Recent migration changes impacting employers

As part of the Australian Government’s broader migration strategy, a number of migration changes were introduced with effect from 1 July 2024. This article summarises the key changes and other reforms set to impact employers.

Reminder: TSMIT increased to $73,150

The Temporary Skilled Migration Income Threshold (TSMIT) has been increased from $70,000 to $73,150 for applications lodged on or after 1 July 2024. TSMIT does not include superannuation.

Changed conditions for sponsored work visas

Changes have been made to visa conditions 8107, 8607 and 8606 to allow temporary migrants on the following visas to cease working with their sponsoring employer for up to 180 consecutive days (or a maximum of 365 days in total over the entire visa grant period):

• Temporary Work (Skilled) (Subclass 457) visa
• Temporary Skill Shortage (Subclass 482) visa
• Employer Sponsored Regional (Provisional) (Subclass 494) visa.

The extended period allows visa holders who have ceased working with their sponsor more time to find a new sponsor, apply for a different visa or arrange to depart Australia. These changes form part of a broader reform package to address migrant worker exploitation and reduce the dependency of temporary migrants on a single employer sponsor to maintain their lawful status in Australia.

A visa holder may also work for employers other than their nominated sponsor and in occupations not listed in their most recently approved sponsorship nomination during the extended period. This is to ensure they can support themselves while searching for a new sponsor.

Despite these adjustments, the sponsorship obligations remain the same. Employers must still notify the Department of Home Affairs of any changes in an employee’s sponsorship situation within 28 days, including if their sponsorship ceases or if a visa holder resigns. 

Preventing worker exploitation

Changes have been made to the Migration Act to strengthen the protections available to migrant workers who report workplace exploitation matters. These changes include:

• non-discretionary protections which outline the circumstances in which the visa of a temporary visa holder affected by workplace exploitation must not be cancelled
• discretionary protections which outline the matters that the Minister must consider when determining whether to cancel the visa of a temporary visa holder
• measures which make it illegal for employers, sponsors and labour hire intermediaries to:
  • coerce or pressure a temporary visa holder to breach a work-related visa condition
  • coerce or pressure a non-citizen without a valid visa to accept or agree to a work-related arrangement
  • use a worker’s temporary visa status to exploit them in the workplace, including in relation to existing visa conditions and requirements to support a future visa application.

In conjunction with these changes, a new Workplace Justice Visa (WJV) has been introduced to enable temporary migrants (including those without a visa) to remain in Australia for a period of time to undertake a workplace justice activity, such as participating in legal proceedings or filing complaints related to workplace exploitation.

The WJV is only available to temporary migrants who have received certification regarding their workplace exploitation matter from a participating government entity or accredited non-government party. A WJV holder will be able to work while they hold the visa and members of their family unit may also apply for a WJV. 

Compliance and Investigations

The Department of Home Affairs has increased its sponsorship monitoring activity and are visiting businesses both announced and unannounced. The inspectors are checking pay rates, hours worked, whether the sponsored visa holder is working in the nominated occupation, work rights for all employees, and etc. Now is a good time to familiarise yourself with the sponsorship obligations and ensure your records are in order.  

New Bill to amend the Migration Act

As part of the broader migration strategy and proposed changes to the employer sponsored visa programs, a Bill has been introduced to parliament seeking to amend the Migration Act. The proposed changes include:

• extending labour market testing requirements from four months to six months
• legislating income thresholds for the proposed new temporary Skills in Demand visa:
  • a Specialist Skills Income Threshold of $135,000 for highly skilled specialists
  • a Core Skills Income Threshold of $73,150 for individuals that are nominated for occupations in national shortage or where Australia has committed to providing access to our labour market in relation to that occupation through international trade agreements.
• implementing the annual indexation of the income thresholds on 1 July each year
• publishing a register of approved standard business sponsors and accredited sponsors who have nominated skilled workers for entry to Australia, with information including the sponsor’s business name, Australian Business Number and postcode, the number of individuals nominated under the sponsorship approval process and their occupations. 

If you have any questions or would like more information on any of these changes, please contact our team below.

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Rebecca Macmillan

Catherine Hartridge

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