The Migration System Final Report for 2023 has put forth a series of recommendations that could potentially bring about noteworthy modifications to the employer-sponsored migration program in Australia, with potential ramifications for the Temporary Skill Shortage (TSS) visa program. Among the key proposals outlined in the report, several significant changes have been suggested.

This article highlights the main recommendations and their potential impact on the TSS visa program:

• TSMIT up to $70,000: The report suggests increasing the Temporary Skilled Migration Income Threshold (TSMIT) up to $70,000. TSMIT is currently set at $53,900 and is the minimum salary that must be paid to skilled overseas workers under the TSS visa program. The government acknowledges it will exclude approximately 30% of the current users of the TSS program with this change, and a primary purpose for the change is to promote.

• Possible removal of LMT requirements: The report proposes removing the requirement for employers to undertake labor market testing (LMT) before sponsoring a worker under the TSS visa program. LMT requires employers to advertise job vacancies locally before offering them to overseas workers.

• Possible removal of occupation lists: The report suggests removing the occupation lists that currently restrict which occupations can be sponsored under the TSS visa program. This would give employers more freedom to sponsor workers in any occupation where there is a skills shortage.

• Greater freedom of movement between employers: The report proposes giving sponsored workers greater freedom to move between employers. Currently, sponsored workers can only work for the sponsoring employer and there are barriers to changing employers, which makes certain workers more vulnerable to exploitation. It is unclear what parameters would be changed to make moving employers easier for applicants, and we will need to wait for more detail on this from the Government. Changes that make it too easy to change employers could lead to Australian businesses being out of pocket for going through lengthy and expensive sponsorship processes for workers who might not work long enough to justify the expenses.

• SAF change to monthly payment instead of upfront: The report suggests changing the Skilling Australians Fund (SAF) payment structure to monthly payments instead of the current upfront payment. SAF is a levy that employers must pay when sponsoring a worker under the TSS visa program, which is used to fund training for Australian workers. This change would assist a common problem with the nomination process: the upfront cost is too high. It would also reduce the loss should an employee move on to a new employer in Australia or return home. However, regular payment could lead to greater business administration in ensuring the payments are delivered on time and more government work in assuring payments are being made. Some businesses may still choose to pay upfront if the option remains.

• If these proposals are implemented, they could significantly impact the TSS visa program and employer-sponsored migration in Australia. The proposed changes could make it easier for employers to sponsor workers, increase flexibility for sponsored workers, and help to address skills shortages in the Australian labour market. However, it is important to note that these proposals are not yet final and will need to be considered by the government before any changes are made.

In conclusion, the Migration System Final Report for 2023 has proposed several changes to the employer-sponsored migration program, including the Temporary Skill Shortage (TSS) visa program. These proposals aim to increase flexibility for employers and sponsored workers, simplify the visa application process, and better address skills shortages in the Australian labour market. However, it is important to note that these proposals are still subject to government consideration and may be subject to change. If implemented, the proposed changes could significantly impact the Australian migration system and the Australian economy essential for businesses and individuals who rely on the employer-sponsored migration program to stay up to date with any changes that may be implemented in the future. For now, many of these changes are broad concepts and it may be some time before the Department announces further detail on how such changes might work.

If you are looking to apply for an employer-sponsored visa or sponsor a worker for a visa, you can book a consultation to discuss your visa options. We are experienced in all types of Employers Sponsored visas.

Our areas of expertise also include Skilled Migration visas, Business Skills Migration visas, Employer Sponsored Work Visas, Partner and other Family Migration visas, and the Administrative Appeals Tribunal (AAT) Review, Judicial Review and Ministerial Intervention.

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This article is not intended to be or taken as migration legal advice. The author of this article disclaims any liability for any action or omission on the information provided or not provided in this article. You should always consult an immigration lawyer or a registered migration agent (like Work Visa Lawyers) to form an informed opinion on your immigration matter.