODL. This will make it much more difficult for some people to reach the passmark.

2.    New Skilled Occupations List (SOL) to be announced on 30/4/2010 to come into force mid 2010. This will be more targeted and most probably with a lot less occupations on it.

3.    Critical Skills List to be withdrawn when new SOL comes in.

4.    State & Territory Governments will be able to still sponsor people for STNI if their occupation is not on the new SOL but is on the State sponsorship list once the State or Territory Governments have an agreed migration "plan" signed by the Minister. This change is going to once again mean that State Sponsorship will be a vital part of many people's application.

5.    Applications with state sponsorship under the new plan will be given the highest priority after ENS in the processing priority. This has the unfortunate result of meaning that applications with State Sponsorship from 1 year ago are still going to take up to 3 years, but people who apply now once there are agreed "plans" will be processed first.  This makes little sense in assisting the States & Territories to acquire the skills they need as we think the states "plan" will be the same as their current lists.

6.    The entire points test will also be reviewed mid year.

If you would like to find out more how this affects your situation or to discuss any aspect in more detail please contact our office.

December 2009

23 Dec: On Hire Labour Agreement Application Approved

The On Hire Labour Agreement Application made to the Department of Immigration (DIAC) and Department of Employment (DEEWR) by Four Corners on behalf of our client Sustainergy Pty Ltd has been approved today - 23rd Dec 2009. The 3 year agreement will allow Sustainergy Pty Ltd to sponsor offshore Engineers to work in Australia and be on hired to their clients. They are one of a small number of companies in Australia that have been granted access to the On Hire Labour Agreement.

1 Dec: Processing of some State sponsored non-CSL GSM applications (Australia)

There have recently been reports and speculation about the processing of some State sponsored non- Critical Skills List (CSL) General Skilled Migration (GSM) applications.

These are the Tier (or Category) 5 applications: that is, applications from people who are nominated by a State/Territory government and whose nominated occupation is not listed on the (CSL).

In order to provide realistic expectations for your clients, the MIA has been discussing the matter with DIAC to obtain an accurate statement of what is happening.

DIAC has today provided the MIA with the following statement:

“The Department is processing applications according to Ministerial Direction No. 42 - Order of consideration - certain Skilled Migration visas. The Department anticipates that a small number of State sponsored non-CSL applications will be finalised this program year. Finalisations will focus on applications where health and character checks have been requested by the case officer.”

October 2009

NEW TRAVEL ALLOWANCES

Finance Minister Pravin Gordhan's Medium-Term Budget Policy Statement (MTBPS) on Tuesday unveiled steps to ease South Africa's exchange controls.

1. Travel Allowances have increased from R 500k to R 750k immediately.
2. Tax Clearance has increased from R 2mill to R 4mill.
   
   

Changes to VETASSESS assessment requirements for General Occupations from 1 January 2010

VETASSESS conducts assessments for over 200 occupations for people applying to migrate to Australia under the Commonwealth Government’s General Skilled Migration (GSM) and Employer Nomination Schemes (ENS).

INVEST IN PROPERTY IN AUSTRLIA
OzInvest is a privately owned, real estate and marketing company that specializes in researching and sourcing quality house and land packages specifically for the investor in growth corridors of Australian capital cities.

Their comprehensive service includes organizing finance and legal representation, the coordination of the building process, and property management, making it a stress free and seamless process. They have a genuine 10 year leaseback guarantee that is unique in the market and means that investors can rest assured that they will have no vacancy periods for the next 10 years.

The scope of the service they provide makes their offer especially attractive to non residents who can invest in a sound property market supported by the fundamentals – strong population growth, structural undersupply of housing and a stable and prosperous economy, with a minimum of effort.

OzInvest is a company that is genuinely committed to honest and ethical dealings with all their clients and business partners. Four Corners would invite you to look at their website, www.ozinvest.com.au and let us know if this is something that you would consider in starting to create wealth for you and your family in Australia.

• OzInvest - The Unique Property Investment Solution
• The OzInvest Story
• 10 Year Leaseback Guarantee-how it works

Macquarie Economic Research
Currency Perspective (PDF)
SA - Outlook 5/10 (PDF)
AUD & NZD - Outlook 5/10 (PDF)

September 2009

24/9 - Changes to the Subclass 457 Visa program

We attended a meeting with senior DIAC officials on 22nd September 2009 covering the new changes on subclass 457 visas which came into force on 14 September 2009. The changes were quite complicated from a legislative drafting perspective and so further clarification from DIAC was a good thing for us and our clients.
The essential theme of the changes is “parity” in the work place. What DIAC is trying to achieve is that employees on 457 visas are treated exactly the same as or no worse than an Australian employee. This is one reason why a number of provisions and definitions from the Fair Work Act have been word for word incorporated into the Migration Act. This relates to rates of pay and conditions of work.

