On 14 May 2024, the Australian Government announced the 2024-2025 budget and in this blog, we break down the key elements about immigration changes.
The federal government is taking measures to reduce the net migration rate as it overhauls the migration system and moves to reduce pressures caused by population growth. Budget papers showed net migration will more than halve from 528,000 to 260,000 between 2022-23 and 2024-25 (Budget paper 1, p 24). The graph below illustrates the potential future net migration levels (ABC News)
Permanent Migration Program
The Government will set the 2024–25 Permanent Migration Program planning level at 185,000 places and allocate 132,200 places (around 70 per cent) to the Skill stream.
The Planning Levels have typically been set at 190,000 places from FY 2012-13 to FY 2018-19. Although there is a slight reduction in the overall planning levels for the Permanent Migration Program, the focus remains on skilled migration and addressing critical skill shortages.
It will be easier for Australian employers to sponsor overseas workers as the threshold of work experience required will be reduce from 2 years to 1 year for the Subclass 482 TSS Sponsorship visa.Â
Migration Program planning levels as announced as part of the 2023–24 and 2024–25 Federal Budgets
| Visa Stream | Visa Category | 2023–24 Planning levels | 2024–25 Planning levels |
|---|---|---|---|
| Skill | Employer Sponsored | 36,825 | 44,000 |
| Skilled Independent | 30,375 | 16,900 | |
| Regional | 32,300 | 33,000 | |
| State/Territory Nominated | 30,400 | 33,000 | |
| Business Innovation & Investment | 1,900 | 1,000 | |
| Global Talent (Independent) | 5,000 | 4,000 | |
| Distinguished Talent | 300 | 300 | |
| Skill Total | 137,100 | 132,200 | |
| Family | Partner | 40,500 | 40,500 |
| Parent | 8,500 | 8,500 | |
| Child | 3,000 | 3,000 | |
| Other Family | 500 | 500 | |
| Family Total | 52,500 | 52,500 | |
| Special Eligibility | 400 | 300 | |
| Total Migration Program | 190,000 | 185,000 |
Changes for International Students
The Budget has unveiled new measures to regulate the growth of international student migration including awaited increases to student visa fees and financial capacity requirements as well as a new formula that cap international student enrolment at each university.
671,000 international students arrived in Australia from January 2023 – March 2024, an increase of 15% from the year prior.
The Government clearly thinks more measures are required to achieve its ambitious targets to restrict international student numbers. Legislation empowering the government to cap international student enrolments was introduced in Parliament on May 21st, 2024. The maximum intake will start to apply on January 1, 2025.
The majority of international student fees come from business and management courses. The government may use the cap to encourage education providers to attract more overseas students into courses such as teaching and nursing where there are local acute skill shortages.
The Budget has also raised $1.2 billion by doubling the cost of a student visa from $700 to $1,400 and as expected has also raised the financial capacity requirement for all foreign students by 20% to $29,710.
These measures are deliberately designed to make Australia a more difficult place to study, and in the Government’s mind will restrict new students to those who can afford Australia’s high cost of living.
Promoting TAFE and VET Pathways
The Government will provide $4.4 million in 2024–25 to drive demand for Vocational Education and Training (VET) in support of delivering the workforce required to meet Australia’s future skills needs.
New National Innovation Visa
This visa will also be established to replace the current Global Talent visa later this year and will target exceptionally talented migrants who would drive growth in sectors of national importance.
Next Steps
If you’d like to discuss your migration journey and visa options
Contact via: enquire@visaroos.com
Dario Ishiyama – Principal Registered Migration Agent, Visaroos
MARN: 1800462