Changes to skilled migration Australia

Recently, the Australian government has made significant changes to its skilled migration program, which includes a notable increase in the salary threshold for skilled workers. The salary threshold has been raised from $53,900 to $70,000, meaning that employers will now be required to offer skilled workers a minimum salary of $70,000 to sponsor them for a visa. This is the first time the Temporary Skilled Migration Income Threshold (TSMIT) has been increased since 2013.

The Government has stated that the decision to set the new income threshold at $70,000 is based on aligning it with what the TSMIT would have been had it been indexed to the average weekly ordinary time earnings growth over the past decade. This adjustment aims to keep pace with wage trends and ensure that skilled workers are adequately compensated.

The TSMIT applies to various skilled visas, including the Temporary Skill Shortage (subclass 482), Skilled Employer Sponsored Regional (Provisional) (subclass 494), Employer Nomination Scheme (subclass 186), and Regional Sponsored Migration Scheme (subclass 187) visas.

In addition to meeting the TSMIT requirement, businesses must also demonstrate that overseas workers will receive the Annual Market Salary Rate (AMSR). This ensures that foreign workers are paid no less than their Australian counterparts performing the same job in the same location. The AMSR can be determined through various means, such as referencing enterprise agreements or industrial awards, consulting job outlook information, remuneration surveys, job advertisements for similar roles in the same location, or seeking advice from unions or employer associations.

These changes to the skilled migration program aim to strike a balance between meeting the country's labour needs while ensuring that foreign workers are fairly compensated and protected from potential exploitation. By increasing the salary threshold and implementing measures like the AMSR, the government aims to maintain a robust and equitable migration system that benefits both Australia and skilled foreign workers seeking opportunities in the country.

For assistance discussing the requirements for sponsoring workers under the skilled programs, please contact one of our Registered Migration Agents today.

Disclaimer: The information provided herein is of a general nature only and does not constitute immigration advice. For more detailed and case-specific information or advice, please contact SCA Connect.