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Making the Graduate Visa 35 or under will affect Australia's postgraduate research sector and high-skill labor market – We propose a policy solution

The Australian government has announced significant revisions to its migration strategy, notably adjusting the Temporary Graduate Visa (subclass 485). A key alteration is the reduction of the age limit for applicants from 50 to 35 years or under, which will have implications for many international students and educational institutions.

Setting an age limit of 35 or under for graduate visas in Australia is likely to substantially affect international postgraduate students and the research capabilities of universities.

The government is planning to introduce the changes from the first of July 2024, as you can read here.  

This article will discuss all the implications of age reduction, particularly for the postgraduate research sector, which includes international students studying for a Master’s degree by research or a Doctoral degree in Australia.

Several rows of contemporary intercultural university students sitting by long wooden desks in lecture hall and listening to professor at lesson

FOI Results Show Numerous PhD and Master by Research Students Will Be Impacted

Work Visa Lawyers obtained information from a Freedom of Information (FOI) request released on February 24, 2024, which provided insights on the number of international students who may be affected.

Click here to check the FOI and the number of postgraduate research in Australia.

The introduction of a 35-year age limit presents a significant challenge, particularly for PhD candidates, who may surpass this age during their studies. Therefore, being under 31 before starting a PhD becomes crucial.

As of January 31, 2024, Australia hosted 17,574 postgraduate research visa holders, including PhD and Masters by research students. Among them, 45.87% were under 30, 31.93% were aged 30 to 34, and 22.20% were over 35. This suggests up to 50% of current postgraduate research students might be ineligible for a graduate visa upon completing their studies if the age limit is lowered from 50 to 35 or under for all students since many students from 30 to 35 years old will finish their studies over 35 years old.

Masters and PhD Graduates Make Excellent Skilled Migrants

Eligibility for the 485 provides international students the time needed to line up employment and do skills assessments so as the possibility to apply for Australian PR. Without the possibility of a graduate visa many potential students that are over the age of 35 will choose not to study in Australia. This mainly means that Australia misses out on many post graduate students.

Masters and PhD students are more likely to obtain employment and secure better jobs, as seen on page 9 of the "Review of the Points Test Discussion Paper" released in April 2024. The review states:

"Education is strongly associated with positive employment outcomes for migrants. PhD graduates are more likely to be employed than Bachelor graduates, who in turn are more likely to be employed than Vocational Education and Training (VET) graduates. Education is also strongly correlated with incomes — migrants with a PhD earn 20 percent more over 10 years than migrants with a Bachelor degree. Education also has a stronger impact on successful labor market outcomes after five years than on immediate outcomes, reflecting that education enables migrants to adapt to a changing labor market.”

The Review also says: “Migrants with higher levels of education also contribute to a more dynamic economy, and improve the wages of local workers. A focus on education, along with English language skills, means migrants are less likely to be exploited, with modelling by the Grattan Institute showing that workers who are more educated are less likely to be paid below the minimum wage.”

In conclusion, the review says: “All these considerations are not fully reflected in the points test, with a PhD only earning 20 points, whereas a Bachelor degree earns 15, and a trade qualification 10. This does not reflect the degree of difference in outcomes, as the gap can easily be bridged by undertaking a professional year or returning to study in a regional area, which are worth 5 points each."

You can read the Review of the Points Test Discussion Paper here.

This implies that individuals with higher educational levels, such as PhD holders, are more likely to find better-paying jobs and will earn more points on the Points Test. Therefore, excluding individuals aged 36 and over from applying for the Graduate Visa will decrease the number of highly qualified and skilled individuals that Australia seeks.

It is concerning that the skills points review recommends more postgraduate migrants while the visa criteria is discriminating against or selecting against postgraduate students.

Effects on the Australian Research Community and Labor Market

The new age restriction is expected to saturate the student visa/graduate market with recent graduates from vocational and bachelor's programs who may lack experience and may find it challenging to secure employment in their field of study.

From my years of experience as an Immigration lawyer I have observed the most favourable employment outcomes come from Master's graduates with approximately 5 years of experience from their home country before pursuing Master's degrees in Australia. This demographic might now be discouraged from studying in Australia due to the new policy.

Mature scientist looking in microscope during chemical investigation in lab

The average age of individuals entering PhD programs in Australia is 34, highlighting the significant role of mature students in the academic research environment. These students often contribute diverse life experiences and perspectives that enhance research and academic discourse.

