BRIEFING REQ 0006576 Proposed approach to Skilled Residence SMC Green List and Sector Agreement Redacted.pdf

BRIEFING
Proposed approach to Skil ed Residence (Skil ed Migrant Category,
Green List and Sector Agreement) review
Date:
12 December 2024
Priority:
Medium
Security
In Confidence
Tracking
REQ-0006576
classification:
number:

Action sought

Action sought
Deadline
Hon Erica Stanford
Discuss our proposed scope and
16 December 2024
Minister of Immigration
approach for the Skil ed Residence
review.

Contact for telephone discussion (if required)
Name
Position
Telephone
1st contact
Polly Vowles
Manager, Immigration (Skil s &
Residence) Policy
04 978 3106 9(2)(a)

√
Veena Patel
Principal Policy Advisor
04 901 6190

Sarah Parker
Policy Advisor
04 916 6016

The fol owing departments/agencies have been consulted

Minister’s office to complete:
Approved
Declined

Noted
Needs change

Seen
Overtaken by Events

See Minister’s Notes
Withdrawn

Comments

BRIEFING

Proposed approach to Skil ed Residence (Skil ed Migrant Category,
Green List and Sector Agreement) review

Date:
11 December 2024
Priority:
Medium
Security
In Confidence
Tracking
REQ-0006576
classification:
number:
Purpose
To seek your direction on the scope and approach for the 2025 Skil ed Migrant Category and
Green List review, including your preferred option to address the residence pathway gap for skil ed
and technical trades 9(2)(f)(iv)
.
Executive summary
The Skil ed Migrant Category (SMC), Green List, and Sector Agreements are the primary pathways
for skil ed workers to gain residence in New Zealand. The SMC operates on a points-based system
to address medium- to long-term skil  needs, while the Green List prioritises certain high-demand
occupations through fast-tracked residence options. A review of these settings is included in the
current immigration work programme for 2025, as agreed by Cabinet earlier this year. The review
was scheduled to commence in Q1 2025, with Cabinet decisions in Q3 2025 and implementation
from Q1 2026.
We understand you wish to progress 9(2)(f)(iv)  changes to address potential gaps in residency
pathways for skil ed tradespeople 9(2)(f)(iv)
, in response to concerns from multiple stakeholders.
9(2)(f)(iv)





9(2)(f)(iv)



9(2)(f)(iv)




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9(2)(f)(iv)



9(2)(f)(iv)


9(2)(f)(iv)




Recommended action
The Ministry of Business, Innovation and Employment recommends that you:
a.  Note that a review of the Skil ed Migrant Category (SMC) and Green List is on the immigration
work programme for 2025, as agreed by Cabinet earlier this year, with previous planning
assuming Cabinet decisions would be sought in Q3 2025 with implementation from Q1 2026.
Noted

b.  9(2)(f)(iv)

      Noted

c.  9(2)(f)(iv)

      Noted

9(2)(f)(iv)


Agree / Disagree

e.  9(2)(f)(iv)

Discussed

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9(2)(f)(iv)

h. 9(2)(f)(iv)

Noted

Polly Vowles

Manager, Immigration (Skil s and
Hon Erica Stanford
Residence) Policy
Minister of Immigration
Labour, Science and Enterprise Group,
MBIE
..... / ...... / ......
12 /12 / 2024

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Background
1.
A review of the Skil ed Migrant Category (SMC) and Green List is on the immigration work
programme agreed by Cabinet earlier this year. The review was planned for 2025, with
Cabinet decisions previously assumed to be sought in Q3 2025 and implementation from Q1
2026.
2.
We understand you wish to progress 9(2)(f)(iv)  changes to address potential gaps in the
residency pathways for skil ed tradespeople. 9(2)(f)(iv)



3.
9(2)(f)(iv)

.
The SMC and Green List provide complementary pathways to residence
1.
There are two primary skil ed residence pathways available in New Zealand to help
individuals apply for residence based on their qualifications and work experience:
i.
Skil ed Migrant Category, and
ii.
Green List Straight to Residence and Work to Residence pathways.

