Australia will update its immigration laws and compete for talent
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Australia will change its immigration policy for the first time in ten years, with the first move expected to be adopted in July, securing higher compensation for recently arrived temporary visa holders. By doing so, Australia will enter the global battle for highly educated workers.
The need to modernize the nation's immigration policy was recently emphasized by Home Affairs Minister Clare O'Neil. "If 'populate or perish' described Australia's challenge in the 1950s,'skill up or sink' is the reality we face in the 2020s and beyond," she said. She was referring to the catchphrase that, more than 50 years ago, came to characterize the nation's immigration policy. To maintain Australia appealing to immigrants and to be competitive in the global competition for next-generation technology, the government is now prepared to make a number of changes.
The temporary skilled migration income threshold (TSMIT), which businesses are required to guarantee before the government approves a temporary skilled visa, is the first step. On July 1st, the barrier will increase from the current A$53,900 to 70,000 Australian dollars ($47,000).
In Australia, more than 90% of full-time employees earn more than the TSMIT currently. The government wants to stop employers from hiring low-wage immigrants by mandating that they pay foreign workers higher wages. By the end of this year, the government intends to give all people with temporary skilled visas the opportunity to seek for permanent residency, which will help the issue where many immigrants are locked in temporary visa status.
Complicated visa application procedures will be streamlined in a subsequent step. It will be accomplished by eliminating "the hundreds of visa categories and subcategories," according to O'Neil. This should cut down on the time needed to apply for a visa.
The government will also make an effort to speed up the visa application process for highly qualified individuals.
The process for applying for a visa will eventually be simplified. It will be accomplished by getting rid of "the hundreds of visa categories and subcategories," according to O'Neil. As a result, applying for a visa ought should take less time. The government would also try to expedite the application process for highly skilled people seeking visas.
In the meanwhile, the government intends to adopt a stricter "point test" to vet candidates for permanent residency, emphasizing abilities that could support future national interests.
Some restaurant owners and other company owners in the service sector are concerned about the promise of greater compensation for temporary foreign employees. They claim that the greater costs will result from the higher wages. Family-run and other small businesses will be most impacted by the change, according to Suresh Manickam, CEO of Restaurant & Catering Australia, who also spoke to local media.
The most frequently used temporary resident employer is Food and Beverage Services. 112,700 of them were employed by the sector in 2022, according to the Australian Bureau of Statistics.
Local media said that the measures could result in a yearly decrease of up to 30,000 in the number of immigrants working for low pay. This estimate is based on how employers are anticipated to respond when forced to promise significantly higher compensation before their employees' visas may be renewed.
As of August 2021, there were over 1.6 million temporary visa holders in Australia, 95,600 of them were in possession of a temporary skilled visa, which is typically good for two to four years. The administration anticipates that as a result of the revisions, there will be fewer immigrants.