There are some changes which are positive for sponsors and others which will require a little more work on your side. Firstly, all new sponsorship applications will now be for a 3 year period instead of a 2 year period. There will no longer be a limit on the number of nominations you can make. DIAC will still monitor each sponsorship agreement and ensure that the number of nominations is appropriate for the size of sponsor and the number of Australian staff they have. But essentially DIAC want to get to the stage where there is 1 sponsorship agreement per ABN at any time with no nomination limit. This will remove the requirement to lodge additional sponsorship applications if you use up your “limit” within the life time of the sponsorship agreement.

DEEWR is currently still working on training benchmarks, but we are led to believe that they are not far away. In the meantime the previous guidelines are still being followed by DIAC. That is that 1% of payroll is spent on training or a commitment to pay 2% of payroll to an Industry Training Fund. Once we have these benchmarks we will let you know.

A new set of Sponsor Obligations came into force on 14th September 2009. This replaces the previous Sponsor Undertakings. These updated obligations can be found here (PDF).

23/9 - Processing priorities at the ASPC for all Skilled Migration applications

Please find below a summary of the processing priorities at the ASPC for all Skilled Migration applications as of 23 September 2009. The main change appears to be that occupations on the CSL are now placed above State Sponsored applications in the priority list.

This Direction applies to applications in the pipeline that have not been finalised, and to applications lodged with the Department of Immigration and Citizenship, on or after 23 September 2009. Priority processing applies to both onshore and offshore applications.

Processing priorities (highest priority listed first)

1. ENS and RSMS applications
2. State/territory nominated applications with nominated occupation on Critical Skills List (CSL)
3. Family member sponsored applications with nominated occupation on CSL
4. Applications not nominated or sponsored, but with nominated occupation on CSL
5. State/territory nominated applications with nominated occupation NOT on CSL
6. (i) applications with nominated occupation on the Migration Occupations in Demand List (MODL)
   (ii) Family member sponsored applications with nominated occupation on the MODL
7. all other applications processed in the order in which they are received

A more concerning aspect is the processing times that have also just been updated. Please see below. This means that there will now be substantial delays for all applications with a nominated occupation not on the CSL. This is now much worse than we first feared. Applications appear to now have the potential to sit in the queue for another 3 years. This is patently unfair, but we can only work in the confines of the system DIAC operates. We will be lobbying this side to see if this can be altered. We also believe that only allowing occupations on the CSL to be processed will actually skew the immigration quota and that other skills are also required to help the Australian economy grow. We will be advocating that this be recognised and that further amendments to the processing priorities will be made.

DIAC’s estimated processing times
Applications with nominated occupation on CLS: within 12 months of lodgement

If your nominated occupation is not on the CSL and you have applied for an offshore GSM visa or intend to apply for an offshore GSM before the end of 2009, it is unlikely that your visa will be finalised before the end of 2012.

If your nominated occupation is not on the CSL and you applied for an onshore GSM visa or intend to apply for an onshore GSM before the end of 2009, it is unlikely that your visa will be finalised before the end of 2011.

Your ‘nominated occupation’ is the occupation you nominated at the time you lodged your application and cannot be changed.

August 2009

New requirements for subclass 457 visa applications

VETASSESS has been contracted by the Australian Government, through Trades Recognition Australia, to conduct formal skills assessments for the 457 visa program. VETASSESS is leading a consortium consisting of Central Gippsland TAFE and Kangan Batman TAFE to conduct the 457 skills assessments and issue a qualification to applicants against relevant qualifications from the Australian Qualifications Framework. VETASSESS and partners are undertaking this work as part of the recent Australian Government’s changes to the Subclass 457 Business (Long Stay) visa. From July 1st 2009 Australia requires 457 visa applicants in specified trade occupations and countries of residence to satisfy certain skills requirements as part of their visa application.

The new process will apply to applicants in the following trades: Welder (First Class), Motor Mechanic, Cook/Chef, Fitter, and Metal Fabricator need to be assessed for applicants from Brazil, Philippines, China, India, Fiji, Papua New Guinea, South Africa, Thailand, Vietnam or Zimbabwe.

VETASSESS can assess applicants in their country of residence. However, if an applicant wishes to be assessed in another country, arrangements can be made.

