The Minister for Home Affairs, the Hon. Clare O'Neil's appeared at the National Press Club last week to announce the release of the 'Review of the Migration System' chaired by Martin Parksinon AC PSM and the related Labour Government's 'Outline of the Government's Migration Strategy' position paper. Following the speech, the Minister has issued a press release confirming that the Temporary Skilled Migration Income Threshold (TSMIT) will increase to $70,000 from 1 July this year.
In the press release, the Minister's statements reflect that that indexation of the TSMIT was paused under the previous Liberal National government and the $70,000 is largely consistent with where the threshold would be had the figure been indexed over the last decade. Minister for Immigration, the Hon Andrew Giles MP, states that the rise is a step towards greater fairness in the temporary work visa program which will also have impacts for Australian workers.
What's the impact of this change?
The TSMIT has two functions within the Sc 482 visa system - it is both a 'salary floor' for Sc 482 Temporary Skill Shortages visa holders and the Market Salary threshold below which positions are deemed insufficiently skilled / valued to qualify for the Sc 482 visa. As a Market Salary threshold, the TSMIT determines which positions are eligible for sponsorship. Employers must demonstrate to the Department of Home Affairs that the 'market salary rate' for the proposed role is above the TSMIT for the position to be eligible to be nominated.
In the Press Club speech, Minister O'Neil stated that existing Sc 482 visa holders will be grandfathered at their current remuneration level. However, it is unclear exactly how the Department of Home Affairs will apply the new TSMIT because under the current legislative regime, if a visa holder receives less than the current TSMIT they will not be eligible for a further Sc 482 visa and should the business wish to sponsor further Sc 482 visa holders in the same occupation, they would not be eligible as remuneration is below the TSMIT.
Sponsors have always had an obligation to pay Sc 482 visa holders the relevant 'market rate' for the role. This obligation has not changed but employers should assess their current visa holder population to ensure they are meeting these obligations.
Roam Migration Law will continue to monitor updates in this area and notify clients where future information becomes available.
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