The Australian Government has announced further details regarding important changes to the Australian Migration Program taking effect on July 1, 2023.
Increased Temporary Skilled Migration Income Threshold (TSMIT)
From July 1, 2023, the TSMIT will increase from $53,900 to $70,000 AUD. New nomination applications from this date will need to meet the new TSMIT of $70,000 or the annual market salary rate, whichever is higher. We recommend that businesses who may be unable to offer salaries at the new TSMIT level start Labour Market Testing for their required positions as soon as possible so that nominations can be lodged before July 1, 2023 when the new increases go into effect.
Increased Government Fees
From July 1, 2023, Visa Application Charges (VAC) will increase across the following visa subclasses as well as temporary work permits noted below.
|Visa Classes||Percentage Increase|
|Visitor, working holiday, work and holiday, training, temporary activity, and temporary work (short stay specialist) visas||15%|
|Business innovation and investment visas||40%|
|Pacific Engagement Visa and Pacific Australia Labour Mobility visas||Exempt from increase|
The exact amount is yet to be released, however, the VAC for the Temporary Skill Shortage (TSS) work permit category will also be increased. We recommend that individuals and businesses who have a need for an Australian visa or work permit under TSS gather all documentation to ensure that they can lodge their applications before the new fees go into effect.
Direct Citizenship for New Zealand Citizens
From July 1, 2023, all Special Category Visa (SCV) holders will be considered permanent residents for citizenship purposes, meaning New Zealand citizens will be eligible for direct Australian citizenship.
Extended Post-Study Work Rights for Temporary Graduates
From July 1, 2023, post-study work rights for international students with select degrees in areas of verified skill shortages will be increased from:
- Two to four years for select Bachelor’s degrees
- Three to five years for select Master’s degrees
- Four to six years for all doctoral qualifications
We recommend that new graduates plan their migration strategy and gain work experience through these extended work rights. For the TSS visa, the candidate will still need to have two years of full-time work experience to be eligible.
Increase to Allowable Work Hours Cap for International Students
From July 1, 2023, student visa holders will be able to work 48 hours per two-week period. Students working in the aged care sector will be exempt from the capped work hours until December 31, 2023.
For more information about these changes and an assessment, please contact the T&S APAC team at APAC@tandslaw.com.