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Australia to Maintain Focus on Skilled Migration While Strengthening International Student Visa Regulations

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Australia’s Immigration Strategy Under Prime Minister Anthony Albanese

Australia’s immigration landscape is evolving under the leadership of Prime Minister Anthony Albanese’s Labour government, with a dual focus on skilled migration and measures intended to reduce overall net migration. This new direction comes after the Labour Party’s recent re-election, signaling a commitment to refine immigration policies while maintaining a robust approach to skilled entry.

Focus on Skilled Migration

One of the core elements of the Albanese administration’s immigration strategy is an emphasis on skilled migration. The government is poised to raise salary thresholds for skilled visa categories, making it essential for potential applicants and employers to prepare for these changes. While specific details are expected to be announced this July, industry experts indicate a clear trend towards aligning visa requirements with Australia’s employment needs.

Rising Costs for Education and Visa Applications

In addition to changes in skilled worker applications, the Albanese government has announced plans to increase fees for student visa applications. Following a significant fee hike from AUD 710 to AUD 1,600 in July 2024—a staggering 125% increase—students should anticipate further hikes that could push fees to AUD 2,000 by July 2025. This escalation reflects the government’s approach to managing the volume of international students entering Australia, aligning with the goal of stricter immigration controls.

Impact on the Indian Community

The Indian community is vital to Australia’s demographic and cultural fabric, now representing the second largest migrant group in the country. As of June 2023, over 850,000 Indian-born individuals reside in Australia, more than double the 380,000 recorded in 2013. However, recent visa restrictions have led to a sharp decline in visa approvals for Indian nationals. For example, in the fiscal year 2023–24, only 50,516 student visas were granted compared to over 102,000 the previous year. Similarly, temporary skilled employment visas fell significantly, highlighting the shifting dynamics of Australia’s immigration policy.

Reduction in Net Migration Targets

In a pivotal move, the Australian government announced plans to halve net migration, which recently reached a record 510,000, over the next two years. This initiative aims to align the numbers more closely with local capacity and demand. Projections indicate that net overseas migration will reduce to approximately 250,000 in 2024–25 and slightly decrease in subsequent years.

Enhanced Scrutiny of International Students

Strategic adjustments also involve tighter scrutiny of international students. The government’s emphasis on controlling the entries of individuals based on their skills necessitates a balance between welcoming qualified professionals and managing the influx of students. This alignment means that those pursuing studies in Australia must navigate an evolving landscape more rigorously, with the government carefully evaluating applications based on demand for particular skills.

The Skills-in-Demand Visa

Last year marked the introduction of the ‘Skills-in-Demand’ visa, designed to replace the older immigration system. This new visa is categorized into three streams: ‘specialist’, ‘core’, and ‘essential’ skills, showcasing a targeted approach to immigration that responds to labor shortages in critical areas. Notably, salary thresholds for core skills roles will increase from AUD 73,150 to AUD 76,515, while specialist skills will see an increase from AUD 135,000 to AUD 141,210. These alterations signal a proactive stance towards attracting highly skilled workers.

Planning for Future Changes

Industry experts, like Teresa Liu from the global immigration firm Fragomen, emphasize the importance of preparation for both employers and prospective employees. As the government continues to refine its Skilled Visa Program, knowledge about the impending changes will be crucial for both sides. This adaptability will enable businesses to align their hiring strategies with the new requirements and ensure that skilled workers can navigate the application process successfully.

The developments in Australia’s immigration policy reflect a significant shift in focus, steering towards more stringent controls while maintaining pathways for skilled migration. As the landscape evolves, both potential migrants and employers must stay informed to navigate the new regulations effectively.

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