Regarding international PhD students in Australia, data indicates a concentration in the early 30s age range, with about 40.9% of foreign PhD graduates remaining in Australia. This underscores their substantial contribution to the Australian research community and labor market.

Should Australia Exclude Mature Students from the Graduate Visa Program?

An age limit of under 35 for obtaining a graduate visa could potentially exclude a considerable portion of these mature students. This could have several implications:

1.         Research Diversity and Quality: Mature students, including those over 35, often have substantial professional and life experiences that can contribute to the depth, diversity, and innovation in research. Limiting this group might reduce the richness of academic inquiry and debate within universities.

2.         International Collaboration: International students, particularly those pursuing PhDs, play a vital role in the global academic community, fostering international collaboration and cultural exchange. Restricting age could deter these valuable contributors from choosing Australia as their destination, thereby impacting the international ties and networks that Australian universities benefit from.

3.         Labor Market and Skill Development: PhD graduates contribute significantly to the high-skill labor market. An age restriction might not only affect the availability of skilled professionals in certain research fields but also limit the opportunities for mature students to further their careers and personal development through advanced research opportunities.

The proposed age limit could also deter international students, especially Ph.D. candidates, from choosing Australia as their destination, impacting the international networks and collaborations that benefit Australian universities.

Furthermore, Ph.D. graduates significantly contribute to the high-skill labor market, and an age restriction might limit the availability of skilled professionals in certain fields, as well as mature students' opportunities for career and personal development through advanced research opportunities.

An Age Policy Solution to Encourage International Post-graduates

A strategic age limit for Graduate Visas could be implementing a tiered age limit, such as 36 for Vocational and Bachelor degrees, 40 for Masters, and 45 for PhDs. This approach could maintain the engagement of international students in post-graduate research, while still advancing the government's migration policy goals of limiting older skilled migrants.

Type of course

Age limit

Degree-level courses or vocational (VET)

Age to 36

Masters

Age to 40

PhD

Age to 45

Further, there should be a transitional period to allow for those who began study in Australia before the 1st of July 2024 to qualify for the graduate visa up to the age of 45. Those that start to study after the 1sf of July 2024 will know that there are new predictions in age limit and so will be able to make a decision based on that acknowledgment rather than having the rough pull down from them once they need the end of the course.

Pretty laughing Vietnamese woman with many folders and document and smartphone

Conclusion:

The recent changes to Australia's Graduate Visa, specifically the reduction of the age limit to 35 years and under, present significant challenges for international postgraduate students, particularly those pursuing research-intensive degrees like PhDs. These changes impact not only the individuals directly affected—older students who bring a wealth of experience and depth to their fields of study—but also the broader academic and research communities in Australia.

Considering the substantial contributions of mature international students to the academic and labor markets, it would be beneficial for the Australian government to reconsider the age restrictions as suggested above.

Sources:

https://www.workvisalawyers.com.au/images/Number_of_student_visa_holders_in_Australia_February_2024.pdf

https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy.pdf

https://thesiswhisperer.com/2019/10/02/starting-a-phd-at-58-years-old/

https://www.homeaffairs.gov.au/reports-and-pubs/PDFs/points-test-discussion-paper-april-2024.pdf

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Australian Immigration News – May 2024

As the end of the financial year approaches, many changes are being made to the Australian immigration system. In this article, we will go through some of those changes.

128 New Occupations Added to the SA DAMA

The South Australian regional DAMA and the Adelaide City DAMA have both been extended and expanded.

The SA regional DAMA now includes 128 new occupations across various sectors, including construction, trade, agribusiness, ICT, health, education, and renewable energy.

Some occupations added are registered nurse in child and family health, registered nurse in disability and rehabilitation, winery worker (beneficial for South Australia's Barossa and Clare Valley), sheep farm worker, truck driver, bricklayer, and floor finisher. Truck driver is particularly notable as it was previously a restricted occupation but is now available for the entire state.

Do you want to know more about the new occupations on the SA DAMA? Click here to read the full article.

Student Visa News

Increase in Financial Capacity:

From 10 May 2024, the financial requirement for Student visa applicants will increase from AUD 24,505 to AUD 29,710.

For a spouse or de facto partner of the Student primary applicant, it will increase from AUD 8,574 to AUD 10,394.

For a dependent child, it will increase from AUD 3,670 to AUD 4,449.

