Government Announces Major Changes to Australian Immigration Scheme
“Skill Up Or Sink”
At the National Press Club yesterday, Home Affairs Minister Clare O’Neil announced that the Government would be making a number of changes to the Australian immigration scheme over the coming months, in accordance with a review that has been undertaken into its current effectiveness.
This is welcome news for many law firms practicing in the sector (including Integrate Legal), after significant lobbying in relation to processing delays and bureaucratic burdens which fail to facilitate the suitable and expeditious entry of skilled workers to Australia.
The Minister flagged that one of her major concerns was the ‘permanent temporariness’ that had been created by the current scheme and noted that it was her intention to seek to rectify this.
She also discussed issues of worker exploitation in lower-income positions and discussed a number of steps that the Government intended to make to seek to ensure that this was appropriately addressed.
The Minister commented that if ‘Populate or Perish’ was the slogan of 1950’s Australia, the country’s present slogan should be “Skill Up or Sink” – that is, the current immigration scheme needs to be designed around ensuring Australia attracts skilled workers and affords those workers suitable pathways to stay.
The major announcements include the following (further details to be provided as soon as they are available):
The Temporary Skilled Migration Income Threshold (“TSMIT”) – that is, the minimum salary that can be earned by sponsored visa holders – is to be increased from $53,900 to $70,000 from 1 July 2023.
It is expected that current visa holders earning less than $70,000 will not be impacted, but that all new visas lodged after 1 July must meet this requirement.
The Minister stated: “By the end of 2023, all temporary skilled workers will have a pathway to permanent residency…a group of temporary workers who had been denied even the opportunity to apply for permanent residency will be able to do so.”
While she has not explicitly confirmed this, the above suggests that the Minister intends to create a pathway to PR for short-term 482 visa holders.
Labour Market Testing (“LMT”) - that is, advertising of nominated positions is to be scrapped, in favour of new skills assessment processes. This is great news as the LMT process was contrived and burdensome for employers.
An overhaul of the current occupation lists in favor of a new evidence-based skills list to be developed by Jobs and Skills Australia.
The development of a three-tiered scheme for skilled workers:
1. A ‘light-touch’ scheme for high-salary, highly skilled workers. Preliminary information suggests this may include workers who earn greater than $98,000 per year.
2. A mid-level scheme for workers who earn more than $70,000 per year, but less than the high salary figure.
3. A scheme for workers in critical industries with lower rates of pay, (for example, certain workers in the healthcare or aged care industries). Preliminary information suggests that these workers may be able to earn amounts that are lower than $70,000 per year, but that those workers/employers will be subject to enhanced monitoring to avoid exploitation.
Changes to sponsorship compliance and visa compliance requirements to seek to mitigate against risks of exploitation.
This is expected to include a change whereby sponsored visa holders may cease working for their sponsor for a period of 6 months and remain lawfully in Australia. During this time, they can continue working in Australia for other employers in the same sector as that which they were originally nominated for.
Considering this new flexibility, it is expected that employers will pay the SAF levy on a monthly basis, rather than all at once (for instance, 4 years at one time). This will allow the SAF payments to end upon the cessation of the sponsored worker.
An overhaul of the ‘points test’ for skilled independent visas.
Potentially reducing the period of stay afforded to Working Holiday Visa Holders to just one year (rather than two or three years, with regional work). Further clarification is required here considering Australia’s free trade agreements.
Amendments to the current parent visa/family reunion visa pathways to seek to manage the extraordinary wait times currently being experienced.
Changes to the student and graduate visa schemes to seek to tap into the skills of our international students – creating clearer pathways to PR for those skilled students. Indeed, the Minister noted that there is an intention to create clearer pathways to permanent residency for all temporary visa holders moving forward as well.
The review is expected to be made available on Tuesday 2 May 2023, and the broad changes that have been announced are expected to be clarified over the coming months.
At this stage, no law or policy has been released in relation to the changes and so they are just announcements with an absence of suitable detail. However, considering the announcements, we certainly consider that there are many beneficial changes for employers and international skilled workers alike to come.
We will continue to provide updates as and when they are made available.
