EXPLANATORY STATEMENT

Migration Regulations 1994

SPECIFICATION OF INCOME THRESHOLD AND EXEMPTIONS FOR SUBCLASS 189 SKILLED – INDEPENDENT VISA (NEW ZEALAND STREAM) IMMI 17/035
(Paragraphs 189.233(2)(a),189.233(2(b))

1. Instrument IMMI 17/035 is made under paragraphs 189.233(2)(a) and paragraph 189.233(2)(b) of Schedule 2 to the Migration Regulations 1994 (the Regulations).
2. Applicants seeking to satisfy the primary criteria for the grant of a subclass 189 (Skilled – Independent) visa in the New Zealand stream must satisfy a minimum income requirement. Subclause 189.233 requires that, for each of the four income years before the application date, the applicant must either earn no less than a specified level of taxable income, or be in a class of exempt applicants.
3. This instrument operates to specify:

• For the purposes of paragraph 189.233(1)(a)  - the minimum amount of taxable income for the income year; and
• For the purposes of paragraph 189.233(1)((b) - the classes of exempt applicants and evidence in relation to that class

4.             The Instrument supports the new additional pathway to permanent residence for Subclass 444 Special Category visa (SCV) holders, which was announced by the Government on 19 February 2016.   SCVs are temporary visas that are available to

New Zealand citizens who are not of health or character concern, and remain in effect so long as the visa holder is in Australia and remains a New Zealand citizen. This additional visa pathway will be available from 1 July 2017.

5.             This pathway will be available as an additional visa stream within the Subclass 189 Skilled Independent (Class SI) category of the General Skilled Migration component of Australia's annual Migration Programme.  The objective of this additional stream is to provide a pathway for New Zealand citizens to apply for permanent residence status, which will enable them to apply for Australian citizenship after one year of permanent residence. 

6.             The exemptions specified in this instrument are limited to a very small group of applicants. This is consistent with the strategic intent of the visa to apply only to persons who have made, and continue to make, a demonstrated economic contribution to Australia.

7.             In developing this framework, consultation occurred through a whole-of-government process. Consultation also included the Government of New Zealand.

8.             The Office of Best Practice Regulation has advised that a Regulatory Impact Statement is not required (OBPR Reference 20260).

9.             Under section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015, the Instrument is exempt from disallowance and therefore a Statement of Compatibility with Human Rights is not required.

10.         The Instrument commences on 1 July 2017.