The Minister for Home Affairs and Cyber Security, Hon. Clare O’Neil, gave a speech on “A New Migration System for Australia’s Future” on 27 April 2023.
The program for skilled migration has undergone a few major changes recently. Holders of Temporary Skill Shortage (Subclass 482) Short-term stream visas will have a path to permanent residency by the end of 2023. A road to permanent residency is not currently available to those with Subclass 482 visas who work in the Short-term stream occupation. Those who stayed in Australia throughout the pandemic are the lone exception to this norm.
One of the changes to Australia’s immigration policy entails a redesign of the temporary skilled migration program, which includes the first increase in the temporary skilled migration income threshold (TSMIT) in ten years. As of 1 July 2023, employers must pay temporary skilled shortage visa holders a minimum wage of $70,000 instead of the current $53,900.
Three new ranks are created as a result of the adjustments:
- a group of specialists with “high salaries” who are not restricted to jobs on a government-approved list and are most likely to be internal transfers; will have the quickest processing times, a minimum annual salary threshold required (anticipated to be around $95,000), and low processing restrictions, such as no labor market testing requirement.
- a cohort classified as “mid-level” based on the skills required, earning salaries at or above the $70,000 revised Temporary Skilled Migration Income Threshold (TSMIT), with the possibility of age-adjusted income criteria; will have a lower wage threshold and some new restrictions for processing visas will be added to the application process. This tier is expected also to have an occupational grouping assigned to it.
- A “lower wage” cohort might be created to help industries with ongoing labor shortages, such as the health and care industries. This cohort might have a lower minimum salary requirement but would be subject to more processing and compliance scrutiny.
At a time when Australia’s ongoing economic success is dependent on an increasing inflow of talented workers, the changes to the Skilled Temporary Visa system are a welcome recognition that migrant workers need to be supported and encouraged in order to make long-term contributions to our country.
This is an important and progressive step in a longstanding effort to create a sustainable and rights-respecting temporary migration policy. It allows Australian skilled workers the opportunity to fill jobs they are qualified for and contributes to the future prosperity of local communities. For those seeking permanent residence, it offers them a chance at a life that is much more in line with what was initially promised: one where their skills will be respected and rewarded, where they will have access to services commensurate with those of their Australian counterparts, and where they can contribute as full members of society. Overall, this announcement changes the way our country thinks about migration, towards a system that maximizes the benefit of foreign professionals without relying on exploitation or treating migrants like second-class citizens.
It is significant to remember that the legislation necessary to make these actions possible has not yet been released. Current holders whose salaries fall below the TSMIT may be impacted by the hike, however, this is not yet known. As more details become available, ImmiUpdates will post them and we’ll share them with the public.
We’re a team of Australian Migration Specialists who advise daily on visa applications and pathways to residency. Are you unsure of how to proceed? Visit our home page and make sure you book a consultation where we can answer any questions you might have directly relevant to your situation.
Please note that the above information is general and not exhaustive or specific to your case. We always advise that you first speak to a migration agent or lawyer before making any migration-related decision.