4.
There are also pathways to residence for specific roles under the Care Workforce and
Transport Sector agreements. Together, they provide pathways to residence for migrants
either with the general skil s needed to support the labour market in the medium- to long-
term, or in specified occupations of national significance.
5.
The application threshold of each pathway differs. The SMC has a threshold that targets
individual skil s (human capital), while the Green List targets occupations and sectors, with a
skil  threshold that is specific to that occupation.
Skil ed Migrant Category
6.
The SMC is New Zealand’s main skil ed residence policy. Its objective is to support economic
growth by granting residence to people who can fil  medium- to long-term skil  needs that
would be hard, or take time, to fil  from the domestic labour market, even under the right
conditions.
7.
The SMC is not occupation-specific and operates on a simplified points-based system which
was implemented last year. Applicants must:
i.
have a job or job offer in NZ: in an ANZSCO Level 1-3 occupation and being
paid at least median wage or in an ANZSCO level 4-5 and being paid at least one
and a half times the median wage.
ii.
reach six points: with each point roughly equivalent to one year of
training/qualification or skil ed work experience in NZ
iii.  meet one of three skil  requirements: either degree qualified or above, earning
at least 1.5 x median wage, or holds regulated occupational registration that
requires at least 1.75 years of training to qualify.

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8.
Given the changes to the Skil ed Migrant Category (SMC) settings in late 2023, it is too early
to fully assess their impact. These changes may take time to affect migration trends, labour
market outcomes, or visa approval rates. A total of 1,328 applications were approved under
the new settings (Between 4 October 2023 and 30 November 2024). We expect this to
increase as people with fewer skil  points start to become eligible as they gain more work
experience. We have provided a list of the top 50 occupations approved under SMC, broken
down by skil  proxy at Annex Two. As expected, this data reflects occupations most likely to
hold the highest level of qualification (e.g., university lecturer) and the highest levels of pay
(e.g., finance manager).
Green List
9.
The Green List was introduced in 2022. The Green List was originally designed to attract
migrants in specific highly skil ed, hard-to-fil  occupations of high national importance. It
provides a mechanism for the government to prioritise key roles and carve-out exceptions to
more general settings where needed.
10.  The List seeks to fast-track residence pathways for certain occupations, and consists of two
tiers including:
a.
Tier 1: A fast-tracked ‘Straight to Residence’ pathway that can be accessed from
offshore after a relevant job offer, and
b.
Tier 2: The ‘Work to Residence’ pathway that requires the migrant to work in a job for
two years in New Zealand before being eligible for residence.
11.  The original Green List included 85 occupations on either a Straight to Residence (STR) or
Work to Residence (WTR) pathway. Since its inception a number of changes have occurred,
including the addition of all regulated health roles. There are now 191 ANZSCO occupations
on the current Green List. Despite the large number of ANZSCO occupations, there are a
limited number of industries captured by the Green List.
12.  Between September 2022 and November 2024, 11,665 Green List Straight to Residence
visas were approved and between September 2023 and November 2024, a further 86 Green
List Work to Residence Visas were approved. We expect Green List work to residence
volumes to increase as people in those occupations complete the required two years of
skil ed work experience in NZ. The top 50 occupations by total applications approved via the
Green List Straight to Residence pathway is provided at Annex Three. Approvals via the
Green List Work to Residence pathway are provided at Annex Four.
Sector Agreements
13.  The Care Workforce Sector Agreement and Transport Sector Agreement provide a work to
residence (two year) pathway for a small group of mid-low skil ed occupations (9 care health
roles, and deck hands) as well as ship’s masters. Previously truck and bus drivers were
included but were removed in April 2024 as a surge in temporary migrant bus and truck
drivers were deemed sufficient to meet the transport workforce shortages.
14.  Between September 2023 and November 2024, 260 applications for residence via the Sector
Agreement pathways have been approved. We expect volumes to increase as eligible
workers complete the required two years of onshore work experience component. A
breakdown of approvals by occupation is provided at Annex Four.

