Skilled Migrant Category Updates
It has been talked about for quite some time, but this week, the New Zealand Government finally announced its biggest change to the Skilled Migrant Category (SMC), since the system was rolled out two years ago in October 2023. But before you start packing your bags and ordering your aisle seat on the next flight over, these changes wont come in to effect until mid-2026.
The changes fix, what was often argued as a very obvious hole in the 2023 version of the SMC, which was a fairly radical departure in and of itself, from our previous points based system. The hole being plugged is the ability for overseas work experience to be considered as a qualifying factor as well as creating a pathway more specifically designed for the trades.
The changes have been widely applauded, although like any immigration update, their are those who still don’t think its good enough. No immigration system will ever be perfect, and personally I see these changes as being based on common sense, fixing a real problem and very much welcome. At a time when many other countries are talking about immigration as if it was associated with the plague and threatening to close down policies, hike up application fees to ludiricous level or in the case of the UK, even retrospectively take visas away - New Zealand on the other hand is carving out better options for a much wider pool of skilled applicants.
These changes could change the fortunes for many would-be migrants, who up until now have been blocked out of the residence game, because the existing set of rules was very limited in scope and availability. So this week, we dive in to what the Government has announced, what the final rules might look like and how this changes the SMC landscape for future applicants.
What Has Changed
The changes announced very early on Tuesday morning have been many months in the making, and almost two years in the discussion process. Unfortunately the wheels on these changes often turn slowly because the current Minister is also having to fix various issues within our temporary work visa system, accreditation, and various other components of the relatively complex rules we have.
These issues are largely based on the former Governments lack of attention to the system and a string of former immigration Ministers who were focused more on their political capital, than the human capital an immigration system is designed to attract.
Two New Pathways
NZ will be offering two new resident visa pathways for those with skilled work experience and/or trade related qualifications.
Among the various changes announced the stars of the show were two new pathways under the current SMC points based system, broadly defined as follows:
Skilled Work Experience pathway
For migrants in skilled roles (ANZSCO 1 to 3) who have at least five years of directly relevant work experience, including at least two years of experience in New Zealand where they’ve been paid at least 1.1 times the median wage. This effectively creates a new work to residence offering for those that don’t have a degree, work in a registered occupation or earn a very high salary (the three base criteria we currently apply).
Trades and Technician pathway
For migrants in specified skilled roles (trade and technical roles) who hold a relevant qualification at Level 4 or above, and have at least four years of relevant post-qualification skilled work experience, including at least 18 months in New Zealand where they’ve been paid at or above the median wage. Again, this is another work to residence program for those in the trades who were also missing a viable option under existing settings.
What these two pathways create is the potential for almost anyone in a skilled role, with a moderate level of work experience, the ability to secure work in NZ and then work their way towards a residence outcome. Good, sensible and logical policy making to sort a problem.
What was also announced were some rather quiet, but potentially fairly significant tweaks to the existing system, that could actually have a profound effect on applicants already in NZ, particularly in how long it takes to secure residence.
Currently the maximum work experience period under our work to residence, points based process is three years - that will reduce to two years, meaning no applicants will have to work more than two years, before being able to qualify for residence.
NZ qualifications will attract more points, again creating faster pathways to residence.
Some points weightings will be adjusted to accommodate the above work experience changes.
Applicants wont need to be given a pay rise to the prevailing median wage when they apply for residence - that was long overdue.
Again, these changes tidy up messy policy outcomes left in the wake of the former Government’s somewhat ad-hoc approach to policy design and make a lot of sense. The changes all seem pretty clear, but of course the devil will be in the final policy release, which we would expect to happen towards the end of the year, or potentially early next year.
One part of the announcement that wasn’t expanded on and almost appeared as a footnote was a proposed change to the assessment and eligibility process for very specific occupations that INZ have always struggled to deal with:
“To ensure the new pathways are focused on where skilled and experienced migrants are most needed, additional eligibility restrictions will be placed on some occupations.”
This is fairly significant because it means that specific occupations will be singled out and have additional requirements added. If I was to guess what those occupations might be, it would include some specific hospitality and retail roles, massage therapists and some other more fringe roles that have always sat at the margins of being skilled. These have always been subject to embellished claims of being skilled and INZ having to argue with applicants and advisers, whether or not the applicant really does that role in it’s entirety.
Overall however, this is a great suite of changes, and welcome additions to the pathways that already exists. A little disappointing that some of these changes can’t be rolled out a little sooner (e.g. the removal of the median wage increase at time of residence or altering the work experience from three to two years), but we will take the good news while its flowing freely.
More Details To Come
Obviously these announcements have been broadcast far and wide and social media is alive with various people trying to be the first to announce how these rules will be rolled out, however until the actual criteria is formally signed off and made operational, all we have is the rough outline what is to come. I have learned over my time in the industry to plan ahead, but wait for those formal rules to appear, before making any firm commitments.
New Points Weightings
Additional changes will see a reduction in the maximum period of NZ work experience required from three years to two - along with some additional adjustments.
