Over last weekend my phone started to ring off the hook following the announcement by the Government that they were doubling the sc485 Temporary Graduate visa from $2,300 to $4,600. It’s not the first time a government of any persuasion has introduced a major change to migration law or visa prices without notice but the scale of the increase was exceptional. Certainly, many in the migration advice industry and particularly new players were caught off guard.
Assistant Minister Julian Hill and his fellow ministers have a complex job balancing the very important interests of the international education sector with broader concerns about migration numbers and infrastructure capacity. Julian Hill is widely perceived as doing a good job and being well engaged with the sector. However, given the Government has made significant progress in returning net overseas migration to more sustainable levels of 306,000 at December last year – well down from the post COVID peak of 555,000 in 2023 – the question is was this VAC (visa application charge) sledgehammer to the 485 program really necessary?
It’s impossible to guess the policy rationale for the 485 visa hike. Some have speculated it is a cash grab directed at individuals who have no vote. Others argue that it is an attempt to soften demand in the temporary graduate scheme noting the large numbers now on-shore at around 225,000 – which is well up on previous years. Perhaps it is a mixture of both! Given the increase was slipped in quietly over the weekend at the same time as a major new international conflict not many journalists have asked the question!
Whatever the rationale the scale and audacity of the increase seems hard to justify. The timing also couldn’t be worse for international students whose student visas generally expire in mid-March and who generally apply for their 485s just before that expiry date. Migration professionals also been forced to have difficult conversations with their clients explaining that VAC increases are beyond their control and at the whim of the Government.
Particularly intriguing was the decision to apply the 100% increase to the post-vocational stream of the 485 visa. This stream includes tradespeople that our economy desperately needs, particularly given our housing shortages. Master Builders Australia just last month noted ongoing skills shortages in the construction sector and highlighted the need for targeted reforms in the skilled migration sector to help find the labour to build the homes that Australians desperately need. The 485 VAC price signal works against this and could well reduce one highly flexible source of skilled tradies for our construction sector which is so desperate for tradies.
Unfortunately, unless the Coalition and Greens decide to disallow this instrument in the Senate, which is probably unlikely, this VAC increase is likely to remain. The Migration Institute of Australia and our members and clients would like greater consultation on migration policy changes, balanced of course against the government’s need not to be overwhelmed by applications preceding major policy changes or price hikes. Maybe even the long awaited for migration strategy might help. Also, a little bit more concern for the best interests of international students, who are so important to our economy and regional engagement, wouldn’t go astray.
For migration practitioners the take away message is always remind clients that government laws and prices are subject to change without notice, nothing is guaranteed, and as one of our more astute members Jonathan Granger said, ‘lodge don’t wait is the lesson learned’.
Peter van Vliet was appointed as CEO of the MIA in 2024. Prior to this, Peter has worked as a senior executive in the Commonwealth and Victorian governments, including for the then Department of Immigration and Citizenship. He has also led several non-government organisations and has had some experience practising as a registered migration agent. Peter has a Master of Arts from Monash University, a Graduate Diploma in Corporate Governance from the Governance Institute of Australia, and a Graduate Diploma in Migration Law from Victoria University. Peter also serves on the board of Settlement Services International.
