In this GMS Flash Alert, we report on the latest Australian immigration updates, including extended processing times for visa applications lodgement with the Department of Home Affairs across all visa categories, departmental policy being updated concerning applications for a further subclass 400 visa, the expected release of the new national classification for occupations, and changes to the health requirement for children born in Australia.
WHY THIS MATTERS
Individuals travelling to Australia for work, companies bringing foreign nationals into the country for work, and their immigration advisers, should be aware of the new rules and procedures, as processes and requirements have changed, and they may have to adjust the way they (i) approach their eligibility for a visa and (ii) complete/lodge their visa applications.
Employers that sponsor foreign nationals for the visa types mentioned below might wish to take note of the extended processing times and:
- make efforts to provide sufficient lead time to prepare and lodge a temporary visa application; and
- factor in these extended processing times when planning commencement dates for sponsored visa holders in Australia.
Extended Processing Times
KPMG in Australia is seeing extended processing times for visa applications lodgement with the Department of Home Affairs (“department”) across all visa categories, particularly Temporary Skill Shortage (Subclass 482) visas and applications for permanent residence lodged under the Employer Nomination Scheme (Subclass 186) visa.
Current published departmental processing times are as follows:
Temporary Skill Shortage (Subclass 482) visas: 1.5 to 5 months from the date of lodgement (please note department data does not differentiate between processing times for Accredited Sponsors and Standard Business Sponsors).
Permanent Residence under the Employer Nomination Scheme (Subclass 186) visas: Approximately 6 to 7 months from the date of lodgement.
KPMG INSIGHTS
In practice, KPMG is seeing approximate processing times as follows:
- Temporary Skill Shortage (Subclass 482) visas:
- 6 to 8 weeks from the date of lodgement for Accredited Sponsors;
- 3 to 5 months from the date of lodgement for Standard Business Sponsors
(This is generally in line with the processing times published by the department.)
- Permanent Residence under the Employer Nomination Scheme (Subclass 186) visas:
- Approximately 14 to 16 months from the date of lodgement (which varies significantly from the processing times published by the department);
Please note processing times are approximate only and can vary based on a range of circumstances.
Update on Temporary Work (Short Stay Specialist) (Subclass 400) Visa Policy
Following its introduction, the subclass 400 visa has allowed a total stay in Australia of up to 3 or 6 months in a 12-month period (the period granted is at the discretion of the department).1
KPMG INSIGHTS
Where a period of 6 months was being requested by the visa applicant, there needed to be a strong business case supporting this duration. This has included situations where multiple subclass 400 visas could be obtained with the total stay across all visas not exceeding 6 months in a 12-month period (e.g., 2 x 3 month subclass 400 visas, 3 x 2 month subclass 400 visas). This was beneficial for employers where projects were ongoing and required multiple visits over a period of time.
Change to Government Policy
- While a 6-month stay is still provided for in the legislation, departmental policy has been updated to state that applications for a further subclass 400 visa may not be granted where it would result in a stay period of more than 3 months in Australia over a 12-month period.
- It is expected under the revised policy that the usual period of stay in Australia would be 3 months or less in any 12-month period. This short period of stay reduces any financial incentive for employers to employ overseas workers instead of employing Australian nationals.
- This shift in policy means there is a heightened risk of refusal for 6-month subclass 400 visa applications or subsequent subclass 400 visa applications where the stay would result in a period of more than 3 months in Australia in a 12-month period.
KPMG INSIGHTS
- It is important to note that while departmental policy does not have the same effect as legislation (i.e., the application of policy is the government interpretation of legislation), it provides us with insights into departmental decision-making.
- As this is a relatively new policy, KPMG in Australia will closely monitor how the department is applying this policy and share further insights if necessary. It is not unusual to see inconsistent decision-making when new policies are introduced by the department.
- Where a 6-month stay is required (either in a single visa application or multiple applications over a 12-month period), KPMG finds that it might be appropriate for visa applicants to submit more information and accompanying documentation to support the request for the longer duration of the visa greater than 3 months.
- This change highlights the government’s intention to simplify the migration programme. This simplification of the migration programme is likely to result in greater post-entry immigration compliance monitoring.
- It is important that employers have a mechanism to track and monitor periods of time spent in Australia by subclass 400 visa holders to help ensure that the risk of refusal in future subclass 400 visa applications is minimised.
Occupation Standard Classification for Australia (OSCA)
Australia’s new national classification for occupations is anticipated to be released on 6 December 2024 (replacing the current Australian and New Zealand Standard Classification of Occupations “ANZSCO” system).2
It is expected that the new Skills in Demand Visa and Core Skills Occupation List will reflect the new OSCA when they come into effect, expected to be December 2024.
KPMG INSIGHTS
The shift to OSCA is intended to better reflect Australia’s current and future labour market needs as ANZSCO is outdated and has not been updated to reflect the evolving nature of the labour market.
Changes to Health Requirement for Children Born in Australia
From 16 October 2024, children under 18 who were born in and ordinarily reside in Australia no longer need to prove they are free from a health condition that could lead to significant costs or prejudice access to health services for Australian citizens or permanent residents.3
For a child to be considered ordinarily resident in Australia, he or she must have resided in Australia for more than 50 percent of his/her life from date of birth until the lodgement of his/her visa application.
KPMG INSIGHTS
This change means if a child has an existing health issue that may require costly treatment or health services in shortly supply, his/her visa application will not be adversely impacted on this ground.
Upcoming Festive Season: Reminder
As the festive period approaches, it’s important to note that processing times by the Department of Home Affairs may be impacted. This is due to a combination of factors including the closure of processing offices during public holidays, government staff holidays/absences, and an increase in visa lodgements which typically occur in the lead-up to the new year.
KPMG INSIGHTS
To avoid potential delays, individuals, their employers, and their immigration advisers acting on their behalf, may wish to consider lodging, as soon as possible, visa applications where the applicant is required in Australia in early 2025.
The KPMG Australia offices will be closed from 5:00pm (AEDT) Thursday, 19 December 2024 AEDT, and will re-open on Thursday, 9 January 2025 AEDT. The KPMG Australia immigration team will have skeleton staffing during this time (except for public holidays) for immigration emergencies.
Contacts
Additional Resources
Footnotes
1 For more information, see Department of Home Affairs, Immigration and Citizenship, "Subclass 400: Temporary Work (Short Stay Specialist) visa" webpage.
2 For more information about the new Australian classification and December release, see Australian Bureau of Statistics, "About OSCA" webpage.
3 Department of Home Affairs, Immigration and Citizenship, "Special consideration for children born and ordinarily resident in Australia that do not meet the health requirement."
Disclaimer
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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