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There is a gap in residence pathways for some key skil ed and technical trades
15.  A gap in residence settings was identified as part of the original policy work, but it was
determined at that time that SMC settings should retain their high bar. MBIE considered that
there was a small group of roles where senior workers who may be beneficial for New
Zealand to retain in the longer term would be unlikely to qualify under the existing pathways.
Primarily these were manufacturing roles e.g., metal fabricators, metal machinists, and steel
fixers, though officials did consider it may be beneficial for highly-skil ed chefs (and possibly
bakers) to have a pathway. However, conversations with Hospitality NZ and the Restaurant
Association (post-SMC review) highlighted that identifying a suitable threshold is
challenging.1
16.  Of icials advised at the time that the Green List should be used to target specific occupations
of concern, rather than lowering the SMC threshold to capture those workers as this would
likely also then provide a pathway to residence to people you would not be looking to target.
17.  We have heard from stakeholders that the lack of a current residence pathway for some
skil ed tradespeople is likely to cause issues. Stakeholders have emphasised that these skil s
are challenging to source locally and they can play a key role in businesses, such as
providing oversight of work, carrying out specialised work and training other staff. Employers
consider losing these migrants wil  have a disproportionate impact on their businesses.
18.  The roles we have been advised of are scaffolders, a number of fit er roles (e.g. fit er-turner,
fitter-welder) and metal fabricators. These roles are not on the Green List (though some are
the 11 roles that were deferred from being added earlier this year) and are unlikely to meet
the requirements under the SMC. We are interested in understanding if there are particular
roles you are concerned about.
19.  Of icials note that the majority of the roles raised previously are at ANZSCO level 3, meaning
that migrants wil  be able to remain in New Zealand until at least July 2027.
20.  Annex One sets out trades and trades-adjacent roles (at skil  levels 3 and 4) contained within
the top 200 AEWV occupations (by approval volumes).
Options for the scope and approach of the Review
21.  We understand you wish to progress 9(2)(f)(iv)  changes to address the gaps in residency
pathways for skil ed tradespeople 9(2)(f)(iv)
. 9(2)(f)(iv)



1 Under previous settings a L4 cookery qualification + median wage was essentially the skil  threshold. This
was seen as one of the easiest pathways to residence (cheapest and shortest) for international students,
and there were concerns that this was encouraging excess demand and non-genuine applications.

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9(2)(f)(iv)
9(2)(f)(iv)

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9(2)(f)(iv)
9(2)(f)(iv)

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9(2)(f)(iv)
Next Steps
40.  Of icials wil  discuss this with you at the meeting on 16 December 2024.
41.  Based on your decisions in this paper, officials wil  progress work early in the new year on
your preferred approach to the 9(2)(f)(iv)  changes to address gaps in residence pathways
for skil ed and technical trades, including further advice on the approach to consultation.
9(2)(f)(iv)

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Annexes
Annex One:  Top AEWV skil  level 4 and 5 trades and trades-adjacent roles
Annex Two:  Top 50 SMC approvals by occupation and skil  proxy
Annex Three: Top 50 Green List Straight to Residence approvals by occupation
Annex Four:  Green List and Sector Agreement Work to Residence approvals by occupation

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Annex One: Top AEWV skil level 4 and 5 trades and trades-adjacent roles
Attached separately

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Annex One: Top AEWV skil  level 4 and 5 trades and trades-adjacent roles

