The Australian Government’s Federal Budget indicates policy spend for 2024/25 will focus on actions to reduce Net Overseas Migration (particularly international student migration) and reforms to the migration system to implement its Migration Strategy. This includes strengthening core functions, such as immigration compliance monitoring, as well as new visa arrangements for South-East Asian and Indian applicants.

Written by Sheila Woods (MARN: 0533879) of Interstaff  18 July 2024

Here’s a summary of what the Federal Budget means for migrants and employers of visa holders.

Permanent Migration Focus on Employer-Sponsored Visas

The Federal Budget has set Australia’s 2024/25 Permanent Migration Program planning level at 185,000 places, with 132,200 places (around 70 per cent) for Skilled Visas.

As you can see below, a slightly smaller permanent migration program has been forecasted than last year’s 190,000 places, with 137,100 places for Skilled Visas. The allocation for Family Visas, including Partner Visas, has largely remained the same.

The most significant changes are the increase in Employer-Sponsored Visas (which now comprises 33 per cent of the Skill Stream compared to 27 per cent in 2023/24), and an almost 50 per cent reduction in Skilled Independent Visa places (only 12 per cent of the Skill Stream compared to 22 per cent last year). This indicates an ongoing focus on Employer-Sponsored Visas.

From 2025-26, the Government plans to extend the planning horizon for the permanent migration program from one year to four years, as per its Migration Strategy.

Reducing Net Overseas Migration

Government actions that are underway as part of the Migration Strategy (such as the closure of the Subclass 408 Pandemic Event Visa and the tightening of Student Visa regulations) are estimated to reduce Net Overseas Migration by 110,000 people over the forward estimates from 1 July 2024.

Net Overseas Migration is forecast to approximately halve from 528,000 in 2022-23 to 260,000 in 2024-25. This is likely due to housing and cost of living pressures that have emerged in the wake of the pandemic.

You can read more about Government plans to reduce Net Overseas Migration here.

Migration System Reforms | Immigration Changes 2024 – 2025

The Government will commit $18.3 million over four years from 2024-25 to reform Australia’s migration system.

This will include:

• $15 million over three years from 2024-25 for migrant education about workplace immigration compliance
• $1.9 million in 2024-25 for a data matching pilot with the Australian Taxation Office

Other initiatives and immigration budget expenses mentioned in the Budget Papers include:

• A supplementary $100 million in 2024-25 to the Department of Home Affairs to support core functions including Australian Border Force operations, immigration compliance activities and other critical operations
• Department of Home Affairs and Administrative Appeals Tribunal average staffing levels will increase to improve processing and wait times
• Subclass 482 TSS Visa Work Experience Reduction
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• Work experience requirement to reduce from two years to one year from 23 November 2024 for Subclass 482 Visas)

• Trades Recognition Australia ICT improvements to ensure skilled workers are more readily available to employers
• A new National Innovation Visa to replace the Global Talent Visa from late 2024
• Closure of the Business Innovation and Investment Visa Program
• Streamline processing for judicial review of cases such as visa appeals, cancellations and refusals
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• $1 billion over five years from 2023-24 to establish the new Administrative Review Tribunal (ART) that will replace the Administrative Appeals Tribunal and implement processing enhancements
• $115.6 million over four years from 2024-25 to address migration backlogs in the federal courts

• The Department of Home Affairs to accept the transfer of identity and biometrics functions and cyber-security related policy functions from other Departments. This will also include other cyber-security investments.
• The Leaving Violence Program
• $925.2 million over five years from 2023-24 to support victims leaving a violent intimate partner relationship
• Reforms to improve Migrant and Refugee Settlement Services
• $120.9 million over five years from 2023-24
• Support to individuals from Israel and Occupied Palestinian Territories affected by the Hamas-Israel conflict
• $2.9 million over two years from 2023-24

Visa Arrangements for South-East Asian and Indian applicants

Several visa arrangements were mentioned in the Federal Budget for South-East Asian and Indian applicants.

• $505.9 million over five years from 2023-24 to strengthen engagement with South-East Asia, including $1.1 million over two years from 2023-24 to improve visa access and provide long-validity business and frequent traveller visas for ASEAN member countries and Timor-Leste.
• A visa pre-application (ballot) process for the capped Work and Holiday (Subclass 462) Visa program for China, Vietnam and India from 2024-25 to manage demand.
• A new Mobility Arrangement for Talented Early-Professionals Scheme (MATES) for Indian nationals from 1 November 2024. This is expected to allow young Indians with skills in targeted fields of study to work in Australia for up to two years.
• An extended validity of the Visitor Visa (Subclass 600) Business Visitor Stream for Indian nationals from up to three years to up to five years.

Established in 1988, Interstaff has over 35 years of Australian visa and migration experience and provides strategic immigration advice to businesses and individuals Australia-wide and internationally. MARN: 0533879.