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The evolving landscape of talent mobility in ANZ
Global talent mobility—the ability of businesses to attract, hire, and relocate skilled professionals across borders—has become a crucial factor in maintaining economic stability and industry growth.
In Australia and New Zealand (ANZ) in particular, sectors such as the renewable energy sector depend on international talent to bridge skill gaps and drive innovation. However, shifting immigration policies and evolving workforce regulations mean businesses must constantly adapt to stay compliant and competitive.
This article breaks down the latest regulatory updates that affect talent mobility in ANZ and provides actionable insights to help businesses stay compliant, streamline hiring processes, and maximise the benefits of an internationally diverse workforce.
Key challenges in talent mobility and how businesses can adapt
What are the challenges in talent mobility in ANZ? Let’s examine the key obstacles businesses face and the solutions to navigate them effectively.
Navigating visa and immigration complexities in ANZ
As mentioned above, recent visa reforms in Australia and New Zealand have introduced stricter eligibility criteria, salary thresholds, and compliance requirements for businesses hiring international talent.
- Australia’s Skills in Demand (SID) visa, which replaced the Temporary Skills Shortage (TSS) visa, now categorises workers into three streams based on salary, with a clearer path to permanent residency.
- Meanwhile, New Zealand has adjusted wage thresholds, extended visa durations for lower-skilled workers, and reduced work experience requirements to improve talent accessibility. While these changes aim to attract global talent, they also introduce added complexity for employers.
For businesses struggling with skill shortages, Labour Agreements provide an alternative pathway to secure overseas workers when standard visa options fall short. These agreements allow industries and regional employers to bypass some restrictions, provided they can prove a genuine skills gap through Labour Market Testing (LMT).
This process requires businesses to advertise roles locally, meet salary benchmarks, and document recruitment efforts. Exemptions apply in limited cases, but companies must remain diligent to avoid non-compliance, which can lead to sponsorship restrictions or visa refusals.
Sponsoring overseas workers also comes with financial and administrative obligations:
- Employers must cover visa nomination fees, sponsor licence costs, and the Skilling Australians Fund (SAF) levy, with annual charges varying by company turnover.
- Strict enforcement measures, including increased workplace inspections and heavy fines for non-compliance (i.e. NZD 196,000), further highlight the importance of adhering to sponsorship duties.
- Businesses must meet right-to-work verification, fair wage requirements, and ongoing record-keeping obligations to avoid reputational and financial risks.
Managing compliance risks and regulatory requirements
Employers in Australia and New Zealand must navigate strict compliance obligations when hiring international talent:
- For instance, from 2025, wage theft in Australia will be a criminal offence, reinforcing the need for accurate payroll management.
- Employers must also meet minimum salary thresholds, with Australia’s Core Skills Income Threshold (CSIT) rising to AUD 76,515 and New Zealand’s minimum wage increasing to NZD 23.50 per hour.
- Additionally, businesses must verify visa holders’ right to work, maintain detailed recruitment records, and ensure equal workplace protections for all employees, regardless of visa status.
Failure to comply with immigration and employment laws can lead to penalties such as fines up to AUD 93,900 per offence, visa cancellations, and even prison sentences of up to two years for company officers found guilty of breaches. Increased government scrutiny has resulted in more unannounced inspections, higher enforcement funding, and stricter sponsorship monitoring. Businesses that fail to meet compliance standards may also face accreditation loss, placement on stand-down lists, and reputational damage that can impact talent attraction.
To reduce these risks, businesses must stay proactive by keeping up with legislative changes, implementing rigorous record-keeping and compliance audits, and investing in digital workforce management tools.
Employers should also seek legal guidance or partner with an Employer of Record (EOR) like CXC to manage complex visa sponsorship requirements and ensure HR teams stay updated on evolving employment laws. This way, they can avoid costly penalties while maintaining a strong, legally compliant workforce.
Addressing workforce gaps and skills shortages
As mentioned earlier, Australia and New Zealand face severe skills shortages in healthcare, information and communications technology (ICT), engineering, and construction sectors. Australia needs 11,000 engineers annually, while New Zealand requires 12,000 nurses to meet demand. Post-pandemic migration slowdowns and an ageing workforce have worsened these gaps, leaving businesses unable to find enough local talent.