The last increase happened in October 2023, and this new increase was not expected for this financial year.

Recent changes to Australian student visa and graduate visa programs signal a significant shift in the landscape of international education and post-study opportunities in the country. Starting from 23 March 2024, these updates include increased English language requirements and the introduction of the genuine student requirement.

TOEFL iBT is now accepted for all Australian visas

TOEFL iBT tests taken from 5 May 2024 are valid for Australian visas and migration purposes. The test must be taken at a secure test center, as the department does not currently accept online English tests.

End of the 476 Visa

As widely expected, the skilled recognized graduate 476 visa will permanently close from 1 July 2024. This is disappointing for many, but it was expected.

Graduate Visa Changes

The main change will be the reduction of the maximum eligible age from under 50 to 35 years and under, proposed to be implemented from 1 July 2024.

Exceptions include Hong Kong and British overseas national passport holders, who will be eligible up to the age of 50.

Other changes for the graduate visa include increasing the minimum English requirement and reducing the validity period for English tests from three years to just one year prior to the application date.

This means applicants may need to check and complete their English tests before applying.

Click here to read more about the Graduate Visa changes.

Skilled Points Review Paper

The Australian Government published a paper discussing potential changes to the points test for the 189, 190, and 491 visas.

The review may alter the available points by removing and reducing factors and adding new ones.

Expected changes include reducing or removing points for regional study and NAATI-approved language.

Points for partners may increase, age points might be allocated on a gradual scale, and English points might also follow a more gradual scale.

New Core Skills Occupation List

Jobs and Skills Australia has opened a consultation about the Core Skills Occupation list.

This list will be for the Core Skills visa, designed to replace the 482 employer-sponsored visa with similar requirements.

The consultation categorizes occupations into three groups:

  1. Confident On List – Occupations that Jobs and Skills Australia is certain should remain on the list.

Occupations such as Registered Nurse, Social Worker, Diesel Motor Mechanic, and IT Network Administrator are on the Confident On List.

  1. Confident Off List – Occupations recommended for removal based on current labor market insights.

Occupations such as Cafe or Restaurant Manager, Cattle Farmer, ICT Project Manager, and Real Estate Representative are on the Confident Off List.

  1. Targeted for Consultation – Occupations that require further input from stakeholders to determine their necessity and priority.

Occupations such as Chef, Cook, Finance Manager, Web Designer, Hairdresser, and Marketing Specialist are on the Targeted for Consultation List.

Will your occupation be on the new Core Skills Occupation List? Full article here.

VETASSESS Skills Assessment

VETASSESS is accepting new applications again for cook, diesel motor mechanic, and motor mechanic.

Some other trade occupations paused in 2023 are not yet accepted by VETASSESS.

State Nominated 190 and 491 Visas

Victoria, Western Australia, Queensland, and the Northern Territory have already closed for expressions of interest. Other states and territories may close soon.

This was a summary of the main news in Australian immigration at the start of May 2024. If you need advice on your specific situation, please book an appointment.

Do you need help with an Australian visa application?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your visa application.

Based in Adelaide, South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

You can book an appointment online or call us at (+61) 8 8351 9956.

Sources:

https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy.pdf

https://immi.homeaffairs.gov.au/news-media/archive/article?itemId=1196

https://www.jobsandskills.gov.au/topics/migration-strategy/draft-core-skills-occupations-list-csol-consultation

https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/temporary-graduate-485/changes

https://www.migration.sa.gov.au/occupation-lists/dama-occupation-list

https://www.homeaffairs.gov.au/reports-and-pubs/PDFs/points-test-discussion-paper-april-2024.pdf

https://www.vetassess.com.au/news/reopening-new-applications-for-cook-diesel-motor-mechanic-and-motor-mechanic-general

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Will your occupation be on the new Core Skills Occupation List?

Jobs and Skills Australia (JSA) has opened a consultation on the new Core Skills Occupation List (CSOL). The Core Skills is one of the pathways in the Skills in Demand Visa introduced in the Migration Strategy, released in December 2023.

The Core Skills Visa seems set to replace the current 482 employer-sponsored visa and will have similar requirements to the 482 visa. Click here to check the 482 Occupation List.

The Draft Core Skills Occupations List is an important component of Australia's evolving migration strategy. This draft list categorizes occupations into different streams based on their importance to the economy and the current labor demand, providing a structured approach to manage employer-sponsored migration more effectively.

