Part 2: How the skilled residence visa system works
2.1
In this Part, we discuss:
- Immigration New Zealand's regulatory and operational context; and
- how the skilled residence visa system has changed recently.
Legislation sets out how immigration in New Zealand is governed
2.2
Two pieces of legislation govern immigration in New Zealand – the Immigration Act 2009 and the Immigration Advisers Licencing Act 2007. Immigration New Zealand refers to the Immigration Act as the "fundamental source of New Zealand immigration law".
2.3
Three main classes of visa can be granted under the Immigration Act. These are residence class visas for indefinite stay in New Zealand; temporary entry class visas for a specified event, time, or purpose; and transit visas for passing through New Zealand on the way to another country.
2.4
The Immigration Act requires the Minister of Immigration to approve and certify immigration instructions. These set out the rules and criteria that people must meet to be granted a visa, the evidence people must provide to show that they meet those criteria, and the process Immigration New Zealand follows to assess and verify visa applications. They are published in the Immigration New Zealand operational manual and on Immigration New Zealand's website.
2.5
MBIE says that, in practice:
…[t]he complexity and breadth of the portfolio and its interrelation with other areas of government, means that Ministers of Immigration generally seek Cabinet's agreement to broad policy decisions, with more minor and technical decisions typically made without Cabinet's involvement.7
2.6
Regulations made under the Immigration Act set out the legal requirements for other administrative matters, such as fees and levies.
2.7
Under the Immigration Act, the Minister of Immigration is the primary decision-maker on visa applications. In practice, the Minister delegates most of their decision-making powers to Immigration New Zealand officials, including Immigration Officers who are warranted to make visa decisions.
Immigration New Zealand administers most of the powers and functions relating to immigration
2.8
Immigration New Zealand administers the core operational functions of New Zealand's immigration system.
2.9
As a whole, the immigration system is responsible for:
- providing immigration services, including managing and processing visa applications;
- managing the movement of people who are not New Zealand citizens across the border;
- attracting and supporting migrants; and
- enforcing compliance and managing other immigration and security risks, including through international partnerships.
2.10
Immigration New Zealand describes its purpose as being "a trusted steward of the immigration system by ensuring the balance is right between facilitating the migration New Zealand needs and managing risk".8
2.11
Immigration New Zealand is led by the Deputy Secretary Immigration, who is part of MBIE's Senior Leadership Team. Together with the Office of the Deputy Secretary, eight operational branches manage the day-to-day work of Immigration New Zealand. The leaders of those branches form the Immigration Leadership Team.
2.12
As at 30 September 2024, nearly 2247 full-time equivalent New Zealand-based staff were working at Immigration New Zealand. This represented nearly 38% of MBIE's total workforce.
2.13
In early April 2024, 123 full-time equivalent staff were directly involved in processing applications for skilled residence visas at Immigration New Zealand's Manukau office, which is the primary site for processing applications for skilled residence visas.
2.14
Since the border reopened after the Covid-19 pandemic in July 2022, Immigration New Zealand has faced staffing challenges. In 2021/22, 40% of Immigration New Zealand's workforce had been in their current job for less than a year and 21% of its workforce had been in their current job for less than three months.9 Therefore, many of its staff were relatively inexperienced.
The Ministry of Business, Innovation and Employment's Promise, Te Kī Taurangi, sets out what customers can expect of its services
2.15
MBIE's Promise, Te Kī Taurangi, outlines what people can expect when they interact with MBIE.10 It promises interactions that are:
- Simple – Māmā: We listen to you and keep it simple;
- Safe – Haumaru: We help keep people safe through consistent application of the law; and
- Certain – Mārama: We help you to know what you need to do, how to do it, and why.
2.16
Some of the ways that MBIE says it will meet these commitments include:
- avoiding complication;
- using plain language;
- making sure people know their rights and responsibilities;
- explaining where people are in the process;
- being clear about how decisions are made; and
- providing accurate, relevant, and clear information.11
2.17
In this report we use the principles of the MBIE Promise to help us to consider how well the skilled residence visa system is working for applicants.
The skilled residence visa system has undergone significant change
2.18
In March 2020, the Government closed the border in response to the Covid-19 pandemic. Immigration New Zealand describes this and its flow-on effects, including the closure of overseas visa branches, as a period of "unprecedented challenges for the immigration system".12 This period of considerable policy change was accompanied by staffing challenges (see paragraph 2.14).
2.19
Figure 1 summarises the main changes to the skilled residence visa system since the border closed.
Figure 1
Timeline of changes to skilled residence visas since 2020
* This was the process by which applicants with the highest number of points were invited to apply for residence (see paragraphs 2.29-2.30).
The 2021 Resident Visa acknowledged the effects of the Covid-19 pandemic on migrants
2.20
In 2020/21, the border closure affected the lives and plans of many migrants. To acknowledge that disruption and to support business recovery, the Government introduced a one-off 2021 Resident Visa pathway in December 2021.
