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The Truth Behind Australia’s Biggest Migration Reform in 20 Years

Written by Jacqui Gigliotti | Jul 21, 2025 7:01:09 AM

Australia’s most significant migration reforms in two decades took effect on 7 December 2024, with salary-threshold indexation and visa application charge adjustments to be implemented on 1 July 2025. While the new Skills in Demand (SID) visa and streamlined family-reunification pathways have garnered much attention, a suite of complementary measures—spanning permanent migration planning levels, innovation visas, points-test reforms, regional pathways, and system-wide simplification—are reshaping the landscape for businesses, students, regional communities and humanitarian entrants.

Three-Tiered SID Visa System

On 7 December 2024 Australia replaced the Temporary Skills Shortage (TSS) visa (subclass 482) with a three-stream SID visa. From 1 July 2025, salary thresholds were indexed by 4.6 per cent, setting the Specialist Skills threshold at AUD 141,210 per year and the Core Skills threshold at AUD 76,515 per year. A third Essential Skills stream for lower-paid occupations remains under government review with no announced start date. The Specialist Skills stream aims for a seven-day median processing time (actual times range from nine to 39 days), while Core Skills applications target around 21 days.

Business Impact and Compliance Demands

Employers sponsoring international workers under the new Skills in Demand (SID) visa must now:

  • Conduct Labour Market Testing (LMT) by placing job ads for 28 consecutive days in at least two approved media, including essential details like job title, employer name, duties, location, and salary (if under AUD 96,400), all in English.
  • Provide evidence that the role meets new salary thresholds—either AUD 76,515 for the Core Skills stream or AUD 141,210 for the Specialist Skills stream.
  • Navigate a streamlined permanent residency (PR) pathway via the Employer Nomination
  • Scheme after two years of continuous sponsorship, subject to standard PR requirements (health, character, etc.).

Some language service providers have observed increased demand for certified translations of nomination materials and compliance documents, though this trend has not been formally reported.

Family Reunification Simplified

From 24 November 2023, partner visa streams (subclasses 820/801 and 309/100) effectively merged into a single-stage application process, removing the need to distinguish between onshore and offshore grant locations. The Sponsored Parent visa (subclass 870) launched on 7 December 2024, offering three- or five-year stays (renewable up to ten years total), capped at 15,000 annual places and not leading to permanent residency. The Australian Greens propose, from 1 July 2026 (if passed), reducing parent-visa fees to AUD 5,000 for two sponsors (AUD 2,500 for one) and removing the balance-of-family test. While demand for certified translations and culturally sensitive interpretation during family-visa interviews has likely increased, no official data is available to quantify the change.

Permanent Migration Program Planning Levels

For the 2024–25 program year, the government set the permanent Migration Program at 185,000 places, down from 190,000 the previous year. The skills stream accounts for approximately 132,200 places, including employer-sponsored visas (increased from 36,825 to 44,000 places), skilled independent visas (reduced from 30,375 to 16,900 places), regional and state-nominated visas (combined 66,000 places) and the Global Talent/National Innovation stream (4,000 places). This shift realigns permanent intake with immediate labour-market needs.

National Innovation Visa

Launched in late 2024 under the National Innovation visa (replacing the Global Talent visa), this invitation-only stream targets researchers, entrepreneurs, investors and creatives of “exceptional talent.” It offers direct permanent residency upon grant, an Expression of Interest process managed by Jobs and Skills Australia, and no minimum salary threshold, though applicants must demonstrate significant international impact and industry leadership.

Points-Test and Permanent Skilled Migration Reforms

Under the Migration Strategy, the government is redesigning the points test for General Skilled Migration by:

  • Giving greater weighting to occupations aligned with national priorities (technology, health, renewable energy) rather than demographic factors.
  • Introducing a Skills Priority Pool for in-demand occupations to receive invitations outside occupation ceilings.
  • Reducing points for age and unrelated tertiary qualifications to focus on economic contribution.

These adjustments aim to increase employer-sponsored and innovation-stream allocations within the permanent program.

Regional and State-Nominated Pathways

Regional migration received a boost through reforms to the subclass 491 Skilled Work Regional visa—aligning its occupation list with the new Core Skills Occupation List (456 occupations) and indexation policies—and expanded state nomination quotas (rising from 30,400 to 33,000 places). These changes encourage settlement in non-metropolitan areas.

International Student Market Reforms

Effective 23 March 2024, minimum IELTS scores for student-visa applicants rose from 5.5 to 6.0 for standard programs (foundation programs remain at 5.5; graduate visas require 6.5). From 1 July 2025, the student-visa fee increased by 25 per cent to AUD 2,000, and the minimum annual financial-capacity requirement rose for the primary applicant. Work rights remain capped at 48 hours per fortnight during term for bachelor’s students, with unlimited in-field hours for postgraduates. Ministerial Direction 111’s two-tier processing (high priority vs. standard) continues to manage enrolment growth and maintain quality.

Humanitarian Program and Refugee Services

Australia’s Humanitarian Program remains capped at 20,000 places annually, covering offshore resettlement and onshore protection. Global displacement reached approximately 123.2 million by end-2024, and over 100 asylum seekers remain in offshore processing on Nauru as of November 2024. Advocacy groups press for an end to offshore detention and an expanded intake. The Refugee Council of Australia projects the one-millionth refugee visa will be granted between September and November 2025. Humanitarian demand now includes trauma-informed medical interpretation, culturally tailored orientation materials, community liaison services and advocacy-focused translations.

Labour Market Testing and Sponsor Integrity

To streamline compliance and protect migrants, new sponsor integrity measures include a single-portal LMT process replacing dual-media ads, a publicly accessible Sponsor Register, and legislation preventing unfair visa cancellations. Data-matching pilots between Home Affairs and the ATO aim to detect non-compliance and exploitation.

System-Wide Simplification and Governance

As part of the Migration Strategy, the government plans to consolidate low-use visa subclasses, eliminate redundant pathways, and empower Jobs and Skills Australia to manage occupation lists and planning levels based on independent labour-market advice.

Language Support That Keeps You Ahead of Evolving Migration Reforms

Ongoing migration reforms—from SID-stream compliance and family reunification improvements to innovation visas, regional migration programs, and expanded humanitarian intake—are creating a growing demand for high-quality, flexible language services. At The Hello Co., we offer tailored support to help you stay ahead of these changes:

  • Accurate business compliance translations, including SID nominations and Labour Market Testing (LMT) documentation.
  • Specialised humanitarian and trauma-informed interpreting, designed to support vulnerable clients with sensitivity and care.
  • AI-powered translation workflows that combine automation with expert human review, ensuring cultural accuracy and legal compliance.

Whether you're a government department, an education provider, a healthcare agency, or a non-profit organisation, our integrated language solutions empower you to navigate complex regulations, serve diverse communities with authenticity, and communicate in ways that are not only compliant but compassionate, inclusive, and future-ready.