More major moves from Immigration New Zealand: are you in the safe zone or the danger zone?
Immigration is also a very important issue for New Zealand’s economic development. At an INZ/immigration adviser meeting held by Immigration New Zealand (INZ) on 26 March 2021, referred to as the “326 adviser meeting”, INZ indicated that a series of immigration policies would be adjusted this year.
As of March 2021, New Zealand’s entire immigration system had been “frozen” for more than a year.
New Zealand is an island nation whose economy relies heavily on agricultural and natural resource exports. Tourism has grown rapidly in recent years, and tourism earnings have also become an important source of national income. So, while the government’s response to the Covid-19 pandemic has provided safety and protection, closing the borders and freezing immigration can only be temporary measures. New Zealand cannot shut itself off from the world indefinitely. We can hold our breath for a while, but we need to breathe.
Immigration is also a very important issue for New Zealand’s economic development. At an INZ/immigration adviser meeting held by Immigration New Zealand (INZ) on 26 March 2021, referred to as the “326 adviser meeting”, INZ indicated that a series of immigration policies would be adjusted this year. The timing of the resumption of EOI selections remained to be agreed, but the points threshold could rise from 160 to 180 or 200, and the minimum pay threshold could rise from NZ$25.5 to NZ$27. Partnership-sponsored immigration currently had no major changes; the Parent Category would remain closed; investor visa applications were being processed as usual; and the timing of the border reopening remained undecided…
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EOI: reopening date undecided, requirements set to rise
Although EOI selections will almost certainly reopen, as of 26 March this year, INZ had still not decided when. At the 326 adviser meeting, INZ reiterated that “every aspect of EOI is still under review”. Although no conclusion has been reached, this strongly suggests that EOI points and other requirements may increase.
INZ has received more than 7000 EOIs awaiting assessment. Any changes to EOI scoring would therefore affect more than 7000 applicant families. Based on the 326 adviser meeting, I believe the following changes to EOI scoring are possible:
- An increase in the points threshold from 160 to 180 or 200;
- A minimum work experience requirement, similar to assessment under the Investor 2 Resident Visa category, which has a minimum work experience requirement;
- A requirement for all adults to sit IELTS and achieve a minimum score, replacing the previous practice of allowing partners and dependants to pay ESOL fees;
- Points awarded for English test results, similar to the points system for the second investor immigration category;
- Priority for people already in New Zealand;
- Priority for people with better English test scores;
- Priority for highly paid applicants.
As for the practical effect these changes would have on the EOI system, the Immigration Minister has announced a review of the SMC system. We can therefore be certain that change is coming. A transitional arrangement is also being discussed, meaning candidates who have already submitted an EOI may have an opportunity to be assessed under the old rules for a period.
Based on my own experience, I predict major changes to the current EOI system. The current EOI points scheme may even disappear altogether.
Work visas: minimum pay threshold set to rise
Current work visa requirements have not changed significantly since December 2018. However, INZ may raise the immigration pay threshold again, from NZ$25.5 to NZ$27 an hour.
In fact, back in the middle of 2020, Statistics New Zealand reported median earnings of NZ$27 for June. However, many low-income people had lost their jobs during the pandemic and were excluded from the statistical sample. Alongside government subsidies, this meant the figures did not reflect conditions at the time. INZ therefore did not raise the median pay benchmark for work visas and skilled residence to NZ$27. At the 326 adviser meeting, INZ also explicitly stated that the median wage benchmark would need to be redefined after the borders reopened. I therefore predict that the minimum pay threshold will rise to NZ$27 an hour in the second half of this year.
INZ’s current work visa requirements are as follows:
- All employers must be accredited before they can support a work visa application;
- Employers must advertise locally and first try to recruit New Zealand employees;
- For lower-paid jobs, currently below NZ$5 an hour, visas last only 6 months;
- For higher-paid jobs, currently above NZ$5 an hour, visas last 3 years;
- From July 2021, the threshold between lower and higher pay will rise to NZ$27 an hour;
- Employers must have a certain level of New Zealand employees to apply for work visas.
For other work visa information, please see my articles on work visa changes dated 27 July 2020 and 11 March 2019, which discuss the changes introduced from December 2018.
Partnership sponsorship: no changes to the details, no backlog
INZ has not yet adjusted the details of partnership-sponsored visas. Importantly, processing in this category is almost up to date, with very few applications backlogged.
I believe partnership sponsorship is the best category, and the one most likely to be considered, for people seeking permanent residence. For more information on partnership sponsorship, please see my article in the October 2019 issue of YIJU magazine, entitled “
Parent Category: closed until the borders reopen
Because of the pandemic, the Parent Category Residence programme, which had been due to reopen soon, remains closed. INZ currently classifies it as a low priority. I believe it will not reopen until the borders are fully open, at the earliest.
The Parent Investor Category remains available, and applications are being processed. For application details, please see my article published in 2018, which discusses the requirements and how to apply.
Investor immigration: proceeding as usual
Investor immigration applications are being processed as usual. However, if an applicant is outside New Zealand, permission to enter will be decided case by case. Please contact me directly for more information, as investor immigration applications are highly complex and beyond the scope of this article.
Visitor visas: unlikely to reopen before year-end
Based on information shared by immigration managers at the 326 adviser meeting, I believe General Visitor Visas are unlikely to reopen to people outside New Zealand until at least the end of 2021. INZ expects low demand for this visa category. This can be inferred from its announcement that many offshore offices will close, including the conversion of the Beijing visa centre into a team that does not process visas. However, there is still a sound process for handling applications from people who have important reasons to enter New Zealand.
The time limit on visitor visas already issued has also been removed. This means people in New Zealand can continue applying to extend their visitor visas until further government notice.
A Critical Purpose visitor visa may emerge in future to replace the General Visitor Visa for people with special reasons to travel.
Borders: a gradual reopening is under way
Professionals believe the borders may gradually reopen as international students continue to be allowed in, but the precise timing will require ongoing assessment.
The current bottleneck is a shortage of isolation hotels, with insufficient facilities for managed isolation and quarantine (MIQ). People returning to New Zealand take up most places. However, as time passes, fewer New Zealanders will be returning, reducing pressure on MIQ and creating more opportunities for other travellers to enter.
New system: operational within the next 18 months
INZ’s new online visa application platform will have little impact on applicants; its main purpose is ease of use. INZ says the new or upgraded system is expected to become operational within the next 18 months and is intended to accept all immigration visa applications online.
Overall outlook
Safe zone: applicants in New Zealand
Applicants who have already submitted residence applications and are in New Zealand are highly likely to be approved. Processing has reached applications dated August 2019, and INZ is currently working to catch up.
INZ’s figures show consistently high approval rates for people who have already applied, with most applicants responding positively to PPI letters raising immigration concerns.
Danger zone: applicants outside New Zealand
For those who qualify but have not yet applied, the process may become harder than before. INZ says “one consideration is whether people are already in New Zealand”.
This means applicants waiting to become eligible may be in the danger zone, although the outlook is less troubling if they are already in New Zealand.
Unfortunately, if you are outside New Zealand and are not applying under the partnership-sponsored category, your chances of success do not look particularly high.
Everything remains under consideration by INZ, and we expect some new policies to emerge in April.