The Temporary Work (Skilled) (subclass 457) visa is a political hot potato, with government policies ever-changing as the Australian Government is torn between business and industry groups wishing to maintain their ability to employ appropriate workers, and the union movement wishing to protect the Australian workforce. Regardless of politics, the subclass 457 visa remains an important avenue for Australian businesses to be able to employ skilled overseas workers.
In order to limit the eligibility of overseas workers for the subclass 457 visa, a requirement for nominating a visa applicant under the program is to demonstrate not just that they are going to be paid the Temporary Skilled Migration Income Threshold (TSMIT) by the 457 business sponsor, but that the market salary rate for an equivalent Australian worker in that particular location is above this threshold.
Currently the TSMIT sits at $53,900. Discussions to increase or reduce this threshold are ongoing, however it seems that it is likely that the Australian Government will be increasing the TSMIT in the near future. However, increasing the TSMIT will create the following effects:
- It will further limit the ability of overseas graduates to be eligible for the subclass 457 visa in many industries; and
- It will limit the ability of regional businesses to sponsor overseas workers where the salary in that location is not over the threshold.
The Australian Chamber of Commerce and Industry (ACCI) have proposed that employers in regional locations be allowed to recruit skilled overseas workers on salaries lower than the threshold, provided this accords with Australian market rates for workers in that regional area.
We will keep our clients, colleagues and contacts informed once there is concrete information regarding whether and when there is an increase in the TSMIT for subclass 457 visa holders.
For advice regarding sponsoring workers on a subclass 457 visa, please do not hesitate to contact us at email@example.com for Australian immigration assistance or call our office:
The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.