The change, which was first announced in 2016, gives a pathway to permanent residency to up to 10,000 Kiwis annually who have been residing in Australia for at least five years.
But there are fears the move will result in fewer overseas applicants receiving visas under the skilled independent program.
According to the ABC, the government decided to open the new visa pathway to Australian-based New Zealanders without increasing the total number of visas under the scheme.
Applicants from India received the most number of visas under the skilled independent program in 2016-17.
In 2017, out of 42,422 places, Indian-born migrants claimed 14,484 of those visas. Migration agents say they feel that with the new Kiwi visa being merged into the program, Indian applicants stand to lose the most.
“It’s very simple, Indians have been receiving the most number of visas, any change would affect them the most,” says Yatharth Bharadwaj from Lotus Migration in Adelaide.
Many prospective Indian migrants are already feeling the pinch because of the reduced number of occupations for independent and state nominated visas.
The news comes after The Australian reported last week that Home Affairs Minister Peter Dutton tried to convince his cabinet colleagues to cut Australia’s immigration intake by 20,000.
Mr Bharadwaj says some of his Indian clients in particular occupations are facing a long wait for an invite from the Department of Home Affairs to move their visa application forward.
“A lot of Indians apply in accountancy and IT. But the department isn’t issuing invites to them. In some cases the required points go as high as 80-85,” he said.
Applicants can apply for skilled permanent visas if they have a minimum of 60 points for their educational qualifications, work experience, English proficiency etc. The department issues invites to applicants based on merit.
India is a huge source of immigration to Australia. Almost a quarter of 457 temporary skilled visas were issued to Indian workers before it was abolished last month.
Last year, applicants from India topped the list of nationalities with 38,854 visas (21.2 per cent) out of total 183,608 visas granted under Australia’s immigration program. In 2015-16, a total of 40,145 visas were granted to Indians.