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Chrystalis

27 February 2025

Latest Immigration Changes unpacked

INZ Policy Update 2025

 

In December 2024, INZ announced changes to the AEWV scheme to make it more flexible to the needs of businesses in certain sectors and regions. The following changes are now confirmed to take effect over the next 6 weeks.

 

Payrate changes

 

  • The median wage is now $33.56 per hour which has been implemented for the Parent Category sponsor threshold, making the minimum income threshold for one child to sponsor one parent $104,707.20. There are still no updates on whether and when this increase will be implemented for other residence pathways. We will provide more information once we receive news from INZ.

 

  • The wage threshold for eligible AEWV holders to support open work rights for partners and dependent child visas is increasing from NZ$25.29 to $26.85 per hour. However, for dependent child visas, the new minimum income threshold will not affect those who held or had applied for such visas and met the previous threshold as of 9 March 2025.

 

  • AEWV and Specific Purpose Work Visa (SPWV) holders will no longer be required to be paid the median wage by their employers, but they will have to meet the New Zealand minimum wage threshold (currently NZD $23.15 an hour, increasing to NZD $23.50 an hour on 1 April 2025) and the occupation’s New Zealand market rate. Current AEWV holders should continue to be paid in line with their employment agreement and visa conditions.

 

Job Check changes

 

  • AEWV holders applying for a further AEWV or a balance to their current AEWV to work in the same job will not require the employer to have a further Job Check approved provided their current AEWV was held or applied before 9 March 2025. Balance applications can now also be made where applicants hold a job change visa (VOC).

 

  • The above wage threshold changes mean that the payrate in the AEWV no longer need to always match the job check. They can deviate, with the AEWV rate able to be:
    • Less than what was approved in the Job Check if the Job Check was submitted on or before 9 March 2025 and the remuneration offered is not less than the New Zealand market rate for that occupation.
    • More than the remuneration approved in the Job Check because the current minimum wage is higher than the rate advertised at the time of the Job Check, or the applicant is re-using a Job Check number for a further AEWV or balance visa.

 

AEWV changes

 

  • Applicants will now only need to provide evidence of 2 years of relevant experience to meet the minimum skills threshold instead of 3 years.

 

  • ANZSCO Level 4 and 5 AEWVs will be extended to 3 years, matching their maximum continuous stay on an AEWV.

 

  • Applicants awaiting the outcome of an AEWV application will now have interim work rights if they apply while holding any type of work visa or student visa that permits work during term time.

 

ANZSCO changes

 

  • Engagement with MSD for skill level 4 and 5 role will be now become declaration based. Employers will be required to retain evidence of their engagement as they may be requested to provide it.

 

  • From 10 March 2025, the following skill level 4 and 5 occupations will be treated as ANZSCO skill level 3 to align with their intended future skill level in the National Occupation List (NOL):
    • Cook (351411)
    • Pet groomer (361113)
    • Kennel hand (361115)
    • Nanny (421113)
    • Fitness Instructor (452111)
    • Scaffolder (821712)
    • Slaughterer (831212)

 

  • 4 other roles will be recognized as ANZSCO skill level 3, where the employer has specified that the job needs 3 years of work experience or a level 4 qualification as part of the job check. This ensures skilled workers can be retained in certain critical jobs. These 4 roles are:
    • Agricultural and horticultural mobile plant operator (721111)
    • Excavator operator (721214)
    • Forklift driver (721311)
    • Mobile plant operators not elsewhere classified (721999)

 

  • With the recognition of the 11 occupations at a higher skill level, migrants in these occupations will now be able to stay longer in New Zealand as well as support their family for visas.

 

  • English language requirements will no longer apply for any ANZSCO skill level 4/5 job that will be treated as an ANZSCO skill level 3 job. This applies even if the job check was approved before 10 March 2025.

 

In addition to changes to the AEWV scheme, the following residence policy changes have been confirmed:

 

  • Roles previously covered by sector agreements with a median wage exemption will now be eligible for visas of the same duration and will need to meet market rate. As such, sector agreements will no longer be relevant for work visa purposes but still exist to offer residence pathways under the Care Workforce and Transport Sector with no changes to the wage rate required to gain residence.

 

  • Primary teachers will be added to the straight to residence pathway on the Green List from 26 March 2025 which will allow an applicant to apply for residency straight away as soon as they have a job offer, and from offshore.

 

  • Time spent on an interim visa with work conditions will be recognised as part of the total continuous stay under the AEWV, and work experience gained towards work-to-residence pathways (Tier 2 Green List, Care Workforce or Transport Sector).

 

Such significant reforms can and will create a level of confusion and uncertainty until they are bedded in. Our team is here to support you through and advise how the changes may impact you or your staff going forward, and how to get the most out of the reforms. If you would like to understand more, or know how these changes could impact you, please get in touch with the team.