Chef Australia 1

Core Skills Occupation List

The Core Skills Occupation List is being designed to identify occupations that are essential for Australia’s economic health, particularly those that are in shortage and can benefit from employer-sponsored migration. The list is split into three categories:

  1. Confident On List – Occupations that Jobs and Skills Australia is certain should remain on the list.

Occupations such as Registered Nurse, Social Worker, Diesel Motor Mechanic, and IT Network Administrator are on the Confident On List.

  1. Confident Off List – Occupations recommended for removal based on current labor market insights.

Occupations such as Cafe or Restaurant Manager, Cattle Farmer, ICT Project Manager, and Real Estate Representative are on the Confident Off List.

  1. Targeted for Consultation – Occupations that require further input from stakeholders to determine their necessity and priority.

Occupations such as Chef, Cook, Finance Manager, Web Designer, Hairdresser, and Marketing Specialist are on the Targeted for Consultation List.

Public Consultation Open for the Draft Core Skills Occupations List

The draft Core Skills Occupations List is currently open for public consultation, providing a unique opportunity for stakeholders to influence Australia’s migration landscape. Participants can provide feedback through surveys, submissions, and other forms of engagement as outlined by Jobs and Skills Australia.

The consultation process is a critical step in ensuring that the Core Skills Occupations List is well-rounded and effective in meeting the strategic objectives of Australia's migration and labor policies. Engaging in this process is a way for stakeholders to contribute to the policy-making process, ensuring that their voices are heard and their concerns are addressed.

The JSA notes that this is a draft list and further surveys, submissions, bilateral meetings, and qualitative analysis will be undertaken on the list with the closing date for submissions of 10 May 2024.

Guidelines on the timeline for the release of the final list and for lodging submissions are available on the JSA webpage

As soon as the Core Skills Occupation List is available, we will update it on our website.

Skills in Demand Visa

The Migration Strategy, released in December 2023, introduced the Skills in Demand Visa. There are three new types of temporary work visas focusing on clear pathways to Australian permanent residency and aiming to alleviate labor shortages. 

The three new pathways are called Specialist SkillsCore Skills, and Essential Skills.

You can find more information about the Skills in Demand Visa here.

Do you need help with an Australian visa application?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your visa application.

Based in Adelaide, South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

You can book an appointment online or call us at (+61) 8 8351 9956.

Sources:

https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy.pdf

https://www.jobsandskills.gov.au/topics/migration-strategy/draft-core-skills-occupations-list-csol-consultation

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Australian Student Visa 2024: Enrolment Cancellations and Visa Refusals

With enrolment cancellations by institutions and rising refusals, international students have started to feel the impact of the Australian migration strategy released in December 2023, aimed at reducing migration levels.

Universities Cancelling Course Offers for Students

Recent news has revealed that some Australian universities are cancelling enrolment offers to international students. Several universities have taken the extreme step of writing to students whom they had approved but who were still waiting for their visas to be granted, requesting they cancel their enrolment. This is devastating for those who have an offer and are already envisioning their course in Australia. This has already affected many international students, causing frustration and disappointment with the sudden decision.

Why Are Universities Cancelling International Student Offers?

Some institutions have chosen to limit the countries from which they will accept applications to increase their visa approval rate. There are concerns from some universities that they might no longer be classified as low-risk entities by the Department of Home Affairs, affecting their standing and operations.

The migration strategy released in December 2023 included several recommendations for international students, such as increased funding for visa integrity, higher English language requirements, and more rigorous scrutiny of lower-quality education providers by ranking them based on their risk level.

It appears that universities are cancelling admission offers to safeguard their reputation and avoid a high number of visa rejections.

Student Visa Refusals Australia

Increase in Student Visa Refusal Rates for Some Countries and Some Institutions

There has been a significant increase in the number of visa refusals, which is expected to rise further in the second half of 2024.

High refusal rates: Over the last 15 years, student visa application approval rates have consistently been above 90%. However, recent government figures reveal a decline to 82% last year, with the approval rate for vocational education even lower, dropping to 70% in the last six months of 2023.

Which countries have higher refusal rates? According to a report by The Australian Financial Review on January 30, 2024, there was a significant decrease in student visa approval rates for applicants from some countries, such as India with a reduction from 73% to 42%, Pakistan from 64% to 30%, the Philippines from 81% to 36%, and Nigeria from 71% to 29% over four months from June to September 2023, as noted by Craig Mackey of IDP Education Australia, an international education company offering student placement in Australia.

