IMPACT – MEDIUM

What is the change? New Zealand is poised to increase income thresholds for Skilled Migrant Resident Visas and Essential Skills Work Visas.

What does the change mean? The salary thresholds will increase by 2% across the board on Feb. 24. The exact amounts vary depending on the type of visa, job category and skill level, as detailed below.

• Implementation time frame: Feb. 24, 2020.
• Visas/permits affected: Skilled Migrant Resident Visas, Essential Skills Work Visas.
• Who is affected: Companies sponsoring foreign nationals on a Skilled Migrant Resident Visa or Essential Skills Work Visa.
• Next steps: Immigration New Zealand anticipates it will adjust salary thresholds again in November 2020.

Additional information: The new thresholds are based on the country’s median salary of NZ$25.50 per hour or NZ$53,040 per year for a 40-hour work week.

Skilled Migrant Resident Visas (all figures in New Zealand dollars):

Skill Level	Current threshold	Threshold as of Feb. 24
Skilled employment in an occupation at ANZSCO skill level 1 to 3	$25 or more per hour ($52,000 per year)	$25.50 or more per hour ($53,040 per year)
Skilled employment in an occupation at ANZSCO skill levels 4 and 5	$37.50 or more per hour ($78,000 per year)	$38.25 or more per hour ($79,560 per year)*
Pay rate to claim bonus points in an application	$50 or more per hour ($104,000 per year)	$51.00 or more per hour ($106,080 per year)

* Some occupations at ANZSCO skill levels 4 and 5 are treated as an exception. From Feb. 24, the threshold for skilled employment for these occupations will be $25.50 per hour ($53,040 per year) or above

Essential Skills Work Visas (all figures in New Zealand dollars):

Skill Level	Current threshold	Threshold as of Feb. 24
Mid-skilled employment in an occupation at ANZSCO skill level 1 to 3	$21.25 or more per hour ($44,200 per year)	$21.68 or more per hour ($45,094 per year)
Higher-skilled employment, including occupations at ANZSCO skill levels 4 and 5	$37.50 or more per hour ($78,000 per year).	$38.25 or more per hour ($79,560 per year)
Lower-skilled employment ANZSCO skills levels 1 to 5	$21.24 or less per hour ($44,179 per year)	$21.67 or less per hour ($45,074 per year)
Lower-skilled employment at ANZSCO Levels 4 and 5	$37.49 or less per hour ($77,979 per year)	$38.24 or less per hour ($79,539 per year)

Analysis & Comments: Employers should budget for the increase as needed. The new income thresholds affect only applications received by Immigration New Zealand on or after Feb. 24. The changes do not affect current visa holders or (1) Essential Skills Work Visa applications received before Feb. 24 or (2) Skilled Migrant Residence Visas for which the Expression of Interest has been selected before Feb. 24.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – HIGH

New Zealand will implement a handful of changes to the Talent (Accredited Employer) Work Visa program on Oct. 7. These are the first of a series of changes expected to occur over the next 18 months, with a new employer-led temporary work visa program to be introduced in 2021.

The Oct. 7 changes include:

• Increasing the minimum salary for Talent (Accredited Employer) Work Visa holders from NZ$55,000 to NZ$79,560 (about US$50,333).
• Eliminating the option of obtaining a Permanent Resident Visa for Talent (Accredited Employer) Resident Visa applicants who earn above NZ$90,000.
• Limiting the duration of accreditation for employers to 24 months.

While the finer details of the 2021 changes are not yet available, Immigration New Zealand has published an overview on its website. Over the next 18 months, INZ states that it will:

• Introduce a new three-step employer-led visa application process that will require employers to be newly accredited under the new system.

• Introduce a new temporary work visa to replace six current temporary work visas—the Essential Skills Work Visa, the Essential Skills Work Visa (approved in principle), the Talent (Accredited Employer) Work Visa, the Long Term Skill Shortage List Work Visa, the Silver Fern Job Search Visa, and the Silver Fern Practical Experience Visa.

• Use pay to categorize the skill level of jobs rather than the current practice of using skill bands, which take account of both salary and the Australian and New Zealand Standard Classification of Occupations (ANZSCO).

• Strengthen labor market testing for lower paid jobs.

