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  • Writer's pictureZeolla Solutions

Australia's Skilled Visa Migration Salary Threshold

In an effort to attract and retain skilled migrants in the workforce, Australia has announced a significant change to its skilled visa migration program. From July 1, the salary/wage threshold for skilled visa migration in Australia will be AUD $70,000. This new threshold, introduced by Immigration Minister Brendan O'Neil, represents an increase from the previous Temporary Skilled Migration Income Threshold (TSMIT) of AUD $53,900, which had been frozen since 2013. In this blog post, we will discuss the implications of this change and the potential impact on the Australian economy and job market.

The increase in the salary/wage threshold reflects Australia's need to remain competitive in attracting skilled migrants from around the world. The higher threshold aims to ensure that skilled migrants are fairly compensated for their skills and qualifications, and encourages them to seek opportunities in Australia. Additionally, the new threshold can help address potential labour shortages in various industries, particularly those requiring specialized skills and qualifications.

Impact on the Australian Economy and job market

The new threshold is expected to have several effects on the Australian economy and job market. Firstly, it is likely to result in increased demand for skilled migrants in industries where salaries tend to exceed the proposed AUD $70,000 threshold, such as the IT industry, Health and Care Industries, and Engineering field. This can help address labour shortages and contribute to economic growth.

Secondly, the higher threshold may incentivize businesses to offer more competitive salaries to attract skilled migrants, which can potentially lead to overall wage growth in the Australian labour market. However, some industries may face challenges in meeting the new wage requirements, particularly those where award rates are significantly lower than the proposed threshold.

While the increased threshold has been generally well-received, some stakeholders argue that the government should go further by requiring migrant workers to be paid above the median annual wage. This would provide additional protection for local workers and ensure that skilled migrants are not used to undercut local wage rates.

The new salary/wage threshold for skilled visa migration in Australia marks a significant change in the country's approach to attracting and retaining skilled migrants. While it has the potential to benefit the economy and job market, it will be crucial for the government and industries to adapt to the new requirements and ensure that skilled migrants continue to contribute positively to Australia's growth and development.


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