Ian Aird, CEO of English Australia, another international education company, mentioned that in October 2023, student visa grants from Colombia were down by 34.79% over the same comparison period in 2022. Approval rates for visa applications for the education provider English Australia, from Thailand and Brazil in October 2024 compared to the year before, also experienced declines, with Thailand's rate dropping by 89.99% and Brazil's by 46.82%.

However, approval rates for countries such as South Korea, China, Singapore, and Taiwan were at 90% or higher, possibly due to financial capacity and genuineness of intention to study.

CoE Cancellations Australia 2024

Why Are There Higher Rates of Student Visa Refusal?

The government aims to reduce the net overseas migration number, from 510,000 in the last year to 375,000 this current year, and then to 250,000, which is regarded as the "normal" level. Much of the reductions will be in student visas.

Migration_number.jpeg

The student refusals are mostly based on the Genuine Temporary Entrant Criteria (GTE). In many cases, the GTE rejection seems to hinge on the economic status of the student's home country, rather than the individual's qualifications or demonstrated intent to study at the institution.

Unfortunately, it is getting tougher both for education providers and with Home Affairs. If you need any assistance, please contact us.

Do you need help with an Australian visa application?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your visa application.

Based in Adelaide, South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

You can book an appointment online or call us at (+61) 8 8351 9956.

Sources:

https://e.vnexpress.net/news/news/education/australian-universities-cancel-offers-of-enrollment-to-international-students-4712973.html

https://thepienews.com/news/australia-students-awaiting-visas-told-to-withdraw-university-applications/

https://www.afr.com/work-and-careers/education/foreign-students-are-leaving-in-droves-after-visa-crackdown-20240216-p5f5m1

https://monitor.icef.com/2024/02/australia-visa-rejection-rates-spike-as-some-institutions-withdraw-admissions-offers-under-new-migration-settings/

https://www.universityworldnews.com/post.php?story=20240202130927534

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Regional Migration: Australia's Top Priority 2024

In early 2023, regional migration visas in Australia were under a cloud of uncertainty. The Parkinson Report Migration, released in March 2023, failed to offer any guidance or support for regional migration options.

The final report suggests a recalibration of the skilled points test and even proposes the removal of points for regional study. It states, “In conjunction with this measure, existing regional concessions in mainstream permanent phases, such as additional points for regional study, could be removed to ensure those programs are strongly focused on selecting migrants who will best meet national economic objectives.”

Additionally, state nomination applications in Australia across all states were reduced by 70% from July 1, 2023, marking a significant downturn in the 2023-24 financial year.

However, early 2024 has seen positive developments in regional migration policy.

Migration Policy Developments 2024

Regional employer-sponsored nominations visas such as 482, 186, 494, and DAMAs are now the top priority in ministerial processing directives. This means they are processed above all others, including professions in teaching and health that were previously given high priority.

This shift demonstrates the Federal Government is encouraging migration to regional areas.

The new Skills in Demand Visa Australia includes an "Essential Skills" category visa for lower-skilled occupations, such as carers, with potential salaries below A$70,000. These visas aim to supply workers to regional areas for both caregiving and agricultural roles.

For the 2024 to 2025 financial year, skilled points visas, including the 189, 190, and 491 visas, will remain unchanged. The 491 Visa, designed for regional areas, continues to be available, dispelling rumors of its abolition in the Migration Review.

Click here to read more about the Skilled Work Regional 491 Visa.

Why is regional migration regaining favour?

Several factors are at play, including a strong demand from industries and communities in regional Australia for migrants. Furthermore, the housing crisis has prompted the federal government to encourage migration away from Australia's largest cities, Melbourne, Sydney, and Brisbane.

How can Work Visa Lawyers help?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your potential application(s).

Based in Adelaide, South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

For visa application assistance in Australia, you can book an appointment online or call us at (+61) 8 8351 9956.

Adelaide SA

Sources:

https://www.homeaffairs.gov.au/reports-and-publications/reviews-and-inquiries/departmental-reviews/migration-system-for-australias-future

https://www.homeaffairs.gov.au/reports-and-pubs/files/review-migration-system-final-report.pdf

https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times/skilled-visa-processing-priorities

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