• Open up access to higher paid jobs in rural areas and jobs requiring skills in demand in city areas.

• Introduce sector-specific agreements for industries that regularly rely on foreign workers.

• Reinstate the ability of lower-paid workers to bring dependent family members to New Zealand.

INZ has stressed that a number of rules will not change. For example, lower-skilled foreign workers will still be required to leave New Zealand for at least one year after working for three years in the country. The new visa program will also still impose visa conditions relating to the visa holder’s employer, job and work location, with a variation of conditions application to be submitted to INZ when changes to these arrangements are required.

Analysis & Comments: The Oct. 7 changes will, in some cases, make it more difficult to sponsor foreign workers on a Talent (Accredited Employer) Work Visa. Employers should note that the current, more favorable, rules will continue to apply to applications that are lodged between now and Oct. 7. Note also that employees already holding Talent (Accredited Employer) Work Visas are not impacted by the changes, their visa validity, visa conditions and visa options will be maintained.

While detailed information about the 2021 changes has not been released, Deloitte will continue to follow any key developments and will provide updates to clients as the information becomes available.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/aboutto learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

Reports on the salaries paid to highly qualified specialists during the third quarter of 2019 (July through September) must be submitted in October. The reports, which employers must complete to show that they have met minimum salary payment levels, are required quarterly.

• Key Dates: Oct. 1-31.
• Visas/permits affected: HQS work permits.
• Who is affected: Companies that employ highly qualified specialists.
• Business impact: Companies and individual company officials may face fines if they fail to submit the reports on time.
• Next steps: Salary reports may be submitted in person or mailed to the Ministry of Internal Affairs.

Analysis & Comments: Companies should ensure that they submit their quarterly reports on time and that the salaries comply with wage thresholds for HQS workers.

Source: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? The Ministry of Business, Innovation and Employment has completed its regular review of the Essential Skills in Demand (ESID) lists.

What does the change mean? Changes to the lists will primarily affect New Zealand businesses and foreign nationals who are seeking to make use of the Essential Skills work visa or the Long Term Skill Shortage List work visa programs.

• Implementation time frame: May 27.
• Visas/permits affected: Essential Skills work visas, Long Term Skill Shortage work visas, Skilled Migrant visas.
• Who is affected: Foreign nationals and companies sponsoring foreign nationals for temporary work visas under the Essential Skills or Long Term Skill Shortage work visa programs.
• Business Impact: Employers sponsoring foreign nationals for Essential Skills work visas in occupations that have been added to the ESID lists will not be required to conduct labor market testing as part of the application process. Employers sponsoring foreign nationals for work visas in occupations that previously appeared on the Immediate Skill Shortage List and do not appear on the ESID lists currently in force will now have to carry out labor market testing. The Long Term Skill Shortage List work visa (which provides a direct pathway to residence) is now an available option for foreign nationals working in occupations that have been added to the Long Term Skill Shortage List.

Background: The ESID lists include the Long Term Skill Shortage List, the Regional Skill Shortage List, which will replace the Immediate Skill Shortage List, and the Construction and Infrastructure Skill Shortage List.

Immigration New Zealand announced the changes May 8 and they were implemented on May 27. The following adjustments have been made to the ESID lists:

• Long Term Skill Shortage List.
  • Aged Care Registered Nurse was added.
  • Construction Project Manager Roading and Infrastructure was amended by extending the listing. to include Building Construction Project Managers.
• Regional Skills Shortage List.
  • Early Childhood Teacher was added.
  • Primary School Teacher was added.
  • Secondary School Teacher was added.
• Construction and Infrastructure Skill Shortage List.
  • Building Associate was added.
  • Plumber (General) was amended to extend the listing to all regions.
  • Stonemason was removed for the Canterbury region; it will remain for Auckland and Northland.

Analysis & Comments: Employers should consult the full lists, which are regularly reviewed and updated, when planning to recruit or hire foreign nationals.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? New Zealand will introduce an Electronic Travel Authority system this fall.

What does the change mean? Beginning Oct. 1, nationals of 60 visa-waived countries will need to obtain an ETA before traveling to New Zealand. The ETA system is designed to provide security benefits and streamline the prescreening process. 