Costs:

• The initial assessment of your documents costs $600.00 for an online application and $650 for a paper based application.
• The technical interview costs $600

Time frames - The assessment is normally completed within 5 weeks. If an applicant requires an urgent assessment a fast track service is available.

Applicants that are from the next 10 trades being released in November 2009 can also be assessed through this process so they are job ready when applying for their 457 Visas.

May 2009

13/5 News

Australian Economy Scores Top Marks

It's not just swimming and cricket that Australia does well at, it seems our economy scores top marks against the rest of the world.

According to the Reserve Bank, the Australian economy is in "better shape than most" and "will remain one of the better performing economies in the developed world".

Compared to the United States and the UK, where cash rates sit at a range of 0-0.25% and 0.5% respectively, Australia still has significant room to move with monetary policy. While there is no guarantee this will insulate us from the worldwide recession, it does put us in a good position to benefit from the renewed global expansion when it comes.

Experts are now predicting 2010 as the year most likely to bring about the start of the global upswing. The International Monetary Fund and the US Federal Reserve anticipate that fiscal measures put into place now by the world economies will go a long way towards stimulating this turnaround.

G20 Summit leaders recently agreed on a $US1.1 trillion plan for recovery and reform, which adds up to a staggering $US5 trillion spent in stimulus measures this year and next. Australia's own stimulus plan and recent injection of cash bonuses is well underway, and when coupled with the positive impact of interest rate cuts, many are hopeful that our economy may well hit a home run.

Housing Market Grows

If there's a good news story to come out of the gloom of a recession, it's that Australia's property market may no longer be under the hammer.

Record low interest rates and the First Home buyers boost have done their job in re-energising the market, with strong signs that people are once again confident about buying property. First home buyers now represent over a quarter of all borrowings, with investors tipped to be the next growth market.

Investors make a come-back

Rising rental yields, low interest rates and an improvement in home values are expected to encourage property investment. As the gap between mortgage repayments and rents continues to shrink, the amount investors will have to dip into their own pockets to cover borrowing costs is diminishing.

According to the latest QBE LMI Half Yearly Property Update, compiled by BIS Shrapnel, the differential between rental yields and interest rates is only 2 per cent. Residential rents are continuing to rise strongly, spurred by the low vacancy rate of less than 2 per cent in most capital cities.

The report shows that conditions for investors are at their best since the late 1990s. Stagnant property prices combined with low interest rates has made it significantly more affordable to purchase a property, with overall rents predicted to rise by another 10 per cent this year, according to BIS Shrapnel property analyst, Jason Anderson.

Buying becomes more affordable

A dramatic improvement in housing affordability has taken place in recent months.

According to the Housing Affordability Report from the Real Estate Institute of Australia (REIA), released March 09, the cost of buying a home improved by a record 6.4 per cent in the December 08 quarter, compared to the September 08 quarter.

The percentage of family income needed to service a home loan decreased to 32.4 per cent from 38.8 per cent over the same period. This is the largest quarterly change recorded by the REIA since calculations of this affordability measure were first introduced in 1995.

With so much positive research available, there are plenty of good reasons to buy into property right now.

 

12/5 Update

Highlights of 2009 Federal Budget on the Migration Program

Please also refer to the Skilled Migration Fact Sheet (Australia) for more info.

• The Migration Program will total 168,700 places for 2009-10.

• The Federal Government's 2009 Budget has made a further cut to the permanent skilled migration intake to 108,000 places for the 2009-10 program (a 20% reduction to the previous budget). In March, the Government cut the 2008–09 permanent skilled migration intake by 14 per cent from 133 500 to 115 000. This reduction to 108 100 places represents an overall drop of almost 20 per cent on previous planning levels.

• The reduction will be achieved largely through cutbacks in the General Skilled Category. The migration intake in the coming year reflects the economic climate while ensuring employers can gain access to skilled professionals in industries still experiencing skills shortages.

‘The reduction is being achieved through a cutback in places for the general skilled category rather than in the high-demand employer-sponsored category or in areas in which Australia has critical skills shortages.’ Said the Minister.

• A job-readiness test will be introduced for onshore skilled applicants.

The Government is introducing a JobReady Test (JRT) from 1 January 2010 for all GSM applicants nominating trade occupations for migration purposes. This measure complements similar measures previously announced for the subclass 457 visa and is designed to ensure a supply of ‘job ready’ applicants to supplement Australia’s labour market needs. The JobReady Test will also ensure a consistent standard of skills and competencies across trade occupations.

The JRT will ensure that GSM applicants who wish to migrate to Australia are able to successfully compete in the Australian labour market in the area of their nominated occupation.

