01st January 2010

2010 GSM Changes - Overview
Effects of key changes on graduating students
Other student visa news
TIPS/HINTS for Students

I hope everyone enjoyed a relaxing break over the festive season.In 2009, we have seen DIAC devoting its efforts to reforming the temporary visa program (especially the 457 visa).Now in 2010, DIAC is shifting its attention to the General Skilled Migration (GSM) program. Some of you may already have heard that DIAC has implemented new changes to the GSM program commencing from 1 January 2010.This issue will discuss these changes and the likely effects on GSM applicants, particularly those overseas students studying in Australia and hoping to apply for permanent residence in the future.

The last major reform of the GSM program took place in September 2007. To counter the acute shortages of skilled trades people during our economic boom, the program was (albeit unintentionally) skewed in favour of those students nominating a trade occupation.This was quickly seen as a cheap short-cut (16 months study with no work experience required) to obtaining permanent residence in Australia.There was a proliferation of vocational colleges offering cookery and hairdressing courses in most major cities across Australia.

Unfortunately, the program did not deliver the desired migration nor labour market outcome to the Government. Few trade graduates entered their nominated vocations after obtaining permanent residence – either through lack of desire, or failure to secure employment because of lack of job-readiness.Added to this, the closure of, and problems created by, many sub-standard vocational colleges have greatly tarnished Australia's reputation as an education destination for international students.

The 2010 GSM changes therefore focus on the onshore GSM applicants (generally overseas students on completion of their studies in Australia) applying for permanent residence based on meeting the Australian Study requirements.These changes not only affect many onshore student applicants, but will severely affect those students nominating a trade occupation.Our discussion will therefore focus on these key changes and the effects of these changes on graduating students.

Key Changes to General Skilled Migration (GSM) from 1 January 2010:

1. Competent English language requirements for all GSM applications (except 487 and 475).
2. Skills Assessment results at the time of lodgement for onshore GSM subclasses 487, 885 & 886 applicants (except 485) –now same as offshore GSM subclasses 175, 176, 475 etc.
3. Vetassess Skills Assessment changes – work experience and relevancy now required.(Work experience exemption only for 485).
4. Job Ready Skills Assessment by TRA for onshore GSM 487, 885 & 886 applicants nominating a trade occupation (except 485).
5. Work experience requirements for offshore GSM 475, 175 & 176 applicants, nominating a trade occupation.

English Language Requirement - IELTS 6 in all band scores:

Threshold English requirement for 'all' GSM applicants (both on and offshore) is 'Competent English' – at least 6 in all four components of the IELTS test.(Exception for 475 and 487 –Average score of 6 in IELTS test is required).

Effect: It is important to note that threshold English is also required for the 485 visa.As the 485 is a critical pathway for most onshore skilled permanent visas – no effort should be spared in ensuring that threshold English is achieved to provide a high level of certainty as early as possible.IELTS results are valid for 2 years prior to the application.

Skills Assessment Results - are now requiredfor all occupations

This has to be the most significant change affecting most onshore applicants.Prior to 1/1/2010, only offshore applicants (175, 176, 475, 476) are required to have obtained skills assessment results at the time of lodgement.From 1/1/2010, all GSM applicants, including onshore applicants (885, 886 & 487) must have obtained a positive skills assessment at the time of lodgement.The application will be invalid if skills assessment results are not provided.(Exception – 485 applicants need only to provide evidence of having applied for skills assessment, 887 – no skills assessment is required for this visa).

Effect: As processing time for skills assessments could be lengthy, this change practically precludes many students from being able to apply for the 885, 886 or even the 487 upon graduation.They are likely to have to lodge a 485 visa first and then apply for the 885 or 886 later.The intention of the Government is for onshore students to apply for a 485 temporary visa first.Only those who successfully become job-ready (via relevant employment) and achieve better English proficiency will succeed in applying for the 885 or 886 later on.

VETASSESS Skills Assessment - Changes

Work experience and relevancy are now required for all Vetassess Skills Assessments.Prior to 1.1.2010, Vetassess only assess whether the applicants possess a qualification/s which are equivalent to an Australian qualification.From 1/1/2010, the qualifications must be in a field of study highly relevant to the nominated occupation. It must be at least one year of employment in a field closely related to the nominated occupations. There is some allowance for extra work experience to make up for shortfalls in qualifications.(Exception for work experience provided only to 485 applicants).

