With the increase in the Temporary Skilled Income Migration Threshold (TSMIT) to $70,000 from 1 July 2023, South Australian business and industry are concerned that the migration program is favouring major cities and disenfranchising smaller cities and regional areas. To hear feedback and collate the South Australian experience, Alison Lloyd-Wright, Interim Chief Executive, Department of Premier and Cabinet, hosted a meeting with the Global Adelaide network to discuss migration program settings today.
Salary levels can depend on many things; the job role, qualifications, industry, location, and an individual’s experience, to name a few. In many occupations across SA, the new TSMIT level has the potential to mean that migrants could be paid a higher salary than award rates and the salaries of local employees. For many businesses, this becomes prohibitive, meaning that when a role cannot be filled with locals, they will not be able to access the migration program either. There will be many positions that remain unfilled and South Australians who want disability care, their car fixed or food delivered to the local supermarket will be the ones suffering. Disability care, motor trades, restaurant and catering, food processing, primary industries and transport are just a few examples of industries where skilled and experienced position salaries are below the new TSMIT level.
Another perspective of this problem was shared by one Global Adelaide network member who is wanting skilled labour from overseas to be available to train up new, local school leavers. These skilled migrants have knowledge and experience to share and this enables a lot of pathways across the industry, creating opportunities for Australians. Although the network member pays higher than award rate, the level did not meet that of the TSMIT.
The meeting was also attended by representatives from the Department of Industry, Innovation and Science (DIIS), who are preparing input into the federal migration reform and are keen to include such examples (and their broader impact) in their business case.