1. Changes to the Migration Act 

July 1 2011 sees the commencement of a range of new provisions under the Migration Act and Migration Regulations. The changes that might be relevant to our clients include: 

Visa Application Charges (VAC) 

 Charges payable to the Department of Immigration and Citizenship for business related visas will increase by 2.8% in accordance with the CPI. 

Application fees for review of a decision by the Migration Review Tribunal will increase by 15% (from $1,400 to $1,610). Tribunal fees remain refundable where an application to the Tribunal is successful. 

Any applications to the Department or the Tribunal lodged on or after 1 July 2011 will be invalid unless accompanied by the current fee (or a credit card authority to that effect). 

Minimum Salary 

Employers sponsoring temporary staff under the sub class 457 visa program are presently obliged to ensure that the base rate of pay paid to an employee is the greater of the TSMIT and market rate for the position (determined with reference to Australian employees undertaking similar work). 

From 1 July the TSMIT will increase from $47,480 to $49,330. Employers with current sponsored employees should ensure that salaries are adjusted with effect from 1 July to remain compliant. 

"Base rate" of pay excludes incentive-based payments and bonuses, loadings, allowances, overtime and penalty rates. 

English Language 

Generally, applicants nominated for Trades occupations are obliged to demonstrate English language fluency to functional level (equating to a score of 5 in each of the IELTS test bands). Certain applicants are exempt from these requirement including holders of passports from Canada, New Zealand, the Republic of Ireland, the UK or the USA. 

Holders of other passports who are nominated for Trade positions may be exempt from the English language requirements where their base rate of salary is not less than $88,410 (up from $85,090). 

2. Training Requirements – a reminder 

Our experience is that many employers wishing to sponsor skilled staff under the 457 temporary visa program are not adequately prepared to demonstrate their compliance with the training requirements of the Department of Immigration. 

Businesses established for more than 12 months must be able to evidence training expenditure to meet Benchmarks A or B as follows: 

Benchmark A – recent (meaning in the past 12 months) expenditure by the business to the equivalent of at least 2% of the payroll of the business, in payments allocated to an industry training fund, plus a commitment to maintain such expenditure in each fiscal year for the term of its approval as a sponsor. 

Benchmark B – recent expenditure by the business to the equivalent of at least 1% of payroll of the business for the provision of training to Australian citizen or permanent resident employees of the business, plus a commitment by the business to maintain such expenditure for the term of its approval as a sponsor. 

Training expenditure for Benchmark B can include: 

  • Employment of apprentices and trainees 
  • Employment of a person with a training role 
  • Payment to external training providers (including for courses of formal study) 
  • On the job training provided that it is structured and its outcomes can be audited. 

3. Skill Assessments 

Whilst formal assessment of an applicant's skills is generally not necessary, the Department of Immigration retains discretion to require a skill assessment. For persons coming to fill trade occupations who hold passports from Brazil, Fiji, PNG, South Africa, Vietnam, China, India, Philippines, Thailand or Zimbabwe, skill assessments are mandatory. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.