Total AEWV
AEWV Ranking ANZSCO Code
Occupation
approvals
Residence pathway
2
331212 Carpenter (Skil  Level 3)
4618 SMC registration
13
332211 Painting Trades Worker (Skil  Level 3)
1830
22
322311 Metal Fabricator (Skil  Level 3)
1306
26
821712 Scaffolder (Skil  Level 4) **
1166
27
321212 Diesel Motor Mechanic (Skil  Level 3)
1160 Green List and SMC registration
29
331211 Carpenter and Joiner (Skil  Level 3)
1121 SMC registration
30
321211 Motor Mechanic (General) (Skil  Level 3)
1113 Green List and SMC registration
32
341111 Electrician (General) (Skil  Level 3)
995 Green List and SMC registration
33
322313 Welder (Skil  Level 3)
974
36
323213 Fit er-Welder (Skil  Level 3)
927
42
821713 Steel Fixer (Skil  Level 4)
752
43
399999 Technicians and Trades Workers nec (Skil  Level 3)
729
45
342414 Telecommunications Technician (Skil  Level 3)
689 Green List
51
721111 Agricultural and Horticultural Mobile Plant Operator (Skil  Level 4)
611
52
333211 Fibrous Plasterer (Skil  Level 3)
608
54
323211 Fit er (General) (Skil  Level 3)
596
57
342111 Airconditioning and Refrigeration Mechanic (Skil  Level 3)
550
58
721211 Earthmoving Plant Operator (General) (Skil  Level 4)
537 Green List
62
324111 Panelbeater (Skil  Level 3)
507
63
333411 Wall and Floor Tiler (Skil  Level 3)
484
66
324311 Vehicle Painter (Skil  Level 3)
436
71
711999 Machine Operators nec (Skil  Level 4)
372
75
333212 Solid Plasterer (Skil  Level 3)
357 SMC registration
76
322211 Sheetmetal Trades Worker (Skil  Level 3)
355
79
334111 Plumber (General) (Skil  Level 3)
344 Green List and SMC registration
82
721214 Excavator Operator (Skil  Level 4)
325 Green List
89
333311 Roof Tiler (Skil  Level 3)
289 SMC registration
93
711211 Industrial Spraypainter (Skil  Level 3)
266
95
332111 Floor Finisher (Skil  Level 3)
258
96
342313 Electronic Equipment Trades Worker (Skil  Level 3)
253
103
342211 Electrical Line Mechanic / Electrical Linesworker (Skil  Level 3)
236 SMC registration
106
394111 Cabinetmaker (Skil  Level 3)
227
108
321111 Automotive Electrician (Skil  Level 3)
226 Green List
109
323214 Metal Machinist (First Class) (Skil  Level 3)
225
116
362213 Landscape Gardener (Skil  Level 3)
203
123
333111 Glazier (Skil  Level 3)
188
126
712111 Crane, Hoist or Lift Operator (Skil  Level 3)
186
132
312112 Building Associate (Skil  Level 2)
178 Green List
135
323212 Fit er and Turner (Skil  Level 3)
169
137
821411 Building Insulation Installer (Skil  Level 4)
166
143
839413 Wood and Wood Products Factory Worker (Skil  Level 4)
151
145
331111 Bricklayer (Skil  Level 3)
142 SMC registration
152
362211 Gardener (General) (Skil  Level 3)
127
154
899415 Tyre Fit er (Skil  Level 4)
124
156
821711 Construction Rigger (Skil  Level 3)
123
167
721311 Forklift Driver (Skill Level 4)
114
172
331213 Joiner (Skil  Level 3)
107 SMC registration
178
331112 Stonemason (Skil  Level 3)
100
184
821412 Home Improvement Installer (Skil  Level 4)
94
193
839412 Sawmil  or Timber Yard Worker (Skil  Level 4)
86
196
721999 Mobile Plant Operators nec (Skil  Level 4)
82
199
899411 Motor Vehicle Parts and Accessories Fit er (General) (Skil  Level 4)
82
4
351411 Cook (Skil  Level 4) **
3837
6
351311 Chef (Skil  Level 2)
3628
19
451111 Beauty Therapist (Skil  Level 3)
1433
35
391111 Hairdresser (Skil  Level 3)
945
39
411611 Massage Therapist (Skil  Level 2)
841
44
351111 Baker (Skil  Level 3)
722
99
351211 Butcher or Smallgoods Maker (Skil  Level 3)
249
171
711611 Sewing Machinist (Skil  Level 3)
107

Key
Description

Already has a residence pathway

Paused Green List role (April 2024)
**
Moving to ANZSCO Level 3 under NOL updates

Annex Two: Top AEWV skil level 4 and 5 trades and trades-adjacent roles
Attached separately

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Annex Two: Top 50 SMC approvals by occupation and skil  proxy (9 October
2023 to 30 November 2024)

