"Boosting Australia's Skilled Workforce: Government Announces Key Immigration and Education Reforms" 2023-24 Immigration Planning
The Australian Government has announced several measures to boost the country’s skilled migration program, support international education, and attract highly-skilled migrants.
Firstly, the Government will increase the Temporary Skilled Migration Income Threshold from $53,900 to $70,000 from 1 July 2023. This move aims to ensure that the skilled migration program remains focused on attracting highly-skilled migrants who complement the skills of the Australian workforce. Although this measure is estimated to decrease receipts by $100 million, it will result in a negligible impact on GST payments to the states and territories over the next five years.
Secondly, the Government will increase Visa Application Charges (VACs) from 1 July 2023, which is expected to generate $665 million in additional revenue over the next five years. While VACs will increase by 6 percentage points for all visa applications, visitor and temporary visa subclasses will see a 15 percentage point increase, and business innovation and investment visas will see a 40 percentage point increase. The revenue generated from this increase will fund the costs associated with improving visa processing and other Government priorities.
Thirdly, the Government plans to allocate 137,100 places (around 70 per cent) to the Skill stream for the 2023-24 Permanent Migration Program, aiming to address Australia’s long-term skill needs. Additionally, the Government will remove restrictions to enable TSS visa holders on the short-term stream access to permanent residence pathways through the Employer Nomination Scheme (subclass 186) visa. The limit of one onshore renewal for the short-term stream TSS visa will also be removed. These measures are estimated to decrease receipts by $30 million and decrease payments by $66.4 million over the next five years.
Finally, the Government will grant an extra two years of post-study work rights to international higher education graduates of Australian institutions with eligible qualifications from 1 July 2023. This is expected to increase receipts by $800 million and increase payments by $185.6 million, including a $185 million increase in GST payments to the states and territories over the next five years. Additionally, the work hour cap for international student visa holders will be reinstated from 1 July 2023, and it will be increased by 8 hours from pre-pandemic levels to 48 hours per fortnight. However, international students working in the aged care sector will be exempt from the 48 hour per fortnight work limit until 31 December 2023. Overall, these measures demonstrate the Australian Government’s commitment to attracting highly-skilled migrants and supporting international education, which are crucial for the country’s economic growth and development.