• Implementation time frame: Oct. 1.
• Visas/permits affected: Electronic Travel Authority.
• Who is affected: The change will affect nationals of 60 visa-waived countries. Australian citizens will be exempt, but Australian permanent residents will be required to obtain electronic travel authorization. The change will not affect travel procedures for nationals of visa-required countries.
• Impact on processing times: Authorities have not yet released information on how long it will take to process applications.
• Business impact: Businesses may wish to notify employees and business visitors of the new requirement.

Additional information: Those who will require an ETA will need to complete a short online form and pay a small processing fee. The form will request basic information, such as:

• Birth date.
• Passport details.
• Contact information.
• Declarations around intention of travel and criminal history.
• Optional biometric information (passport photo).

ETAs will be valid for two years and will cost 9 New Zealand dollars (about US$5.90). The requirement will apply to visa-waived nationals even if they are transiting and New Zealand is not their final destination.

Analysis & Comments: Travelers from visa-waived countries should take note of the pending change, especially if they are planning travel to New Zealand on or after Oct. 1. The change will not affect travel procedures for New Zealand citizens, Australian citizens or holders of valid New Zealand visas.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the news? The Minister for Immigration has proposed significant changes to the employer-assisted temporary work visa system and has opened a public consultation, allowing the business community and other interested parties to submit their feedback. The public consultation period will end in March 2019, with the final proposal to be tendered to Cabinet in June 2019.

• Implementation time frame: The proposed changes, along with firm implementation dates, have not been finalised. If the proposal survives the public consultation period and is subsequently approved by Cabinet, the Minister for Immigration anticipates an implementation schedule commencing in 2020. Some minor preliminary changes may occur at an earlier date, including:
  • The introduction of Regional Skills Shortages lists to replace the current Essential Skills in Demand lists.
  • Changes to remuneration thresholds.
• Documents impacted: The changes will affect temporary work visa applications, including, but not limited to, the following visa types: Essential Skills Work visa, Talent (Accredited Employer) Work visa, and the Long Term Skill Shortage List Work visa. As part of a visa simplification process and to improve the quality and consistency of INZ decision-making, all employer-assisted work visas will be collapsed into a single visa option or pathway termed the ‘employer gateway’. It is not anticipated that the changes will affect the Specific Purpose Work visa.
• Processing time impact: It is expected that the proposed changes will initially lengthen processing times for employers.
• Business impact: Most significantly, businesses will need to satisfy new accreditation and labour market testing standards in order to process temporary work visa applications. This is likely to result in further exposure and assessment of business recruitment practices/decisions, and a requirement for greater investment in immigration compliance and record keeping.
• What to watch: The Minister for Immigration will report back to Cabinet on (1) the outcome of the consultation period and any changes to the proposals, and (2) an implementation plan including the financial implications of the proposals.

Key proposals:

• Businesses will be required to formally sponsor work visa applications and facilitate the application process on behalf of any foreign nationals they wish to employ, potentially including payment of relevant costs. The new framework is intended to be ‘employer-led rather than migrant-led’.
• The labour market testing requirement will be strengthened, with concessions awarded to positions aligned with skill shortages in regional areas, or high-skilled positions with remuneration packages that are at least 150%, and in situations where the employer is not premium accredited, 200% of the medium income (i.e. NZ$78,000 and $101,046 respectively, based on a 40-hour week).
• Businesses that rely on foreign nationals to perform low-skilled work may be required to take part in sector agreements, which incorporate employer conditions on use of approved foreign labour, and long-term strategies to incentivise allocating preference for jobs to New Zealanders.
• The new gateway framework breaks down the visa application process into three phases required to obtain a temporary work visa:

1. The employer gateway, where approval needs to be granted to an employer to hire a migrant. As part of this process, businesses will need to demonstrate that they incentivise training and upskilling of New Zealanders, that they put upwards pressure on wages and conditions, and that they meet minimum immigration and employment regulatory standards. It is expected that there will be three sponsorship types, including standard accreditation, labour hire company accreditation, and premium accreditation. The latter sponsorship type will receive higher benefits and concessions, including the capacity to support residence applications for visa holders earning more than NZD$78,000.
2. The job gateway, where checks will be made to ensure that a New Zealander is not readily available to perform the nominated role (unless a concession applies).
3. The migrant gateway, where the migrant’s health, character, licensing/registration (if applicable), and ability to satisfy the skill requirement will be assessed. While the employee’s salary and skill level will still be used to determine the visa term, existing salary bands may be adjusted. A further change will be the renewed capacity for low-skilled migrant workers to bring their partners and dependent children to New Zealand. While this is a positive development that will re-unite families, dependents will probably face some restrictions on access to work, which the government hopes will reinforce the temporary nature of the migrant’s visa status and will prevent foreign workers taking up low-skilled work on an unregulated basis.

