Australia | Immigration | A Migration System for Australia’s Future


May 8, 2023

27 April 2023

Immigration

Australia | A Migration System for Australia’s Future

Impact: High 

Summary

Australia’s Home Affairs Minister has made a policy speech outlining a program of reform to Australia’s migration program.

The key changes are as follows:

  • From 1 July 2023, the Temporary Skilled Migration Income Threshold (TSMIT, which is applicable to Temporary Skills Shortage visa holders) will increase to AUD70,000 per annum
  • By the end of 2023, all temporary skilled workers will have a pathway to Australian permanent residence.
  • New visa pathways for temporary skilled workers will be introduced (details to follow).

Vialto Partners is hosting a webinar on Friday 28 April at 2.30pm AEST to provide an overview of the key changes, and outline the impacts for current and future visa holders. Please click here to register.

The Detail

Today’s announcement is in response to the Australian government’s root and branch review into the migration system, commissioned last year. The Minister’s speech highlighted the problems of Australia’s visa system and the critical need for reform.  Further details are expected to be announced in the coming weeks as the government continues its review into Australia’s migration program.

Confirmed changes

The changes confirmed by the Minister are as follows:

  • From 1 July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) will be increased from AU$53,900 to AU$70,000 per annum.  Skilled workers currently earning below $70,000 will need to be paid at or above TSMIT at the time of extension.
  • By the end of 2023, all temporary skilled workers will have a pathway to Australian permanent residence.

Proposed changes

The migration review proposed several recommendations, including:

  • Three new pathways for temporary skilled workers to come to Australia:
    • A high salary cohort to drive innovation and job creation. This cohort would require ‘light touch’ registration of employment only, allowing visa holders to move between employers with greater ease.
    • Mid-level cohort for core skills. The new TSMIT will apply and an evidence-based assessment of labour shortages will apply to this cohort.
    • Lower wage cohort for sectors experiencing persistent skills shortages and who are most at risk of exploitation.
  • Changes to the skilled occupation lists
  • Removal of Labour Market Testing for individual employers
  • Redesigning the points test system, relevant to independent skilled visas
  • Allowing subclass 482 visa holders to move between employers more easily. Migrants could have up to 6 months to find new employment
  • Government charges (including the Skilling Australian Fund) to be paid monthly, rather than upfront to facilitate mobility between employers and to reduce up-front costs
  • Simplification of the visa system to reduce the number of visa categories

Into the future

The Minister has indicated potential reform in the following areas:

  • Student and Graduate Visas, including direct pathways to permanent residence
  • Working Holiday Visa Program, including potential limitation to one-year stay
  • A reduction in size of the Business Innovation and Investor Program (including the Significant Investor Visa)
  • Improve clarity on the selection criteria for Global Talent Visa program

The Minister’s comments are consistent with many of the recommendations Vialto Partners put forward in our submissions to the migration review panel.

Many of our clients will welcome these changes to an overcomplicated visa system. However several key questions remain outstanding, as the Government considers the findings in the migration review and how best to implement them. The critical question is the timeline over which these changes will come into effect, to provide businesses and individual users of the visa program adequate time to plan. It has been six years since Australia’s last major visa reform and if we can rely on history, the timing and the detail underpinning these bold proposals will be key factors to consider going forward.

How we can help

Please join us for our Webinar on Friday 28 April at 2.30pm AEST where we unpack Australia’s migration reforms in more detail.

Your feedback is particularly important as the Parliamentary Joint Standing Committee on Migration has invited Vialto Partners to participate in a public hearing for its Migration: Pathway to Nation Building inquiry in May. We welcome your input so we can advocate for your needs before the Committee.

Contact us

For a deeper discussion, please reach out to your Vialto Partners point of contact, or alternatively:

Further information on Vialto Partners can be found here: www.vialtopartners.com


Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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Further information on Vialto Partners can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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