Migration policies in Australia are undergoing significant changes, with recent amendments to the Temporary Skill Shortage subclass 482 visa and the Temporary Skilled Migration Income Threshold (TSMIT) and announcements from the May Federal Budget. For business owners who rely on migrant workers, these changes have important implications for workforce planning and compliance. This blog post aims to provide a comprehensive overview of the recent updates, their impact on businesses, and expert insights to help you navigate the evolving landscape of migration matters.
Recent Changes to the Temporary Skilled Migration Income Threshold (TSMIT)
One of the most notable changes is the increase in the Temporary Skilled Migration Income Threshold (TSMIT) from $70,000 to $73,150, effective 1 July 2024. This new threshold will apply to all new nomination applications from this date. It’s important to note that this change will not affect existing visa holders or nominations lodged before 1 July 2024.
Key Points to Consider:
- Effective Date: The new TSMIT will be applicable from 1 July 2024.
- Applicable to New Nominations: Only new nomination applications lodged from this date will be subject to the new threshold.
- Exclusion of Super: The figure of $73,150 does not include superannuation.
- Labor Market Testing (LMT): For any applications lodged after 1 July, the LMT must reflect the new TSMIT amount or above.
Expert Insight:
“It is crucial for hospitality employers to plan ahead and ensure that their nomination applications align with the new TSMIT requirements. This will not only ensure compliance but also help attract highly skilled migrant workers to contribute to the industry’s growth,” says Cathrine Burnett, Director & Principal Migration Agent at Ferntree Migration (MARN: 0324641).
Migration Matters from the May Federal Budget
The May Federal Budget introduced several changes that will further impact the migration landscape. Here are some of the key updates relevant to business owners:
Skill-Focused Migration
The Government has set the 2024–25 permanent Migration Program planning level at 185,000 places, allocating 132,200 places (around 70 per cent) to the Skill stream. Additionally, the planning horizon will extend from one to four years from 2025-26 to enable better cross-government planning.
Net Overseas Migration
There will be a significant reduction in net overseas migration, from 528,000 in 2022-23 to 260,000 in 2024-25. This reduction could impact the availability of migrant workers in your sector.
Cessation of the BIIP
The Business Innovation and Investment Program (BIIP) will cease, with refunds of the visa application charge provided from September 2024 for those who wish to withdraw their BIIP application.
New Innovation Visa
A new National Innovation visa will replace the Global Talent program, aimed at attracting exceptionally talented migrants. This could open new opportunities for businesses to hire innovative talent.
Changes to TSS Skilled Experience Requirements
The Government will reduce the work experience requirement for the Temporary Skill Shortage (subclass 482) visa from two years to one year, effective from 23 November 2024 onwards. This change is expected to make it easier for businesses to hire skilled workers quickly.
Support for Temporary Visa Holders
The Escaping Violence Payment trial and the Temporary Visa Holders Experiencing Violence Pilot will be extended until June 2025. Additionally, a new Leaving Violence Program will start mid-2025.
New MATES Program
MATES will provide a new mobility pathway for 3,000 Indian graduates and early career professionals (aged 18 to 30 years at the time of application) to live and work in Australia for up to two years. This program targets those with knowledge and skills in specific fields of study.
Immigration System Reforms
$18.3 million will be allocated over four years to reform the migration system, including information and education activities for migrant workers and a data-matching pilot with the Australian Taxation Office to prevent exploitation.
Administrative Review Tribunal
$1 billion over five years will be provided to establish the Administrative Review Tribunal, replacing the AAT, to address migration backlogs in courts.
Significant Revenue Growth
Visa Application Charges are budgeted to increase from $3.29 billion this year to over $4.48 billion by 2027-28, reflecting the growing importance of migration to Australia’s economy.
Expert Insight:
“The reduction in net overseas migration and changes to skilled experience requirements will have a direct impact on many industries. While the reduction might limit the available workforce, the easing of experience requirements could help businesses hire skilled workers more rapidly,” explains Cathrine Burnett, Director & Principal Migration Agent at Ferntree Migration (MARN: 0324641).].
Navigating the Changes: What Business Owners Should Do
With these changes on the horizon, it is essential for business owners to stay informed and proactive. Here are some steps to consider:
- Review and Adjust Hiring Practices: Ensure that your hiring practices and nomination processes align with the new TSMIT and other updated requirements.
- Plan Ahead: Consider the impact of reduced net overseas migration on your workforce planning and explore alternative talent pools, such as the new MATES program.
- Stay Informed: Keep up-to-date with the latest migration policies and reforms to ensure compliance and leverage new opportunities.
- Engage with Experts: Consult with migration experts and industry professionals to navigate the complexities of the evolving migration landscape effectively.
Conclusion
The recent changes to migration matters present both challenges and opportunities for business owners. By understanding these updates and strategically planning your workforce needs, you can ensure compliance and continue to attract top talent to your business. Stay informed, adapt to the changes, and leverage expert insights to thrive in the dynamic world.