2.21
The 2021 Resident Visa was for people who had been in the country on 29 September 2021 either on an eligible visa or whose application for an eligible visa had later been granted. They also had to meet one of three criteria, which Immigration New Zealand often referred to by the shorthand "settled", "skilled", or "scarce".
2.22
These criteria were that the applicant:
- had lived in New Zealand for three years before 29 September 2021;
- was earning at or above the median wage; and
- was working in a role on a scarce list.13
2.23
Applications for the 2021 Resident Visa closed in July 2022. By June 2024, Immigration New Zealand had approved 212,635 people for residency and issued them with visas under this scheme.14
The Green List prioritises applications from migrants with skills in demand
2.24
Shortly after the border fully reopened in mid-2022, the Government introduced a "Green List" of roles in demand in New Zealand. The list prioritises residence for highly skilled migrants in specified hard-to-fill occupations such as health and information technology.
2.25
The list has two tiers. Tier 1 is a straight-to-residence pathway with no requirement for previous work experience in New Zealand. Tier 2 establishes a pathway to residence after two years of work experience. There are also specific pathways to residence for those in the care and transport sectors.
2.26
Cabinet approves changes to this list on the recommendation of the Minister of Immigration.
2.27
These changes can be rapid and significant for applicants. For example, a Cabinet decision in March 2024 added six roles to the Green List, with effect from April 2024. The same decision paused plans made in August 2023 to add a further 11 roles to the List.15 Secondary school teachers were moved from Tier 2 to Tier 1, with effect from 1 May 2024.
The new Skilled Migrant Category Resident Visa has a simplified points system
2.28
A new version of the Skilled Migrant Category Resident Visa was opened for applications from 9 October 2023.
2.29
The old system had two stages. The first required applicants to submit an Expression of Interest and enter a pool of applicants. Each applicant would be assigned points that were determined by several factors.
2.30
In the second stage, candidates with the highest number of points would be periodically drawn from this pool and invited to apply for residence.16 The numbers that could be drawn were determined by a planning range (sometimes referred to as a cap) set by the Government, which limited the number of people who could be granted residence annually.17
2.31
The new scheme simplifies the points system, streamlines the Expression of Interest process, and removes the pool and the cap. Applicants now need a total of six points from one of three categories: occupational registration, qualification, or income. An applicant can also claim one point for each year of skilled work in New Zealand, to a maximum of three points.
2.32
Applicants also need to have an offer of employment by an accredited employer before they can apply. Most applications in recent years have come from people who are already in New Zealand.
2.33
Figure 2 summarises the current skilled residence application pathways.
Figure 2
Pathways to skilled residence
2.34
Immigration New Zealand processes each of these types of skilled residence visa in broadly the same way. Figure 3 sets out the main steps that an application for a skilled residence visa goes through before Immigration New Zealand decides whether to grant it.
Figure 3
Application process for skilled residence visa
7: Ministry of Business, Innovation and Employment (2023), Briefing for the Incoming Minister of Immigration, page 19, paragraph 81, at mbie.govt.nz.
8: Ministry of Business, Innovation and Employment (2023), Briefing for the Incoming Minister of Immigration, page 21, paragraph 93, at mbie.govt.nz.
9: Education and Workforce Committee (2023), Briefing on the 2021/22 performance and current operations of Immigration New Zealand, page 8, at selectcommittees.parliament.nz.
10: "Our promise Te Kī Taurangi" at mbie.govt.nz.
11: "Our promise Te Kī Taurangi" at mbie.govt.nz.
12: Ministry of Business, Innovation and Employment (2023), Briefing for the Incoming Minister of Immigration, page 10, paragraph 30, at mbie.govt.nz.
13: Four 2021 Resident Visa scarce lists included jobs in areas of long-term skills shortages; personal carers and other critical health workers; certain primary sector roles; and occupations requiring occupational registration in the health or education sectors.
14: Immigration New Zealand has processed 99% of 2021 Resident Visa applications. Immigration New Zealand says this figure is correct to 15 June 2024, which is the last time that Immigration New Zealand will update these numbers. See "2021 Resident Visa processing updates" at immigration.govt.nz.
15: Five roles were added to Tier 1 of the Green List and one role added to Tier 2. The five roles added to Tier 1 were aviation engineer (avionics, aeronautical, aerospace engineer), naval architect (also known as marine designer), ICT database and systems administrator, mechanical engineering technician, and aircraft maintenance engineer. Corrections officer was added to Tier 2. The previously announced roles that were not added were paving plant operator, metal fabricator, pressure welder, welder, fitter (general), fitter and turner, fitter-welder, metal machinist (first class), panel beater, vehicle painter, and road roller operator.
16: Applicants were assigned points for skills and other non-skill factors, including intended location in New Zealand (choosing to live outside Auckland gave more points) and study in New Zealand. From November 2022 to when the scheme closed in August 2023, applicants needed 180 points to be eligible to be drawn from the pool. See the Future of the Skilled Migrant Category consultation document, page 14, at mbie.govt.nz.
17: In 2018/19, the planning range was set at 50,000-60,000 visas. Skilled and business migrants were allocated 60% of these places.