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Dear Clients and Readers,

1 July 2024 marked the day a raft of changes to Australian immigration law came into effect, impacting a broad range of people and affecting visa applications, fees, eligibility criteria, and employer obligations:

• Employers face new compliance requirements and increased scrutiny over treatment of workers
• Skilled workers must navigate adjusted visa thresholds and conditions
• International students confront higher fees and stricter regulations
• Working holiday makers, especially from the UK, gained increased flexibility to stay in Australia
• Partner visa applicants will see changes designed to offer greater support in complex situations of relationship breakdowns.

In this newsletter we summarise the most important of these changes, their impact, and links to where you can find further useful information.

With the changes already in effect, and likely more to come, Abacus Visa is committed to keeping you informed and updated, ensuring you can navigate and adapt to the evolving immigration environment with confidence

Kind regards,

Linda McCreath
Principal Lawyer & Director
Abacus Visa & Migration Services

Increased visa application charges

Increased Temporary Skilled Migration Income Threshold (TSMIT)

Relaxed 8607 visa condition boosts flexibility for skilled workers

New employer compliance rules enact harsher penalties for sponsor breaches

Temporary Graduate visa program: Shorter stay periods, reduced age limit

Onshore visa hopping with student visas targeted

UK citizens benefit from Working Holiday Maker program update

Prospective partner and partner visa changes

Summary

Increased visa application charges

The Australian government increased Visa Application Charges (VAC) in line with the forecast Consumer Price Index (CPI) of 2.75% from 1 July 2024.

Additionally, there was a substantial increase for Student (Subclass 500) and Student Guardian (Subclass 590) visas. The base application charge for student visas has more than doubled from $710 to $1,600. For additional applicants (eg. family members) on a student visa application, the fees have also significantly increased. Additional applicants aged 18 and over will now be charged $1,190, up from $530. For those under 18, the fee has risen from $175 to $390.

Increased Temporary Skilled Migration Income Threshold (TSMIT)

The Temporary Skilled Migration Income Threshold (TSMIT), the minimum salary requirement that employers must meet when sponsoring overseas workers, increased from $70,000 to $73,150. This change affects nomination applications lodged on or after 1 July 2024, requiring employers to ensure nominated salaries meet the new threshold. Read our Newsflash for more details.

Employers should be on the lookout for further information from the Department regarding future income thresholds and requirements, particularly for the new Skills in Demand visa expected to be introduced in late 2024 to replace the Temporary Skilled Shortage visa.

Relaxed 8607 visa condition boosts flexibility for skilled workers

Important changes to visa conditions from 1 July 2024 – including Condition 8607 that applies to the Temporary Skill Shortage 482 visa – have improved job mobility for skilled workers. Skilled visa holders now have more time to find a new sponsor or make alternative arrangements if they stop working with their sponsoring employer. They will have up to 180 days at a time, or a maximum of 365 days in total across their entire visa grant period.

During the period after ceasing work with their sponsor, visa holders can work for other employers, including in occupations not listed in their most recently approved sponsorship nomination. A huge win for workers! For employers, this may lead to increased competition for skilled workers who now have more options and time to find new positions.

These changes apply not only to new visas granted from 1 July 2024, but also to existing visa holders. Read more about how these changes could impact workers and employers in our Newsflash.

New employer compliance rules enact harsher penalties for sponsor breaches

The Migration Amendment (Strengthening Employer Compliance) Act that came into effect on 1 July 2024 introduced harsher penalties for employers who breach sponsorship obligations exploit workers. Key features include:

• Making it a criminal offense to coerce or pressure temporary migrant workers into breaching their visa work conditions.
• Allowing the government to prohibit employers convicted of exploiting migrant workers from sponsoring additional workers for a period of time.
• Publishing the names of prohibited employers on the Department of Home Affairs website, significantly increasing the risk of reputational damage as a deterrent.
• Giving immigration officials stronger powers to issue enforceable undertakings and compliance notices to employers for work-related breaches.
• Repealing a provision that made it an offense for migrant workers to breach their work conditions. This is aimed at encouraging workers to come forward and report exploitation.

It’s a good time for employers to review their processes to ensure full compliance with their sponsorship obligations. Read our Newsflash for a more detailed breakdown and useful tips for employers.

Temporary Graduate visa program: Shorter stay periods, reduced age limit

The Temporary Graduate visa program has undergone significant changes. These include:

Onshore visa hopping with student visas targeted

Effective 1 July 2024, holders of certain visas, including Visitor (Subclass 600) and Temporary Graduate (Subclass 485) visas, will not be able to apply for student visas while in Australia. This change aims to ensure that those entering on short-term visas have genuine intentions to study. Applicants holding these visas must leave Australia to apply for a Student visa.

Student visa applications lodged in Australia before 1 July 2024 will not be affected and will be processed as normal. Working Holiday Maker (Subclass 417) and Work and Holiday (Subclass 462) visa holders are also not affected by this change.

Impact on potential applicants for student visas

• Limited flexibility: Visitors and temporary residents will have less flexibility to change their plans and transition to student status while in Australia.
• Increased planning required: Prospective students will need to plan their visa applications more carefully, ensuring they apply for the correct visa before traveling to Australia.
• Potential disruptions: Some applicants may need to leave Australia and wait offshore for their Student visa to be processed, potentially disrupting their studies or work.

Financial considerations: Applicants may face additional costs associated with leaving Australia to apply for a student visa, including travel and accommodation expenses.

UK citizens benefit from Working Holiday Maker program update

Changes to the Working Holiday Maker program that kicked into gear on 1 July 2024 benefit UK passport holders in particular.

UK citizens aged 18-35 can now apply for Working Holiday visas without meeting specified work requirements for second and third visas, and can stay in Australia for up to three years total across multiple visas. Read more about the opportunities and benefits of this change in our previous Newsflash.

Prospective partner and partner visa changes

Several changes have been made to partner and prospective partner visas, including changes to sponsorship requirements, location flexibility for certain provisions, and updates to family violence provisions.

These changes are generally positive and aim to provide more compassionate responses to applicants in complex situations. They affect applications submitted before 1 July 2024 but still awaiting a final decision, and all new applications submitted on or after 1 July 2024.

Summary

The 1 July 2024 immigration changes represent a significant overhaul of Australia's visa system, impacting all sectors and visa applicants. Overall, they aim to maintain the integrity of Australia's immigration system while addressing skills shortages and supporting genuine sponsors, students, partners.

The breadth and complexity of these reforms underscore the importance of staying well-informed and seeking professional advice where necessary. This will help ensure compliance with new regulations and take advantage of emerging opportunities.  

Whether you’re employing overseas talent, seeking skilled work, studying or pursuing any other visa path, understanding these changes is essential for making informed decisions about your immigration journey in Australia.