The Federal Budget announcement on 14 May provided some insight into the migration program for the next financial year. These announcements align with the Migration Strategy and ongoing reforms we can expect to see over the next few years.

Here are some of the key immigration takeaways from this budget:

New Migration Program planning levels

On 14 May 2024, the Australian Government announced that the planning levels for the 2024–25 permanent Migration Program (Migration Program) is set to 185,000 places with an approximate 70:30 split between the Skill and Family streams. The 132,000 (70 percent) places allocated to the Skilled Stream to address Australia’s long-term skill needs.

Here are the detailed breakdowns of the allocation of migration places across different visa categories for the fiscal years 2023–24 and 2024–25.

Cap on student visa numbers from 1 January 2025

In recent months, we have seen many changes to student visas as part of the Government’s efforts to strengthen the integrity of the migration program. The Government has announced it will impose caps on student visa numbers from 1 January 2025.

Education providers will be given a cap number for student visas and to go above the cap, they will need to build or provide accommodation.

Business Innovation and Investment Program (BIIP)

The BIIP will permanently close in July 2024. No further quota allocation for new applications.

Application made and waiting for decision will be eligible for a refund starting September 2024 for those who wish to pull back their BIIP application

New National Innovation Visa 

At the end of 2024, the government will introduce an updated innovation visa program. This new visa program is to replace the existing business innovation visa and investment visa programs, mainly focusing on highly skilled migrants who can contribute their skills to help growth in critical sectors of national importance.

• This visa is for highly skilled and expert migrants who can help to grow and develop important sectors of Australia.

The national innovation visa shows Australia’s dedication to economic growth and development through targeted migration. It makes sure that Australia will attract and retain the best global talent to maintain its competitive edge.

Reduction in work experience for Subclass 482 Temporary Skills Shortage visa holders

An interesting announcement was the reduction of the work experience requirement for the subclass 482 visa. Currently, to be eligible for this visa, an applicant must have at least two years of relevant work experience. From 23 November 2024, this will be reduced to only one year. The interesting thing about this announcement is the timing. Late last year when the Migration Strategy was released, it was indicated that the subclass 482 visa would cease and be replaced with the Critical Skills Shortage visa by the end of 2024. It is unclear whether this change to the subclass 482 visa means the introduction of the new visa will be delayed or whether this change will flow onto the new visa.

Temporary Skilled Migration Income Threshold to increase from 1 July 2024

Separate from the Federal Budget, the Government has on 28 May announced an increase to the Temporary Skilled Migration Income Threshold (TSMIT), which will take effect from 1 July 2024. This comes a year after its first increase since 2013. The threshold will be raised from the current $70,000 to $73,150.

From this date, new employer nomination applications must meet the new TSMIT of $73,150 or the annual market salary rate, whichever is higher. Nominations lodged before 1 July 2024 will not be affected.

Work and Holiday Visa changes

From 2024-25, a new $25 pre-application ballot process will be implemented for China, Vietnam, and India in the work and holiday visa program (subclass 462)

Mates Program for Indian nationals 

Now the Migration and Temporary Employment Scheme (MATES) offers new opportunities for 3000 Indian graduates and early career professionals (aged 18 to 30 at the time of application) to live and work in Australia for up to two years. Also, the authorities have extended the validity of the visitor visa (subclass 600 Business Visitor stream) for Indian nationals from three to four years. This initiative strengthens the bond between Australia and India, aiming to attract young professionals with valuable skills and expertise. 

Migration System Reforms 

The government has allocated $18.3 million over the next four years starting from 2024-25 to drive additional enhancements to Australia’s migration framework. Government spending includes:

• Information and education initiatives – The migration system will use $15.0 over three years to create programs that educate migrant workers on workplace safety protocols, legal protections, and Australian immigration regulations.
• Data matching Pilot program – Allocating $1.9 million for the 2024-25 financial year to facilitate a data matching Pilot program between the Department of Home Affairs and the Australian Taxation Office aimed at addressing the exploitation of migrant workers and safeguarding the integrity of Australia’s labor market and migration framework.

Internal Migration Forecasts

The budget forecasts significant internal migration trends, with Queensland expected to gain the most residents.

New South Wales: Forecast to lose 23,000 residents in the next financial year.
Queensland: Expected to gain 23,000 residents, benefiting from internal migration.
South Australia, Northern Territory, Tasmania, and ACT: Forecast to leave 2,900 in South Australia, 2,100 will leave the Northern Territory, 700 will leave Tasmania, and 300 will leave the ACT.
Victoria and WA: Anticipated to see increases of 3,100 and 3,000 residents, respectively.

NSW is projected to experience annual population declines, while other states witness varying migration trends.

Conclusion 

The Federal Budget for 2024-2025 updates the Australian migration policy. This program provided a more focused approach to Skilled migration, innovative Visa programs, and better stability and protection of migrant workers. These changes reflect the long-term goal of the country to create a prosperous and sustainable future for the nation. Australia will continue to be a top destination for talent and innovation from around the world.