Migration and the Budget: employer and skilled worker impacts

3 minute read  15.05.2024 Anna Gunning-Stevenson, Rachael Molnar, Taya Hunt

What the Federal Budget 2024-25 means for employers of visa holders


Key takeouts


  • Permanent migration capped at 185,000, focusing on skilled migration, with increased funding for employer compliance and worker education.
  • TSS visa work experience requirement halved
  • Business Innovation and Investment Visa and Global Talent Visa programs to cease, replaced by National Innovation Visa.

The Albanese Government delivered its Budget on 14 May 2024, introducing several measures that have implications for Australia's migration program. In this alert, our focus is on the measures impacting skilled and working visa categories, and we discuss the potential impacts on employers of visa holders.

The Budget follows the release of the Migration Strategy in December 2023, where significant changes to Australia's migration program were announced, particularly to the employer sponsored program. The Budget does not incorporate any major overhauls to the employer sponsored program, suggesting that these anticipated changes will be postponed until at least next year.

Migration program numbers and investment

The permanent migration program planning level for 2024/25 has been set at 185,000 places, with over 70% of this allocated to the Skill stream. The Skill stream includes both employer sponsored and independent skilled permanent visas.

Continued focus on compliance

The Government has further intensified its crackdown on employer compliance by announcing additional funding for migration reform. An additional $15 million over three years has been allocated for initiatives aimed at providing information and education to migrant workers regarding workplace safeguards and compliance measures. Funding has also been allocated to a data-matching pilot between the Department of Home Affairs and the Australian Taxation Office to review income and employment data.

Reduction to TSS work experience requirement

The Temporary Skill Shortage (subclass 482) visa (TSS Visa) currently requires applicants to hold two years of full-time relevant work experience before they can be sponsored by an employer for a skilled role. This requirement will be reduced from two years to one year from 23 November 2024.

Removal of Business Innovation and Investment Visa and Global Talent Visa

The Government has announced the removal from the migration program of both the Business Innovation and Investment Visa, which includes various investor visa categories, and the Global Talent Visa, designed to target top talent in critical sectors.

These visa programs will be replaced by a new National Innovation Visa to be introduced in late 2024. This visa will be targeting exceptionally talented migrants who will drive growth in sectors of national importance.

Changes specific to Chinese, Vietnamese and Indian nationals

  • Work and Holiday Visas from China, Vietnam and India – Work and Holiday Visas from these three countries will now be subject to a ballot process pre-application, to help manage program demand.
  • Business Visitors from India – The maximum validity of Business Visitor (subclass 600) visas will be extended for Indian nationals to five years, up from three years.
  • New visa for young professionals from India – A new Mobility Arrangements for Talented Early-professionals Scheme (MATES) will be introduced from 1 November 2024 for 3,000 young professionals from India aged 18 to 30 years with knowledge and skills in targeted fields of study. Visas will be subject to a ballot process and allow a stay of up to 2 years.

Managing international student numbers against housing supply

The Government has announced plans to work with international education providers to limit the number of international students enrolled at a particular time. The Government will introduce new regulations tying the number of international students a university can enrol to its available student housing, with the aim to reduce pressure on the housing market.

Questions remain on Skills in Demand Visa and permanent residency pathway reforms

The announcement of a new Skills in Demand visa set to replace the current TSS visa was a significant highlight in the Migration Strategy released in December 2023. However, no details have been included in this year's Budget, so the timeframe for implementation of the new visa remains uncertain.

Jobs and Skills Australia is currently undertaking consultation on the occupation lists available for sponsorship, indicating changes to the lists may occur this year.

The Budget also does not address any changes the existing permanent employer sponsored and skilled migration pathways. The Government has released a discussion paper on reform to the points test for permanent skilled migration, which is currently undertaking public consultation.


We're here to help navigate the how the latest budget affects Australia's migration program and your business. If you have any questions, please don't hesitate to contact us.

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