Changes to Australia’s Skilled Migration Program May - June 2012 1

A long history of successful migration

Composition of the Migration Program 200,000 180,000 160,000 140,000 120,000 100,000 Total Skill 80,000 Total Family 60,000 40,000 20,000 Source: DIAC internal data

2012/13 Skilled Migration Program Composition 2012/13 Budget: Highlights & Implications 2012/13 Skilled Migration Program Composition 2011/12 2012/13 Employer Sponsored 125,850 129,250* Points Tested Business Skills Skilled Stream Target ENS RSMS Independent State Sponsored SAS 46,000 47,250 72,450 74,400 7,200 7,400 44,350 24,000 4,100 45,550 24,650 4,200 30,000 16,000 31,250 * Includes 200 places for Distinguished Talent Visa 4

SkillSelect Have you got the skills? www.skillselect.gov.au 5

SkillSelect SkillSelect is Australia’s new service for managing its skilled migration program, incorporating significant visa reform and the deployment of a new online service. Visa Reforms State/Territory Government SkillSelect Intending Migrant EOI Accelerated Visa Processing Australian Employers

SkillSelect Visa Architecture Mandatory EOI Discretionary EOI

Key Policy Changes for all SkillSelect Visas

Nomination and Application SkillSelect: How does it work? Access SkillSelect with AUSkey Nominator Search Nominate State & Territory Government Maintain Profile Complete EOI Access/Register Invited to Apply Complete Application Visa Intending Migrant SkillSelect eLodgement & Processing Nomination and Application Access SkillSelect with AUSkey Australian Employers Search Employment arrangement conducted outside SkillSelect DIAC Nomination Quota per month 9

Intending Migrants: How does it work? Employers Search Maintain Profile Complete EOI Invited to Apply Complete Application Visa Processing DIAC Periodic invitation rounds STO’s Nominate

Intending Migrants: How does it work? EOI Elements Personal Details Skills Education/Credentials Experience Visa Choices Geographic preferences Access to assistance and advice 11

State & Territories: How does it work? Nominate Nominator Search

State and Territories: How does it work? State and territory governments can search in SkillSelect and select potential applicants for nomination. SkillSelect will then generate an invitation to be issued to the selected nominees.

Employers: How does it work? Access SkillSelect with AUSkey Sponsorship arrangement conducted outside SkillSelect Nomination & Application Search

Employers: How does it work? Employers will be able to search for clients using a range of powerful search tools, to find the clients they need for the business: Qualifications Experience Occupation English language ability Business experience Business assets and investment funds 15

AUSkey is a single electronic key to access government online services Changes to Independent Migration AUSkey: How does it work? AUSkey is a single electronic key to access government online services It is: Available to all Australian employers with an Australian Business Number Currently being used by more than 750,000 Australian employers Secure, and able to be obtained by different employees of a business for different purposes It will: Allow employers to access SkillSelect securely to find and contact Intending Migrants who may have the skills and experience that they require Allow DIAC to track and record all usage of the system by Employers, to further refine the SkillSelect system To get and AUSkey please visit www.abr.gov.au 16

DIAC Program Manager: How does it work?

Occupational Ceilings: How does it work? Limit on how many EOIs are selected for skilled migration from occupation groups Once this limit is reached, no further invitations for that particular occupation group will be issued Ceilings set by DIAC

Minimum Eligibility Thresholds Changes to Independent Migration Minimum Eligibility Thresholds Clients that meet specified objective eligibility thresholds can submit a complete EOI Client selects visa type Points calculation is not a threshold requirement SkillSelect asks questions relating to each subclass of interest Updating Claims If no threshold is met EOI incomplete Clients are given feedback whether their claims are sufficient to meet the minimum threshold 19

Skilled Independent and Willingness to be nominated by S/T EOI Minimum Claims - GSM Skilled Independent and Family Sponsored Skilled S/T Nominated Subclass 189 Subclass 489 Subclass 190 Subclass 489 Age < 50 Skilled Occupation IELTS ≥ 6 Skills Assessment Family Sponsor in regional area Willingness to be nominated by S/T Willingness to reside in regional area Willingness to reside in regional area

EOI Minimum Claims - Employer Nominated Subclass 186 (Direct Entry) Subclass 187 (Direct Entry) Subclass 457 Age < 50 (potential for exemption) CSOL ANZSCO Skill Level 1-3 CSOL IELTS ≥ 6 (waiver available ENS/RSMS) IELTS ≥ 5 Skills Assessment ANZSCO 3 Skill 3 Skill Assessment 3 years experience Willingness to reside in regional area

EOI Minimum Claims - Business Innovation Business Innovation and Investment (Provisional) (188) Business Talent 132 Business Innovation Investor Significant Business History Venture Capitalist Age < 55 (potential for exemption) Willingness to be nominated by S/T $800 000 Personal and Business Assets $2 250 000 PBA $1 500 000 Personal and Business Assets $400 000 business component $1 000 000 funding Australian Venture Capital Firm $1 500 000 PBA $400 000 business component Business Turnover $500 000 Business Turnover $3 000 000 p/a * Subclass 888 operates outside of SkillSelect

State and Territory Nominated Invitation Criteria Independent Highest score Occupation on SOL State and Territory Nominated Over pass mark Nominated Within State Migration Plan Employer Sponsored Sought after attributes Sponsored

Visa Application: How does it work? Email notification and SkillSelect inbox Client’s claims in SkillSelect are frozen upon invitation issue Direct to eLodgement Some information unable to be edited once invite issued If the client changes any information in eLodgement that formed the basis of the invitation, a processing flag will be created. SkillSelect will record and pass all relevant nomination details for State and Territory Nominated visas via eLodgement.

