Breaking News: Australian Government Raises Temporary Skilled Migration Income Threshold To $70,000
The Australian government has announced a significant change to the Temporary Skilled Migration Income Threshold (TSMIT), raising it to $70,000 from 1 July 2023. This decision is the first action taken by the Albanese Government in response to the independent Review of the Migration System, and it will have a significant impact on businesses seeking to sponsor overseas workers under employer-sponsored skilled migration programs. In this article, Ramsden Lawyer’s team of migration lawyers discuss the impact of this decision.
What is the Temporary Skilled Migration Income Threshold (TSMIT)?
The TSMIT is a annual minimum salary requirement that businesses must pay a worker exclusive of superannuation contributions when sponsoring them under an employer-sponsored skilled migration program. The initiative behind this requirement is to re-ensure that migrant workers are not exploited and that their salaries are comparable to those of Australian workers.
The TSMIT had previously been frozen at $53,900 since 2013, meaning that the minimum salary paid to migrant workers has not been indexed as it otherwise would have been. This has led to concerns that the TSMIT no longer reflects the current labour market in Australia and that it may be undermining the skilled migration system.
Why has the Temporary Skilled Migration Income been raised to $70,000?
The decision to raise the TSMIT to $70,000 reflects the government’s commitment to ensuring that the skilled migration system is fair and equitable for all workers. The independent Review of the Migration System found that the current TSMIT was not keeping pace with changes in the labour market, and that it was failing to protect migrant workers from exploitation.
The government’s decision to raise the TSMIT to $70,000 is intended to ensure that migrant workers are paid a fair and competitive salary in line with the salaries paid to equivalent Australian workers.
What does this mean for businesses seeking to sponsor overseas workers?
The change to the TSMIT may have a significant impact on businesses seeking to sponsor overseas workers under employer-sponsored skilled migration programs. The increase in the minimum salary requirement means that businesses will need to pay their sponsored workers at least $70,000 per year, which is a significant increase from the current minimum salary of $53,900.
Businesses will also need to ensure that the salary offered to their sponsored workers is not less than the market salary for the particular position (that is, the Annual Market Salary ). This requirement is intended to prevent businesses from using skilled migration as a means of undercutting the local labour market.
What should businesses do in response to the changes to the TSMIT?
Businesses that rely on skilled migration to fill critical roles should take note of the changes to the TSMIT and start planning for the future, ahead of these changes being implemented on 1 July 2023. It is important for businesses to ensure that they are paying their sponsored workers a fair and competitive salary, and are complying with all requirements when undertaking the sponsorship and nomination process.
Businesses should also seek legal advice to ensure that they are complying with all relevant laws and regulations. Ramsden Lawyers can provide professional advice on the changes to the migration system and help businesses navigate the complex legal landscape surrounding skilled migration.
The decision to raise the Temporary Skilled Migration Income Threshold (TSMIT) to $70,000 is a significant change to the skilled migration system in Australia. The change reflects the government’s commitment to ensuring that the system is fair and equitable for all workers, and reflects the current labour market.
RAMSDEN LAWYERS – HOW WE CAN HELP WITH TEMPORARY SKILLED MIGRATION INCOME
Ramsden Lawyers can provide expert advice and legal guidance to businesses that are impacted by the changes to the Temporary Skilled Migration Income Threshold (TSMIT). Our team can help clients ensure that they are compliant with all relevant laws and regulations, including the minimum salary requirement for sponsored workers. We can also provide guidance on navigating the complex legal landscape surrounding skilled migration and assist clients in developing strategies to meet their workforce needs in the changing environment. With our expert legal advice and guidance, businesses can make informed decisions and take proactive steps to adapt to the changing skilled migration system in Australia.
Please don’t hesitate to contact our team of experienced migration lawyers for assistance.