Analysis & Comments: The proposed changes, if implemented, will have a significant impact on the New Zealand business community. The reform reflects similar regional and global shifts towards increased labour-market protections. Changes may reduce the capacity for established and compliant users of the skilled visa programs to make efficient and timely recruitment decisions. However, once the implementation phase is complete, the new framework should provide greater clarity to end-users regarding eligibility criteria, processing and evidentiary requirements, and INZ decision-making trends. This should have a positive effect on the efficiency of visa outcomes across the board. New streamlined processing arrangements for premium accredited sponsors may also assist in this regard.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. 

IMPACT – MEDIUM

What is the change? Income thresholds for Skilled Migrant and Essential Skills visas increased Monday, according to a notice by Immigration New Zealand.

What does the change mean? The increases are part of the annual review process and are detailed as follows (all figures in New Zealand dollars):

Critical Skills Visas

Skill Level	Current threshold	New threshold as of Nov. 26
Skilled employment in ANZSCO occupation 1-3	$24.29 per hour	$25 per hour
Skilled employment in ANZSCO occupation 4-5 (or not in  ANZSCO)	$36.44 per hour	$37.50 per hour
Threshold to earn bonus points	$48.58 per hour	$50 per hour

Essential Skills Work Visas

Skill Level	Current threshold	New threshold as of Nov. 26
Mid-skilled employment in ANZSCO 1-3	$20.65 per hour	$21.25 per hour
Higher-skilled employment in any occupation, including ANZSCO 4-5	$36.44 per hour	$37.50 per hour
Lower-skilled employment in ANZSCO 1-3	$36.43 per hour	$37.49 per hour
Lower-skilled employment in ANZSCO 4-5	$20.64	$21.24 per hour

Analysis & Comments: Employers should budget for the increases. The new income thresholds affect only applications received by Immigration New Zealand on and after Nov. 26. The changes do not affect current visa holders or applications received by the government before Nov. 26.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

Medium Priority

What is the immigration news? New Zealand will introduce an Electronic Travel Authority for select travelers next year. The ETA system is designed to provide security benefits and streamline the pre-screening process. 

• Implementation:  The exact implementation date has not yet been announced.
• Who is impacted: Australian permanent residents, citizens of visa waiver countries, cruise ship passengers and crews, and commercial airline crews. Citizens of Australia and New Zealand will be allowed to travel without an ETA.
• Impact on business: Businesses may wish to notify employees of the new requirement.

Additional information: Individuals who will require an ETA will need to complete a short online form and pay a small processing fee. The form will request basic information such as:

• Birth date.
• Passport details.
• Contact information.
• Declarations around intention of travel and criminal history.
• Optional biometric information (passport photo).

BAL Analysis: Travelers should take note of the pending change, especially if they are planning travel to New Zealand in 2019. BAL will continue to monitor developments in New Zealand, including any announcement of an implementation date.

Travelers who will be impacted to by the new requirement are encouraged to apply for their ETA as soon as possible.

This alert has been provided by the BAL Global Practice group and our network provider Cavell Leitch in New Zealand. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The New Zealand government will increase visa and immigration-related filing fees on Nov. 5.

What does the change mean? Employers should plan for the increases, which will be felt most in the work visa categories (increase of 54 percent) and employment accreditation (increase of 20 percent). Visitor visas and miscellaneous categories will increase by 10 percent and applications submitted online will no longer receive a discount.

• Implementation time frame: Nov. 5.
• Visas/permits affected: Work visa categories, accredited sponsorship, visitor visas, online visa applications.
• Business impact: The increase in fees will raise the cost of employing foreign nationals.

