Significant 2026 SMC Changes coming – what do these changes mean?

High-level Overview:

·      Confirming residency pathways for those who meet requirements under the Trades & Technicians Pathway

·      Confirming the Skilled Work Experience Pathway, with an introduction of traffic light occupation lists, which determine eligibility for residency

·      Additional Key Changes that matter

1.    Trades and Technicians pathway

This pathway to residency will offer options to migrants who work in specific ANZSCO skill level 1 to 3 trades and technician roles

• who hold a relevant NZQA Level 4 or above qualification, and

• who can show they have 4 years of directly relevant experience, including 1.5 years in New Zealand, earning at least the SMC median wage.

This will open doors for some, but we also know a number of tradespeople won’t hold a formal qualification.  English Language requirements remain high.  At least it is a start to allow some migrants to qualify.

2.     Skilled Work Experience Pathway

Migrants in ANZSCO skills 1 – 3 will be eligible under this pathway if they have:

·      5 years + relevant work experience, including 2 years in NZ, paid at least 1.1 times the median wage.

To qualify, INZ have now released Green 👍🏼, Red 👎🏼 and Amber 😑 lists: the new traffic light system of roles:

Red 👎🏼

Retail Manager and a few health and beauty sector roles are no longer an option for residency.

To qualify under these roles, migrants will need to meet the other SMC categories, e.g., high wage, tertiary qualification or registration.

Amber 😑

Amber allows some migrants to apply for residency, but it comes with stricter requirements, such as:

·      5 years NZ experience

·      2 years earning 1.2 times the median wage

Roles include: Accommodation or Hotel managers, Café/ Restaurant Manager, Chefs, Pastry Cooks, and ICT technicians.

Although now a viable pathway, it will take migrants longer before they are able to achieve the dream of residency.  It was also noted that these lists are reviewed regularly and that if there are indications of role inflation or immigration fraud, new occupations may be added or existing occupations removed from the lists as necessary. 

3. Additional Key Changes that matter

1.    Ability to extend an Accredited Employer Work Visa (AEWV).

·       Migrants who need up to 12 additional months of skilled work experience to meet SMC requirements can apply to extend their AEWV to complete the required skilled work experience before applying for residence.

·       This ability to extend an AEWV is scheduled to be introduced in 2027. Further details on eligibility and the process for this extension will be provided at a later date.

2.    NZ qualifications carry more points.

·      NZ-earned qualifications will allow an additional 1 point compared with overseas qualifications, and fewer years of NZ work experience will be required before being able to apply for residency

Applicants claiming points with their qualification will need:

·       A copy of the qualification certificate, and

·       IQA if the qualification was gained overseas and is not currently on the List of Qualifications Exempt from Assessment

3.    Wage assessment settings

·      Two major clarifications will provide employers with relief where they’ve been asked to increase pay for immigration settings rather than market or performance reasons.

• You will only need to meet the SMC median wage (specific to your pathway) that applies when they start counting skilled work experience, and you must maintain at least that rate when applying for residence. No more needing to meet a higher wage threshold when you apply for residence.

• A 5-month grace period to apply - If you begin skilled work experience within 5 months of your work visa being granted, the wage threshold that applied on the day the visa was granted will be used.

4.    English Language Test

·      Test results will be valid for 5 years

5. Registration recognised for Accountants.

·      Qualified statutory accountants with CPA Australia are now formally recognised for SMC purposes

6. SMC Median wage increase

·      From today, the SMC median wage increases to $35 per hour ($73k per year (40 hours) or $54,600 (30 hours).

Contact Michelle to discuss any of the above in further detail

Disclaimer: The information contained in this news update is of a general nature and is not intended as a substitute for specific professional advice on any matter. It should not be relied upon for that purpose, and it is important that you seek legal advice that is specific to your circumstances.