Rank
ANZSCO code
Occupation
Income
Qualification  Registration Total
1
242111 University Lecturer
5
109
9(2)(a)
115
2
241111 Early Childhood (Pre-primary School) Teacher
0
41
44
3
511112 Program or Project Administrator
9(2)(a)
29
32
4
261313 Software Engineer
5
24
30
5
551211 Bookkeeper
0
23
6
29
6
131112 Sales and Marketing Manager
18
8
0
26
7
221111 Accountant (General)
0
17
8
25
8
224412 Policy Analyst
22
0
25
9(2)(a)
9
225113 Marketing Specialist
23
0
24
10
261111 ICT Business Analyst
5
18
0
23
11
234313 Environmental Research Scientist
0
22
0
22
12
261312 Developer Programmer
0
22
0
22
13
132211 Finance Manager
13
9(2)(a)
5
20
14
224999 Information and Organisation Professionals nec
16
0
17
9(2)(a)
15
224711 Management Consultant
13
9(2)(a)
16
16
233211 Civil Engineer
15
0
16
17
133111 Construction Project Manager
9
6
0
15
18
132511 Research and Development Manager
9(2)(a)
11
0
15
19
242211 Vocational Education Teacher (Aus) / Polytechnic Teacher (NZ)
0
15
0
15
20
223112 Recruitment Consultant
0
12
9(2)(a)
13
21
111111 Chief Executive or Managing Director
13
0
0
13
22
224712 Organisation and Methods Analyst
9(2)(a)
10
13
9(2)(a)
23
241213 Primary School Teacher
0
9
13
24
111211 Corporate General Manager
11
9(2)(a)
0
12
25
261314 Software Tester
0
12
0
12
26
224311 Economist
0
11
9(2)(a)
12
27
249111 Education Adviser
9(2)(a)
11
0
12
28
313112 ICT Customer Support Of icer
0
11
0
11
29
241411 Secondary School Teacher
0
11
0
11
30
139999 Specialist Managers nec
8
9(2)(a)
0
10
31
261211 Multimedia Specialist
8
0
10
32
141111 Cafe or Restaurant Manager
0
9
9(2)(a)
10
33
142111 Retail Manager (General)
0
10
0
10
34
232611 Urban and Regional Planner
0
10
0
10
35
261311 Analyst Programmer
0
10
0
10
36
521211 Secretary (General)
0
9
0
9
37
261112 Systems Analyst
0
9
0
9
38
233214 Structural Engineer
0
9
0
9
39
234211 Chemist
0
9
0
9
40
232411 Graphic Designer
7
0
8
9(2)(a)
41
135112 ICT Project Manager
9(2)(a)
9(2)(a)
8
42
233999 Engineering Professionals nec
7
0
8
43
223111 Human Resource Adviser
0
8
0
8
44
225111 Advertising Specialist
9(2)(a)
6
0
8
45
234514 Biotechnologist
0
8
0
8
46
233512 Mechanical Engineer
0
8
0
8
47
321212 Diesel Motor Mechanic
0
0
8
8
48
141311 Hotel or Motel Manager
0
7
0
7
49
133611 Supply and Distribution Manager
9(2)(a)
5
0
7
50
311411 Chemistry Technician
0
7
0
7

Annex Three: Top 50 Green List Straight to Residence approvals by
occupation
Attached separately

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Annex Three: Top 50 Green List Straight to Residence approvals by occupation

