In this GMS Flash Alert, we report on some important recent immigration-related developments in Australia concerning the Temporary Skilled Migration Income Threshold, visa lodgement fees, superannuation Guarantee payments and the impact on salaries, and ImmiAccount.
The Department of Home Affairs has announced that the Temporary Skilled Migration Income threshold (TSMIT) will increase from AUD 70,000 to AUD 73,150 on 1 July 2024.1
The increases in the income threshold and visa application charges may increase the cost of bringing foreign national employees to Australia for work. Global-mobility program managers should consider the increased costs for planning and budgeting purposes.
The TSMIT applies to the following visa subclasses:
It has been confirmed that the TSMIT will increase from its current rate of AUD 70,000 to AUD 73,150 on 1 July 2024.
In 2023, the Australian government increased the TSMIT from AUD 53,900 to AUD 70,000 after many years of the TSMIT remaining at the same level and flagged that it would be indexed each year moving forward. Whilst this increase may represent an increased cost for some employers, it will be welcomed by many temporary visa holders in light of cost-of-living challenges.
Visa application charges are expected to increase on 1 July 2024.
Businesses should consider the increased costs for planning purposes. KPMG will share the updated application fees once released by the Department of Home Affairs.
The Superannuation Guarantee (SG) will increase from 11 percent to 11.5 percent on 1 July 2024 (see GMS Flash Alert 2024-115, 17 May 2024) and this applies to Temporary Skill Shortage (Subclass 482) visa holders as well.
If the increase to the SG will reduce the visa holder’s base salary, this may result in a breach of obligations as a business sponsor. Employers are expected to increase total remuneration packages to align with the increase in SG. We recommend employers undertake a review of sponsored employee’s remuneration to help ensure they remain compliant from 1 July 2024.
ImmiAccount is an online service provided by the Department of Home Affairs in Australia. It is a digitised platform for Australian visa applications which allows individuals to create and manage their visa applications and related processes electronically.
Employers and visa applicants should consider lodging online visa applications as soon as possible before 1 July 2024, since it is expected that the Department’s ImmiAccount system will experience issues in the period leading up to 1 July due to the high volume of transactions.
1 Department of Home Affairs, "Updated - Increase in the Temporary Skilled Migration Income Threshold (TSMIT) to $73,150" (28 May 2024).
2 See Superannuation Guarantee (Administration) Regulations 2018.
* * * *
AUD 1 = EUR 0.612
AUD 1 = USD 0.66
AUD 1 = GBP 0.52
AUD 1 = JPY 104.00
AUD 1 = NZD 1.08
AUD 1 = INR 55.43
Source: www.xe.com
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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