Immigration New Zealand has announced increases to visa charges.1 In this GMS Flash Alert, we report on New Zealand government lodgment fee and levy increases taking effect from 1 October 2024.
Employers will face significant fee increases on common visa application types. This will raise their costs tied to workers who are hired under a visa status where the application fees have increased. In some cases, the fees have been more than doubled.
The higher cost will impact the costs associated with international assignments/secondments, business travel, local hires of foreign workers and supporting residence applications. Employers should consider the impact on international assignment costs and budgeting, and plan accordingly.
Further Details
Immigration New Zealand has announced that increases to visa charges, made up of fees and levies, are being introduced on 1 October 2024.
Most visa categories have been impacted by these increases, with the most significant and relevant fee increases listed on the following page.
Visa Type | Existing fee (including immigration levy) | New total fee from 1 October (including immigration levy) |
Accredited Employer Work Visa | NZD 750 | NZD 1,540 |
Specific Purpose Work Visa | NZD 700 | NZD 1,355 |
Partner Work Visa | NZD 860 | NZD 1,630 |
Skilled Residence Visa | NZD 4,290 | NZD 6,450 |
Residence From Work Visa | NZD 4,240 | NZD 6,490 |
Family Category Resident Visa | NZD 2,750 | NZD 5,360 |
Student Visa | NZD 375 | NZD 750 |
Active Investor Plus Visa | NZD 7,900 | NZD 27,470 |
Source: KPMG in Australia
The full table of fee increases is accessible here: Table of changes to fee and levy rates (immigration.govt.nz).
KPMG Insights
The New Zealand government has announced that visa charges will be increased to a level deemed appropriate to recover the costs of processing a visa, and to reflect the benefits received by those utilising New Zealand’s immigration services.
With these increases, the government is seeking to shift the current visa processing system from one heavily reliant on taxpayer subsidies to a system which is largely “user-pays.”
The Immigration Minister has advised that these changes will reduce the taxpayer contribution to the immigration system by NZD 563 million over four years.2 The Minister has also stated that the new charges reflect the increased cost of assessing more high-risk applications and dealing with higher levels of migrant exploitation, as well as IT upgrade costs.
The government expects that once further improvements are made to modernise immigration systems in the coming years, the running costs will reduce over time and efficiencies will improve.
Whilst these increases will have a significant and immediate impact on business seeking to mobilise talent to New Zealand, on both assignments and local hires, charges remain competitive compared to other host country locations.
KPMG recommends that employers review their existing visa population and upcoming moves, to identify if any work, residence, or renewal applications can be fast-tracked to lodgment prior to 1 October.
The New Zealand government will continue to offer subsidised fees for applicants from Pacific countries.
Contacts
Additional Resources
Footnotes
1 See New Zealand Immigration, News Centre, "Increase to visa charges comes into effect from 1 October" (9 August 2024).
2 See Hon Erika Stanford, "Creating a sustainable immigration system" (9 August 2024).
Disclaimer
* Please also note that the KPMG International member firm in Australia is currently providing New Zealand immigration services.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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