The changes to Australia’s Skilled Migration program that have been anticipated for some time are now becoming more concrete. The Australian Government has decided on a series of reforms that will come into effect in November 2019.

Key changes at a glance

  • Annual visa allocations will be shifted in favour of regional visas in order to encourage settlement outside major metropolitan areas.

  • Two new regional visa subclasses will be introduced: the Skilled Work Regional (Provisional) visa (subclass 491) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494). The existing subclasses 489 and 187 will be closed.

  • Changes will be made to the points test for skilled migration visas. In future, additional points will be awarded to applicants whose partners have certain qualifications, can demonstrate specific English language proficiency, are already Australian permanent residents or Australian citizens, or where the applicant applies without a partner. In addition, the number of points awarded to applicants applying for the new subclass 491 visa will be increased.

The new regional visa subclasses

The two new visa subclasses – the Skilled Work Regional (Provisional) visa (subclass 491) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) – are designed to support settlement and employment outside major metropolitan centres. In practical terms, these visas will apply to all areas of Australia, excluding Sydney, Melbourne, Perth, Brisbane and the Gold Coast. These regional visa subclasses are also intended to be prioritised for processing, which is expected to result in shorter processing times until visa grant.

As with all skilled visas, applicants must have an occupation that appears on the relevant skilled occupation lists for these visas. It has been announced that the occupation lists for the new regional visas will be more extensive than the existing lists and will include additional occupations. However, detailed information has not yet been released.

As with other skilled visas, an age limit applies. Applicants must be under 45 years of age at the time of application.

Skilled Work Regional (Provisional) visa (subclass 491)

The new subclass 491 visa is a points-tested visa that requires nomination by an Australian state or territory, or by an eligible family member living in a designated regional area. A specific job offer is not required for this visa. The visa is initially granted for five years and provides a pathway to apply for permanent residence after three years, provided certain requirements are met.

Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494)

The subclass 494 visa is an employer-sponsored visa. This means that a genuine job offer from an employer located outside the major metropolitan areas listed above is required. This visa also grants a five-year temporary visa with work and residence rights, with the option to apply for permanent residence after three years.

Pathway to permanent residence

Both new regional visas are valid for five years. After three years, holders of these visas may apply for permanent residence under the Permanent Residence (Skilled Regional) visa (subclass 191). Grant of this permanent visa will be subject to a number of conditions, including:

  • The applicant must have earned a minimum income (yet to be defined) in at least three of the five years spent in Australia on the temporary visa.

  • The applicant must have complied with visa conditions requiring them to live and work only in designated regional areas.

Once permanent residence is granted, visa holders will be free to settle anywhere in Australia, including major cities.

Changes to the Skilled Migration points test

Further changes to the points test for skilled migration will also take effect from November 2019. These changes will apply not only to the new subclass 491 visa, but also to existing points-tested skilled migration visas.
The points test for business and investor visas will not be affected by these changes.
As a result, some applicants will be able to claim additional points under the revised points test.

Overview of the changes

  • 15 points for nomination by an Australian state, territory or eligible family member for the new subclass 491 visa (previously 10 points for the subclass 489 visa)

  • 10 points for a partner with an occupation on the skilled occupation list (previously 5 points)

  • 10 points for a STEM qualification (Science, Technology, Engineering, Mathematics)

  • 5 points for a partner with proven English language skills at the level of competent English

  • 10 points for applicants without a partner, or with a partner who is already an Australian permanent resident or Australian citizen

What do these changes mean for prospective applicants?

Anyone interested in applying for an Australian skilled visa should give greater consideration to regional visas in the future, particularly the new subclass 491 visa. Applicants who have previously been unable to meet the required points threshold should also reassess their individual circumstances in light of the upcoming changes, as they may now be able to claim additional points under the revised rules.

Applicants whose partners are already Australian permanent residents or citizens are also among the beneficiaries of the new points test. Those in this situation should consider a skilled visa as an alternative to a Partner visa, particularly in view of recent changes to the Partner visa framework, which are expected to result in even longer processing times before a Partner visa may be granted.