Venkat Raman
Auckland, December 17, 2024
The government is supporting businesses to secure the skills and experience New Zealand needs by continuing to refine the Accredited Employer Work Visa (AEWV), Immigration Minister Erica Stanford has said, adding that a responsive immigration system is fundamental to rebuilding the economy.
“Earlier in the year, we made initial changes to the AEWV to get unsustainable net migration under control and reduce migrant exploitation. Since then, Immigration New Zealand (INZ) has also made operational changes and focused on upskilling immigration officers to mitigate risk, significantly increase productivity, and speed up AEWV processing,” she said.
Ms Stanford quoted the example of the median Employer Accreditation processing timeframe to explain the improvements made.
This timeframe has reduced from 62 calendar days to 14, and productivity in the Job Check has doubled. These efficiency gains alongside the changes announced today will ensure that the government has the right balance of ensuring that New Zealanders are prioritised for job opportunities while providing a more fit-for-purpose and responsive visa when a business needs to employ a migrant.
Median Wage threshold removed
Ms Stanford said that she would remove the median wage threshold in March 2025, as set out in the National Coalition Agreement with ACT.
“The previous government used the median wage as an artificial proxy for skills which did not work. Instead, it distorted wages and in some cases resulted in businesses paying migrant workers more than New Zealanders doing the same job. Other businesses had to increase prices to ensure pay equity across Kiwi and migrant workers, she said.
Among the other changes being effected from March 2025 include (a) Reducing the minimum experience requirement for lower-skilled migrants to two years (b) Increasing the visa duration for new applicants in Level four to five roles from two to three years to align with the maximum continuous stay (c) Extending interim work rights to AEWV applicants who are applying from any work visa type or from a student visa that allows them to work during term time. This will support migrants to maintain employment while their visa is processed (d) Reduce the domestic workforce threshold for labour-hire employers of certain construction roles from 35% to 15% (e ) Amending the labour market test to a declaration-based model. Employers must advertise with the Ministry of Social Development and demonstrate that they considered New Zealanders who applied for any role in good faith.
The income threshold for an AEWV holder to support a dependent child will increase from $43,322 to $55,844, adjusting to inflation.
New Seasonal Visas
Ms Stanford said that the Cabinet has also in principle two new seasonal visas to be implemented in late 2025.
“These visas will provide a more nuanced and flexible response to differing needs of businesses in certain sectors and regions. While further design work is underway, the current seasonal subcategory visa will be extended. INZ is undertaking a re-design of the Job Check step of the AEWV process to allow for greater streamlining for low-risk employers. It is my expectation processing times improve further as a result,” she said.
Ms Stanford said that the government’s focus will continue to attract more higher-skilled workers while managing migration levels responsibly.
“This is to ensure that New Zealand has access to the skills needed. These changes will support a smarter, efficient and predictable immigration system,” she said.
The key changes
Wage thresholds for all AEWV roles will be removed. Employers must advertise and offer AEWV employees the market rate for their position and workplace location. This change does not affect existing employment agreements. There are no changes to the wages that AEWV workers must earn to apply for residence.
New earning threshold
AEWV migrants will need to earn at least $55,844 a year to bring children, along with meeting other criteria. This threshold has not been updated since 2019. Reducing the experience requirement for migrants. The experience requirement for migrants will be reduced from three years to two years. This ensures migrants are sufficiently skilled while addressing key issues raised during consultation.
Seasonal Workers: Two new pathways for seasonal workers will be introduced, including a three-year multi-entry visa for experienced workers and a seven-month single-entry visa for lesser-skilled workers will be issued in November 2025. Until then, the existing temporary seasonal pathways will continue.
The visa duration for ANZSCO Level 4 or Level 5 AEWV holders will be increased to three years on the Australian and New Zealand Standard Classification of Occupations (ANZSCO).
The visa length will change from two years (with the option of one additional year) to three years to align with the total time these workers can stay in New Zealand (their maximum continuous stay). Those currently on two-year visas will be able to apply for a further AEWV for one year if they meet the requirements.
Work and Income Requirement
The current requirement for employers to engage with the Work and Income will be amended to be declaration-based. Employers must declare that they have, in good faith, advertised ANZSCO skill level 4 or 5 jobs with Work and Income and interviewed candidates who could have been suitable for the job. This can be done alongside the recruitment that employers will already be undertaking in the domestic labour market. There will also no longer be a set 21-day timeframe.
Work Rights Extension
From April 2025, interim work rights will be extended to AEWV applicants who are applying from any work visa type or from a student visa that allows them to work during term time, supporting migrants to maintain employment while their visa is processed.
Removing the requirements for completion of Employment New Zealand online modules
The requirements regarding online modules will be removed from 27 January 2025 for all current and future accredited employers and Recognised Seasonal Employers (RSE).
INZ will instead provide employers and workers with links to freely available Employment New Zealand or INZ webpages that set out employment rights and obligations at the most appropriate points in the immigration process.
Reducing the domestic workforce threshold for certain construction roles
The domestic workforce threshold for employers of certain construction roles is being reduced from 35% to 15%.
More information about the changes will be available in early 2025.