Temporary Skilled Migration Income Threshold (TSMIT) Increase
Boosting Opportunities for Skilled Migration: TSMIT Increased from $53,900 to $70,000
The Albanese Government has responded to the needs of employers and migrant workers by raising the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000, effective July 1 2023. This significant adjustment, the first in a decade, is a testament to the government's commitment to creating a fair and prosperous environment for both Australian workers and skilled migrants.
Enhancing the Temporary Skilled Migration Income Threshold (TSMIT)
The Temporary Skilled Migration Income Threshold (TSMIT) serves as a crucial benchmark to ensure fair wages for migrant workers based on their skills and qualifications. This threshold acts as a safeguard to prevent the exploitation of migrant workers and to maintain the integrity of Australia's skilled migration program. Recognizing the need to keep up with rising costs of living and wages, the Albanese Government has taken decisive action to raise the TSMIT from $53,900 to $70,000. By aligning the threshold with current economic realities, the government aims to prevent exploitation and reinforce the integrity of Australia's skilled migration program.
Addressing the Challenges of the Migration System
The decision to increase the TSMIT stems from the findings of the independent Review of the Migration System led by Dr Martin Parkinson. This review identified numerous shortcomings and challenges within Australia's migration system, prompting the Albanese Government to take immediate steps towards rectification. The TSMIT has been frozen at $53,900 since 2013, despite the cost of living and average wages increasing significantly during this period. As a result, nearly 90% of all full-time jobs in Australia currently offer salaries above the previous threshold, rendering the existing TSMIT outdated and ineffective. The adjustment to the TSMIT signifies the government's commitment to rectify this disparity and ensure that the TSMIT aligns with the current economic realities whilst also strengthening Australia’s migration system.
New pathways to Permanent Residence
In addition to raising the TSMIT, the government has introduced a ground-breaking pathway to permanent residency for Temporary Skill Shortage (TSS) short stream visa holders. This new opportunity grants skilled migrants on temporary visas the chance to forge a future in Australia through the existing permanent visa program. The introduction of pathways to permanent residency for TSS visa holders signals a crucial step toward eliminating the 'permanently temporary' limbo that has hindered the system. By providing greater certainty to migrants and enhancing the skill level of the permanent skilled program, this initiative benefits both employers and the nation as a whole. Read more about these new changes to the migration system and pathways to permanent residency in our blog, here.
The increase in the Temporary Skilled Migration Income Threshold and the introduction of pathways to permanent residency for TSS visa holders signify great progress in Australia’s migration system and long-term stability. These measures not only benefit migrant workers but also strengthen the overall skill level of the permanent skilled program, contributing to Australia's growth and prosperity.
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