In late 2025, the Government announced changes to the Skilled Migrant Category (SMC) that would eventually see the light of day in August 2026. Last week, further details of those changes were announced, including occupations that would be placed on two new lists (the Red and Amber lists). This article follows on from the last Quarterly Fit immigration piece, expanding on these changes and how they will impact on employers in practice.
Whilst most employers tend to be focussed on the temporary visa stage of the process, including employer accreditation, job checks and the Accredited Employer Work Visa (AEWV) system, these changes to the SMC process will have longer term implications for all businesses that employment migrant staff.
For most businesses, changes to our SMC system, will mean that many of their candidates now have a faster pathway to residence, a pathway to residence that never existed before or in the worst-case candidates who work in certain roles may see that pathway to a long-term stay disappear entirely. The announcements are already creating quite a stir amongst temporary Work Visa holders, with many now unsure as to whether they qualify to stay here permanently.
Devil in the Detail
We previously discussed the addition of two new pathways (work experience and then trades and technicians), and the further details released essentially paint the same picture. These two new pathways will offer applicants in skilled employment who don’t meet the current points system a pathway to residence.
There will also be changes to median wage assessments, which will make the process of applying for residence simpler for many applicants, as well as remove the need for pay-rates to increase purely to meet a threshold on the date the application is filed.
The big change, however, will be for roles that occupy the new Red and Amber lists, of which there are only currently a small number, although the lists will be regularly reviewed.
The Amber List will still allow applicants to apply under the new work experience pathway, but with additional restrictions imposed, namely the need to work in New Zealand for a period of five years, with at least two of those years being at 1.2 times the median wage.
The Red List will contain occupations that cannot take advantage of the new pathways at all, and they will only qualify if they can meet one of the three existing options (qualifications, registration in NZ or higher income thresholds).
What Can Businesses Do?
While the changes overall are very positive, meaning that more applicants in skilled roles will have a pathway to residence, the inclusion of these new lists will see some candidates scrambling to meet other criteria – potentially a higher pay-rate or a change in role.
This could have the flow on effect for employers, of staff wanting to negotiate different settings to their existing employment to meet the new rules.
Considering that many AEWV holders will be approaching their two- and three-year work experience periods in New Zealand, making them eligible to potentially apply, and with the complexity of these new changes and the various pathways that now exist, having access to the right advice is going to be crucial. Not only will candidates need to understand their options for securing residence, but employers looking to retain staff long-term should also be considering the same.
Remember, Work Visas (under the AEWV scheme) have a maximum of either three- or five-years duration, depending on skill levels, and that time has a habit of disappearing very quickly.
If you are an employer with migrant candidates onboard that you want to retain, the best thing you can do is secure an assessment of their long-term options as quickly as possible. Given the speed at which changes are being rolled out to our SMC system, being forewarned is most definitely the right approach to take.
About the Author
Paul Janssen is the Manager of Turner Hopkins Services, a specialist New Zealand immigration consultancy, based in Takapuna, Auckland. Paul is fully licensed by the Immigration Advisers Authority and has nearly twenty years of industry experience, assisting families, individuals, and businesses to navigate the complexities of the visa system.
Paul and his team work together with their clients, providing realistic and practical advice in a timely and easy to understand manner. Identifying issues at the outset, mapping out the steps involved and managing all aspects of the relocation process.