The Albanese government has just announced the changes affecting migration that will come into effect in 2023. A number of critical changes for businesses sponsoring under employer sponsored visa programs have been made, taking into effect this year.
The Temporary Skilled Migration Income Threshold (TSMIT) will be increased from AUD$53,900 to AUD$70,000 effective from the 1st of July 2023. It has been acknowledged that 90% of full-time jobs are paid more than the current TSMIT. The new threshold will be increased to AUD$70,000 which is what the amount would have been if it were indexed properly during the past 10 years, meaning skilled migrants will no longer be paid increasingly less than the rest of Australia. Information is yet to be released regarding whether the changes will be retrospective or how this will impact current temporary visa holders in certain occupations.
More permanent visa places will be assigned to those with Temporary Skill Shortage visas which will come into effect at the end of the year. Although this does not mean that they will be increasing the capped number of places available, it simply means that those with occupations on the short-term stream will be eligible for permanent residency at the end of the year, an incentive and goal for many temporary visa holders.
The process of Labour Market Testing is anticipated to be scrapped, although no date has been provided at this stage. Labour Market Testing refers to the arduous process of advertising the potential skilled worker’s position on three job platforms, one which must be Workforce Australia, for 28 days.
Temporary migrant workers will be able to switch employers, putting an end to the current system where migrants are bound to their sponsor. The review proposes giving temporary skilled workers six months to find work with a new sponsor in the same sector or job family, who would then be registered as the new sponsor.
The Hon’ Claire O’Neil MP has also released in her media press an Australian Migration Strategy which includes a three-tiered approach for skilled migration:
- The first stream is a fast, simple route for specialised, highly skilled workers needed to drive innovation in the economy, assisting in supporting jobs in the future.
- The second is a mainstream temporary skilled pathway to bring in core skills. For this stream, a proper, evidence-based assessment of skilling needs, rather than the current outdated approach. This pathway would include skilled migrants earning above an increased temporary skilled migration income threshold.
- The third stream relates to our essential industries. Exploitation as part of our international student visa system is common as part of low-wage migration programs, allowing chronic and on-going labour shortages placing pressure on existing workers.
The Labour Government has also proposed that they are discussing ways that can determine which temporary migrants may be eligible for permanent residency. This would include:
- A change in the points test. They have stated that the bar is currently set too low and that it tests persistence and not the need for the future of Australia.
- They have further stated that they wish to create a new department which will identify the occupations that are in need the most in Australia and find those eligible for global talent to present them with an opportunity to join Australia.
- The Hon’ Claire O’Neil MP also mentions that they are in the process of finding a better pathway for international students who have the unique skills and capabilities we need, to have a chance to stay in Australia on a more permanent basis and allowing businesses greater access to a work-ready pool of labour.
- From 1 July 2023, New Zealanders living in Australia will have a pathway to Australian citizenship, the same as offered to Australians who live in New Zealand.
The Labour Government has confirmed that they are willing to improve the way our government addresses migration to provide a better experience for migrants as well as address Australia’s labour needs.
Overall reform is expected in how Australia selects and offers individuals permanent residence, contributing Australia’s productivity, meeting our skills needs and addressing our aging population challenges participation, and addressing our ageing population challenges, and building a simplified pathway to attract the migrants we need to drive innovation.
More announcements and enactments of legislation are anticipated over the coming months, including specifications for certain occupations, visa subclasses and exemptions relating to requirements. Crystal Migration Legal Services will be sending out alerts as further information is known.