Details of the JobReady Test are being developed by the Department of Education, Employment and Workplace Relations in consultation with the Department of Immigration and Citizenship and key industry stakeholders.

• The Government will be increasing the English language requirement for trades occupation to IELTS 6 from 1 July 2009 for offshore applicants and 1 January 2010 for onshore applicants. In addition to the cutback in places, the Government will be increasing the English language level required for trades-related occupations and introduce a targeted skills-testing regime to ensure that migrants have both the language and skills needed to participate in the labour market.

The aim of the GSM Program is to select migrants who, because of the skills they possess, are more likely to find skilled employment shortly after they arrive in Australia. A high level of English language ability is recognised as being essential for achieving this objective.

The English language requirement for GSM applicants nominating a trade occupation will be increased to a minimum of 6.0 (Competent English) in each of the four components of the International English Language Testing System (IELTS) test. This increase in the IELTS score brings the English language requirement for trade occupations in line with other occupations for GSM visas, with trade occupations previously exempt from GSM changes introduced in September 2007.

For the provisional GSM visa subclasses, the threshold English language standard will be raised from an average score of IELTS 5.5 to an average score of IELTS 6. The change will affect applicants for the subclass 475 Offshore Skilled - Regional Sponsored and subclass 487 Onshore Skilled - Regional Sponsored Visa.

The increased English language requirement will apply to all new offshore GSM applications lodged after 1 July 2009 with Australian Standard Classification of Occupations (ASCO) Level 4 nominated trade occupations.

The increased English language requirement for onshore GSM applicants will apply from 1 January 2010.
The Government’s reform measures are aimed at ensuring an appropriate balance between providing skills needed in the economy now (demand-driven employer-sponsored), in the future (independent skilled pathway) and in the regions (government-sponsored pathway).

‘The Government has begun the task of constructing a long-term planning framework for migration as a key component of the current reform agenda,’ Senator Evans said.

• There will be fewer visas granted to trade level occupations.

• There will be an increase in family migration places to 60,300, including addition 2500 for partners, 1000 for contributory parents and 300 for child visas. The Government will provide more opportunities for family reunions with an increase of 3800 places in the family component of the Migration Program, to 60 300. The increase includes an additional 2500 places for partners, 1000 places for contributory parents and 300 for child visas.
‘We are recognising the importance of family through this boost which will benefit Australians who seek to have their parents, partners or children join them to live here permanently,’ the minister said.

• Increased humanitarian Program to 13,750 (7750 Special Humanitarian and 6000 refugee)

• Increased funding to improve detention centres

• DIAC staff reductions

• Increased costs for DIAC to establish the new Office of the MARA

April 2009

Changes to legislation covering superannuation relating to temporary residents

From 1 April 2009, if you are, or were, a temporary resident you can only access your preserved superannuation benefits if:

• You have departed Australia permanently and your visa has ceased
• You become permanently incapacitated
• You have a terminal medical condition
  

In addition, your beneficiaries may access your benefits upon your death.

If you satisfied a condition of release prior to 1 April 2009 you may still be able to access your preserved superannuation benefits. You should speak to your financial adviser.

The Australian Government now requires the Super Fund to pay temporary residents’ unclaimed superannuation to the Australian Taxation Office after at least 6 months have passed since:

• The date a temporary resident’s visa ceased to be in effect; and
• The date a temporary resident permanently left Australia

Once the benefit has been transferred to the ATO you need to claim directly from the ATO.

English language requirement – Subclass 457 visa program

On 14 April 2009 the English language requirement for Subclass 457 – Business (Long Stay) visa applicants increased from an IELTS (International English Language Testing System) score of 4.5 to 5. This requirement applies to people making a subclass 457 application on or after 14 April 2009 and, for the first time, applies to people applying as chefs or head chefs (ASCO 3322-11 or 3322-01).

March 2009

From March 2009 the processing of permanent residence Employer Nominations will follow the route of the subclass 457 visa. Three centres of excellence will be established in Sydney. Melbourne & Perth. Sydney will cover applications where the position is based in Queensland, NSW or the ACT. Melbourne will handle applications from Victoria & South Australia. Perth will handle applications from Western Australia. Currently, the processing of ENS applications has been handled well by DIAC and it is hoped that these steps will further improve processing times.

27 February 2009

Policy Change by DIAC for 457s introduced 24 February 2009.