Some of the relevant business immigration fees are highlighted in the following chart.

Type of application	Current Fee			New Fee			Comment
	NZ	Pacific	Rest of World	NZ	Pacific	Rest of World
Residence class visa – Skilled Migrant Category	1,890	1,620	2,505	1,880	1,610	2,480	-1% overall for Business/Skilled residence visas
Residence class visa – Residence from Work Category	970	–	–	970	n/a	n/a	-1% overall for Business/Skilled residence visas
Residence class visa – any other residence category	970	970	1,670	1,070	1,070	1,840	+10% for all other visa categories
Permanent residence visa by person holding residence visa	190	190	190	210	210	210	+10% for all other visa categories
Variation of travel conditions by person holding residence visa	190	190	190	210	210	210	+10% for other immigration matters
Notification of expression of interest in applying for residence visa – Skilled Migrant Category (physical)	680	680	680	680	680	680	-1% overall for Business/Skilled Residence visas
Notification of expression of interest in applying for residence visa – Skilled Migrant Category (electronic)	530	530	530	530	530	530	-1% overall for Business/Skilled Residence visas
Temporary visa – visitor visa	170	135	170	190	150	190	+10% for all other visa categories
Temporary visa – visitor visa (online)	151	116	151	190	150	190	Removal of online discount (hard-copy rate applies)
Temporary visa – student visa	260	205	280	250	200	270	-6.5% for student visa categories
Temporary visa – student visa (online)	233	178	253	250	200	270	Removal of online discount (hard-copy rate applies)
Temporary visa application – work visa under Talent (arts, culture, sports), Talent (employer accreditation), Talent (Long-term Skills Shortage List)	375	375	375	580	580	580	+54% for work visa categories
Temporary visa application – work visa under Talent (arts, culture, sports), Talent (employer accreditation), Talent (Long-term Skills Shortage List) (online)	280	240	280	580	580	580	+54% for work visa categories, removal of online discount
Temporary visa – work visa under any other category of immigration instruction	280	240	280	440	370	440	+54% for work visa categories
Variation of conditions of temporary entry class visas	170	170	170	190	190	190	+10% for other immigration matters
Request by employer for approval in principle to recruit overseas worker	400	–	–	440	n/a	n/a	+10% for other immigration matters
Employer accreditation (under talent work immigration instructions)- initial	1,775	–	–	2,130	n/a	n/a	+20% for Talent employer accreditation
Employer accreditation (under talent work immigration instructions)- subsequent	500	–	–	600	n/a	n/a	+20% for Talent employer accreditation
Transfer of visa stamp from old passport to new passport	110	110	110	130	130	130	+10% for all other immigration matters

A full schedule of fees is available here.

Analysis & Comments: Companies should factor the fee increases into their budgets and consider filing affected applications before the rate hikes take effect.

License No: 201501694

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change?  Immigration New Zealand has lengthened the validity period of interim visas, which are granted to employees whose applications to extend their status are still pending while their current visa is nearing expiration.

What does the change mean? Interim visas will be valid for 21 days after an application is denied or withdrawn, or for six months if a decision has not been made on the application.

• Implementation time frame: Immediate.
• Visas/permits affected: Interim visas.
• Business impact: The longer validity period of interim visas allows employees 21 days after their visa extension application is denied or withdrawn to make arrangements to depart New Zealand without becoming unlawful, or to seek reconsideration of the denial.

Background: Interim visas are granted at the discretion of INZ if an individual’s visa is about to expire and the application for another temporary visa has not been decided. Employees who are granted an interim visa while their application for a further work visa is pending may be eligible to continue working on the interim visa if the job is in the same position, for the same employer and in the same location as their current visa. Additional information on the terms of each type of interim visa is available here.

Under the new policy, the interim visa starts from the day after the current visa’s expiration date, and expires upon approval of the application, 21 days after a denial of the application, or six months if a decision has not been made. Previously, interim visas expired as soon as a decision was made on the application or six months after the interim visa was first granted, making its holder unlawful the day after their visa extension was denied.

Analysis & Comments: The new policy gives employees who are denied a work permit extension three weeks of additional time to determine their options while continuing to work in their current position.

Licence No: 201501694 (New Zealand)

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.