Look, the government just admitted what we have known for years. Home Affairs Minister Clare O'Neil called the migration system "not fit for purpose." She said it has flaws that lead to exploitation.
That is not spin. That is the government's own review.
So what does this mean for you? Here is what is actually changing.
TSMIT Jumps to $70,000
The Temporary Skilled Migration Income Threshold is going from $53,900 to $70,000. That is a 30% increase, effective 1 July 2023.
If you are being sponsored, your salary must meet this threshold. If you are an employer sponsoring workers, your wage offers need to reflect this. No exceptions.
Permanent Residency Pathways for All Skilled Workers
This is the big one.
All skilled temporary workers will have an opportunity to apply for permanent residency. The change takes effect by the end of 2023.
Why does this matter? Because when the 457 visa became the 482 in 2017, the government removed PR pathways for many occupations. People came here, worked here, built lives here, and then discovered they had no path forward.
That is changing. If you have been stuck on a temporary visa with no PR option, this review is talking about you.
Three Tiers of Skilled Migration
The review proposes restructuring the system into three tiers:
1. First tier: High earners get a streamlined pathway. Less paperwork, faster processing.
2. Second tier: Middle income workers go through a standard skilled pathway.
3. Third tier: Essential workers in lower-paid industries get a dedicated stream.
The idea is to match the process to the person. Whether that actually happens remains to be seen.
Fewer Visa Subclasses
Australia has over 100 visa subclasses. The review says this is too complex. I agree.
The current system does not test whether someone will contribute long-term. It tests whether they can fill out forms and tick boxes. A simplified system with clearer categories would help everyone.
International Students Get a Clearer Path
Right now, international students cannot apply for a graduate visa until they finish their degree. The review suggests changing this to an immediate graduate visa.
If you are studying in Australia and planning to stay, this could simplify your transition significantly.
What Should You Do Now
If you are on a temporary skilled visa, the pathway to permanent residency may be opening up for you. Do not assume your situation is the same as it was six months ago.
If you are an employer, the salary requirements are increasing. Your sponsorship arrangements need to reflect that.
The system is being overhauled. The rules you applied under may not be the rules you are assessed under.
Have questions about how this affects you? Book a consultation and I will explain exactly where you stand under the new framework.
This article provides general information only and does not constitute legal advice. For advice on your specific circumstances, book a consultation.
