Threshold and Exemption Changes in Australia
June 27, 2011— On July 1, 2011, Australia will implement an increase in the Temporary Skilled Migration Income Threshold (TSMIT) and a higher salary threshold needed in order to obtain an exemption from English language proficiency tests, which are currently required for the Subclass 457 visa.
As of July 1, an occupation must have a market salary rate that meets or exceeds the TSMIT of AUD 49,336 per year in order to qualify for a Subclass 457 visa nomination. This is an increase from AUD 47,480. Applications to nominate an occupation that are still pending on July 1 will need to meet the new TSMIT. Occupations with a market salary rate that is less than the new TSMIT cannot be nominated for a 457 visa. The TSMIT is the lowest market salary rate an occupation can have in order to qualify for a 457 visa nomination. For more information on the TSMIT, please refer to our previous client alert.
Also beginning July 1, Subclass 457 visa applicants who seek an exemption from the required English language proficiency test on the basis of their offered income in Australia must demonstrate a minimum annual salary of at least AUD 88,410, up from AUD 85,090. The new salary requirement will also apply to foreign nationals claiming an exemption on this ground whose Subclass 457 visa applications are pending on July 1.
All other exemptions from the English proficiency testing requirement will remain unchanged. Current exempt occupations comprise management and professional occupations; clerical and administrative workers; sales workers; engineering, information and communication technology and science technicians; and gallery, library and museum technicians.
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