The Skilled Migrant Category (SMC) is the main residence category and makes up over 50% of New Zealand’s residence programme.  In April the Government announced a number of changes to the SMC and these will take effect from 28 August 2017. Expressions of Interest under the existing policy, the first stage of a SMC application, were stopped on 19 July and from this time, and until the new policy takes effect, it has not been possible to begin a new SMC application.

A key change of the new SMC policy is the introduction of salary thresholds to, in part, determine if employment is “skilled”. These salary thresholds are indexed to the New Zealand median income of $48,859 and will be reviewed every year. Employment roles which are classified as ANZSCO (Australia & New Zealand Standard Classification of Occupations) skill level 1, 2 or 3 roles must have a salary of $48,859 in order to be able to be awarded SMC points. This salary equates to $23.49 per hour for a 40 hour work week.

For all other employment roles which are not at ANZSCO skill level 1,2 or 3 the salary must be $73,299 or $35.24 per hour.

If the employment is for at least 30 hours per week and at, or above, the mentioned hourly rates, then this is acceptable.

There will also be bonus points for applicants who earn over $97,718 per year.

It is expected that INZ will closely investigate those applicants who will have had recent significant pay increases which have resulted in their salary rising to the above thresholds to confirm these increases were genuine and merited.

More SMC points will be available for greater work experience. However this work experience must be assessed as being skilled work experience requiring, most likely, that this experience be consistent with ANZSCO skill level 1,2 or 3 roles. This requirement is expected to prove one of the more contentious and challenging changes as it will significantly disadvantage younger applicants and recent graduates whose work experience is less likely to be assessed as being skilled.

The changes will also result in applicants aged 30-39 years, and those with postgraduate qualifications, to be able to claim more points (than currently).

A number of points criteria from the existing SMC policy will be removed including those relating to close family in New Zealand, points associated with Identified Future Growth Area and for qualifications in an area of absolute skills shortage. The additional points offered for skilled employment outside of Auckland will remain but the points available for New Zealand work experience will be limited to 12 months only.

INZ will need to allow some time, after 28 August, for applicants who have EOIs currently sitting in the EOI pool to review and edit their EOIs according to the policy changes and for new EOIs to be submitted under the new policy. For this reason we do not expect to see the next EOI selection draw until at least 6 September and probably 13 September. While applicants only need to claim 100 points for their EOI to be submitted into the pool the passmark has been retained at 160 points since October 2016. It is expected the Government may initially keep this same passmark and wait and see the level of EOIs which are able to be selected. There will be a build up of EOIs due to the 2 month closure and due to the group of applicants who are immediately eligible under the new points criteria, however the expectation is that the passmark will need to reduce from 160 points in the future in order for the residence programme target to be met.

It is always highly recommended professional advice is obtained from a licensed immigration adviser to best determine how these or any other policy changes may affect a person’s current immigration situation and future visa pathways.

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