Further SMC Updates
In September of 2025, the Government announced big changes to the Skilled Migrant Category (SMC), due to be rolled out almost 12 months later in August 2026 (we wrote about it here). In that announcement, the Government proposed two new SMC pathways, changes to how the median wage would be calculated for SMC applicants and then also the potential of new Amber and Red lists - lists of occupations that require additional criteria to be met, in order to qualify under these new pathways or excluding them entirely.
Yesterday INZ released further details in relation to one of these new pathways (for trades and technicians) and then also additional details in terms of the amber and red lists, whilst also clarifying some of the other proposed changes. The big news however are the inclusion of various roles on the new red and amber lists, which will give some potential applicants cause for concern and for some applicants already in NZ on Work Visas, and in those occupations on that list, the realisation that they may no longer qualify.
This week we tackle these updates and as usual go a bit deeper than just highlighting what they are, but we look at why these specific changes have come about and what impacts they might have.
Background
The September 2025 announcement of changes to the SMC system, were fairly significant, given they proposed to introduce two new pathways, for those in trades or technical roles, and then an opportunity for those with only work experience to also qualify. These pathways were aimed at plugging gaps in the existing system where applicants in these two groups had very limited options to qualify for residence. In a somewhat strategic move, the announcement was made with an almost 12-month lead time to deliver. One might suggest that this gave the Government some extended political mileage, with details of the changes being drip-fed, leading up to the election. Now, here we are in March 2026 with more information being…drip-fed.
Skilled Migrant Updates
The Government announced significant changes to the SMC system in November last year - with those changes slowing being updated before the roll out in August 2026.
Last years announcement also hinted at various other changes, most of which were aimed at reducing the overall work experience required for those on a work to residence pathway (bringing the maximum period down from three years to two), awarding additional points to people studying towards specific NZ qualifications, removing the need to meet the current median wage at the residence application date and then tidying up a few other areas of the rules, that were a bit messy.
While some of these changes, namely the red and amber lists make things more restrictive (and are basically signalling that these are roles we don’t want), the rest of the changes suggest a positive push towards allowing more applicants to qualify and more importantly, allowing them to qualify a lot quicker. There are also some acknowledgements that the previous system, had a few gaps and flaws that needed tidying up.
For those applicants who work in roles on the red or amber list, things just got a lot more complicated and potentially some applicants will now miss out, however given their are only 20 occupations on that list, it is a relatively small cohort of people, who either don’t qualify or who might have to look at alternatives.
In a world where many countries are really tightening the screws on migrants, and making things far harder to qualify, New Zealand is trending in the other direction, shortening qualifying times, opening up further avenues for a wider pool of people to qualify and simplifying the overall process. Perhaps a reaction to the increasing numbers of Kiwis heading offshore, combined with an expectation that as our economy recovers (and it seems to be heading that way) that we are going to need these people eventually.
New Pathways & Broader Changes
Potentially the biggest news in September, which has been updated this week is the introduction of two new SMC pathways to add to the existing three for qualifications, income and occupational registration. These two additions (pillars as INZ refers to them) will open the door to people who currently have been locked out of the process.
Two New SMC Pathways
Further details of the two new pathways for those with work experience and those in the trades have been released, including a list of the trades and technicians that will qualify.
Work Experience Pathway
The first new pathway is aimed at migrants who have built up significant experience working in skilled roles.
Under this pathway, applicants will generally need to:
Be working in a skilled role (ANZSCO skill level 1–3)
Have at least five years of relevant work experience
Have at least two years (of the five) of skilled work experience in New Zealand
Be earning at least 1.1 times the median wage
This pathway acknowledges that experience gained in the workplace can be just as valuable as formal academic qualifications. For many migrants who have already established themselves in the New Zealand workforce, this will provide a clearer and more achievable route to residence.
Trades and Technicians Pathway
The second new pathway is specifically designed for skilled trades and technician roles. These occupations are critical to New Zealand’s economy but historically have not always had straightforward residence options. To qualify under this pathway applicants will typically need:
A relevant Level 4 or higher qualification
At least four years of work experience after qualification
At least 18 months of skilled work experience in New Zealand
Earnings at at least the median wage
A list of eligible trade and technician occupations has also been published as part of the updates and is available here (list of eligible occupations). For tradespeople working in New Zealand, this could open up a more predictable pathway to residence than previously existed.
Change to Wage Requirements & Grace Period
Another important change relates to how wage thresholds are applied. Currently, migrants often have to meet different wage thresholds at different stages of the process, particularly if the median wage changes over time. Under the new system:
Migrants will only need to meet the median wage threshold that applied when they began their qualifying work experience
They will not be required to meet new, higher thresholds introduced later
There will also be a grace period of five months if the median wage increases shortly after a visa is granted. For many applicants and employers, this change will provide greater certainty when planning a pathway to residence.
Greater Recognition of New Zealand Qualifications
The updated system will also place greater emphasis on qualifications obtained in New Zealand. In many cases:
New Zealand qualifications will attract more points than equivalent overseas qualifications
Overseas qualifications will still require formal assessment through NZQA or recognised exemptions
This change encourages international students who study in New Zealand to remain in the country after graduation. However it also creates a problem in that the Master’s Degree in NZ pathway being sold as a “fast-track” to residence, particularly by unlicensed education agents and “counsellors” looking to make quick and easy money off referrals.
