By Albert Fang
As of April 2023, has been a significant change to the income threshold under which migration nominations can be approved in Australia.
What you need to know is the Temporary Skilled Migration Income Threshold (TSMIT) will increase significantly on 1 July 2023. This has an impact on people who don’t have any sponsored migrants in Australia, as well as people currently sponsoring migrants who need to keep up with ever-changing requirements.
When the income threshold to sponsor overseas workers increases from $53,900 to $70,000, it represents a considerable increase for some positions currently paying annual salaries of $55,000 to $65,000.
Why the increase? According to the Department of Home Affairs, the threshold has been frozen since 2013 and “The new $70,000 income threshold is approximately where the TSMIT should have been if it had been properly indexed over the previous 10 years.” The government describes this as its first action in response to the independent Review of the Migration System led by Dr Martin Parkinson, which in the Government’s words “Found that Australia’s migration system is broken.”
“The Albanese Government is also announcing that by the end of 2023, Temporary Skill Shortage (TSS) short stream visa holders will have a pathway to permanent residency within our existing capped permanent program,” Minister for Home Affairs and Cyber Security Clare O’Neil said.
What the new threshold means and what you should consider doing
You need to know that new nomination applications from 1 July will need to meet the new income threshold of $70,000 or the annual market salary rate, whichever is higher.
It is important to note the current interpretation is that this change will not affect current TSS visa holders and nominations lodged before 1 July 2023.
What you need to understand and consider doing:
- From 1 July there will be no ability to sponsor new TSS employees on an annual salary under $70,000.
- We encourage business owners and HR managers to audit your current workforce and identify those visa holders who may require sponsorship down the track, in particular those positions with an annual base salary less than $70,000.
- It could be a wise decision to lodge new applications and renewals with the help of FCB Smart Visa before 1 July 2023.
- If we haven’t worked together previously, make an appointment to have a conversation with FCB Smart Visa about your visa and migration goals and how we might help.
- We are currently experiencing expedited processing of TSS applications and it is possible for TSS Nomination applications to be finalised by the end of June if they are Decision Ready.
If you have questions about this decision and how this may impact your business, please contact FCB Smart Visa.
Albert Fang (Registered Migration Agent MARN: 1280959) is Head of Migration at FCB Smart Visa and has extensive experience in assisting successful entrepreneurs and executives obtain Australian visas and permanent residence status through employer-sponsored, and business migration channels. A migration Agent since 2012 (and with 10 years’ experience in professional services), Albert is particularly skilled in assisting both individual and large corporate clients to achieve positive migration outcomes. During this time, Albert has honed his technical and interpersonal talents in small boutique migration agencies and multinational migration firms, working comfortably in a truly multicultural profession. Albert has been providing quality immigration advice to clients from the US, UK, Canada, New Zealand, France, Spain, Belgium, China, Japan, Hong Kong, Taiwan, India, Bangladesh, the Philippines, Iran, Fiji, Argentina, Brazil, Zimbabwe, to name just a few. Being a NAATI accredited professional translator in English and Chinese, Albert upholds the highest standard of accuracy and confidentiality where visa applicants require translation services.