Starting on July 1, 2024, the Australian Government is raising the minimum salary for skilled workers coming from overseas. The new salary requirement, called the Temporary Skilled Migration Income Threshold (TSMIT), will go up from $70,000 to $73,150. This will affect all nominations made by sponsoring employers, in particular the Temporary Skill Shortage 482 visa.
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Impact on Industries and Small to Medium Sized Businesses
The TSMIT increase will have notable effects across various industries, particularly those already experiencing skills shortages. Sectors such as healthcare, IT, engineering, and construction, which rely on skilled migrant workers, may face increased challenges in filling critical roles. Small to medium-sized enterprises (SMEs) are expected to be particularly impacted, as they often have tighter budgets and may struggle to meet the new salary threshold.
Some of the challenges for employers include:
- Increased Costs: Employers will need to offer higher salaries to meet the new TSMIT, potentially increasing operational costs.
- Talent Acquisition: The higher threshold may limit the pool of available international talent, exacerbating existing skills shortages.
- Budget Constraints: SMEs might find it difficult to compete with larger corporations that can more easily absorb the increased salary requirements.
Strategic Planning for Sponsoring Employers
To navigate these changes effectively, employers should consider the following strategies:
- Advance Applications: Employers are encouraged to lodge nomination applications before July 1, 2024, to benefit from the current TSMIT of $70,000. This can provide a temporary reprieve and help secure necessary talent under the existing threshold.
- Salary Benchmarking: Conduct a thorough market salary analysis to ensure that offered salaries are competitive and meet the new TSMIT. This will also help in budgeting for future hires.
- Review Workforce Needs: Assess and prioritize critical roles that require skilled migrants. Streamlining recruitment processes for these positions can ensure timely application submissions before the new TSMIT comes into effect.
- Consult Migration Experts: Engaging with migration consultants or the Migration Institute of Australia (MIA) can provide valuable guidance on navigating these changes and exploring alternative visa options.
Looking Ahead for sponsored employees
Further details regarding future income thresholds and the new Skills in Demand visa will be released later in 2024. These updates are expected to provide additional clarity and help employers plan more effectively for their long-term staffing needs.
In summary, while the increase in the TSMIT presents challenges, businesses can prepare by planning ahead and exploring different options. This way, they can still find and keep the skilled workers they need to grow and succeed.
Author: Greg Nicolson is Managing Director of the Australian Business Migration Group and is a practicing registered migration agent.
Contact: info@abmgroup.com.au
Tel 1300 794 680
Sources: Migration Institute of Australia, Department of Home Affairs
