Unlocking Australia's Economic Potential
The Australian government has taken a significant step by raising the Temporary Skilled Migration Income Threshold to $70,000 as from 1 July 2023. This move promises to attract top-tier talent and contribute to the nation's economic prosperity, a forward-thinking approach to benefit both the employee and the employer. What is the TSMIT you might ask; the temporary skilled migration income threshold is the minimum salary that a sponsored employee must be paid under the temporary skilled visa in Australia.
The Temporary Skilled Migration Income Threshold covers the Temporary Skill shortage (subclass 482), Skilled Employer Sponsored Regional (Provisional) (subclass 494), Employer Nomination Scheme (subclass 186) and Regional Sponsored Migration Scheme (subclass 187) visas. Australia wants to ensure that any migrants employed under these visa programs will have sufficient income to support themselves and their families.
This change has been well overdue since it was last increased in 2013.
Benefits of the new measure
Here are some of the benefits of raising the income threshold from $53,900 to $70,000:
Bridging skill gaps
With Australia being at the forefront of skill shortages, this increase allows employers access to a wider group of specialized professionals. In return, industries not only fill critical gaps in the market but also increases the level of efficiency and overall performance of the business and country.
Economic growth
Australia has proved its ability to attract and retain skilled workers. By raising the Temporary Skilled Migration Income Threshold, the nation can stimulate economic growth through the increase of skilled workers, increase of local human capital, transfer of skills and links to foreign networks and a more robust labour market.
Attracting high calibre talent
Not only does Australia become a more attractive destination for skilled professionals but the influx of increased talent can fuel many areas of productivity and innovation. Australia shares in its global diversity and values the contribution and expertise by migrants and is willing to award it accordingly.
Improved workplace diversity
It is crucial for businesses to have a workforce that is reflective of the diverse world we live in. A diverse workforce creates a more productive and creative company. Diversity is based on the belief that all individuals no matter your cultural background is treated equally. By bringing together people with different ways of thinking, organizations can foster a more innovative, inclusive, and collaborative environment leading to problem-solving capabilities, adaptability and enabling companies to thrive in an ever-changing global marketplace.
Long-term residency
The new income threshold can serve as a steppingstone into permanent residency in Australia. This new change adapts a sense of stability and encourages one to invest further in your personal and professional growth. Over time, these skilled individuals will become valuable contributors to the nation's prosperity and social fabric.
We look forward to the dynamic workforce that this change will bring about as Australia continues to strengthen its position on the global front, this policy change serves as a commitment in spurring a thriving and innovative society.
