Immigration challenges for 2025

This year’s programme for immigration is packed with more change and challenges. In 2024 the government addressed the massive net migration numbers that were at risk of getting out of control. Now the outlook is that migration numbers may hit negative sometime this year as more people leave New Zealand than arrive. Getting the balance right is never easy and there is no magic solution. There are, however, positive signs for 2025 that may avoid a dramatic loss.

• The Skilled Migrant Category (SMC or the points system) is a barrier to people securing residence. Currently, it takes far too long for most people to qualify. Remaining in New Zealand on a long-term work visa is not attractive to highly skilled workers (prevented from buying a house, barriers for children accessing tertiary education, restrictions on partners being able to work or study etc until residence is granted). Trades face increased barriers to gaining residence than those with university degrees.

         The Minister signalled a review of SMC. Not everyone can expect to become a resident of New Zealand. For people with the talent and skills our country           needs, there should be a clear runway to gain residence within a reasonable timeframe. This will help attract more talent to our shores that employers need.

• A new Parent Boost Visa. The government plans to open this new visa allowing parents of migrants to gain entry to New Zealand for up to 10 years. We expect this visa to go live around November 2025. To protect the NZ health system expect criteria to include a high standard of health for parents and a comprehensive insurance cover for when things go wrong.

• More targeting of international students. These students introduce much-needed foreign capital into New Zealand. Before Covid, it was a $5 billion dollar-a-year industry. Increasing the hours international students may work from 20 hours a week to 24 will make New Zealand competitive with Australia. The time is ripe to gear up efforts to attract high-quality students to study here while Australia and Canada are tightening their rules to cut back international student numbers.

• Changes to the Accredited Employer Work Visa (AEWV) scheme already covered in this newsletter are a big helping hand to employers who recruit offshore to supplement their local workforce.

• The Minister signalled changes to the Active Investor Plus Visa. Another opportunity to grow foreign investment in New Zealand from people who will make an active contribution to economic growth. Changes to the investor migrant programme in 2022 cut off $1 billion annually flowing into the economy from the visa requirements alone. Another estimated $2 to $3 billion investor migrants put to work elsewhere in the economy each year. We hope changes to this visa will see the return of investment capital to help grow our economy.

• An overhaul of the Entrepreneur Visa is long overdue since the current rules were set back in 2014. This visa has the capacity to inject the economy with foreign capital and talented people who have the energy to save and create jobs for kiwi workers. Very few apply for the Entrepreneur Visa because the rules are too tough. This limits Kiwi's being able to sell their businesses or secure co-investors from offshore.  

• Marketing New Zealand to the world. With limited budgets, there are at least 5 government departments or local authorities promoting skilled migrants, international education, tourism and investor migration. It would be so powerful to combine those separate budgets into one and allow one agency to run migrant attraction. Other countries (Singapore springs to mind) have been very successful in marketing their country to the world by having a combined targeted campaign rather than agencies operating in silos. We need to get smarter at marketing New Zealand to the world.

We expect 2025 to be a busy year on the immigration front. Exciting, rewarding and challenging but our team is always up to the task. During the year we will keep you posted on immigration news that's relevant to your business and migrant workers.

Talk to the team that provides the best immigration advice. Contact us today.