There has been a fair bit of attention in the media this year regarding the government’s push towards regional migration. All eyes are now on the upcoming Regional Skilled visas due for release on 16 November 2019.

What are the proposed changes and how will they affect potential visa applicants?

The two new regional (temporary) skilled visas will be:

• Skilled Work Regional (Provisional) Subclass 491; and
• Employer-Sponsored Regional (Provisional) Subclass 494

The new Permanent Residence regional visa (to be released on November 2022) will be:

• Permanent Residence (Skilled Regional) subclass 191 visa

Let’s take a look at the new temporary visas and give you our first impressions of the new scheme.

Skilled Work Regional (Provisional) Subclass 491

Overview

• General skilled temporary regional visa, replacing the Skilled Regional (provisional) subclass 489 visa
• Points-tested. Based on age, English proficiency and employment experience
• Skills assessment required
• Sponsorship by State/Territory OR nomination be eligible Australian/NZ family member living in a regional area

New features of this visa

• Definition of ‘regional area’ expanded to include all areas except Sydney, Melbourne and Brisbane 
• Occupation list expanded (77 occupation increase from the subclass 489)
• 14,000 places allocated for 2019-20 financial year
• Eligible for permanent residence after 3 years. Must meet the income threshold requirement and live/work in a regional area.

Opinion on the changes

There are some features of the subclass 491 that are attractive to potential applicants. However, in many ways, the new visa appears to be a re-branding of the subclass 489 visa.

The most obvious benefit is the increased range of eligible occupations. Also, the increased points available for regional sponsorship will improve the competitiveness of many applicants’ Expressions of Interest (EOI). Further, the promise of priority processing is a huge incentive, given the current application backlog of other general skilled migration visas.

There are notable challenges applicants will face with the new visa. The residency requirement for permanent residence will increase to three years (compared to two years for the subclass 489 visa). The additional burden will be placed on visa holders by the new minimum income threshold. Although priority processing has been promised, the Department will likely face huge challenges meeting its visa grant targets. Keep in mind, there are currently 16 full-time Case Officers dealing with priority applications. With over 14,000 new places allocated to this visa, on the surface the numbers look daunting.

Employer-Sponsored Regional (Provisional) Subclass 494

Overview

• Temporary employer-sponsored regional visa, replacing the Regional Sponsored Migration Scheme (RSMS) Subclass 187 visa
• Similar features to the RSMS visa. Requires employer sponsorship, Regional Certifying Body certification, employment experience, English proficiency, market salary provision and skills assessments (where applicable)

New features of this visa

• Definition of ‘regional area’ expanded to include all areas except Sydney, Melbourne and Brisbane
• Occupation list expanded (673 available)
• 9,000 places allocated for 2019-20 financial year
• Eligible for permanent residence after 3 years (with the same sponsoring employer).

Opinions on the changes

Again, in many ways, this new visa appears to be a re-branding, in this case of the RSMS visa. The advantage of the new visa is mostly in the increased occupation list and expanded definition of ‘regional area’. Notably, major centres such as Newcastle and Wollongong have been included in this new definition, which will increase the attractiveness of these areas.

The difficulties for visa applicants include the increase to three years of employment with the sponsoring employer in order to meet permanent residency requirements. This requirement may place undue burden on visa applicants, particularly if a change of employer is required during the three years, effectively resetting the three-year clock.

Summary – the new regional visas, November 2019

It remains to be seen how well the new regional visas are embraced. Let’s summarise the pros and cons of the new scheme.

Pros

• Expanded definition of ‘regional’
• Significant increase of eligible occupations
• Increased points available for regional applicants in the points test
• Priority processing
• A greater incentive for applicants to live, work and/or study in regional Australia.  

Cons

• Increased employment period to meet permanent residency requirements
• The continued difficulty for graduates to meet work experience requirements
• Restrictions on subsequent applications for “non-regional” visas (in particular 186, 190, 190 & onshore partners)
• Questions over securing work at the minimum income threshold (491 visas)

Should you require assistance with a new regional visa, please contact Konnecting on 1300 131 131 (Inside Australia) or +61 2 8252 2500 (Outside Australia). Alternatively, feel free to take our free visa assessment.