Australia has recently rolled out a series of significant reforms aimed at expanding pathways for temporary migrants to achieve permanent residency (PR). These changes reflect the nation’s effort to address ongoing skills shortages while recognizing the contributions made by temporary skilled workers to Australia’s economy. Let’s explore how these reforms can benefit both migrants and employers in 2025.
Table of Contents
Key Changes in Australia’s Immigration Policies
1. Transition to Permanent Residency for Temporary Skilled Workers
One of the most significant changes involves the removal of the cap on the number of Short-term stream Temporary Skill Shortage (TSS) visa holders who can apply for permanent residency while remaining in Australia. Effective from November 25, 2023, the Australian government now allows TSS visa holders to apply for permanent residency without a specific cap. This change paves the way for smoother transitions for skilled workers looking to settle in Australia on a permanent basis.
Previously, temporary skilled workers faced limitations in their ability to transition to permanent residency, but this new policy change makes it easier for them to stay in Australia for the long term.
2. Enhancements to the Employer Nomination Scheme (ENS)
Another key development in Australia’s immigration reforms is the enhancement of the Employer Nomination Scheme (ENS). Employers now have the ability to nominate TSS visa holders from all streams, including those under Labour Agreements, for the ENS visa. This streamlines the process for workers who are already employed by Australian businesses to transition from temporary work to permanent residency.
Additionally, the occupation lists for transitional stream applications have been removed, as long as the occupation is listed in the Australian and New Zealand Standard Classification of Occupations (ANZSCO). This offers greater flexibility for employers and workers alike, ensuring that workers with skills across various sectors are not excluded from permanent residency opportunities.
3. Increase in Employer-Sponsored Migration Program Places
The Australian government has also expanded the number of places available for employer-sponsored migration. For the 2024–2025 migration program, the number of places for Employer Sponsored visas has been increased to 44,000, up from 36,825 in 2023–2024. This increase demonstrates the government’s commitment to addressing critical labor shortages in key industries and offering more opportunities for temporary migrants to become permanent residents.
Employers across Australia will benefit from this expansion, as they will be able to nominate more workers to stay permanently, thereby contributing to the long-term economic growth of the nation.
4. Humanitarian Visas: Temporary Protection for Fleeing Migrants
In addition to changes for skilled workers, Australia has also shown its commitment to providing refuge to those in need. Between October 2024 and January 2025, Australia granted nearly 1,000 temporary humanitarian visas to individuals fleeing the Israel-Hamas conflict. While these humanitarian visas provide work rights and social benefits, they do not yet offer a clear path to permanent protection. This is part of Australia’s broader strategy to provide temporary relief while addressing global humanitarian needs.
The move underscores the importance of Australia’s role in providing safety and support to people facing hardship while balancing immigration priorities.
5. New Visa Application Restrictions: Stopping Visa Hopping
Starting from July 1, 2024, new restrictions will make it more challenging for individuals on visitor or temporary graduate visas to apply for a student visa while staying in Australia. This rule is designed to stop “visa hopping,” a practice where individuals extend their stay in Australia without meeting the requirements for permanent residency.
Under the new regulations, applicants will need to apply offshore for a student visa, meaning they will not be allowed to return to Australia until their application is approved. This measure aims to create a fairer and more streamlined immigration system, ensuring that applicants are fulfilling all necessary criteria for residency.
What These Changes Mean for Temporary Migrants and Employers
The recent reforms in Australia’s immigration policies reflect a significant shift toward recognizing the value of temporary skilled workers and offering them clearer pathways to permanent residency. For temporary migrants, these changes mean better opportunities to build a life in Australia without facing as many obstacles in the immigration process. For employers, these reforms provide greater flexibility in hiring and retaining skilled workers from overseas, which is crucial in an increasingly competitive job market.
With the expansion of permanent residency pathways, Australia is positioning itself as a more attractive destination for skilled professionals, who may now have a clearer pathway to a secure and prosperous future.
Conclusion: A Forward-Looking Immigration Strategy
In summary, Australia’s expansion of pathways to permanent residency for temporary migrants is a strategic move to address the skills shortages and bolster the country’s workforce. These reforms, including the removal of caps for TSS visa holders, enhancements to the Employer Nomination Scheme, and the increased number of employer-sponsored migration program places, will create a more inclusive immigration system.
Additionally, the humanitarian visa changes and the introduction of new visa application restrictions demonstrate Australia’s commitment to balancing the needs of its economy with its humanitarian obligations. For anyone considering a move to Australia, these changes offer new hope for a successful transition from temporary work to permanent residency.
FAQs 
1. Who qualifies for the new permanent residency pathways in Australia? Temporary skilled workers on TSS visas, especially those in occupations listed under the Australian and New Zealand Standard Classification of Occupations (ANZSCO), now have an easier pathway to apply for permanent residency.
2. How will the increase in employer-sponsored migration program places affect employers? Employers will have more opportunities to sponsor skilled workers for permanent residency, making it easier to hire and retain talent in sectors facing labor shortages.
3. Can temporary humanitarian visa holders apply for permanent residency in Australia? Currently, holders of temporary humanitarian visas, such as those granted to individuals fleeing the Israel-Hamas conflict, do not have a direct pathway to permanent residency, though they are provided work rights and social benefits.
4. What is “visa hopping,” and how will the new restrictions prevent it? Visa hopping refers to the practice of repeatedly extending temporary visas without progressing to permanent residency. The new regulations will require applicants to apply offshore for a student visa, thus curbing this behavior.
5. What other benefits do temporary skilled migrants have in Australia now? In addition to the expanded pathways to permanent residency, temporary skilled workers can also benefit from increased job security and access to employer-sponsored permanent residency programs, making Australia a more attractive destination for global talent.
