The Australian government has recently introduced significant updates to the Migration Act, bringing new rules that offer greater flexibility for sponsored migrant workers.
Last month, these updates were announced as part of broader migration policy reforms, impacting temporary visa holders, skilled migrants, and business sponsors. The changes include revisions to student and working holiday visas, the introduction of a Workplace Justice Visa, and efforts to reduce the number of “permanent temporary” migrants in Australia.
These updates are a key component of the Albanese government’s 10-year migration reform plan, which aims to address Australia’s “broken” migration system and ensure it serves the best interests of both migrants and employers. Most of these changes took effect on 1 July 2024 and apply to both existing visa holders and those who receive visas after this date.
5 Key Migration Changes To Be Aware Of
Ending the “Golden Handcuffs” for Skilled Migrants
Visa conditions for the Temporary Skill Shortage (subclass 482), Temporary Work (Skilled) (subclass 457), and Skilled Employer Sponsored Regional (subclass 494) visas have been updated to give migrant workers more flexibility if they choose to leave their sponsoring employer.
The modification to visa condition 8607, which applies to Temporary Skill Shortage visas, is the most significant change.
Previously, if a migrant on one of these visas left their employer, they had just 60 days to find another sponsor, during which they couldn’t work. This situation, often referred to as the “golden handcuffs,” made employees feel trapped in their roles even if they were unhappy or mistreated. Under the new conditions, visa holders now have up to 180 days after leaving a job (with a maximum of 365 days over their visa period) to secure a new sponsor, apply for another visa, or prepare to leave Australia. Importantly, they can work in any occupation during this period.
Restrictions on ‘Visa Hopping’
“Visa hopping” refers to the practice of extending a stay in Australia by continuously applying for temporary visas without a clear path to permanent residency.
To curb this, the new rules prevent Visitor (subclass 600) and Temporary Graduate (subclass 485) visa holders from applying for a Student (subclass 500) visa while still in Australia.
Increase in Migrant Income Threshold
The Temporary Skilled Migration Income Threshold (TSMIT) has been raised from $70,000 to $73,150 as part of the new requirements. This change ensures that skilled migrants are compensated fairly, aligning salary standards with wage growth and living costs.
Introduction of the Workplace Justice Visa
Effective from 24 July 2024, the new Workplace Justice Visa (subclass 408) allows migrant workers to stay in Australia for up to 12 months to pursue an active workplace claim if they lack other legal avenues to remain in the country.
It is anticipated that this visa will be of limited use, as it would apply only in specific scenarios where a worker has no other visa options. However, it remains an important tool for migrant
workers facing exploitation.Changes to Working Holiday/Work and Holiday Visa Eligibility
Australia’s popular Working Holiday/Work and Holiday visa programs have been updated. UK citizens can now apply for a Working Holiday Visa (subclass 417) until the age of 35 (up from 30), and no longer need to complete specified work in regional areas to be eligible for a second- or third-year visa. Additionally, citizens from the Philippines aged 18-30 are now eligible to apply for a Work and Holiday Visa (subclass 462), allowing them to spend up to a year in Australia engaging in short-term work, study, or travel.
Impact on Employers
These migration employment rule changes present both opportunities and challenges for employers.
One concern is that the increased flexibility for skilled migrants could lead to situations where employees secure sponsorship, only to leave their employer shortly afterward. Employers may consider including clauses in employment contracts to recover certain costs if an employee departs within a specified period.
Ultimately, a strong organisational culture and retention strategy will be key in encouraging sponsored workers to stay. While there is potential for system misuse, many employers will benefit from the new pathways to permanent residency, allowing skilled migrants to continue contributing to Australian organisations.
