2020-21 Budget: Planning levels remain at 160,000; Partner visa places up 82 per cent, sponsor framework and English language tests soon

The delayed Federal Budget was handed down last night and migration (or lack of it) played an important part in the government’s financial projections. While the 2020-21 migration planning levels remain at 160,000, the division of these places across the various streams will change. The Budget came with several surprises, many relating to partner visas, including a one-off increase to family planning levels, the commitment to implementing the approved family sponsor regime for sponsoring partners and English language tests for partner visa applicants and their permanent resident sponsors. Other changes include more places for the Global Talent scheme and prioritising certain skilled visas over others.

Due to the coronavirus pandemic the Federal Budget was delayed from its usual month of May and was finally handed down last night. Obviously, Australia’s economic recovery and a response to COVID-19 featured heavily, and migration plays a not insignificant role. Net overseas migration (NOM) which includes permanent and some temporary visa holders, is expected to fall from 154,000 last program year (2019-20) to -72,000 (more people departing Australia than arriving) by the end of 2021, before gradually increasing to around 201,000 by 2023-24. This slower increase to population growth will “weigh on recovery.”

In light of continued travel restrictions and the need for economic recovery, Australia’s migration program will change: not in the overall planning numbers themselves, but certainly in its composition.

2020-21 Migration planning levels to remain at 160,000 but with significant changes

Australia’s interim migration planning levels will stay at 160,000 places, but the numbers within each program and visa category will change. While there are currently no official numbers for the 2020-21 migration planning levels, some numbers have been revealed.

Firstly, the government is tripling down of the Global Talent Independent Program for which applications are lodged either under the onshore Subclass 858 - Distinguished Talent visa or offshore Subclass 124 - Distinguished Talent visa. Places for this program will increase from 5,000 last year to 15,000 this program year, as announced in the subsequent media release from the acting Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs. The rationale for this is that high-skilled, entrepreneurial activities will assist in adding to Australia’s tax revenue and local job creation. That is a big ask when 7,444 Expressions of Interest (EOIs) were received from when the program began on 4 November 2019 until 4 August 2020. Of those recevied 2513 were invited and 1105 not invited.

Secondly, along with the Global Talent program, the Employer Sponsored (Subclass 186 – Employer Nomination Scheme visa, Subclass 187 - Regional Sponsored Migration Scheme visa, and Subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa) and Business Innovation and Investment Program (BIIP), which consists of the Subclass 132 - Business Talent visa and the Subclass 188 - Business Innovation and Investment (Provisional) visa, will be prioritised within the skilled stream. Whether this is priority processing or an additional increase in places is not yet known.

This leaves the General Skilled Migration (GSM) program on the outer. GSM visas include the Subclass 189 - Skilled – Independent visa, Subclass 190 - Skilled – Nominated visa, and Subclass 491 – Skilled Work Regional (Provisional) visa. If the number of places drops significantly there will be fierce competition for places for 189 visas and 491 visas sponsored by an eligible relative, where only EOIs with the highest points receive an invitation to apply for a visa.

Thirdly, and perhaps the biggest announcement is a one-off increase in the number of family visas allocated: 77,300 places. This is up 62 per cent from last year’s 47,732 places. A significant portion of these are dedicated to partner visas, which will increase from 39,799 last program year to a whopping 72,300, up 82 per cent. This will hopefully clear some of the backlog.

Lastly, there will be an overall prioritisation of onshore migration applications simply due to current travel restrictions.

Partner visa sponsor framework and English language testing coming

While partner visas will benefit from additional places, prospective partner visa applicants and their sponsors may not appreciate new requirements coming. According to Budget Paper No 2 at page 10, this will include:

• Applying the family sponsorship framework to partner visas. While many, including migration agents, reported this must affect partner visas by June 2019, no partner visa regulation was touched. This is now slated to happen soon. The sponsorship framework will require partner visa sponsors to be approved family sponsors before partner visa applications can be lodged. If processing times of these sponsorship applications blow out, this will pose problems for the ability of visa applicants able to lodge while onshore for a Subclass 820/801 – Partner visa. Complying with sponsor obligations will be necessary, and there is scope to require income thresholds as with sponsors for Subclass 870 - Sponsored Parent (Temporary) visa applicants.

• Visa applicants and permanent visa holder sponsors will need to meet English language requirements. This may not be a criterion for grant, but instead may stipulate whether a second visa application charge will apply. Many provisional and permanent skilled visas impose a second visa application charge prior to grant for not meeting functional English thresholds, such as $9,800 for primary, and $4890 for secondary visa applicants at least 18 years old at the time of applying for a 186 visa. After grant, the visa holder is then entitled to at least 510 hours of the Adult Migrant English Program (AMEP). The number of hours available recently increased.

It is unknown what the finer details will be and when these important changes are implemented.

BIIP changes from 1 July 2021

The last notable announcement is to the BIIP with amendments for applications lodged from 1 July 2021. This includes streamlining the operation of the program and increasing visa application charges by a substantial 11.3 per cent.

There will also be changes to “improve the quality of investments and applicants”. Expect another round of tweaking to what is deemed a complying investment to the Significant Investor visa stream, which has been recently criticised by the mainstream media.