Over the past three years, the COVID-19 pandemic has had a significant impact on immigration policies worldwide. In response to the crisis, many countries have experienced disruption and changes in how they manage their borders and immigration processes, including border closures, travel restrictions, changes to visa processing and shifts in immigration policy.
2022 was a significant year for immigration policy reform. New Zealand gradually reopened its borders and resumed applications for various visas, including skilled migrant, Working Holiday Visa (WHV) and Parent Resident visas. It also amended immigration rules for investor, work, student and post-study work visas, among others. As 2023 arrives, I would like to take stock of the major policy changes in 2022:
- Employer accreditation system(Accredited Employer System)
Employers can gain accreditation through the employer accreditation system, enabling them to employ migrant visa holders for up to 3 years under the Accredited Employer Work Visa (AEWV). Unless the role is on an exemption list, employers must pay at least New Zealand’s median wage and demonstrate that they cannot find a suitable New Zealander.
Overall, the employer accreditation system can ensure that work visas are used to bring in skilled, qualified workers who make a positive contribution to the economy. It also holds employers accountable for their workers’ welfare and promotes fair, ethical workplaces, benefiting both employers and employees.
Critics describe this category as a money-making scheme because it requires all employers to pay NZ$740 or NZ$1220 for the right to employ work visa holders, whereas no such fee existed previously.
The employer accreditation system could also have several potentially negative effects on migrant work visas. It may restrict migrants’ employment options to accredited employers, reducing the jobs available to them and making it harder to find work in their chosen fields. It could lead to worker exploitation, as accredited employers may have greater power over their employees. There is also a risk of bias and discrimination in the accreditation process: employers may be unwilling to hire migrants from certain countries or backgrounds, leading to unequal employment opportunities. Migrants tied to accredited employers may find it difficult to change employers, limiting their career development opportunities.
- Accredited Employer Work Visa (AEWV)
Applications for the Accredited Employer Work Visa officially opened on 4 July. This visa allows holders to:
- Work in New Zealand for an accredited employer offering at least 30 hours of work per week.
- Study for up to 3 months in any 12-month period, or complete any study required as part of their job.
- In certain circumstances, qualify for a Straight to Residence Visa, or obtain a Work to Residence, Highly Paid Residence or Care Workforce Work to Residence Visa after 2 years in the role.
Relaxing work visa requirements can stimulate economic growth by addressing labour shortages, attracting foreign investment and entrepreneurship, and supporting local businesses. Allowing skilled, qualified workers into New Zealand can increase productivity, create jobs and promote economic growth.
This new policy has been very popular, with nearly 38000 work visas approved in just the past 8 months, from July 2022 to March 2023.
By comparison, the previous record was 42000 work visas approved in 2018.
If approvals continue at the same pace, as many as 57000 work visas could be approved over the 12 months from July 2022 to July 2023!
- Border reopening
New Zealand opened to the world in July 2022, prompting a large number of visa applications from travellers eager to return.
Reopening the border could bring the following potential benefits:
Economic stimulus: reopening the border could attract more tourists, students and businesspeople, stimulating economic development and creating jobs. Stronger cultural exchange: open borders can also promote cultural exchange between New Zealand and other countries, improving understanding and appreciation of different cultures. Family reunification: reopening the border can reunite families separated by travel restrictions. Greater availability of goods and services: reopening the border can make it easier to access goods and services that are difficult to obtain domestically.
However, reopening the border may also carry risks, including increased transmission of COVID-19 and the need for additional resources to manage border controls. Open borders may also affect the domestic market, as imported goods and services can put competitive pressure on local businesses and markets. More tourism and transport activity could also harm the environment through air and water pollution, among other effects.
- New investor visa category opens
The old investor immigration programme officially closed on 27 July, with the new Active Investor Plus programme scheduled to launch on 19 September.
The launch of Active Investor Plus brings the following changes that warrant particular attention:
The high-value Investor Plus category (Investor 1 Category) is upgraded to Active Investor Plus:
Higher investment amount: applicants must provide funds or assets equivalent to at least NZ$15,000,000, up from NZ$10,000,000;
Changes to how funds may be used: up to 50% of the total investment may be allocated to passive investment, with the remainder required to go into active investment. Previously, there was no percentage requirement;
Adjusted investment weighting: NZ$1 invested actively can count as NZ$3. No such rule existed previously.
The standard Investor category (Investor 2 Category) is abolished.
