Skilled Migrant Category Residence Visa Points System Explained

The Skilled Migrant Category (SMC) has long been one of the pillars of New Zealand’s immigration system, providing a New Zealand residence option for applicants (and their families) who can show they possess the skills and expertise that New Zealand requires.

The SMC is a points based system, which means that in addition to meeting several mandatory criteria (including in respect of age and English language ability), applicants must also successfully claim a minimum number of points with respect to various key attributes (e.g. qualification, skilled work experience) to be invited to apply for a New Zealand skilled migrant residence visa.

In November 2023, Immigration New Zealand (INZ) “simplified” the SMC points system into a “6 points” system, whereby applicants must show they meet the requirements for claiming a minimum of 6 points (the minimum points requirement under the old SMC before its closure was 180 points). Applicants may qualify for up to 6 points from one skill category (either their income, qualification, or New Zealand registration) and, potentially, for up to an additional 3 points for their skilled work experience in New Zealand.

However, don’t make the mistake of thinking the new points system is “simple”, as, in most respects, the requirements for assessing points remain complicated and contain several potential fishhooks for the uninitiated.

The SMC involves a two stage process, with the first stage being the preparation and lodgement of an online “Expression of Interest” (EOI) and, if invited to apply, the second stage being the lodgement of an online SMC residence visa application. The EOI stage is now free of charge (INZ used to charge a fee for EOIs), but the INZ application fee for the application has increased significantly. The EOI requires the completion of a form only (no documents are provided at this stage), with applicants required to upload all of their supporting evidence at the second application stage.

Understanding the points system

There are two core SMC requirements: first, are what I refer to as the “fixed mandatory requirements”, and second, there are the “points requirements”.

The SMC fixed mandatory requirements are that the applicant must:

1. Meet health and character requirements for residence

2. Meet the applicable minimum standard of English or, where instructions allow, pre-purchase English for Speakers of Other Languages (ESOL) tuition

3. Be aged 55 or younger at the time the residence application is made

4. Meet the skilled employment requirements, including holding current employment or an offer of employment in New Zealand with a New Zealand employer that holds  accreditation with Immigration New Zealand (an “accredited employer”) and that employment or offer of employment must pay at least the equivalent of:

   • The median wage (currently $29.66 per hour at the date of writing) if the occupation is listed at ANZSCO skill level 1-3  or

   • 1.5 times the median wage (currently $44.49 per hour at the date of writing) if the occupation is listed at ANZSCO skill level 4-5 or not included in ANZSCO.

The ANZSCO referred to above is (at the date of writing) Version 1.3 of the “Australian New Zealand Standard Classification of Occupations, which can be found here: http://aria.stats.govt.nz/aria/#ClassificationView:uri=http://stats.govt.nz/cms/ClassificationVersion/hgbQw1g89dLcxOHS

In determining the ANZSCO skill level of an applicant’s employment or offer of employment, an immigration officer will determine whether the applicant’s employment is “substantially consistent” with the ANZSCO occupation (6‑digit) level job title and description for that occupation and may undertake a “substantial match” assessment and/or a “suitably qualified” assessment. As discussed further below, it’s in relation to these assessments that an SMC application can get especially complicated.

The SMC points requirements are that the applicant must qualify for 6 points, either from one skill category (income, qualification, or New Zealand registration) or a combination of one skill category and their skilled work experience in New Zealand.

How to calculate your points

 Below is a simple table to help you to calculate your potential SMC points claim. Please note the median wage rate stipulated in this table is the applicable rate at the date of publication and is subject to change.