Australia and New Zealand have implemented regional migration incentives to attract skilled workers outside major cities to tackle this.
- Australia’s Designated Area Migration Agreements (DAMAs) and Subclass 494 Skilled Employer Sponsored Regional visa offer sponsorship pathways with priority processing and residency options.
- In New Zealand, recent policy changes have removed bonus points for regional employment under the Skilled Migrant Category, shifting the focus to broader incentives like better wages, employment conditions, and lifestyle benefits to attract and retain talent in underserved regions.
Businesses can leverage these incentives by partnering with regional development bodies, offering relocation support, and promoting regional lifestyle benefits. However, they must still meet sponsorship obligations, prove local recruitment efforts, and navigate visa complexities to stay compliant.
Reducing visa processing delays and streamlining talent mobility
Visa processing delays in Australia and New Zealand create bottlenecks and workforce shortages, especially in industries reliant on international talent.
- In New Zealand’s hospitality and tourism sectors, visa delays of up to three months have made it harder for businesses to prepare for peak seasons.
- While Australia has improved processing times—with employer-sponsored visas now taking 61 days—some visa categories still experience long wait times, disrupting hiring timelines and causing operational inefficiencies.
To streamline visa processing, businesses should submit applications early, ensure complete documentation, and use accredited employer schemes like Australia’s Accredited Sponsorship program, which fast-tracks applications. Partnering with an Employer of Record (EOR) service can further simplify the process by managing sponsorship, compliance, and visa requirements for businesses.
To further reduce delays, businesses can use Artificial Intelligence and digital tools. Automated application tracking, document verification, and compliance monitoring help ensure accuracy and prevent errors that could slow down processing. AI-driven workforce platforms can also predict visa processing times, allowing businesses to plan hiring strategies more effectively.
The future of remote and hybrid work in global talent mobility
As remote and hybrid work models become standard across industries, immigration policies in Australia and New Zealand are evolving to accommodate international talent while maintaining compliance with local labour laws.
Integrating remote work into talent mobility strategies
While Australia has not introduced specific visas for digital nomads, New Zealand has taken a proactive approach by allowing visitors on visitor visas or NZeTAs to work remotely for overseas employers.
However, restrictions remain—remote workers cannot work for New Zealand employers, provide services to local businesses, or engage in physically present work activities. Employers hiring remote talent must also consider tax implications, as foreign income is exempt from New Zealand tax if the worker stays for less than 92 days in 12 months or up to 183 days under a tax treaty. If remote workers exceed this timeframe, they may become a tax resident, leading to unexpected tax liabilities that could impact their willingness to work for ANZ-based employers.
For businesses integrating remote and hybrid workforces, compliance remains a challenge. Employers in ANZ must ensure that remote workers on visitor visas adhere to visa conditions and are aware of potential tax liabilities. While employers are not directly responsible for taxation, staying informed about residency rules and tax thresholds can help mitigate compliance risks. In Australia, hybrid workers on employer-sponsored visas must comply with standard visa terms, even if working remotely part-time.
To effectively manage remote international employees, businesses should track work locations, maintain accurate documentation, and educate workers on visa conditions. Additionally, companies must ensure data security and privacy protections as remote work expands.
Conclusion: Preparing for the future of talent mobility in ANZ
As immigration policies evolve across Australia and New Zealand, businesses must adopt a proactive approach to regulatory changes rather than reacting after the fact. Frequent visa updates, changing sponsorship obligations and labour market testing requirements directly impact workforce stability and competitive positioning.
Digital solutions and AI-driven management tools have become essential for efficiently navigating these challenges. By integrating technology into talent mobility frameworks, organisations can streamline visa processing, ensure compliance, and reduce administrative burdens while minimising delays.
Regular compliance audits are essential for identifying risks in talent mobility strategies. For businesses seeking comprehensive support in this area, CXC offers Employer of Record (EOR) services with expertise in visa management and regulatory compliance across the ANZ region.
Contact CXC today to simplify workforce mobility and ensure compliance in ANZ’s changing regulatory environment.
