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Jessica Thakur July 5, 2023
Australia's migration landscape is undergoing significant changes starting 1st July 2023, impacting foreign nationals aiming to travel and work in the country. The revisions are set to bring more opportunities for highly-skilled migrants and international students while affecting current and prospective visa holders and businesses seeking "in-demand" workers.
The policy changes were announced by Australian Home Affairs Minister, Clare O’Neil, based on a comprehensive migration system report with the aim of providing increased mobility in the labor market for temporary migrants and encouraging international students to stay in Australia.
Labour Market Testing Exemption for U.K. Passport Holders
Effective 31st May 2023, employers applying for the Temporary Skill Shortage (TSS) subclass 482 visa will no longer be required to fulfill Labor Market Testing (LMT) requirements for U.K. passport holders. This change comes as a result of the Australia-United Kingdom Free Trade Agreement (Australia-U.K. FTA), allowing employers to skip posting job advertisements when the primary 482 visa applicant holds a U.K. passport.
Working Holiday Maker Program Changes for U.K. Passport Holders
Following the entry into force of the Australia-U.K. FTA, new arrangements under the Working Holiday Maker (WHM) program and Youth Mobility Scheme have been agreed upon by Australia and the U.K. Starting 1st July 2023, U.K. passport holders between 18 and 35 years old can apply for a Working Holiday visa, and from 1st July 2024, they can be granted up to three separate Working Holiday visas without having to meet specific work requirements.
Pathway to Australian Citizenship for New Zealand Citizens
From 1st July 2023, New Zealand citizens residing in Australia for four years or more will be eligible to apply directly for Australian citizenship without first obtaining a permanent visa. This change will backdate the period of permanent residence for long-term New Zealand citizens, and all SCV holders will be considered permanent residents for citizenship purposes.
Children of SCV Holders
Effective 1st July 2023, any child born in Australia on or after 1st July 2022, to a SCV holder may automatically acquire Australian citizenship at birth. Furthermore, children meeting these criteria can apply for evidence of citizenship.
Temporary Skilled Migration Income Threshold (TSMIT)
Starting 1st July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $53,900 to $70,000 AUD.
Increase in Visa Filing Fees
As of 1st July 2023, visa application charges (VACs) will be increased by 3.25% based on the 2023-24 forecast consumer price index (CPI). Certain visa categories, such as the Working Holiday, Work and Holiday, and Temporary Work visas, will also see additional increases.
Increase in Superannuation Guarantee Payments
The Superannuation Guarantee (SG), which mandates employer contributions to retirement funds, will increase from 10.5% to 11% on 1st July 2023, applying to subclass 482 visa holders as well.
Changes to Visa Conditions – Student Visa Holders
Starting 1st July 2023, student visa holders will need to comply with their visa work condition and have their permitted hours of work increased from 40 to 48 hours per fortnight. However, those working in the 'aged care' sector will enjoy unlimited work rights until 31st December 2023.
Changes to Visa Conditions – Working Holiday Makers
From 1st July 2023, Working Holiday Maker visa holders will generally only be allowed
to work for any one employer for up to six months, as per their original visa condition.
It is essential for visa holders, businesses, and employers to be aware of these changes to ensure compliance and understand the updated processes and requirements.
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