In saying that however applicants that might meet one of the two new pathways that have been introduced, those criteria do look pretty straight-forward and it would be hard for INZ to add too many hooks to what has already been announced.
Considering the rules will be made operational in only nine months and it takes time to plan, prepare and organise for the move, anyone who thinks they might fit in to either of those two pathways, should be potentially lining up.
There will also be a large number of people already in New Zealand, who came here on Work Visas, who previously did not have a pathway to residence, who have just been handed a potential lifeline. Unfortunately some of those wont be earning the right wage level, but now have a potential opportunity to fix that, in time to apply (one additional reason the Government may have announced this well ahead of making it operational).
The reason why it takes so long for these things to be rolled out, is that the incredibly expensive tech solutions that INZ use to deliver the visa system are incredibly difficult and slow to update, when policy changes like this are rolled out. Slightly embarrassing really, given the exorbitant amount of money that has been poured in to these systems…that still drive like a rusty Lada (no offence to Lada drivers).
Of course rules also have to be drafted, signed off and then added to the operations manual and that can add time to the overall process as well. I have first-hand knowledge as to how complex and intricate the design of new policy can be, and so I have some empathy as to the rollout taking longer than the migrant market might like. Be wary of people promoting an existing set of criteria or any information that might have been supposedly “leaked” as it is often wrong or just plain rumour.
The key thing is that there is light at the end of the tunnel for those who were left out in the cold by the last version of the policy, and for the thousands of employers who have been pushing just as hard for these options to appear, enabling them to keep their valuable staff onshore - permanently.
New Zealand’s Competitive Edge
The timing of this announcement is also telling because as the world becomes even more chaotic, many popular migrant destinations are pulling up their drawbridges. The UK is talking about either extending the Indefinite Leave to Remain timeframes (or getting rid of them altogether), the US has just announced a USD$100,000 fee on their H1-B visa, which is generally used to bring skilled talent in to the country and Canada has been steadily reducing its overall migration intake.
Attracting Global Talent
We are in a race for global talent and whilst some countries are tightening up, NZ is taking a more forward-thinking approach.
Immigration has become a rather hot (in some cases blazing inferno) topic and in places like Australia has led to anti-migrant protests, such as the recent one in Melbourne, with more protests scheduled for Brisbane. More locally, these changes did raise the eyebrows of one particular politician, but his protests were pretty quickly drowned out by the chorus of people cheering for common sense.
While the world seems to be tightening up on immigration generally, there is still a very fierce battle for talent raging on. Despite the political volleyball match that immigration often becomes, most countries need talent, particularly when it comes to trying to be at the cutting edge of tech, keep people educated or staffing hospitals. Skilled applicants still do, and always will have choice, when it comes to where they hang their tool belt, and New Zealand just upped the ante.
Opening up our SMC program to a wider pool of talent, sends a pretty clear signal. We are open for business. This ties in nicely with earlier announcements on our enhanced Active Investor Visa and soon to be delivered Business Investment Visas. Even though our labour market might be tighter at the moment, this Government realises that the war for talent isn’t just fought in the here and now, but is a long-term game. Add to this the increasing number of Kiwis heading offshore, keeping that skills pipeline open is going to become even more crucial.
This is something that previous Governments have struggled to grapple with, only rolling out changes when the need arises, and by the time the changes take effect, we no longer have the same need. Thinking ahead, planning for the longer-term and sending the right messages to the market are all part and parcel of operating a good immigration program.
I have been around long enough to have seen various Governments fumble the ball when it comes to immigration, and whilst the current coalition haven’t discovered the secret sauce, they do appear to be shopping for all the right ingredients. Of course next year is an election year, and the possibility of a new Government always brings about the potential for further change or repeal of policies. My hope is that what we are setting up now, becomes a viable framework for the much longer-term.
Time will tell.
What This Means For You
Ultimately these new pathways are going to open doors for more skilled migrants to make the move and across a much greater number of potential occupations. Some would-be applicants might have been holding off because of their inability to meet the current points criteria, or the time it takes to get to residence and both of those situations have potentially been solved.
However what I would also encourage applicants to consider is that while the Government has opened up the doors a little wider, to bring in more skills, your ability to qualify still depends significantly on securing the right job here - that requires an entirely different set of skills and tools to achieve. Being able to establish you meet visa requirements is one thing, determining how employable you are, is another.
Our job, when you engage with us, is to try and determine both of those key elements, by working out your visa options but also looking at what the job market might present you with and the viability of securing that offer. For some we might suggest coming sooner than later, given we can anticipate a good demand for their skills, whereas for others we might suggest holding back a bit and using that time to prepare and plan accordingly.
Whatever your situation is, New Zealand is clearly becoming a far more viable prospect for many migrants and whilst the rate and pace of change is rapid, all of these adjustments are pointing in the right direction. We are positioning ourselves as a destination for talent, skills and investment, and delivering practical common sense visa options enabling the right people to settle here.
Want to know more? Get in touch.
Until next week.
