Labor has backed down on what many in the industry described as an unreasonable demand to increase the sc457 income threshold from $53,900 to $57,000 and has thus allowed the China-Australia Free Trade Agreement (ChAFTA) to pass parliament.

As part of the compromise with the opposition, the Coalition government has however agreed to a review of the Temporary Skilled Migration Income Threshold (TSMIT) later this year to see if any changes are still necessary. The last review recommended that the TSMIT should be frozen.

Analysts described the changes proposed by Labor in the compromise as ‘purely cosmetic’ and the delay in ratifying the agreement which has largely remained unchanged as unnecessary.

“The government has been vindicated for standing firm against the misleading and xenophobic campaign run against ChAFTA by the rogue Construction Forestry Mining and Energy Union,” noted an opinion piece in The Australian today.

“The CFMEU conjured up an image of Chinese hordes descending on Australia to steal the jobs of locals. Bill Shorten did the right thing by striking a compromise with the Coalition and, however belatedly, repudiating the scare tactics of the CFMEU.”

Peak body, Tourism Accommodation Australia welcomed Labor’s decision, stating that the proposed increase to income would have impacted heavily on operators in regional and remote areas.

“We believe that it is important for the salary threshold to be set at either the award rate or market reference point of pay in the hospitality industry, rather than a one size fits all approach,” said TAA CEO, Carol Giuseppi.

“… Operators in regional and remote areas are struggling as it is, and any further barriers to accessing the temporary skilled migration program will be detrimental to growing a sustainable tourism industry.

“We would prefer to see less red tape and more flexibility when it comes to solving temporary skills shortages, but we recognise that it was important to get the China Australia Free Trade Agreement through Parliament as it will provide vast economic benefits for Australia.”