The Growing Exodus of Temporary Visa Holders from South Australia: A Call for Policy Reform

South Australia has long been a destination of choice for international students and skilled migrants, offering diverse employment opportunities, a vibrant lifestyle, and a growing economy. However, in recent months, a concerning trend has emerged: a significant number of temporary visa holders are either moving to other states or seriously considering relocation. This trend is driven by several factors, including the lack of clarity around state nomination policies, unpredictable timelines for receiving invitations, and the growing disparity between the number of occupations on offer and the limited invitations issued.

This blog aims to highlight the key reasons for this exodus and why it’s essential for South Australia to prioritize onshore applicants, particularly those who have demonstrated their commitment to the state, over overseas applicants who often never even land in South Australia. We also explore how these challenges are impacting the state's population and economy, particularly in critical sectors that rely on skilled labor.

1. Unclear Policy in ROI Selections

One of the primary frustrations voiced by many temporary visa holders is the lack of clarity in the Registration of Interest (ROI) selection process. Despite having highly sought-after skills and jobs in key industries, many onshore applicants are left waiting with no clear understanding of when—or if—they will be invited to apply for state nomination. This opacity is leading many skilled migrants to feel disillusioned with the process, prompting them to consider relocating to other states where pathways to permanent residency are more transparent.

The ROI system was designed to streamline the selection process, but its current application has left many in limbo. Applicants with the required skills and employment in South Australia are finding it increasingly difficult to secure a clear pathway to permanent residency. As a result, they are exploring options in other states where the invitation process is more straightforward and reliable. This brain drain is a growing concern, as these skilled migrants represent a critical workforce that South Australia cannot afford to lose.

2. Last-Minute Invitations Close to Visa Expiry

Another significant issue that skilled migrants face is receiving invitations to apply for state nomination at the very last moment, often just before their temporary visa expires. This "eleventh hour" approach places undue stress on applicants, who must scramble to meet tight deadlines or risk losing their ability to stay in the country. Many visa holders are on the brink of having to leave South Australia, not because they lack the skills or qualifications, but because the state nomination invitation process drags on too long.

This unpredictability is leading many temporary visa holders to lose faith in South Australia's migration process and opt for states where they feel their contributions will be recognized in a timely manner. By prioritizing timely invitations for onshore applicants, South Australia can retain these skilled individuals, who are already integrated into the local economy and workforce.

3. Limited Invitations Despite Extensive Occupation List

South Australia boasts a state nomination list with over 400 occupations, yet the number of invitations issued under the 190 and 491 programs has been surprisingly low this year, particularly for onshore applicants. While there are extensive opportunities on paper, the reality is that many skilled migrants who meet all criteria are being overlooked. This has led to widespread frustration among onshore applicants, many of whom have invested significant time, money, and effort in building their lives in South Australia.

By contrast, overseas applicants—who often do not have the same level of commitment or understanding of the state— may be prioritized in the nomination process. This is problematic for several reasons. First, many overseas applicants fail to settle in South Australia, either choosing to move to other states upon arrival or never arriving at all. This results in wasted visa allocations and a continued shortfall of skilled workers in critical sectors.

4. The Importance of Prioritizing Onshore Applicants

One of the most compelling arguments for prioritizing onshore applicants—particularly those who have studied or worked in South Australia—is the commitment these individuals have already shown to the state. South Australian graduates, 485 visa holders, and other temporary migrants are already settled, contributing to the local economy, and filling vital gaps in the workforce. They have made a deliberate choice to build their careers and lives in South Australia, often in regions and industries facing critical skill shortages.

Supporting onshore applicants who have demonstrated their dedication to South Australia brings several advantages:

• Immediate Workforce Integration: Onshore applicants are already employed in their fields, meaning they can continue to contribute to the economy without the need for additional support or adjustment. They do not need to search for new jobs, housing, or adapt to a new environment—they are already well-established and ready to transition smoothly into permanent residency.
• Retention of Talent: By prioritizing applicants who are already living and working in South Australia, the state can retain its skilled workforce. Many temporary visa holders are highly skilled individuals working in critical sectors such as healthcare, education, IT, and construction. These are roles that often cannot be filled by the local labor force. Allowing these individuals to leave would create a significant skills gap that could take years to fill.
• Population Stability: South Australia’s population growth is heavily dependent on migration, particularly from international students and skilled migrants. Losing these individuals to other states could have long-term economic consequences, including a shrinking tax base and reduced demand for housing and services. In contrast, by prioritizing onshore applicants, South Australia can maintain a stable and growing population that is equipped to meet the state’s economic needs.

5. The Impact of Declining International Student Numbers

Another factor contributing to the declining population is the sharp drop in international student enrollments in South Australia’s public universities. This year, the state has seen a marked decrease in the number of students arriving from overseas, largely due to high visa refusal rates driven by poorly designed federal policies. These refusals are often issued using generic, copy-paste reasons, leaving many prospective students disillusioned and turning to other countries or states for their education.

International students play a vital role in South Australia’s economy, both as contributors to the higher education sector and as participants in the broader workforce. Many of these students transition into skilled work roles after graduation, filling critical positions in industries that struggle to attract local talent. As the number of international students declines, so too does South Australia’s ability to meet its labor needs.

Compounding this issue is the growing trend of 485 visa holders—graduates from South Australian institutions—leaving the state due to unclear pathways to permanent residency. These graduates, who have already invested in South Australia through their education, are choosing to move interstate in search of better job prospects and clearer pathways to PR. This loss of talent further exacerbates the state’s skills shortages, particularly in high-demand industries like healthcare, engineering, and IT.

6. Why a Balanced Approach is Critical

It is clear that South Australia needs to take a more balanced approach to its state nomination program, one that prioritizes onshore applicants who have already demonstrated their commitment to the state. While attracting new talent from overseas is important, the state must first ensure that those who are already contributing to the economy and workforce are given a fair chance to secure permanent residency.

Here’s how South Australia can create a more balanced and sustainable migration program:

• Prioritize Onshore Applicants: By focusing on skilled migrants who are already living and working in South Australia, the state can address immediate skill shortages and avoid the challenges of resettling overseas applicants from scratch.
• Provide Clear Pathways and Transparency: The ROI selection process needs to be more transparent, with clear timelines and expectations for applicants. Onshore applicants should know where they stand and when they can expect to receive an invitation, reducing uncertainty and frustration.
• Use Visa Allocations Wisely: With limited visa allocations, South Australia must prioritize applicants who are already contributing to the economy. Overseas applicants should not be given priority over onshore migrants who have already proven their ability to integrate and contribute to the state’s workforce.

Conclusion: The Time to Act is Now

If South Australia does not act now to address these issues, the state risks sending the wrong message to its skilled migrants and international students. A mass exodus of talent could have long-lasting consequences for the state’s economy, workforce, and population growth. By prioritizing onshore applicants and creating a more transparent, balanced state nomination process, South Australia can ensure that it retains the skilled workforce it needs to thrive.

Tejas Patel - MARN 1688211