Skilled Migrant Visas Explained

If you have never heard of a Rube Goldberg machine, then the above image might not make much sense, but to bring everyone up to speed, they are basically a clever and very complicated machine (or group of machines) that makes a simple process (like switching on a light) as complicated as humanly possible - with often ludicrous, over the stop steps, added just for fun.

If you have ever tried to decipher what our current Skilled Migrant category looks like or how it operates, with the very simple end goal being to attract skilled, employable people - you could be forgiven for thinking that INZ have created their very own Rube Goldberg machine.

The irony of course, is that in developing the current suite of Skilled Migrant options, the plan was to simplify everything. In some ways they have simplified things for themselves, taking a lot of work out of the process for immigration officers who have to handle these applications, but in other ways, by adding multiple versions of Visas that all have the same key goal, they have in fact created an immigration system that Rube would be proud of.

So in an attempt to demystify the mystical and clarify the complicated I am going to summarise what the key options are below for those that are skilled, employable and looking to make the move.

There are in effect two main skilled pathways - which unfortunately have very confusing names. One is called the Skilled Migrant Category and the other is called Skilled Residence - and yes you guessed it, they both involve “skills”, which in reality translates to “jobs”. The main difference between the two is that one of these pathways uses a points based system, the other one doesn’t.

Both pathways involve securing employment in New Zealand, applicants need to be under 56 years of age, meet health and character standards and also speak a reasonable degree of English. The differences however are quite significant.

Skilled Migrant Category (the one with points)

We should start off with the Skilled Migrant Category which has been a part of our system for decades but has recently been completely overhauled. The latest incarnation of this Visa arrives on the scene in October. Previously this category was a very complicated mess of different points factors, where officers were tasked with assessing multiple claims to points to determine if an applicant qualified.

To simplify this, the Government introduced a far more simple, six-point system that allows applicants to draw points from only two factors to reach those six points. The best way to summarise this is with the table below:

Applicants can chose points from one of the columns on the left (but only one) and then top up their points (if they need to) with points from the much smaller column on the right.

For most applicants, some amount of New Zealand Work Experience will be required to make this work.

Bear in mind that points alone don’t qualify you and every applicant must have skilled employment in New Zealand or employment where the salary on offer is at least 1.5 times the median income (at which point skill is less important). That employment must also be with an Accredited employer, which is a significant change from previous skilled migrant pathways and a nod to how reliant this Government is on the Accreditation program (despite it turning out to be a bit of a lemon).

As far as points go, the qualifications and income columns are pretty easy to work out, however the registration column does have a fair few people scratching their head. INZ have tried to solve this by creating a specific list of occupations that fall in to this category and how many points each occupation might secure for that registration process - that list however is it’s own Rube Goldberg machine. Some occupations that you would think are a “six-pointer” end up with less and others that should be lower down the ladder, end up much higher. There are occupations on there that you don’t technically require registration as well…so its not always obviously who can and can’t use this points factor.

The biggest missing piece here is points for work experience, which INZ have admitted, were removed largely because it was all too much work to try and verify. That was a mistake in my view, because work experience has and always will be a strong measure of someone’s skills and the value they can potentially add.

Given the relatively high thresholds involved to score six points right out of the gate, this policy will see the vast majority of applicants on a “work to residence” style pathway. That will mean the process to secure Residence here will continue to involve a multiple-step and multiple-visa approach. A Visa to come and find a job (usually just a Visitor Visa), then the Work Visa to take up the job and then eventually after one, two or three years, Residence.

What is really important to add to this explanation is that the particular Visa pathway does not require your NZ job to be on a particular “shortage list”. If it is skilled (and that covers a wide range of jobs) or you are paid 1.5 times the median wage then your job can be used. From florists to accountants, engineers to secretaries…the range of occupations that can potentially qualify is very large.

Skilled Residence (the one without points)

The second option, which is the one without points is actually more than just one pathway, but it consists of three separate options, one being faster than the other two, two requiring a particular level of skill and one only being available to specific roles in specific sectors - yep right there are steps one, two and three of a good Rube Goldberg machine.

Straight to Residence - Tier 1, Green List

The first of our three pathways, which is both the easiest to understand and the fastest. This is for those lucky souls who secure a job offer that is contained in Tier 1 (the top half) of the Green List. This list covers some quite specific occupations in healthcare, ICT, education and so forth. Each occupation has its own requirements such as qualifications, experience, registration or salary (or a mixture of these) and jobs have to be with Accredited employers.

However that is all that is required and apart from being under 56 years, healthy, of good character and speaking English, there is no points threshold to meet, two-step EOI process or any other overarching criteria. It is a very simplified process, designed to attract those skills that we desperately need and to bring them in quickly. Applicants can apply straight away for Residence (hence the name) and processing is geared towards being swift, although there are things that can slow down any application, so a Work Visa might still be required.

Work to Residence - Tier 2, Green List

Our next contestant is the slower, slightly more involved pathway referred to as “Work to Residence”, where applicants have to work in New Zealand for a period of two years in an occupation on the Green List, Tier 2 for a period of two years, before Residence can be applied for.

Tier 2 of the Green List contains occupations that are in demand, but perhaps not quite as critical and usually at a slightly lower skill level. In this case the process involves securing the Work Visa in order to work your way towards the end goal of being able to apply for Residence. Again you have to work for an Accredited employer and also earn at least the median wage or whatever salary is specified for that occupation.

However you have to bear in mind that only certain Work Visas qualify toward the two years, you have to work in that specific occupation over the two years and if your occupation has a wage requirement on the Green List, you need to stay on that wage for the full two year duration and those wage levels increase annually.

Work to Residence - Sector Pathways

Finally we have a Work to Residence option carved out for specific sectors, for which currently there are two - the care workforce and the transport sector. These cover a variety of jobs within those sectors and have specific (usually lower) salary thresholds than other categories. Much like the earlier category this option requires applicants to have worked here on specific Work Visas, earning the right income (unless exempt) for a period of two years before Residence can be applied for.

The door for the two work to residence options, opened today and it will be very interesting to see how big the uptake is.

Why Is It So Complicated?

Good question, glad you asked.

The simple answer is that the current Government (we have elections in October) has added layers upon layers (like a Sara-Lee cake) to the process to appease various industry groups who have been able to shout the loudest. The reality is our system aims to achieve one thing and that is securing skilled, employable, English speaking applicants to fill gaps in the labour market and support our economy in its attempt to expand.

That could have been achieved very easily within a single Visa pathway. When the start and end-points are the same, one system that allowed occupations to be prioritised over others (by way of points or some other mechanism) would have created a far easier solution.

This isn’t a problem unique to New Zealand, many other top-migrant destinations do the same thing, starting with one pathway and layering on top all the various add-ons that various sectors of the economy might demand - creating a Rube Goldberg machine, with a multitude of quirks and steps to flick on the migrant talent switch.

Will this change under a new Government? The first question is whether we will have one and while it is looking likely, this is a pretty close race. There will be change, but whether that changes brings about some real simplicity or just more of the same layering approach is anyone’s guess.

For the prospective applicant however, the key thing to focus on is the simple fact that no matter how complicated, bizarre or quirky our system is, the fundamental need has never changed - the need to bring in skilled people to fill skill shortages.

To find out if you might be one of those people and where you might fit within this complicated machinery of Visas, why not book in for one of our seminars or complete one of our eligibility assessments.

I am sure we can help you flick on the Visa lightbulb in just a few easy steps.

Until next week.

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