Australia's Skilled Migration Future

Original Publication Date - 20/11/2022

Australia's Jobs and Skills Summit

The Australian government recently announced a multitude of changes to immigration, including the expansion and strengthening of the Skilled Migration Program.

Immediate changes to Australia's migration program

The following key areas where immediate change will apply are:

Area of change

Provide $36.1 million in additional funding to accelerate visa processing and resolve the visa backlog.

What does this mean?

Improvement of processing times and quicker visa outcomes.

Area of change

Increase the duration of post study work rights by allowing two additional years of stay for recent graduates with select degrees in areas of verified skills shortages to strengthen the pipeline of skilled labour in Australia.

What does this mean?

Further details to be released. This will be a development to monitor for employees on student visas or 485 visas.

Area of change

Extend the relaxation of work restrictions for student and training visa holders until 30 June 2023 to help ease skills and labour shortages.

What does this mean?

More flexibility to stores who are employing Student (subclass 500) visa holders. Under normal rules, Students are restricted to working 40 hours per fortnight while class is in session. Under the temporary lift, Students are not limited to the hours they work while class is in session, however they must still maintain course enrolment, as well as maintain satisfactory course attendance and course progress.

Future changes to Australia's migration programs

The government also identified key areas it would continue to work on as it continues to change and improve the migration program:

Area of change

Assess the effectiveness of the skilled migration occupation lists to ensure that occupations are tailored to meet current skills shortages.

What does this mean?

We should expect changes to the occupation lists and what visas certain occupations are eligible for.

Area of change

Expand pathways to permanent residency for temporary skilled sponsored workers.

What does this mean?

This could potentially signal some beneficial changes to Short-Term TSS visa holders but we will need to wait until further information becomes available.

Area of change

Consider policies to address regional labour shortages and how to improve small business access to skilled migration.

What does this mean?

None at this stage but, in future, there may be changes that affect the 494 SESR visa program or that introduce new/different options for regional areas.

Area of change

Raise the Temporary Skilled Migration Income Threshold (TSMIT) following broad engagement on equitably setting the threshold and pathway for adjustment. Increasing the minimum annual earnings that must be offered to employer sponsored visa holders.

What does this mean?

A raise in TSMIT can affect eligibility for 482 TSS, 494 SESR and 186 ENS applications where employees are being paid on the TSMIT or slightly above the TSMIT amount of $53,900.

A reminder that, for the 482, 494 and 186 visas, it is a requirement that the market salary rate (what a comparable Australian would earn) for the position must also be above TSMIT and that the visa applicant is earning at least the market salary rate.

Area of change

Examine the potential for industry sponsorship of skilled migrants. A proposal for industries to sponsor individuals for work in a particular industry sector, rather than being sponsored directly by an employing sponsor. This would allow employees the flexibility to change jobs within their industry sector.

What does this mean?

This would allow employers to access skilled workers in a particular industry. No further information has been released. Will need to wait and see.

Sources