This policy update is in fact an instruction to DIAC case officers on how they should make their decisions on 457s. A key element that relates to the purpose of the 457 program is that processing of applications under the program should remain cognisant of the prevailing economic conditions. In relation to sponsorship applications, DIAC decision makers need to ensure they are satisfied that the Benefit to Australia requirement is met. In relation to nominations and particularly visa applications, a key focus should be given to the nominated salary and its proximity to the average remuneration for that occupation.

Case officers ("decision makers") have to "carefully consider the prevailing economic conditions, both globally and locally" and satisfy themselves that "there is a benefit to Australia as opposed to a benefit to the business." The prevailing Australian rate of participation in the workforce is an extremely important element when assessing all four elements. During times of growing unemployment, decision-makers should satisfy themselves that there is a benefit to Australia as opposed to a benefit to the business. When the economy is buoyant with low unemployment, a vigorous assessment of the benefit to Australia requirement should be limited to applications where there are very clear inconsistencies. However, during periods where economic conditions are deteriorating and levels of unemployment rising, the need for the importation of overseas workers to fill positions in the trades and semi skilled areas diminishes. Even during periods of economic turbulence, there will remain shortages in some areas of the Australian workforce, although this is more likely in the higher skilled, professional groupings.

The four elements of the Benefit to Australia requirement are:
(i) the creation or maintenance of employment for Australian citizens or Australian permanent residents
(ii) expansion of Australian trade in goods or services
(iii)  the improvement of Australian business links with international markets
(iv) competitiveness within sectors of the Australian economy

These four elements have always been a requirement for a Sponsorship application, but it now appears that DIAC will be treating them much more seriously and we will need to address them in more detail. In times of growing unemployment, decision-makers would need to be satisfied that the skills and attributes required for this role could not be found locally and that the individuals proposed to be sponsored demonstrably have a higher level of skill than can be sourced within Australia. We have spoken to DIAC and although it is not their intention to bring back Labour Market testing as a general rule this could mean that in some cases evidence of labour market testing will be required to prove that you tried to fill the position locally but were unable to.

DIAC will also be looking more closely at the level of remuneration a 457 visa holder will receive at the nomination & visa stage of the process. In addition to meeting the minimum salary threshold other factors will be considered. DIAC will also look at “average” remuneration for that position. They will consider collective agreements, industrial awards, similar positions within the sponsoring company, & Australia Bureau of Statistics data.  For ASCO levels 1 & 2 and salaries over A$100,000 DIAC will not be asking too many questions. They will be more interested in lower skilled occupations where the salary is the minimum salary threshold level. DIAC will need to satisfy itself that the overseas worker is being paid the same as an Australian worker in a similar position. DIAC wants sponsors to use the 457 program to fill genuine skills shortages and not to secure workers at a lower salary than an Australian would receive.
 
Closer attention will also be paid by DIAC to a person’s suitability for the position – their relevant qualifications & work experience. We have always paid close attention to this aspect and do not see too many issues arising with this point.

In all cases it now appears that the onus is on us to work together to provide a justification for your need to employ an overseas worker. In many instances this will not be a problem. Skills are still in short supply due to skills shortages or the geographic location of an employer. It seems that DIAC will not make any assumptions now and will be looking for more supporting information as part of an application. We do not see this as an obstacle to any 457 visa applications being successful. It just means providing a more detailed submission and convincing the decision maker of the need for the appointment. After speaking to DIAC they do not have any set guidelines on what additional information they require. It will depend on our submission and the circumstances of the application as to what additional information they will require if anything.
The new policy though could mean slightly longer processing times for certain applications if additional information is requested.

If you have any questions or would like to discuss this in more detail please contact our office.

January 2009

As of 1 Jan 2009 the Adelaide Skilled Processing Centre which processes all skilled migration applications has introduced a new processing priority. All existing and future applications will be affected by this change. This is a further reflection of the Australian Government’s stated intention to assist getting the skills required by Australian business into Australia sooner.

The new Ministerial Direction gives priority processing to applications strictly in the following order:

1. employer sponsorship; then
2. State or Territory Sponsorship; then
3. an occupation on the Critical Skill List (CSL); then
4. Business Skills; then
5. an occupation on the MODL; and then
6. All other applications

The ASPC is currently in the process of identifying and allocating all State or Territory Sponsored applications. Once these are all completely allocated, only then will cases with occupations on the CSL commence allocation and not until after all CSL applications are allocated will we be able to look at the remaining application priorities.

2008

Four Corners has attending both the Johannesburg & Cape Town Skills Expos with Australian employers. We also represented our other clients in Australia that will not physically be attending the expos.

If you would like to attend future expos and speak to a Four Corners consultant to find out more about the employment market in Australia please contact us.
http://www.expo-australia.com