Key Points
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Employing skilled and experienced overseas workers can complement your current workforce and assist businesses to overcome the productivity constraints of the current employment environment.
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From 1 July 2023, the TSMIT increases from $53,900 to $70,000. This amount does not include superannuation or other employment benefits.
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We advise employers and skilled workers to seek the advice of an experienced migration law professional before applying for a skilled visa
Introduction
As experienced immigration lawyers, our Hicksons Migration Assistance Service (H-MAS) team regularly advises businesses and their employees on how to successfully navigate the Australian migration system. In recent times, Hicksons has observed an increasing number of employers with critical skills shortages which has subsequently impacted business productivity. Many are turning to skilled visas to compensate for shortcomings in their staffing structure with the intent of increasing business certainty.
Changes to the Temporary Skilled Migration Income Threshold (TSMIT)
Employing skilled and experienced overseas workers presents an opportunity to complement a workforce and assist businesses to overcome the productivity constraints of the current employment environment. However, there are additional costs involved in the visa process, furthermore, the Government has recently announced an increase in costs for some businesses by increasing the Temporary Skilled Migration Income Threshold (TSMIT).
The TSMIT is the minimum salary that an employer must pay to sponsor a temporary skilled worker on some visas.
From 1 July 2023, the TSMIT increases from $53,900 to $70,000. This amount does not include superannuation or other employment benefits.
Employers have several visas available to choose from when sponsoring a worker for a visa. Popular options include:
- Temporary Skill Shortage visa (subclass 482);
- Employer Nomination Scheme (subclass 186); and
- Regional Sponsored Migration Scheme (subclass 187) visa
All these visas require the employer to meet the minimum salary set by the TSMIT which has subsequently increased to $70,000 and is likely to increase again in the future.
For temporary skilled workers, the increase in the TSMIT results in their sponsoring employer being required to meet the higher salary requirements in order for them to be eligible for some skilled visas. This can present as particularly challenging for those working in certain occupations.
As immigration lawyers, Hicksons acknowledges how these changing requirements can affect the visa application process thus impacting visa holders and their employers. For example, employers must provide evidence that the salary they are offering is consistent with the market rate for a position, while additionally proving that the position cannot be filled by an Australian worker. These requirements are in addition to meeting the TSMIT. If appropriate evidence is not provided, the result can become increased scrutiny of visa applications, resulting in longer processing times.
Conclusion
Visa applications are undoubtedly time consuming and costly. Therefore, it is advised that employers and skilled workers seek the advice of an experienced migration law professional before applying for a skilled visa. Doing so will ultimately assist in ensuring that all necessary eligibility criteria will be met and the complex application process will be efficiently and thoroughly managed..
Should you need any assistance, our experienced Hicksons Migration Assistance Service
(H-MAS) team is available to provide guidance on these changes, or with any other visa issues you may have.
Blog written by Hicksons’ Partner, Najeh Marhaba, and Solicitor, Chloe Willis.