Last night the Treasurer Jim Chalmers announced the 2024/2025 Federal Budget. The announcement always brings anxiety among the international professionals and students community, as it can bring significant updates and reforms to Australia’s migration and visa programs.
These changes aim to support economic growth, streamline processes, and address critical needs within the migration system.
One of the most anticipated updates is the Permanent Migration Program Planning Levels.
So first, let’s understand what the Permanent Migration Program Planning Levels is:
Permanent Migration Program:
A component of Net Overseas Migration (NOM) that sets the number of permanent residency visas granted each year.
Planning Levels: These levels determine how many visas are allocated under various streams, such as the Skill stream and Family stream, to be granted within one Financial Year.
Permanent Migration Program vs Net Overseas Migration (NOM)
Net Overseas Migration (NOM):
NOM measures the net gain or loss of population through immigration and emigration. It includes all movements of people to and from Australia, whether they are permanent or temporary residents.
Components:
- Temporary Migration: Includes Working Holiday Makers, Students, and temporary skilled workers (Sponsorship Visas for example).
- Permanent Migration: Comprises those granted visas under the permanent Migration Program and who will be allowed to live here permanently
- Others: Includes Australian citizens departing, New Zealand citizens, and Humanitarian migrants entering the country.
- Impact: NOM affects population growth, impacting housing, infrastructure, and services.
Relationship between NOM and the Permanent Migration Program
- The permanent Migration Program contributes to NOM but is not the sole factor.
- Approximately 60% of visas under the permanent Migration Program are granted to migrants already residing in Australia, meaning these grants have a limited immediate impact on infrastructure and services.
- Changes in NOM are influenced by temporary migration trends, returns of Australian citizens, and other migration categories.
Historical Context of the Permanent Migration Program Planning Levels
Consistent Planning Levels: Although it may have sounded yesterday that the Treasurer was “cutting numbers”, the planning levels have not changed this much from last Financial Year and are still above COVID pandemic years levels.
The Planning Levels have typically been set at 190,000 places from FY 2012-13 to FY 2018-19.
Reduction During COVID-19: The levels were reduced to 160,000 from FY 2019-20 to FY 2021-22 due to the impact of the pandemic on migration flows and processing capacities.
Post-COVID Adjustment: An increase to 195,000 places occurred in FY 2022-23 to address skill shortages, before adjusting back to 190,000 in FY 2023-24 and slightly decreasing to 185,000 for FY 2024-25.
Table of Planning Levels
| Financial Year | Total Places | Skill Stream |
| 2014-15 | 190,000 | 128,550 |
| 2015-16 | 190,000 | 128,550 |
| 2016-17 | 190,000 | 128,550 |
| 2017-18 | 190,000 | 128,550 |
| 2018-19 | 190,000 | 128,550 |
| 2019-20 | 160,000 | 108,682 |
| 2020-21 | 160,000 | 79,600 |
| 2021-22 | 160,000 | 79,600 |
| 2022-23 | 195,000 | 142,400 |
| 2023-24 | 190,000 | 137,100 |
| 2024-25 | 185,000 | 132,200 |
Key Observations:
- Stable Levels Pre-COVID: The planning level was consistently 190,000 places from FY 2014-15 to FY 2018-19, emphasizing steady demand for skilled migrants and family reunification.
- COVID-19 Impact: Reduced to 160,000 places to manage migration amidst global travel restrictions and economic uncertainty.
- Post-Pandemic Recovery: Increased to 195,000 places in FY 2022-23 to address critical skill shortages and economic recovery needs.
- The reduction to 185.000 for the upcoming FInancial Year therefore, is not so big.
There are other parts of the announcement though that are important to migrants and people seeking a visa to Australia and for that we prepared a Summary of the 2024 Federal Budget Announcement for you, from a migration perspective:
- Permanent Migration Program: 185,000 places for 2024-25, with 132,200 for the Skill stream.
- Migration System Reforms: $18.3 million to be allocated for education for migrant workers and a data-matching pilot.
- Staffing: Increased resources for visa processing and backlog reduction in the Department
- Southeast Asia Engagement: $505.9 million for deeper engagement, including improved visa access for ASEAN countries.
- Work and Holiday visa: A $25 fee to enter a ballot for the Work and Holiday Visa application process for China, Vietnam, India.
- MATES program: Mobility pathway for 3,000 Indian professionals.
- National Innovation visa: Replacing the Global Talent visa.
- Temporary Skill Shortage visa: Work experience requirement reduced to 1 year instead of the 2 years currently required.
- Administrative Review Tribunal: $1.0 billion to replace the AAT and address backlogs.
- ICT Improvements: Modern ICT solutions for Trade skills assessment.
- Settlement Services: $120.9 million to improve services and outcomes for migrants and refugees.
- Support for Affected Individuals: $2.9 million for those affected by the Hamas-Israel conflict.
- Leaving Violence Program: $925.2 million to support victims of intimate partner violence.
- Cyber Security Investments: Strengthening national infrastructure and countering foreign interference.
- Machinery of Government Changes: Transfer of functions between agencies.
- Home Affairs Supplementation: $100 million for core functions support.
Conclusion
The recent budget announcement underscores the government’s commitment to balancing economic growth with the needs of migrants and the broader community. Although there is a slight reduction in the overall planning levels for the Permanent Migration Program, the focus remains on skilled migration and addressing critical skill shortages. This comprehensive approach aims to foster a well-managed migration system that supports Australia’s long-term economic and social objectives.
More importantly, it will be easier for Australian employers to sponsor overseas workers as the threshold of work experience required will go down from 2 years to 1 year for the Subclass 482 TSS Sponsorship visa.
Stay tuned for our updates for when this and other changes will be implemented.
If you need Migration Assistance please contact us via this form.
