There is a lot of activity in the Australian visa space at present, with further changes expected over the next 12 months. We would like to present some of the major changes and announcements today and invite questions and discussion about these changes.
Increase to TSMIT
The TSMIT, which stands for Temporary Skilled Migration Income Threshold, has remained at $53,900 since 2013. The TSMIT is the minimum salary threshold for the Subclass 482 – Temporary Skills Shortage (TSS) visa. It means that the salary for a sponsored position cannot be below $53,900 (with limited exceptions), with a market salary requirement overlaying this minimum. The government has announced that from 1 July 2023, the new minimum will be $70,000 (+ superannuation).
The changes will apply to 482 TSS Nominations lodged after 1 July. If the application is say, lodged on 25 June, but pending on 1 July, the old TSMIT of $53,900 will apply. The changes will also apply to Nominations under the Subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa program.
TSMIT does not apply to the Subclass 186 – Employer Nomination Scheme (ENS) visa or the Subclass 407 – Training visa. The government has not yet announced any impacts of the change on the 186 or 407 visas.
Restoring 186 TRT pathways
Before 2017, all Subclass 457 visa (the old 482 TSS visa) holders were able to transition to permanent residency (PR) under the Subclass 186 – ENS (Temporary Residence Transition) visa after 2 years employment with the sponsor. Since 2017, only visa holders sponsored in Medium to Long-term Strategic Skills List (MLTSSL) occupations have been able to transition (with the exception of COVID-19 concession arrangements). The government has announced that at “the end of the year” they will restore this pre-2017 pathway and allow all 482 TSS visa holders to transition to PR after 2 years employment with the sponsor.
The government has not yet announced whether all occupations will similarly have access to the Direct Entry stream of the 186 ENS visa, or if it will continue to be limited to MLTSSL occupations.
COVID concessions
Throughout the pandemic, the government announced a range of COVID concessions designed to allow visa holders to remain in Australia initially due to border closures, and later to assist with labour shortages. These concessions (among others) included:
· The Subclass 408 – COVID pandemic visa, which permitted 1-2 year stay in Australia with a job offer;
· Unlimited working hours for Student visa holders;
· Suspension of 6-month work limitation on Working Holiday visas (WH visa);
· Extension of Subclass 485 – Temporary Graduate visas.
The government has made specific announcements about Student visas hours being reduced to 48 hours per fortnight and WH visa 6-month work limitation relaxation ending on 1 July. We also expect that the 408 – COVID Pandemic visa and other COVID concessions will cease on 1 July.
Compliance
The government has signalled that it will increase funding and resources for sponsor monitoring and compliance activity. This may increase the chance of monitoring by the Department. We can share with clients a sample monitoring request or conduct mock audits to ensure that organisations are compliant. The key issues we come across when assisting with audits are failure to notify business and employment changes, late or failure to pay superannuation or inability to produce records.
The other significant change announced last week was an increase in the time 482 TSS holders can be out of work without breaching Condition 8607 on their visas. Currently, employees breach this condition after 60 days out of work, with no work rights during this period. The new rule will allow up to 6 months out of work, with work rights.
Preparation of long-term visas with view to PR
The new 186 TRT PR pathway being introduced at the end of the year is likely to become an attractive pathway for skilled employees. We understand that the following requirements will continue to apply:
· 6.0 each section of IELTS (Academic or General) or 50 each section of PTE Academic test before lodgement
· 2 years employment in the same job for the same sponsor
We recommend that employees and employers interested in this option apply for a 482 TSS visa at the earliest opportunity and prepare for English test requirements.
Other predicted trends
We expect to see some of the following implemented in the next 12 months:
· Simplification of the visa classes
· Allowing state and territories greater role in decision making
· Changes to, but the retention of the Global Talent
· Removal of Labour Market Testing
· Discontinue the use of occupational skills lists
· Allowing temporary workers to move between jobs to prevent exploitation
· Employer fees, ie SAF, to be paid monthly – particularly to defray costs for small businesses
· Direct PR for certain graduate visa holders
· Streamline skills recognition and increase the consistency of processes
Many of these changes have been foreshadowed previously, but the government has had limited success in implementing in a practical way. We will wait and see!
Questions?
We look forward to receiving any further questions about these changes.