Editor's Blog

An evidence-based review of the Temporary Skilled Migration Income Threshold (TSMIT) for sc457 workers is underway, according to a recent statement from the office of the Minister of Immigration and Border Protection.

The last sc457 review recommended that the TSMIT is frozen at $53,900. In October, as part of the compromise to allow the passage of China-Australia Free Trade Agreement the Coalition government agreed to a review of the TSMIT. At that time, the opposition demanded an increase in the TSMIT to $57000.

Various industry bodies described the demand as unreasonable. Immigration Department figures obtained by The Australian show that, of the 13,239 visas granted under the 457 category to the end of September, 3581 fell below the proposed $57,000 threshold, equivalent to 27 per cent or over a quarter of all visas granted. Of those, 581 or 4.4 per cent of the 457 visas granted were right on the current threshold of $53,900, notes The Australian.

The Minister has appointed Mr John Azarias to undertake the review which will consider a range of issues including the factors that should determine the settings, the appropriate base level, and the roles of indexation and regional concessions for the TSMIT.

The TSMIT defines the salary threshold for jobs that can be filled by a 457 visa holder and is designed to protect Australian workers and ensure that visa holders are undertaking skilled employment.

The Minister said the review's terms of reference were consistent with the Government's commitment to ensuring the 457 programme acted as a supplement to, and not a substitute for, local workers and the protection of potentially vulnerable foreign workers in Australia.

"As the chair of the independent panel which undertook the 457 Integrity Review in 2014, Mr Azarias brings extensive knowledge of the 457 programme to the conduct of this review," Mr Dutton said.

Mr Azarias will provide a report to Government at the end of April 2016.