At present, the timing of the new investor visa programme appears less than ideal. Very few people have shown interest since its introduction, and no one has been approved so far. This may reflect instability in the global economy, which has left many people uncertain about investing. The new visa also sets a higher bar, requiring larger investments and imposing stricter requirements on the source of funds, deterring some potential investors. Although the new investor visa programme can bring investment benefits, it has not yet achieved the expected results.
Over time, changes in economic conditions and a recovery in consumer confidence may bring more investors and applicants, injecting fresh vitality into the economy. We should therefore not give up on this new investor visa programme too readily; it needs time to develop and for its performance to be assessed.
- Restrictions on partners’ work visa rights
Immigration New Zealand had proposed ending work visas for partners of New Zealand work visa holders at the end of the year. This has now changed to limited work rights, provided the partner can find a job paying the median wage.
On the positive side, removing partners’ open work rights could reduce competition from migrants for local jobs and encourage employers to recruit more local workers, creating jobs and improving pay for New Zealanders. On the other hand, it may leave many people feeling unfairly treated and unwelcome, potentially prompting departures and separations. It could also create imbalance and conflict between work visa holders’ working and family lives.
Personally, I do not think this is the right time. Our economy needs more workers, and reducing the potential workforce during a recession could be dangerous. Although tourism and hospitality are recovering, other industries, such as agriculture and construction, need substantial numbers of workers to meet demand. During the COVID-19 pandemic, we also need sufficient workers to keep our healthcare system and other critical infrastructure functioning. Reducing the potential workforce could therefore adversely affect our economy and society.
- Skilled Migrant Category EOI selections resume
The reopening of the Skilled Migrant Category Resident Visa has been eagerly awaited. For the vast majority of people, it is the most viable route to applying for permanent residence in New Zealand. I predicted that the new points requirement would rise to 180, and I was half right. The first selection required 160 points, while all subsequent selections did indeed require 180 points.
Reopening the Skilled Migrant Category Resident Visa can provide more opportunities for applicants with the ability to work and live in New Zealand. This will help fill current labour shortages. However, those seeking permanent residence through this category must apply under the new points requirements. They therefore need a clearer understanding of their background and skills to determine whether they qualify.
However, I do not understand why the points requirement is being raised at this time. The additional 20 points will require applicants to work in New Zealand for another 2 to 4 years. Yet, as mentioned in the seventh point, the Government is planning a new “6-point” residence scheme. This means people seeking a highly skilled migrant visa may be unable to reach the required points within the next two years, because the entire system could change within 2 to 4 years.
- New “6-point” residence scheme
The “6-point” system gives migrants a clear skills threshold and several ways to demonstrate their skill level. Applicants must obtain at least 6 points to qualify:
- Applicants can earn 3 to 6 points through professional registration, qualifications or income, choosing the skills category that gives them the most points for their circumstances;
- Each year of skilled work in New Zealand earns 1 point, up to a maximum of 3 points;
All applicants must have a job or job offer in New Zealand paying at least the median wage.
For example:
- A scientist with a doctorate can earn 6 points for their qualification and apply directly for permanent residence if they have a job or job offer in New Zealand.
- A licensed building practitioner can earn 3 points for professional registration, with the points level yet to be confirmed, and can therefore apply for permanent residence after three years of skilled work in New Zealand.
- A chef earning 1.5 times the median wage can earn 3 points for their income and can therefore apply for permanent residence after three years of skilled work in New Zealand.
- A registered teacher can earn 3 points for professional registration, with the points level yet to be confirmed, and can therefore apply for permanent residence after three years of skilled work in New Zealand. A teacher with a master’s degree can earn 5 points for their qualification, meaning they need only one year of skilled work in New Zealand before applying for permanent residence.
Some occupations considered to carry immigration and labour market risks must meet a higher income threshold of 1.5 times the median wage to qualify for permanent residence. These include retail and hospitality roles for which employers should be able to draw on the domestic labour market and/or temporary migrant workers.
The system is designed around the principle of contributing to New Zealand each year. A bachelor’s degree that normally requires 3 years of study can therefore count for 3 points. Overall, this tells us that the Government wants the price of New Zealand residence to be equivalent to 6 years of your life: it hopes to attract and retain talented people committed to living and working in New Zealand over the long term. After all, these people play an important role in the stability and growth of New Zealand’s economy.
- “Green Li st”(Green List )
The Green List Straight to Residence and Green List Work to Residence pathways offer a fast track to New Zealand permanent residence for people skilled in occupations in particular demand, such as those in healthcare and education.
