On Monday, the 11th of December 2023, Home Affairs Minister Clare O’Neil and Immigration Minister Andrew Giles announced the Labor Party’s new migration strategy, with the aim of reducing net overseas migration from 510,000 to 250,000 by 2025.
International students and the 485 Graduate visa in focus
KEY POINTS
- The maximum eligible age for a Temporary Graduate Visa (TGV) will be reduced to 35 from 50
- Australia to crack down on non-genuine international students by raising the English-language proficiency requirements and conducting closer scrutiny of applicants
- International students are now required to score at least 6 on the International English Language Tests System (IELTS)
- Australia receives most of its international students from India, China, and Nepal
| The current problem | Government approach |
| Long post-study work rights Generous post-study work rights mean that former students can spend up to 8 years on a Subclass 485 Temporary Graduate visa (TGV), increasing the risk they become ‘permanently temporary’.  TGV length under existing settings:  Initial TGV • 2 years for Bachelor Degree • 3 years for Masters by coursework • 3 years Masters by research  • 4 years for PhD  Eligibility for a second TGV • + 1–2 years for study in a regional area (dependent on location) Extension of Post-Study Work Rights • + 2 years for an eligible course of study in an area of skills need  Eligible age not aligned with permanent residence options The maximum eligible age for a TGV is 50, however the cut off for permanent residency is 45 so many older graduates are left ‘permanently temporary’. | Shorter post-study work rights The duration of an initial TGV will be shorter. The extension of post-study work rights will no longer be available. Only applicants who studied in a regional area will be eligible for an extension.  TGV length under new settings: Initial TGV • 2 years for Bachelor Degree • 2 years Masters by coursework • 3 years for Masters by research • 3 years for PhD  Eligibility for a second TGV • + 1–2 years for study in a regional area (dependent on location)  Eligible age encourages early career professionals The maximum eligible age for a TGV will be reduced to 35, repositioning the visa as a product for early career professionals who can contribute to the Australian economy over a longer period. |
| Multiple and confusing graduate visa products The names and eligibility criteria of the ‘PostStudy Work’ and the ‘Graduate Work’ streams of the TGV are confusing for applicants, with many applying for the wrong stream. The ‘Replacement Stream’ of the TGV and the subclass 476 Skilled Recognised Graduate visa no longer align with policy priorities. | Limited graduate visa products with clearly defined purposes TGV streams will be re-named as ‘Post-higher Education Work’ and ‘Post-Vocational Education Work’ streams to be more descriptive for the relevant applicants. The ‘Replacement Stream’ of the TGV and the subclass 476 visa will be abolished. |
| Unclear visa processing times Slow TGV processing times have delayed transitions from student to graduate visas, forcing many graduates to shift to Bridging visas before becoming graduates, which worsens their skilled employment outcomes.  | Clearer visa processing times  TGV processing times for the ‘Post-Higher Education Work Stream’ will be backed by a 21-day service standard, which will give employers confidence in a student’s post-study Options. |
| Uncertainty about pathways to permanent residency A lack of clarity about pathways to permanent residency creates uncertainty for employers when considering hiring graduate visa holders. | Clearer post graduate visa pathways The work experience requirement for a Temporary Skills Shortage visa (and future Skills in Demand visa) will be changed to give TGV holders more opportunity to move on to a skilled visa. Proposed reforms to the points test will also give graduates working in skilled jobs faster pathways to permanent residency. |
An SMH report showed out of the total 650,000 overseas students, nearly 150,000 are on their second student visa. The government seeks to curb the number of migrants living in a “permanently temporary” state in Australia.
The government is well aware of its failing immigration system. With many side doors and back doors the existing system requires a complete overhaul if Australia is to meet its converging set of challenges some of which include;
- pressure of an aging population
- the need to get wages and productivity growth moving
- pressure on housing and infrastructure
- building a skilled workforce
- helping businesses find skilled labour (meeting skills shortages)
The Government’s vision is to get migration working for the nation.
“It is time for Australia to once again adapt its migration policy to the nation’s changing needs and to reconnect migration with the aspirations of Australians”.
The Hon Clare O’Neil MP, Minister for Home Affairs
New specialist visas to attract highly skilled workers
Alongside a clampdown on international student and graduate visas, the government will also create a new temporary “Skills in Demand” visa to attract highly skilled workers who have the potential to grow the skills and expertise of the Australian workforce.
The government will establish a new “specialist skills pathway” to help businesses recruit people with specialised and unique skill sets. The new pathway will be open to eligible applicants earning at least $135,000 in any occupation except trade workers, machinery operators and drivers, and labourers. The government projects around 3,000 people would come to Australia each year under this pathway and has committed to an average 7-day turnaround for visa processing.
Conclusion
Upon the governments review of the system, there appears to be a “lack of clarity” on what Australia has been trying to achieve through migration and is “not fit for purpose”.
Click here to read the Australian government’s 2023 migration strategy, a 100-page document detailing immediate and future steps it will take to overhaul Australia’s “broken” migration system.
Next Steps
As the festive period approaches, it’s important to note that processing times by the Department of Home Affairs may be impacted. To avoid delays, Visaroos recommends lodging visa applications as soon as possible
If you are in Australia and would like to know the possibilities for permanent residency in your state, please contact via: enquire@visaroos.com
Dario Ishiyama – Principal Registered Migration Agent, Visaroos
MARN: 180046