Points Criteria	Points Available
Points for Income (median wage)
3 x median wage	6
2 x median wage	4
1.5 x median wage	3
OR
Points for recognised qualification (equivalent under the New Zealand Qualifications Framework)
Level 10 Doctoral Degree	6
Level 9 Master's Degree	5
Level 8 Bachelor Honours Degree or Postgraduate Diploma	4
Level 8 Post Graduate Certificate or Level 7 Bachelor's Degree	3
OR
Points for registration, licensing or certification
	6
A registration, license, or certification listed at INZ Instruction SR3.30	5
	4
	3
AND
Points for skilled work experience gained in New Zealand
Three years	3
Two years	2
One year	1

The threshold for making an application

 To summarise, the threshold for being invited to lodge an application under the SMC is that applicants must:

• Meet the minimum fixed criteria above in respect of their age, English language requirements, and either having current “skilled” employment with a New Zealand employer that holds an INZ accreditation (an “accredited employer”) or an offer of “skilled employment” with a New Zealand accredited employer and that employment must be paid at least the median wage (currently $29.66 per hour)

and

• Be able to claim at least 6 points from one or more of the above points criteria, which can either be 6 points from one of the above options for income, qualification or registration or from a combination of one of those options plus points for skilled work experience in New Zealand.

In your EOI, you’ll be required to confirm and provide details of how you meet the above requirements, and if you’re invited to apply for a SMC residence visa, you’ll be required to upload to your application documentary evidence to prove you meet each requirement (including both fixed mandatory requirements and 6 points requirements).

Key issues and strategies for claiming your points

There are numerous issues and potential fishhooks to be aware of when assessing your potential eligibility and calculating your points, which include the following:

• Essentially, if you’re ineligible to claim points for skilled work experience in New Zealand (e.g. because you’re based offshore, have only recently arrived or have only recently completed your studies in NZ), then you need to be paid a very high remuneration (3 times the median wage), hold a doctoral degree (PhD) or hold registration for a highly skilled professional role (e.g. as a doctor, dentist, psychologist) to be potentially eligible for claiming 6 points. Otherwise, you’ll need to wait until you’ve gained skilled work experience in New Zealand or explore other potential residence categories (e.g. one of the Green List Straight to Residence or Green List Work to Residence categories or Care Workforce or Transport Sector Work to Residence categories).

• The question of whether your employment/offer of employment and any skilled work experience is likely to be assessed by INZ as “skilled” can become complicated, and there are a number of issues to consider, including the different ANZSCO requirements. For example, is the employment a “substantial match” with an ANZSCO occupation, and if so, which one and how do you know if it’s “substantial”? Do you meet the qualification and/or relevant experience requirements of the relevant ANZSCO(s)?

• The way INZ calculates remuneration for the SMC is also somewhat complicated and contains a number of potential fishhooks. For example, if you’re paid a salary, you must ensure your effective hourly rate meets the relevant requirements.

• To be potentially eligible for a points claim, your qualification or skilled work experience in New Zealand does not need to be relevant to your current skilled employment/offer of employment. For example, you might claim points for your Master’s qualification in Science, but your “skilled employment” in New Zealand is to work as an Accountant. However, for the purposes of INZ’s ANZSCO “substantial match” assessment(s) in respect of your skilled employment as an Accountant (and any points you claim for skilled work experience in New Zealand based on that employment), you’d need to demonstrate that you either hold a qualification that is relevant to your skilled employment as an Accountant (and that you held one during for the period of any skilled work experience being claimed) or you have the requisite years of relevant experience required in substitute of the qualification as stipulated in the relevant ANZSCO(s) for your employment.

Conclusion

Despite some promising early signs (including faster processing times of SMC applications), the jury is still out as to how “simplified” the new SMC category will be in practice, as there are a number of areas of complexity in the new system which will present challenges for many visa applicants. In particular, INZ has retained its use of the controversial ANZSCO system as an assessment tool, which is likely to continue to plague the processing of many SMC applications as INZ officers continue to go down rabbit holes in their ANZSCO substantial match assessments. As such, I’d recommend that you seek professional assistance before embarking on an SMC application, particularly given the increased cost (with the INZ application fee now NZD 4,750 at the date of publication) and the high stakes involved.