New Permanent Residence Pathway for New Zealand Citizens from 1 July 2017

webster By Mark Webster
Tuesday, 23 May 2017

New Zealand citizens who have lived and worked in Australia for at least 5 years will be eligible for permanent residence from 1 July 2017. The new pathway will be part of the Skilled Independent Subclass 189 visa.

This article explains the visa requirements for the new pathway.

Residence Requirement

The new pathway is only available to NZ citizens who started living in Australia on or before 19 February 2016. You will need to show that you were usually resident at this time. If you were in Australia for a short visit for a holiday or business would not suffice. On the other hand, if you were temporarily outside Australia on 19 February but were usually resident before this, you may well be eligible.

You will need to show that you have been usually resident in Australia for a continuous period of at least 5 years prior to applying. This continuous period of residence would need to have started on or before 19 February 2016.

Showing that you are usually resident would normally involve 2 factors:

  • Physical presence in Australia; and
  • An intention to reside in Australia
Short visits outside Australia (eg holidays) would be acceptable, providing there is an intention to reside in Australia and you spend a significant amount of time in Australia. If you take up a job or permanent home outside Australia, this could affect your ability to show continuous usual residence in Australia.

You would need to have held a Special Category Visa (SCV Subclass 444) for the 5 years - this is the visa NZ citizens are usually granted on entry to Australia.

Income Requirement

You would need to provide ATO Notices of Assessment showing that you have earned annual taxable income at least equivalent to TSMIT (Temporary Skilled Migration Income Threshold) for the last 5 financial years.

The TSMIT has been $53,900 since 1 July 2013, but was $51,000 from 1 July 2012 to 30 June 2013.

Limited exemptions to the income requirement will apply - those currently announced include:

  • Maternity, paternity or carers leave - application of this exemption is discretionary; or
  • Inability to depart Australia due having been assigned primary care of a child by the Family Court of Australia and the child cannot be removed from Australia; or
  • Currently receiving compensation for injury and ongoing rehabilitation or compensation would be discontinued if departing Australia

Age Requirement

Unlike other skilled visas, there is no age limit for the NZ stream of the 189 visa. The age limit for the subclass 189 visa will otherwise reduce to 45 from 1 July 2017, and will be reducing to 45 for permanent employer sponsored visas by March 2018 so this is a significant advantage for older applicants.

Including Family Members

Even if they are not NZ citizens, spouses and dependent children can be included in the application. If applying onshore, they must hold a substantive visa or Bridging A, B or C visa.

Health and Character Requirement

All family members included in the application must meet health and character requirements.

The waivable health criterion 4007 applies - this means that if you have a health condition which involves significant cost or use of scarce medical or community services, you can still be granted permanent residence provided the cost is not undue. For instance, if you have significant assets or solid health insurance, and can prove that you can meet your own medical costs, you may still be successful in your application.

Most other permanent visas require family unit members to complete health and character, whether they are included in the application or not. This is not the case for the new application pathway - only family members included in the application need to complete health and character.

Application Fees

Application fees are in line with current fees for the Skilled Independent Subclass 189 visa. However, only 20% of the application fee needs to be paid at lodgement. The balance of fees would only be payable once you have met all other criteria and are likely to be granted the visa.

Fees payable are below:

Applicant Type At Lodgement Prior to Grant Total
Main Applicant $720 $2,880 $3,600
Dependents 18 or Over $360 $1,440 $1,800
Dependents under 18 $180 $720 $900

Unlike other permanent skilled visa types, there is no English Language Charge for applicants with less than Functional English.

Conclusion

For NZ citizens who were living in Australia on or before 19 February 2016, the new permanent residence pathway is extremely beneficial. In particular:
  • There is no English language testing, skills assessment, points test, or sponsorship by an employer
  • There is no age limit
  • The income level is relatively moderate - and exemptions apply for people on parenting or carer leave
  • There is a health waiver for applicants and family members with health conditions
  • The bulk of the application fee is only payable once the requirements have been assessed and the visa is about to be granted

New Zealand Citizens who meet the criteria should consider applying for the new pathway as it offers very favourable access to permanent resident status. Given the current political climate, the opportunity may only be available for a limited time.

If you would like to check your eligibility for permanent residence, please book a consultation with one of our advisors.

References

DIBP - An additional pathway to permanent residence for New Zealand citizens

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