Book Now 
The Australian government is shaking up the migration program in a major way with a “once in a generation reform”.
Why? Well, a review found the current system wasn’t “fit for purpose”. It has unclear objectives and isn’t attracting the best and brightest talent or giving businesses the streamlined access to workers they need.
Some changes (increased TSMIT) are happening on July 1, 2023, but don’t hold your breath for any further major shifts just yet.
Over the next two months, the government will be getting input from state and territory governments and other key players before issuing the final Migration Strategy later this year.
What Are the Proposed changes?
Please note that with the exception of the rise and indexation of TSMIT, the following are proposals only at this point.
Raised TSMIT
An increase in the Temporary Skilled Migration Income Threshold (TSMIT) to $70,000. The current threshold is $53,900. (Following the release of the report, the government announced that the increase would take place on 1 July 2023).
TSMIT Indexed
TSMIT to be indexed in line with the Wage Price Index.
Removal of Current Occupation lists
The reviewers considered that occupation lists are not an accurate reflection of genuine labour market needs.
Jobs & Skills Australia to Advise on occupational and skills needs
Instead of occupation lists, JSA to advise on all labour market needs, using the Jobs and Skills Councils, and undertaking regional analysis and market-wage assessments.
LMT Removal
Removal of LMT and introduction of an evidence-based system to identify labour needs that is data driven.
Increased Mobility for TSS Visa Holders
Allow greater mobility for Subclass 482, TSS Visa holders, which the reviewers considered would decrease the risk of worker exploitation.
TSS visa holders would have a longer period of six months to find a new employer to sponsor them.
Three “Levels” of Sponsored Workers
There would be three “cohorts” or levels of sponsored workers:
- A high salary cohort, annual wages of $98,000 (plus superannuation) or above. This group would have unique or high in demand skills and streamlined visa assessment process would apply to their visa applications. Will include high level intra company staff transfer.
- A mid-level cohort with wages above the new TSMIT of $70,000 (plus superannuation) with age adjusted income thresholds. This group would be subject to a mid level of visa application scrutiny, to ensure that applications align with Australia’s skills needs.
- A lower paid cohort which would be “highly scrutinised” to prevent worker exploitation, with increased post arrival monitoring.
- Consideration of the use of sector level tripartite Labour Agreements for lower skilled, lower paid occupations
- May include concessions such as English language etc in essential industries such as aged care
All TSS Visa Holders Can Proceed to PR
All TSS migrants to have a pathway to permanent residence (including those that may have lower skills) by the end of 2023.
Registers of Sponsoring Employers
Creation of a register of sponsoring employers.
Employers who are found to be in knowing and serious breach of either migration or employment laws to be struck from the register, and presumably banned from sponsoring workers.
Monthly Instalments of Fees and SAF
Fees and charges for nominating a sponsored worker to be paid in monthly instalments, with the liability resting with the current employer.
The reviewers recognised that creating the capacity for migrant workers to move to new employers would disadvantage the initial sponsoring employer, who would be required to cover high upfront costs of sponsorship.
Induction and Training of Migrant Workers
Migrant workers to receive training in workplace laws and conditions. Induction sessions to take place within one month of arrival.
Such sessions could include introductions to relevant community support, networking opportunities, workplace rights, and pathways to legal remedies if necessary.
ATO Monitoring
Monitoring pay and conditions of migrant workers through coordination with tax system (this occurs already).
Automatic Tax File Numbers
Automatic application for a TFN for migrant workers at the time of visa application.
Limitation of Working Holiday Visas
Working Holiday Visas limited to one year with focus on cultural exchange not employment.
Independent Skilled Migration Changes
Revamped System for the Independent Skilled Migration Points Test.
Greater points may be awarded to those applicants with partners whose skills can be utilised in the labour market.
Student Visas
A move from the Genuine Temporary Entrant (GTE) criterion to a new Genuine Student test.
Automatic graduate visas for high level students.
Regional Employers
Potential assistance for regional employers who may require workers with lower skills, and who may be dissuaded from sponsoring workers because of the high costs and SAF.
Current visa options provide limited and inflexible access to lower paid labour, particularly in the agriculture and tourism sectors; and the amount of the SAF levy is seen as a significant issue for regional employers, which are often small businesses.
Parent visas
- The reviewers found it inequitable that parents have to wait 40 years for parent visa processing, which essentially means non are granted.
- A parent visa lottery may be an option to reduce processing times.
- By way of an alternative, eliminate permanent residence for parents and improve access to temporary parent visas instead.
- The reviewers criticised the sponsored parent visa (Subclass 870) as to expensive and too complicated.
Skills assessments/licensing
- Clear and agreed principles and faster outcomes.
- Align skills assessment with occupational licensing.
- Improve international mutual recognition of qualifications and licences
- Ensure marketed courses match occupational licensing requirements
Conclusion
In sum, the Australian Federal Government has taken on a bold and ambitious task: to undertake a complete revamp of Australia’s migration system.
It is important to note again that with the exception of the increase in TSMIT from 1 July 2023, the new plan has not been properly formulated yet, and consequently, we are still left in a state of limbo. Some proposed changes, such as no LMT and monthly fee instalments could be an absolute godsend for cash strapped, seriously understaffed employers, but others, such as reducing working holiday visas to one year could be disastrous for hospitality employers.
We hope though, that with the extensive review taking place and substantial consultation initiatives, the new system will live up to its potential for delivering much needed improvements for both migrant workers, permanent residence applicants and Australian businesses.
In any case, its worth following this story closely so you know what to expect when this proposed new “once in a generation reform” of our nation’s migration program finally arrives.
If you would like more information on this issue or the other Australian visa options available to you currently, contact us now.
On behalf of all at AHWC Immigration Law, thank you for reading!