Please check Vetassess website for detailed requirements:

http://www.vetassess.com.au/migrate_to_australia/assess2_my_qualifications.cfm

Effect: This change affect all GSM applicants.Applicants need to nominate an occupation carefully, it must be closely related to their fields of study.For onshore students and if two degrees are used, these qualifications must also be closely related to the nominated occupation.

New TRA Job Ready Skills Assessment – for Trade Occupations

From 1.1.2010, applicants for 487, 885 & 886 nominating a trade occupation must have obtained a Job Ready Skills Assessment through a TRA Job Ready Program.The program is a four step process which includes:

1. a Provisional Skills Assessment
2. at least 12 months relevant work experience in the 24 months before application
3. a Job Ready Workplace Assessment
4. a Job Ready Final Workplace Assessment.

Here is the TRA link for more information:

Trades Recognition Australia - Job Ready

Characteristics of the Job Ready Program: Only applies to onshore GSM applicants and Trades Occupations assessed by the TRA; costs could be up to $4550.(Exception – 485 applicants only need to apply for a TRA Provisional Skills Assessment).

Effects: The only pathway to obtain permanent residence for onshore applicants nominating a trade from 1.1.2010 is via the 485 visa. 485 visa allows the holders to seek relevant employment and undertake the Job Ready Skills Assessment to meet requirements of the 885 or 886 visas.In this regard, the 487 is likely to become irrelevant (note: 487 was a popular option for onshore trade students in the past who could not obtain Competent English).

Offshore GSM Applications (Trade Occupations) - can only meet work experience criterion:

Prior to 1.1.2010, Offshore GSM applicants of 475, 175 & 176 can apply either by meeting the Work Experience criterion or the Australian Study Requirement.

From 1.1.2010, Offshore GSM applicants nominating a Trade Occupation will no longer be able to apply for GSM based on the Australian Study Requirement.They must now only use the Work experience criterion (Note:whilst Diac only requires work experience of 12 of 24 months before they apply;TRA requires 4 years of relevant experience to meet the TRA skills assessment criteria!!).

Effects:Offshore GSM applicants are not required to undergo the Job Ready Skills Assessment process.They must however have at least 4 years employment experience! This change will prevent any onshore students attempting to bypass the The Job Ready Skills Assessment by applying offshore.The aim of the Government is to ensure that trade applicants are job-ready by being relevantly employed. (Important to note that this change only applies to applicants nomination a Trade Occupation and has no effect on applicants nominating other occupations)

OTHER INTERNATIONAL STUDENT NEWS

Student Living Costs to increase:

From 1.1.2010, the Living Costs in Australia for Overseas students is deemed to be $18,000 per year for the purpose of calculating financial capacity for student visa requirements.

DIAC News on Students

DIAC has advised that in December 2008, there were about 440,000 student visa holders.There was a huge increase in the number for the vocational sector students for this period.However, there have been high refusal rates because of the strengthening of integrity checking since August 2009 by DIAC.The approval rate from July to November 2009 was 82.3% (compared with 90.5% same period 2008).

DIAC also indicated that many of the rumours about interview questions asked are not true.For example, a DIAC official confirmed it would not be appropriate for a student to be asked if they intend to apply for PR after their studies.Any cases like this question should be reported to DIAC or the Migration Institute of Australia (MIA).We are happy to forward this information onto MIA.

TIPS AND HINTS FOR STUDENTS

Voluntary Cancellation of Student visa & Bridging Visa E - not recommended for 485 applicants:

Overseas students who have not completed their study and lodged a GSM application e.g. 485, are required to continue to attend their courses.Some of these students request DIAC to cancel their student visas as they do not wish to continue studying.They will be given a Bridging Visa E with work and study rights.

Unfortunately, many of these students are not aware that any work or study completed while holding a Bridging Visa E cannot not be counted towards their future GSM applications, including. 885 or 886 visas.

Further, these students cannot obtain a Bridging Visa B to travel offshore and will be subject to a re-entry ban on temporary visa applications.These migration regulations make voluntary cancellation of a student visa an extremely risky option.