Timeframes Age 60 Days Two Years Suspension Two Invitations Date of Effect

Benefits of SkillSelect Respond quickly to changing economic needs An additional facility for employers to search and contact prospective skilled workers Meet Australia’s skill needs Fair and equitable Skilled Migration program Streamline and optimise State and Territory migration plans. Minimise processing times Allocate independent places to the best and brightest 26

Consolidated Sponsored Occupation List Current 1 July 2012 Temporary Business Long Stay subclass 457 Employer Nomination Scheme Regional Sponsored Migration Scheme Skilled Independent Specification of Occupations for 457 Employer Nomination Scheme Occupation List (ENSOL) No occupation list Skilled Occupation List (SOL) Skilled – Sponsored and Skilled – Regional Sponsored State sponsored- see relevant State occupation list Family sponsored- SOL Consolidated sponsored occupation list (CSOL) ANZSCO skill level 1 - 3

Permanent Employer Sponsored - Reforms Collapsing existing subclasses from 6 to 2 with 3 streams each Temporary residence transition; direct entry & agreement streams Streamlining pathway from 457 to PR (ENS or RSMS) Raising the upper age limit from 45 to 50 years Changes to key visa criteria including English language & skills Refocussing RCB network on untested direct entry stream - RSMS Introducing one consolidated sponsored occupation list (457, ENSOL, StatSOL)

Permanent Employer Sponsored Program Direct Entry Stream Temporary Residence Transition Stream Agreement Stream

Objective Exemption Categories Age Skill English 30

Regional Sponsorship Migration Scheme Encourage migration to areas outside of the major metropolitan centres of Brisbane, the Gold Coast, Sydney, Newcastle, Wollongong, and Melbourne From 1 July 2012 RCBs will provide advice on positions in the Direct Entry stream of RSMS providing a local perspective Government announced: 16 000 places allocated to RSMS in 12-13 Regional Engagement Strategy Regional Migration Agreements Top priority in Minister’s Priority Processing Direction Visa cancellation and no training requirement retained

Simplified visa requirements Changes to Independent Migration Points Based Skilled Migration 6 visas consolidated to 3 189 Skilled independent (replaces 885 & 175) 190 Skilled nominated (replaces 886 & 176) 489 Skilled regional provisional (replaces 487 & 475) Simplified visa requirements Apply through SkillSelect From I July 2012: 175, 176, 475 closed to new applications 885, 886 and 487 closed from 1 January 2013

Simplified requirements 1 July 2012 simplified eligibility requirements for points tested skilled visas Invitation to apply for a visa Can be inside or outside Australia Onshore, no prerequisite visa required. Inside Australia any substantive visa or Bridging visa A, B or C Work experience and Australian Study no longer threshold eligibility requirement Points Test factors set to time of invitation Skilled family sponsored - provisional only

Business Skills Review Research shows current program settings stifle innovation and risk taking Half of all provisional visa businesses are in fast food, cafes and restaurants Need to align program to broader strategic objectives of the skilled migration program Focus on visa simplification and deregulation Comprehensive review 34

Business Innovation and Investment Program name will be changed to Business Innovation and Investment Program Target migrants with a history of innovation Facilitate entry of entrepreneurs who have sourced venture capital funding in Australia Introduce a points test for provisional visa applicants, giving weight to innovation Introduce a new visa stream for Significant Investors Incorporate into SkillSelect and entirely state sponsored Selecting for and fostering innovation

Apply through SkillSelect Changes to Independent Migration Business Innovation and Investment 13 visas consolidated to 3 132 Business Talent (Migrant) (Permanent) 188 Business Innovation and Investment (Provisional) (replaces 160-165) 888 Business Innovation and Investment (Permanent) (replaces 845, 846, 890-893) Focus on innovation Apply through SkillSelect From 1 July 2012: Subclasses 160-165, 845, 846 closed to new applications. Subclasses 890-893 still open for current provisional visa holders.

Application Process from 1 July 2012 “old to old, new to new” Current program visas No new primary applicants for existing provisional visas. Existing provisional visas progress to existing permanent visas. No change in process (ie: paper lodgement, paper sponsorship) New program visas New provisional visa progresses to new permanent visa Visas have streams (eg: business innovation stream, investor stream) SkillSelect, electronic lodgement, electronic sponsorship S/Ts may grant access for an applicant to extend the provisional visa

Business Skills Points Test OTHER Points Business Experience over four years 10 Investment Experience over seven years 15 Business Skills Points Test AGE Range (yrs) Points 18-24 20 25-32 30 33-39 25 40-44 45-54 15 QUALIFICATIONS Level Points Trade Certificate or higher 5 Bachelor Degree or higher in Business, Science or Technology 10 FINANCIAL METRICS Business Turnover Points $500 000 5 $1 000 000 15 $1 500 000 25 $2 000 000 35 INNOVATION Points Registered Patents or Designs 15 Evidence of Trademarks 10 Evidence of Joint Venture Agreements 5 Evidence of Export Trade Gazelle Business Evidence of receipt of grants or venture capital funding ENGLISH Range Vocational – Proficient Points Vocational + 5 Proficient + 10 FINANCIAL METRICS Net Business and Personal Assets Points $800 000 5 $1 300 000 15 $1 800 000 25 $2 250 000 35 STATE/ TERRITORY NOMINATION Special Endorsement 10

More Information Online Resources: Skilled visas www.immi.gov.au/skilled Visa wizard www.immi.gov.au/visawizard/ Booklets www.immi.gov.au/allforms/booklets/ Migration Blog www.migrationblog.immi.gov.au SkillSelect www.skillselect.gov.au Agent Gateway www.immi.gov.au/gateways/agents/ Facebook Department of Immigration and Citizenship