Increase in TSMIT Announced
The Australian government has announced a significant change to the Temporary Skilled Migration Income Threshold (TSMIT). This adjustment will see the TSMIT increase from $53,900 to $70,000. In this article, we will explore the implications of this change and how it will impact future nomination applications for temporary skilled visas.
Key Takeaways
- From 1 July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) will rise to $70,000.
- This change will not affect existing visa holders and nominations lodged before 1 July 2023 but will impact new nomination applications, requiring them to meet the increased threshold or the prevailing market salary rate, whichever is higher.
- The higher TSMIT aims to protect the wages and working conditions of temporary skilled migrants while prioritising employment opportunities for Australian residents.
The New TSMIT
Under the new policy, all new nomination applications submitted from 1 July 2023 will need to meet the revised TSMIT of $70,000 or the annual market salary rate, whichever is higher. It is essential for prospective migrants and sponsoring employers to be aware of this new requirement to ensure compliance with the updated policy. This threshold represents the minimum income level in order to be eligible to sponsor temporary skilled migrants in the following visa schemes:
- Employer Nomination Scheme (subclass 186)
- Temporary Skill Shortage (subclass 482)
- Skilled Employer Sponsored Regional (Provisional) (subclass 494)
Exemptions and Transitional Arrangements
It is important to note that the change in the TSMIT will not affect existing visa holders or nominations lodged prior to 1 July 2023. Those who have already secured a visa or have lodged their nomination before the specified date will not be subject to the increased income threshold. However, any future visa applications or nominations submitted on and after 1 July 2023 must comply with the revised TSMIT.
Rationale and Implications
The decision to raise the TSMIT reflects the government’s commitment to ensuring fair wages and employment conditions for temporary skilled migrants. By increasing the income threshold, the government aims to protect both migrants and the Australian workforce from any potential exploitation or undercutting of wages. This change is also aligned with efforts to prioritise local employment opportunities for Australian citizens and permanent residents.
Impact on Overseas Workers and Businesses in WA
Western Australia (WA) relies on temporary skilled migrants in various industries. Some of the critical sectors in WA that heavily rely on temporary skilled migrants include:
- Mining and Resources: The mining and resources sector significantly contributes to WA’s economy. It requires skilled workers for mining operations, engineering, construction, and project management.
- Construction: The construction industry in WA is driven by infrastructure development, commercial and residential building projects. Skilled migrants are often employed as engineers, architects, project managers, and specialised tradespeople.
- Agriculture and Farming: WA has a significant agricultural sector, including grain farming, livestock production, horticulture, and viticulture. Temporary skilled migrants are often employed in farming operations, particularly in roles that require specialised skills and knowledge.
- Healthcare: The healthcare industry in WA requires skilled professionals, including doctors, nurses, allied health practitioners, and medical specialists. Temporary skilled migrants are vital in filling skill shortages in the healthcare sector.
- Hospitality and Tourism: WA’s thriving hospitality and tourism industry relies on temporary skilled migrants to meet the demand for skilled chefs, restaurant managers, hotel staff, and tourism operators.
- Information Technology and Telecommunications: With the growing digital economy, the IT and telecommunications sector in WA requires skilled migrants with expertise in software development, data analysis, cybersecurity, and network engineering.
Due to the increase in the TSMIT, it may become more expensive for businesses in Western Australia to sponsor overseas workers. This may make it harder for overseas workers to obtain temporary skilled visas, impacting industries that heavily rely on their expertise. The TSMIT increase poses business challenges and may worsen skill shortages in Western Australia.
It is important to note that the specific industries relying on temporary skilled migrants in WA can evolve over time based on market demands, government policies, and economic conditions.
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