Rank
ANZSCO code OccupationDescription
2022 (from Sep)
2023 2024 (to Nov) Total
1
254412 Registered Nurse (Aged Care)
9(2)(a)
467
1028
1496
2
254418 Registered Nurse (Medical)
5
630
763
1398
3
254415 Registered Nurse (Critical Care and Emergency)
9(2)(a)
308
439
749
4
254424 Registered Nurse (Surgical)
0
250
351
601
5
261313 Software Engineer
41
276
166
483
6
241411 Secondary School Teacher
0
0
421
421
7
312212 Civil Engineering Technician
38
181
130
349
8
254423 Registered Nurse (Perioperative)
9(2)(a)
135
193
329
9
233211 Civil Engineer
33
132
122
287
10
253112 Resident Medical Of icer
20
122
145
287
11
221213 External Auditor
0
113
148
261
12
233213 Quantity Surveyor
20
142
96
258
13
252511 Physiotherapist
0
67
165
232
14
133111 Construction Project Manager
14
97
116
227
15
254425 Registered Nurse (Paediatric)
0
88
119
207
16
233512 Mechanical Engineer
11
89
72
172
17
233214 Structural Engineer
11
93
52
156
18
254422 Registered Nurse (Mental Health)
0
47
93
140
19
254413 Registered Nurse (Child and Family Health)
0
50
87
137
20
233311 Electrical Engineer
5
60
69
134
21
135112 ICT Project Manager
18
50
53
121
22
234711 Veterinarian
8
46
65
119
23
261312 Developer Programmer
6
69
41
116
24
234212 Food Technologist
8
51
49
108
25
253111 General Practitioner
6
44
47
97
26
254421 Registered Nurse (Medical Practice)
0
34
59
93
27
254499 Registered Nurses nec
0
30
63
93
28
261211 Multimedia Specialist
21
38
31
90
29
135199 ICT Managers nec
10
46
32
88
30
133112 Project Builder
7
45
34
86
31
233999 Engineering Professionals nec
8
49
27
84
32
251211 Medical Diagnostic Radiographer
0
26
55
81
33
254417 Registered Nurse (Disability and Rehabilitation)
0
35
46
81
34
262112 ICT Security Specialist
8
44
29
81
35
234313 Environmental Research Scientist
11
35
26
72
36
311213 Medical Laboratory Technician
0
16
56
72
37
221214 Internal Auditor
0
18
52
70
38
234611 Medical Laboratory Scientist
9(2)(a)
30
31
64
39
233212 Geotechnical Engineer
28
28
60
40
312312 Electrical Engineering Technician
24
34
60
41
312412 Electronic Engineering Technician
27
31
60
42
252411 Occupational Therapist
0
21
35
56
43
272511 Social Worker
0
17
35
52
44
261314 Software Tester
30
19
51
9(2)(a)
45
233513 Production or Plant Engineer
23
23
50
46
252312 Dentist
0
21
28
49
47
311211 Anaesthetic Technician
0
13
36
49
48
272311 Clinical Psychologist
21
25
48
9(2)(a)
49
253211 Anaesthetist
20
18
42
50
252711 Audiologist
0
18
21
39

Annex Four: Green List and Sector Agreement Work to Residence
approvals by occupation
Attached separately

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Annex Four: Green List and Sector Agreement Work to Residence approvals by
occupation

Green List Work to Residence
ANZSCO Code Occupation
2023 (Since Oct) 2024 (to Nov) Total
241111 Early Childhood (Pre-primary School) Teacher
40
43
9(2)(a)
121313 Dairy Cattle Farmer
10
11
241213 Primary School Teacher
0
7
7
341111 Electrician (General)
9(2)(a)
5
6
321211 Motor Mechanic (General)
0
5
5
241411 Secondary School Teacher
0
342414 Telecommunications Technician
0
9(2)(a)
321212 Diesel Motor Mechanic
0
442111 Prison Of icer
0
241311 Middle School Teacher (Aus) / Intermediate School Teacher (NZ)
0
312112 Building Associate
0
334111 Plumber (General)
0
No Occupation in data
0
TOTAL
86

Sector Agreement Work to Residence
ANZSCO Code Occupation
2023 (since Oct) 2024 (to Nov) Total
423111 Aged or Disabled Carer
93
96
423313 Personal Care Assistant
9(2)(a)
72
74
733111 Truck Driver (General)
64
67
411311 Diversional Therapist
0
6
6
411715 Residential Care Of icer
0
423312 Nursing Support Worker
0
9(2)(a)
411512 Kaiawhina (Hauora) (Maori Health Assistant)
0
411712 Disabilities Services Of icer
1
733114 Tanker Driver
0
No Occupation in data
0
TOTAL
9
251
260