On 27 April 2023, as part of their important election commitments to end the nation’s dependence on short-term visa holders and make it easier for foreign workers to become permanent residents, the Labour Government announced two important measures:
The Government will increase the Temporary Skilled Migration Income Threshold (TSMIT) to AUD70,000 from July 1, 2023.
TSMIT is currently at AUD53,900.
This new measure will affect employers wishing to nominate workers for a Temporary Skill Shortage (subclass 482), Employer Nomination Scheme (subclass 186), Regional Sponsored Migration Scheme (Subclass 187), and Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) visas as they must meet certain salary requirements.
These requirements ensure that:
Fixed since 2013, close to 90% of all full-time jobs in Australia are now paid more than the current TSMIT, undermining Australia’s skilled migration system.
New nominations lodged ON or AFTER that date will be required to meet the new TSMIT of $70,000 or the annual market salary rate, whichever is higher.
Applications lodged BEFORE 1 July 2023 will not be affected.
This is the Government’s initial response to the independent Review of the Migration System led by Dr. Martin Parkinson, which concluded that Australia’s migration system is broken.
The Government also announced that by the end of 2023, Temporary Skill Shortage (TSS) short-term stream visa holders will have a pathway to Australian permanent residency within the existing capped permanent program.
This will provide employers and migrants with more certainty and will help increase the skill level in the permanent skilled program.
