Australia's new Migration Strategy

6 minute read  11.12.2023 Anna Gunning-Stevenson, Emma Hogg, Rachael Molnar

The Minister for Home Affairs has just released the federal Government's new Migration Strategy, aimed at overhauling Australia's migration program.


Key takeouts


  • Labour market testing requirements have been amended, removing the requirement to advertise on the Workforce Australia website.
  • A new Skills in Demand visa will replace the current Temporary Skill Shortage (subclass 482) visa in 2024, with three streams targeting different levels of skills in shortage.
  • The Strategy includes a host of other upcoming reforms, particularly focusing on the integrity of the international education system, and the skilled migration program.

The new Migration Strategy released today addresses reforms across Australia's migration program, with a particular focus on temporary skilled migration and the international education sector.

The Strategy builds on the findings of the Migration Review released in April 2023, as well as the Nixon Review released in October 2023.

The Strategy is almost 100 pages and highlights areas where changes will be implemented in 2024, or where future reform has been identified for consultation in 2024.

While the scope of the Strategy is very broad, in this update, we will focus on the key updates most of relevance to employers. We will provide detailed insight into the different aspects of the Strategy in the coming days.

Roadmap of intended changes

The only new legislative change implemented today is the change to standard labour market testing requirements for the Temporary Skill Shortage (subclass 482) visa (TSS visa). The need to advertise on the Workforce Australia website has been removed, now requiring employers to only conduct two advertisements.

The rest of the Strategy is focused on:

  • Changes already announced that have been or will soon be implemented – such as the increase of the Temporary Skilled Migration Income Threshold (TSMIT) to $70,000 from 1 July 2023;
  • New commitments that will be implemented by the end of 2024 – this includes the creation of a new temporary work visa, the strengthening of integrity in the international education sector, and steps to simplify the migration system; and
  • Areas for future reform to be consulted on in 2024 – this includes reshaping the permanent skilled migration program and adjustments to regional visas and the working holiday maker program.

Temporary Skilled Migration

The government has announced a new Skills in Demand visa, which, once implemented, will replace the current TSS visa. The key aspects of the new Skills in Demand visa are:

  • Three pathways – the visa will be split into three different pathways, set out in detail below;
  • Time period - the visa will provide for a 4-year stay for all streams;
  • Service standards – a commitment to median processing times of 21 days.
  • Streamlined labour market testing - the Government has already removed the requirement to advertise positions through Workforce Australia, and will subsequently increase the validity period of advertisements from 4 to 6 months;
  • Increased employee mobility - visa holders will have 180 days to find a new sponsor if they cease employment with their sponsor (up from the current 60 day period). They can also work during this period.
  • Increased pathways to permanent residency - all visa holders will have a pathway to permanent residency, and time spent with any approved employer will count towards permanent residency eligibility.
  • Potential for reduced upfront employer costs - the Government will explore moving employer fees to a monthly or quarterly model, to reduce upfront employer costs.
  • Public sponsor register - the Government will develop a public register of approved sponsors, which will publish the numbers of sponsored workers and their occupations, to assist migrants seeking a new sponsor.

The new Skills in Demand visa will provide three pathways for temporary skilled workers:

Specialist Skills Pathway

The key features and requirements of this pathway will be:

  • No occupation lists (but excluding trades workers, machinery operators and drivers, and labourers)
  • Requires annual earnings of the new Specialist Skills Threshold (initially $135,000, to be indexed annually)
  • Fast processing: the Government has committed to a 7-day median visa processing time

Core Skills Pathway

The key features and requirements of this pathway will be:

  • This will be the largest pathway of temporary skilled migrants
  • A simpler and regularly updated Core Skills Occupation List, for occupations identified by Jobs and Skills Australia as being in shortage or occupations agreed through international trade agreements
  • Earnings to be at least TSMIT, currently set at $70,000, but to be indexed annually

Essential Skills Pathway

The Government is further evaluating how best to develop this pathway for lower paid workers under TSMIT but with essential skills. The key updates from the Strategy confirm:

Workers under this pathway are currently sponsored through labour agreements. The Government has acknowledged there will always be a role for labour agreements within the system, but it will evaluate existing labour agreements and will be rewriting guidelines for future labour agreements to provide stronger worker protections.

This consultation will take place in early to mid 2024 with Jobs and Skills Australia playing a formal role in advising on this pathway.

Permanent skilled migration

The Strategy also addresses future reform to the permanent skilled migration program, but provides less certainty on the form of these changes compared to the temporary skilled visa program.

Key future reforms outlined in the Strategy include:

  • Time spent with any approved employer will count towards permanent residence requirements.
  • Skills in Demand visa holders will have access to self-nominated independent permanent pathways, in addition to employer sponsored pathways.
  • Reforming the points test to better identify migrants who will make the greatest contribution to Australia.
  • Consideration of a new Talent and Innovation visa, aimed at driving innovative investments and entrepreneurship.

The Government will conduct further consultation on the permanent skilled migration program in 2024.

While the Government considers the design of the new Talent and Innovation visa, it will not provide any new places under the existing Business Innovation and Investment Visa Program.

International Education system

Following the release of the Nixon review in October 2023 which recommended significant changes to the student visa system, the Government has included a number of proposed reforms to the international education sector and student visa program.

These include:

Introduction of a new Genuine Student test for all international students

This will replace the current 'Genuine Temporary Entrant' requirement.

Changes to the prioritisation of student visa processing,

These changes will be made to prioritise based on the risk-level of providers.

Increase English language requirements for international students.

From early 2024, the requirements will be increased to:

  • IELTS 5.0 or equivalent for ELICOS student visa applicants
  • IELTS 5.5 or equivalent for student visa applicants undertaking foundation or pathway programs with reputable English language training
  • IELTS 6.0 or equivalent for other student visa applicants
  • IELTS 6.5 or equivalent for Temporary Graduate visa applicants

New age limit for Temporary Graduate visa applicants

Temporary Graduate visa applicants will need to be under the age of 35 (down from the current age limit of 50)

Reducing the length of Temporary Graduate visas to:

  • Bachelor degree or Masters by coursework: 2 years
  • Masters by research or PhD: 3 years
  • Students in regional areas: eligibility for second visa of 1-2 years in length depending on location

Work experience requirement for the TSS visa and future Skills in Demand visa

The work experience requirement for the TSS visa and future Skills in Demand visa will be changed for Temporary Graduate visa holders, to enable better transition to a temporary skilled migration visa.

Significant changes are on the horizon to the integrity framework of the international education system. We will address these in more detail in a future update.


We're here to help navigate the changes to Australia's Migration Strategy and will provide further detailed guidance into the different aspects of the Strategy in the coming days. If you have any questions, please don't hesitate to contact us.

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