The SkillSelect system for the Subclass 189 – Skilled – Independent visa and Subclass 491 – Skilled Work Regional (Provisional) visa sponsored by an eligible relative continues to throw away the ranking rules that underpinned the General Skilled Migration (GSM) visa program since it commenced in July 2012.

This article explores why the SkillSelect system came about, how it works, and the potential implications if targeting rounds continue.

GSM visas and SkillSelect

When the new suite of independent skilled migration visas commenced in July 2012, otherwise known as GSM visas, a key component was managing the number of visa applications received. GSM visas currently consist of the:

• Subclass 189 – Skilled – Independent visa,

• Subclass 190 – Skilled – Nominated visa, and

• Subclass 491 – Skilled Work Regional (Provisional) visa.

Of particular interest is that 491 visas are “split” between those sponsored by an eligible relative, and those nominated by a state or territory. There are some very important differences between these two visas, including: what sub-list the nominated occupation must be on, and whether EOI rankings apply (more about this below).

There is also the Subclass 887 – Skilled – Regional visa, which is a permanent visa for those holding or have held previous regional provisional visas, such as the Subclass 489 – Skilled - Regional (Provisional) visa, and in 2022, the Subclass 191 – Permanent Residence (Skilled Regional) visa will commence for those holding 491 visas and who meet minimum eligibility requirements.

SkillSelect and EOIs

Managing the number of visa applications was achieved through SkillSelect, which is the platform skilled and business migrants use to “express their interest” in migrating to Australia.

Expressing an interest to migrate is not the same as lodging a visa application. When a visa application is lodged, it must be either approved, refused, or otherwise withdrawn. There are few exceptions to this, one of which is capping and ceasing, which has particularly devastating results for visa applicants. Capping and ceasing in recent memory has only applied to GSM visas (twice) and this is part of the rationale for the SkillSelect model: only a select number of those who have expressed an interest, by formally submitting an Expression of Interest (EOI), will receive an invitation to apply for a visa.

There are certain minimum threshold requirements for any potential migrant wanting to apply for a GSM visa. These are that they must:

• Have a valid skill assessment from the relevant assessing authority in their nominated occupation. This cannot be a provisional skill assessment, which is for the purpose of applying for a Subclass 485 – Temporary Graduate visa under the Graduate Work stream;

• Have at least competent English; and

• Score at least 65 points on the GSM points test.

EOI applications and ranking

When an EOI is submitted, it is ranked according to the points the applicant claims in the points test. There is, however, one key different to the SkillSelect model in relation to GSM visas. For 190 visas and 491 visas nominated by a state or territory, ranking does not apply. This has not stopped some states and territories adopting a ranking system of their own to select who they will nominate.

The states and territories are able make their own rules, within reason, as to who they will nominate. The other major difference between these visas is that the number of occupations states and territories can pick for their own occupation list is far greater:

• For 189 visas and 491 visas sponsored by an eligible relative, the nominated occupation must be on the Medium and Long‑term Strategic Skills List (MLTSSL);

• For 190 visas, the nominated occupation can be on either the Medium and Long‑term Strategic Skills List (MLTSSL) or Short‑term Skilled Occupation List (STSOL); and

• For 491 visas nominated by a state or territory, the nominated occupation can be on either the Medium and Long‑term Strategic Skills List (MLTSSL), Short‑term Skilled Occupation List (STSOL) or Regional Occupation List (ROL).

In normal times, the ranking system is extremely important for 189 and 491 visas sponsored by an eligible relative. The reason is because for every invitation round, which is generally run on the 11th day of each month, the Department of Home Affairs issues invitations to the EOIs with the highest points score first then to EOIs with the earliest dates of submission. Relatively simple laws of the supply of EOIs and Australia’s demand for migrants (invitations allocated per round), settle on the price (points) required to receive an invitation.

Invitations are issued until the occupation ceiling is reached for one or more occupation group, or the maximum number of invitations is reached for the subclass, or there are no further eligible EOIs available in SkillSelect.

There are also pro-rata arrangements for several popular occupations which drives up the points needed to receive an invitation for those occupations. Pro-rata arrangements are designed to ensure invitations are somewhat spread evenly through the available occupations on the MLTSSL, although the way the points test is designed, trade occupations are significantly disadvantaged regardless.

EOI rankings and “targeted” invitation rounds

These are, however, not normal times. The coronavirus pandemic has thrown up challenges worldwide and Australia’s immigration program has been affected as much as any other program. GSM visas were hit the hardest for this year’s migration planning levels. Furthermore, it was revealed that the May and June 2020 invitation rounds did away with the ranking system, instead issuing invitations to occupations on a select occupation list. A Freedom of Information request revealed a “bespoke” occupation list consisting of medical, scientific, and nursing occupation.

That targeting did not stop in June. As of the 11 September 2020 invitation round, the Department of Home Affairs states:

Targeted invitation rounds have occurred since May 2020.

This is likely the main reason why the minimum points required to be nominated for a 189 visa has plummeted from 90 points (August 2020) to the minimum 65 points (September 2020).

Those expecting to receive an invitation based on a high score but in occupations not on this list will be disappointed and if in Australia with a visa running out, anxious too. And there would be a lot of people disappointed. It was recently revealed that accounting, programming and engineering occupations account for a substantial 73.35 per cent of all EOIs submitted at the end of last year. These numbers justify the need for pro-rata arrangements.

Conversely, those on the bespoke occupation list that submitted EOIs would have received a pleasant surprise, being able to jump the queue ahead of the long list of accountants, programmer and engineers with higher points.

The future of EOI and GSM visas

One must wonder when the “targeted” rounds will end and the likely effects this may have on the SkillSelect system. The decision to abandon ranking and inviting EOIs with the highest-points has effectively created an unofficial “bespoke” occupation list within an occupation list.

If this becomes a systemic change, an extreme possibility is that those committed to becoming Australian permanent residents through the GSM program may reconsider their career path. It would not be surprising in the slightest if a majority of those who submitted EOI applications were former international students given the history of GSM visas previous to SkillSelect had a substantial number of onshore visa applicants, and that extra points are awarded to those who have studied in Australia. Aspirants may also decide to pursue alternative visas that may be available.

At worst, the reputation and certainty surrounding the SkillSelect program may be at stake and potential migrants (and international students) may look to pastures greener. Confidence in the SkillSelect system is important, as with the consistent application of any set of rule and regulations in a society. If in doubt, simply ask some of the 16,000 or so visa applicants who were subject to the most recent cap and cease in 2015. A high court challenge to the decision had been planned but later abandoned.