Among these, the “Priority Sector Work Visa” is offered to people working in certain New Zealand sectors, such as construction and horticulture. Holders can obtain permanent residence through this process but must meet specific criteria, such as work experience and qualification requirements in their field. The “Change of Employer Work Visa” is intended to help people working in New Zealand retain residence rights while changing employers.
So far, these two visa categories have achieved varying degrees of success. First, the work visa offers a simpler route, requiring only skills in a specific field, which makes it popular with many prospective applicants. Second, securing long-term employer sponsorship in that field makes obtaining a temporary work visa easier. Both routes are more straightforward than other ways of obtaining New Zealand permanent residence, so I expect these categories to become increasingly popular. Demand for occupations in healthcare and education, in particular, will continue to grow, making these visas more popular.
The risk for this policy lies in the comparison with Australia. Similar roles pay much more there than in New Zealand. If we make workers wait too long, they may choose to leave New Zealand, which would be a loss for both our economy and labour market. Immigration authorities therefore need to speed up processing so these skilled workers can obtain residence quickly and stay to contribute to New Zealand.
- 2021 Resident Visa making good progress
Despite good progress, many applicants from China are still awaiting decisions because of delays in national security checks and criminal background investigations. These checks are necessary to ensure applicants have no criminal record or security concerns, but they take considerable time and can lead to lengthy waits.
Most applicants still waiting have particular circumstances, including medical or family issues, work requirements or criminal records. These matters require longer assessment and investigation because they may affect applicants’ ability to live and work in New Zealand. For example, applicants may need additional healthcare or personal care services, or extra support and adjustments in the workplace. Criminal records may also pose potential threats to the safety and stability of New Zealand society, requiring more detailed background checks and assessments.
Overall, I consider the results of this residence programme positive: it has brought many committed new residents into the labour market. Unfortunately, many residents have also decided to move to Australia rather than continue building their lives in New Zealand. This may reflect Australia’s greater appeal in some respects, such as higher pay and better job opportunities. Some may also find New Zealand’s process for admitting migrants too strict, or its living environment unsuitable for them. Although these factors will lead some people to leave, those who stay will make a greater contribution to the country and bring new opportunities for economic development.
- Parent residence programme set to reopen
The parent residence programme is set to reopen after years of suspension, with lower income requirements for sponsoring children, a wider scope for joint sponsorship, and an increase in the annual visa application quota from 1000 to 2500. The Government has also established a new random EOI selection pool. Applications submitted after 12 October will enter this pool for selection under the new rules.
This is a much-anticipated measure. Policy changes have made parent immigration very difficult in recent years, so reopening this pathway is a major victory for many families. Nevertheless, the programme faces several challenges. Immigration authorities must ensure they can process large numbers of applications quickly. Many people may also be unable to meet the financial and health requirements, potentially resulting in unsuccessful applications. Overall, this is an important programme which, if implemented well, will help attract more migrants to contribute to New Zealand’s communities and economy.
For many applicants, however, the programme may still involve uncertainty and challenges. They may need to provide additional documents and evidence, such as medical certificates and police clearances. They must also meet various requirements, including providing proof of income and accommodation. Parents’ health may affect their applications: certain medical conditions could make applying more difficult or lead to a refusal. Before applying, they may therefore need medical examinations and the corresponding supporting documents.
Applying under this programme may involve complex procedures and requirements. However, preparing early, consulting professionals and providing the required documents and evidence should minimise the likelihood of problems.
Overall, New Zealand’s recent immigration reforms aim to make the country more attractive to highly skilled migrants and prioritise migrants’ contributions to the economy. New work and residence visa categories offer faster pathways for certain occupations, placing greater weight on work experience and professional qualifications in industries with strong demand. The reopening of the Parent Resident Visa is also good news. However, challenges remain, including attracting migrants without affecting domestic market competitiveness, and the speed of visa processing.
The new residence visa points system offers several pathways but requires a 6-year commitment, longer than under the previous Green List system. The Government’s requirement for a 6-year commitment from immigration applicants is substantial, but it also demonstrates how highly it values new migrants and their contributions. The system encourages new migrants to integrate more deeply into New Zealand society and make longer-term social and economic contributions. Meanwhile, New Zealand’s immigration requirements are relatively demanding compared with Australia’s. Those who truly wish to migrate to New Zealand and settle there must therefore make greater efforts to meet them.