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Employers start planning now to minimise the impact of the 1 July 2023 increase to TSMIT

by | May 4, 2023 | Migration

The Minister of Home Affairs, Clare O’Neil, used her recent address to the National Press Club to announce two major changes to the Temporary Skills Shortage (subclass 482) visa / Employer Nomination Scheme (subclass 186) programs. These include:

  1. Increasing the Temporary Skilled Migration Income Threshold(TSMIT) from $53,900 to $70,000 per annum from 1 July 2023; and


  1. Providing a pathway to permanent residence for subclass 482 visa holders on the short term skilled occupation list (STSOL) from 1 January 2024

The legislative updates to the Migration Regulations and associated Instruments, to enable these changes, are yet been released.

Broadly we know from questions asked after Minister O’Neil’s speech that there will be some grandfathering provisions available for those subclass 482 visa holders whose salary is under the new TSMIT of $70,000 but these will end when they need to apply for a new subclass 482 visa.

We are yet to see if any concessions to the new TSMIT of $70,000 will be allowed for:

  • workers in critical industries (eg: aged care) or workers in regional areas; and
  • for those applications lodged but not approved before 1 July 2023.

How will this impact my business and my employees?

Businesses who sponsor employees in the salary range $53,900 – $69,999 should consider whether it may be possible to either:

  • obtain a new subclass 482 visa or
  • apply for a subclass 186 Employer Nomination Scheme visa

prior to the 1 July increase to TSMIT.

Within the cohort of employees earning $53,900 – $69,999 particular attention should be paid to employees whose visas are expiring between 1 July 2023 and 1 January 2024 and have occupations on the short-term occupation list. They will need to obtain a new subclass 482 visa (or find another temporary visa option) to enable them to access the proposed pathway to permanent residence for subclass 482 visa holders with STSOL occupations.

Planning needs to be undertaken now in order to make sure labour market testing provisions are met and the applications lodged prior to 1 July.

How can I get help

If you need assistance planning for the upcoming changes to TSMIT please contact us at Nevett Ford Lawyers on +61 3 9614 7111 or by email at melbourne@nevettford.com.au. Our lawyers are able to assist in workforce planning and would be happy to talk to you about your business needs.