(TSMIT) Increased to $70,000 and Expanded Pathways to Permanent Residency

05 May 2023

On 27 April 2023, the Hon Clare O'Neil MP, Minister for Home Affairs, made significant announcements regarding temporary skilled visa holders and their pathways to permanent residence. The following changes have been implemented to expand opportunities and provide greater certainty for visa holders and their employers.

1. Raising the Temporary Skilled Migration Income Threshold (TSMIT) Effective from 1 July 2023, the TSMIT has been increased from $53,900 to $70,000. For new nomination applications submitted after this date, the minimum income requirement will be set at $70,000 or the annual market salary rate, whichever is higher. Existing visa holders and nominations lodged before 1 July 2023 will not be affected by this change.

         2.   Expanded Pathways to Permanent Residence By the end of 2023, all Temporary Skill  

               Shortage (TSS) visa holders will be eligible for the Temporary Residence Transition (TRT)  

               stream of the  Employer Nomination Scheme (subclass 186) visa. This expansion allows 

               TSS visa holders to be sponsored by their employers for permanent residence. While 

               applicants must continue working in the nominated occupation for their TSS visa(s), there 

               will no longer be restrictions on occupations limited to the Medium and Long-term Strategic  

               Skills List (MLTSSL). The eligibility period for the TRT stream has also been reduced to two 

               years of employment with the sponsoring employer, in addition to meeting other nomination 

              and visa requirements.

To facilitate these new pathways, the Government has removed limits on the number of Short-term stream TSS visa applications that can be made by visa holders within Australia. This interim measure helps those currently residing in Australia who would typically need to travel overseas to apply for further visas.

These changes align with the Government's commitment made during the Jobs and Skills Summit in September 2022 to enhance pathways to permanent residence for temporary skilled sponsored workers. The updates promote fairer access to permanent residence and provide increased certainty to TSS visa holders and their employers. Employers will be able to address skills shortages by ensuring a wider range of occupations have a permanent employer-sponsored pathway available.

For more information, please refer to the National Press Club address and stay tuned for further updates.