Australia: Expanded Pathway to Employer-Sponsored Permanent Residency and Increase in Temporary Skilled Migration Income Threshold Forthcoming

The Australian Department of Home Affairs has announced two upcoming reforms to the skilled migration program that will benefit short-term Temporary Skill Shortage (TSS) subclass 482 visa holders. These changes include an expanded employer-sponsored permanent residency pathway under the Temporary Residence Transition (TRT) stream of the Employer Nomination Scheme (ENS) subclass 186 visa program, where eligibility will not be confined to the Medium and Long-term Strategic Skills list. Visa applicants will need to work in their nominated occupation, show a two-year employment period with the sponsoring employer, and meet all other TRT ENS visa program requirements. To help onshore individuals who would usually need to go offshore to reapply, the Department will temporarily remove limits on in-country TSS visa applications. Furthermore, the government also announced that the Temporary Skilled Migration Income Threshold (TSMIT) will increase from AUD 53,900 to AUD 70,000 from July 1, 2023. The increased amount will apply to new nomination applications, which will need to meet the new TSMIT or the annual market salary rate, whichever is higher. However, the change will not affect existing visa holders and approved nominations filed before this date. Further clarification is being sought from the Department of Home Affairs as to the impact on nominations lodged but not finalized by July 1, 2023. Fragomen will monitor the situation and will provide updates accordingly.