Further AEWV
Migrants who need up to 12 additional months of skilled work experience to meet SMC requirements will also be able to apply to extend their AEWV to complete that skilled work experience requirement, in order to secure residence. This change is scheduled to be introduced in 2027, which will give INZ time to work out how they actually assess this and then implement this in their IT systems.
Other Practical Changes
Several smaller but still important changes have also been announced, including:
Longer validity for English language test results in certain circumstances
Recognition of CPA Australia membership as occupational registration for accountants
A proposal allowing some migrants to extend their Accredited Employer Work Visa by up to 12 months if they need additional time to complete their residence requirements
While all of these changes may seem minor individually, together they are designed to make the system more flexible and practical for both migrants and employers.
Red & Amber Lists
The roll out of lists to identity and effectively “deal with” different occupations is not new and in fact the traffic light system, which was introduced during covid to deal with lockdowns and our personal freedoms was then later hinted at being a possible way to manage skills within our immigration system. The previous government introduced the “Green List” in 2022 to fast-track residence for roles facing major skill shortages. What we are now seeing is an expansion of that concept, with the addition of “amber” and “red” lists designed to manage immigration risk in certain occupations.
Red List
Occupations placed on the Red List will face much tighter rules and the signal here is pretty clear - these roles traditionally have been the subject of abuse, embellishment or applicants inflating the level of skill to qualify for residence and so the Government is looking to slow down (or ultimately remove) the ability for people in these roles to apply.
Applicants in these roles will not be able to use the new work experience or trades pathways but Instead they will generally need to qualify through one of the existing SMC pathways:
Earning 1.5 times the median wage, or
Holding a Bachelor’s degree or higher, or
Having recognised occupational registration
This effectively raises the bar for residence in occupations where Immigration New Zealand has identified higher risks of fraud and compliance. Given there are only 20 or so roles on this list, it is a very small cohort of people that could be impacted. However the bigger picture here is that we now have a list where INZ can add or remove roles that it doesn’t particularly want to deal with, in the same way the Green List allows the Government to add or remove roles we do want.
Amber List
Occupations on the Amber List can still access the Skilled Work Experience pathway, but with stricter criteria. Applicants may need to demonstrate:
Five years of relevant work experience in New Zealand, and
At least two years of work experience in New Zealand earning around 1.2 times the median wage
They can also still access the current qualification, income or registration pathways as well.
The overall aim here is to ensure that residence is granted to migrants who are genuinely working in skilled roles, rather than roles that have been artificially inflated to meet visa requirements. This is the half-way measure - roles that have had some issues in the past, but potentially are still viable.
In many ways the Green, Amber and Red lists operate exactly as a traffic light system is supposed to, giving some the go ahead, allowing some the chance to go ahead and making the process for others incredibly tough to the point where they potentially can’t move ahead. In many ways this is simple and effective (albeit not entirely inventive), however I would have preferred to see the Government be a little more direct. If there are roles we dont want under the SMC just exclude them. More on my reasoning for this below.
Impacts, Opportunities and Challenges
Overall, these changes and the information we now have, are positive and open up our SMC program to people who had, up until now, been unnecessarily excluded (those with good experience and trades and technicians). This creates real opportunities for many skilled applicants to make the move (or to be able to stay). The reduction in work experience required in total, is also a really sensible idea, because it aligns with our other work experience options and makes us a far more attractive destination. The minor changes and updates to wage requirements, the grace period on when to start calculating the applicable median wage and the introduction of a further 12-month visa to accumulate experience are also sensible fixes to issues previously exposed in the current system.
Alongside the opportunities however are some very obvious challenges, namely the introduction of the red and amber lists, that make it much harder for applicants in those occupations to qualify. However overall I think this is a good move, because we are aiming to operate a “skilled migrant” system, and in many ways, many of the roles on these lists, sit very much at the border of being skilled. More importantly they are often used by those looking for a backdoor to manipulate the system. Personally I would have gone a little tougher here and simply removed them from qualifying, allowing those individuals to work here temporarily, but not necessarily to stay here permanently (my industry colleagues may challenge me on that).
Where these changes have gone a little astray (in my view) is the emphasis on New Zealand qualifications, because in reality, the SMC program is about employability and as an example, having an MBA from Massey University, sold to you by an education agent as a fast-track to residence, when you as the applicant don’t have any real work experience, isn’t going to land you a skilled job in a hurry - and residence still requires that skilled job.
In addition, the red and amber lists could simply create a process where applicants who are desperate, working with employers who see an opportunity, manipulate wage rates to try and meet the new criteria. It has happened in the past, it happens now and it is likely to happen in the future. Perhaps not to the same degree, given these new requirements set quite a high bar.
While the changes are really positive and welcome, given the previous systems restrictions, I can’t help but think that this continues the thread of adding fixes, on top of fixes, to patch up a system that perhaps needs a complete overhaul. Of course overhauling the system from the ground up is a massive endeavour and doesn’t happen in a hurry, so these changes are necessary for now - but I would like (one day) for a Government to take a chance at rethinking it all, simplifying it, getting rid of the patch work of policy and engineering something that does what this does, but without all the overlapping bits of policy that still create a lot of confusion and angst for applicants.
In the meantime, if these new pathways, and shorter timeframe to residence, sound like they work for you, then get in touch with us to find out if New Zealand has just become a viable option for you. Alternatively if you are here and trying to work out what these changes mean for you, then we are on standby to help you work that out.
Until next week!
