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Oct 29, 2025

Government Signals Major Overhaul of Points Test to Fast-Track Skilled Migrants

Government Signals Major Overhaul of Points Test to Fast-Track Skilled Migrants
In a National Press Club address on 29 October, Home Affairs Minister Clare O’Neil pledged to “fix a broken migration system” by redesigning the decades-old points-test and creating quicker, clearer pathways to permanent residence for highly skilled workers.

O’Neil said a new ‘skills-in-demand’ visa category would feature streamlined processing and salary safeguards, while existing temporary skilled visa holders would gain access to PR by year-end. The government will also tighten student-visa integrity measures but retain the overall permanent-migration ceiling at 185,000 places.

Business groups welcomed the direction, noting fierce global competition for talent and chronic shortages in construction, healthcare and advanced manufacturing. However, unions warned that faster visas must not erode wages or job security.

If implemented, the reforms could reduce assignment lead times and give multinationals greater certainty when pitching Australia-based projects. Mobility managers should start mapping roles that meet the forthcoming high-skills criteria and budget for the higher Temporary Skilled Migration Income Threshold (A$76,515) taking effect 1 July 2025.
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