Correct as at 8 May 2023
Further detail has been released ahead of the budget aimed at providing more certainty to Temporary Skill Shortage (TSS) visa holders and their employers – the ultimate goal is to alleviate skills shortages by ensuring a permanent employer sponsored pathway is available for a wider range of occupations.
More information will be forthcoming leading up to 1 July 2023, following further consultations in May and June with State and Territory governments and key stakeholders, as well as the release of the Joint Standing Committee on Migration’s findings on its Inquiry into the role of permanent migration on nation building – upcoming public hearings commence on 12 May 2023.
Detail announced includes:
1) Increase to the Temporary Skilled Migration Income Threshold (TSMIT)
From 1 July 2023, TSMIT will increase from $53,900 to $70,000
New nominations lodged on or after 1 July 2023 will be required to meet the new TSMIT of $70,000 or the annual market salary rate (AMSR) for the nomination occupation, whichever is higher.
- The AMSR is determined by looking at what you would pay equivalent Australian workers, or as indicated by enterprise agreements or industrial awards, labour market insight information, advertisements for the last 6 months in the same location, remuneration survey or advice from unions or employer associations.
This change will not affect existing visa holders or applications lodged before 1 July 2023, even where approved after 1 July 2023.
2) Expanded pathways to permanent residence
By the end of 2023, amendments will be made to the Temporary Residence Transition (TRT) stream of the Employer Nomination Scheme (ENS; subclass 186) such that this stream will be available for all primary Temporary Skills Shortage (TSS; subclass 482) visa holders who have employers willing to sponsor them.
Clarifying detail released by the Department of Home Affairs includes that:
- Applicants will need to continue to work in the occupation for which they were nominated for their TSS visa(s).
- Occupations will not be limited to the Medium and Long-term Strategic Skills List (MLTSSL).
- The eligibility for the TRT stream of the ENS subclass 186 visa will be reduced from three years to two years employment with the sponsoring employer.
- Applicants will need to meet all other nomination and visa requirements for the TRT stream of the ENS visa – currently, this includes an age limit of 45 years (some exceptions apply).
To facilitate these pathways, the Government will be removing limits on the number of Short-term Stream TSS visa applications that visa holders can make in Australia. This will be an interim measure, only, to assist those who are currently onshore who would normally need to travel offshore to make further visa applications.
The good news is a quicker path to permanent residence for all employer sponsored temporary skilled visa holders. TSS visa holders will only be required to work for two years instead of three in an eligible nominated occupation. More detail on the above measures is anticipated closer to their implementation date. We will provide updates on this detail as it is released.