The Department of Immigration and Citizenship (DIAC) today announced changes to the salary thresholds that apply to the subclass 457 visa program, maintaining the wage growth of temporary skilled workers.

The temporary skilled migration income threshold (TSMIT) will be indexed by 5 per cent for all new nominations, in line with the Australian Bureau of Statistics (ABS) report on average weekly earnings.

From today, the TSMIT will rise to $47 480, an increase that ensures that wages for subclass 457 visa holders keep pace with annual wage growth for all Australians.

“New nominations will not be granted for the subclass 457 program if the market salary rate for the position is below this threshold,” a DIAC spokesman said.

“Existing visa holders will be unaffected unless they change employer and a new nomination is lodged.”

The salary threshold at which English language testing can be waived is also being indexed by 5 per cent to $85 090.

Since major reforms to the subclass 457 program came into effect last September, employers have been required to pay workers the same terms and conditions as Australian workers undertaking equivalent work in the same workplace. This includes paying market salary rates.

Where there is an equivalent Australian worker in the workplace, the market salary rate should be determined by the industrial arrangements that apply to that worker – for example, a collective agreement, award, award conditions with above award salary rates or a common law contract.

If there is no equivalent worker onsite, the employer may reference collective agreements or awards for that position to substantiate the market rate. If there is no applicable agreement or award, other evidence such as remuneration surveys or earnings data must be provided.

“The department has made it clear that temporary skilled overseas workers should not be employed ahead of local workers as a cheaper option,” the spokesman said.

“The subclass 457 visa scheme is a demand-driven program designed to supplement, not replace, the local workforce when there are serious skills shortages.”

Updated Priority Processing Arrangements for Skilled Migration Visas – Effective from 14 July 2010

The Minister for Immigration and Citizenship, Senator Chris Evans, has set new priority processing arrangements for certain skilled migration visas. These arrangements take account of the changes to the Skilled Occupation List (SOL) that came into effect on 1 July 2010, as well as the revocation of the Migration Occupation in Demand List (MODL) and the Critical Skills List (CSL). These priority processing arrangements apply to applications already lodged with the Department of Immigration and Citizenship, as well as to future applications.

The new priority processing arrangements apply to the following visas:

• Employer Nomination Scheme (ENS)
• Regional Sponsored Migration Scheme (RSMS)
• General Skilled Migration (GSM) visas listed on page two of this fact sheet.

From 14 July 2010, processing priorities (with highest priority listed first) are:

1. Applications from people who are employer sponsored under the ENS and the RSMS.
2. Applications from people who are nominated by a state or territory government agency with a nominated occupation that is specified on that state or territory’s state migration plan.
3. Applications from people who have nominated an occupation on the new Skilled Occupation List (SOL) – Schedule 3 in effect from 1 July 2010. See: http://www.immi.gov.au/skilled/general-skilled-migration/pdf/new-list-of-occupations.pdf
4. All other applications are to be processed in the order in which they are received.

Priority processing refers to the order in which the department considers skilled migration applications. Section 51 of the Migration Act 1958 gives the Minister for Immigration and Citizenship powers to consider and finalise visa applications in an order of priority that the Minister considers appropriate. The changes to priority processing do not change the criteria for the grant of a visa.

The new Direction simplifies priority processing arrangements. The new arrangements have been designed to complement other recent changes to skilled migration to ensure that the economy gets the skills it needs now. They help to better address the needs of industry by targeting skills in demand across a number of sectors, and help ensure that the skilled migration program is responsive to the current economic climate and the needs of the Australian economy. Priority processing arrangements are subject to further change in response to the economic climate and the demand for particular skills in the Australian economy.

Priority processing arrangements apply to current applications, including those in the final stages of processing. Departmental case officers must follow the Direction made by the Minister about priority processing. Case officers are not able to respond to requests to process individual applications outside of the order set out in these processing priority arrangements. Refunds of costs incurred during processing are not available for delays in processing.

GSM visas affected

The following GSM visas are affected by priority processing:

• Skilled – Independent subclass 175
• Skilled – Independent subclass 176
• Skilled – Regional Sponsored subclass 475
• Skilled – Regional Sponsored subclass 487
• Skilled – Independent Regional subclass 495
• Skilled – Designated Area-sponsored (Provisional) subclass 496
• Graduate – Skilled subclass 497
• Skilled – Onshore Independent New Zealand Citizen subclass 861
• Skilled – Onshore Australian-sponsored New Zealand Citizen subclass 862
• Skilled – Onshore Designated Area-sponsored New Zealand Citizen subclass 863
• Skilled – Independent Overseas Student subclass 880
• Skilled – Australian-sponsored subclass 881
• Skilled – Designated Area-sponsored Overseas Student subclass 882
• Skilled – Independent subclass 885
• Skilled – Sponsored subclass 886

GSM visas exempt

The following visa subclasses are exempt from priority processing and will be processed in the order in which they are received:

• Skilled – Recognised Graduate subclass 476
• Skilled – Graduate subclass 485
• Skilled – Designated Area – Sponsored (Residence) subclass 883
• Skilled – Regional subclass 887

Applications that are remitted to the Department by the Migration Review Tribunal (MRT), applications where it is readily apparent that the criteria for grant of a visa would not be satisfied and applications from subsequent entrants are all exempt from priority processing. They are processed in the order in which they are received or returned from the MRT.

ENS, RSMS and State Migration Plans – Priority groups 1 and 2

Applications from people who are employer sponsored under the ENS or RSMS receive the highest level of priority processing.