Australian Immigration Weekly Update: Ministerial Direction Backlash, First ESOS Enrolment Ban, and Visa Fee Surge

Executive Summary

This week’s immigration landscape is dominated by mounting criticism of recent Ministerial Processing Directions, the unprecedented use of legislative powers to suspend international student enrolments, and new analysis revealing visa application fees as the Federal Government’s fastest-growing revenue stream. Industry specialists at the Australian Immigration Agency (AIA) examine what these developments mean for visa applicants, employers, and the broader migration programme.

Introduction

Australia’s immigration programme continues to face significant scrutiny, with policy shifts this week drawing strong reactions from industry stakeholders, employers, and migration advocates. From processing priority changes affecting skilled workers offshore to the first-ever suspension of international student enrolments under Section 96D of the ESOS Act, the past seven days have delivered substantial developments that warrant careful analysis.

Backlash Over Proposed Points Test Changes

Recent proposals to overhaul the General Skilled Migration points test have generated considerable concern among current and prospective migrants. The suggested reforms, advanced by a leading tax and transfer policy institute, have been met with resistance from individuals who have invested significant time and financial resources meeting the requirements of the existing framework.

Immigration experts at AIA firmly hold that any reform to the points test must include robust transitional provisions. The Department itself acknowledged in its April 2024 review of the points test (page 15) that “many migrants make life choices based on their prospects of obtaining permanent residence — where they live, what they study, and where they work. Reforms to the points test should, as far as possible, respect those decisions and give them certainty that their choices have not been wasted.”

While reform may be necessary to improve fairness for future applicants, the Agency maintains that the Department must balance these objectives against the legitimate expectations of those who structured their lives around the current system.

Ministerial Processing Directions 119 and 117: Offshore Workers Pushed to the Back of the Queue

Perhaps the most consequential development this week is the intensifying media and industry backlash against Ministerial Processing Directions 119 and 117, which collectively place the majority of offshore applicants at the lowest priority for processing across nearly every listed visa category.

Industry and Media Reaction

Coverage in The Australian this week ran under the headline: “Slowdown in skilled worker visas puts Government’s housing target at risk.” The article quoted Jocelyn Martin, Managing Director of the Housing Industry Association, who stated that the Albanese Government will not come close to meeting its target of building 1.2 million homes over the next five years without urgent intervention.

Construction Industry Impact

The impact on the building sector is stark. A Perth-based construction company recently contracted 162 tradespeople from the Philippines, all of whom remain waiting for visa processing — some for up to eight months. With a substantial backlog of projects and insufficient domestic labour, the company’s leadership has warned that critical infrastructure simply cannot be delivered.

Meat Industry Concerns

The meat processing sector is similarly affected. ABC News reported this week that Western Australia’s only major abattoir was unable to commence operations on schedule due to shortages of Subclass 482 (Skills in Demand) visa holders awaiting processing.

Partner Visa 309 Concerns

Immigration specialists have also raised concerns about the placement of Partner Visa (Subclass 309) applicants at the lowest priority. Notably, onshore partner visa applicants already have their partners physically present in Australia, whereas offshore applicants do not occupy any housing resources — making the policy rationale difficult to justify.

The Australian Immigration Agency anticipates that, as pressure mounts, the Government may be compelled to revisit processing arrangements, at minimum for critical skills shortage categories.

First-Ever ESOS Section 96D Suspension: Graduate Diploma in Leadership and Management

In an unprecedented move, the Federal Government has invoked Section 96D of the Education Services for Overseas Students (ESOS) Act 2018 for the first time to prohibit education providers from enrolling international students in a specific qualification.

Course Details

The suspended course is the Graduate Diploma in Leadership and Management (BSB80120), with the following scope:

• 452 education providers currently registered to deliver the course to international students
• 41,033 active Confirmation of Enrolments (CoEs)
• 15,772 students currently enrolled

Government Justification

The Department of Home Affairs suspended new enrolments on Wednesday, citing evidence that the course was being exploited by international students as a means of maintaining lawful residency rather than pursuing genuine educational outcomes.

Minister Julian Hill issued a statement noting that the previous government had “left a shocking mess” in 2022, with unsustainable growth in student numbers across the least reputable segments of the sector.

Implications for Current Students

Importantly, the Explanatory Statement tabled in Parliament confirms that international students currently enrolled in this diploma may continue their studies until completion or withdrawal. New enrolments, however, are prohibited while the suspension remains in force.

Visa Application Fees: Australia’s Fastest-Growing Revenue Stream

Analysis published in the Financial Review this week has confirmed that visa application fees are now the fastest-growing tax in Federal Treasurer Jim Chalmers’ budget, with revenue rising at an average of 17.3% annually — from $2 billion in FY2021-22 to a projected $7.1 billion for the FY2029-31 period.

The Australian Immigration Agency acknowledges the frustration felt by many applicants who perceive they are being treated as a revenue source rather than genuine migrants. This trend warrants continued scrutiny as fee structures are reviewed in the lead-up to future budget cycles.

Key Takeaways

• Transitional protections remain essential in any points test reform, consistent with the Department’s own April 2024 review findings.
• Ministerial Processing Directions 119 and 117 are causing acute labour shortages in critical sectors including housing construction, with industry calling for urgent intervention.
• The Partner Visa (Subclass 309) has been controversially placed at the lowest processing priority, despite offshore applicants placing no additional demand on housing.
• Section 96D of the ESOS Act has been used for the first time to suspend new enrolments in the BSB80120 Graduate Diploma, affecting over 450 providers and 41,000 existing CoEs.
• Visa application fee revenue is projected to grow from $2 billion to $7.1 billion annually — a development applicants should monitor closely.

Need Expert Guidance?

The Australian Immigration Agency continues to monitor these developments closely and stands ready to assist applicants, employers, and education providers navigating this rapidly evolving landscape. For tailored advice on how these changes may affect your circumstances, our team is available for both online consultations and urgent phone enquiries.

Disclaimer: This article reflects the position of the Australian Immigration Agency based on information available at the time of publication. Immigration policy is subject to change, and applicants are encouraged to seek current, individualised advice.