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Minimum salary thresholds for Australian 457 Visa program to increase from 1 July 2011 Tuesday, 5 July 2011
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Australian Department of Immigration and Citizenship (DIAC) has recently announced an increase in required minimum salary thresholds for 457 visa program, which has come to effect from 1 July 2011.
According to the announcement, the Australian temporary skilled migration income threshold (TSMIT) has risen by 3.9 per cent, from $47,480 to $49,330 per year, for all new nominations, including those pending approval. Existing 457 visa holders are not affected by the changes unless they want to change employer and require a new nomination. It means that a nomination lodged prior to 1 July but where DIAC only makes a decision after 1 July will be subject to the increased TSMIT. Additionally, for applications which English language requirements are waived for, the minimum salary to qualify for a waiver has also been indexed by 3.9 per cent to $88.410AUD per annum.
The Australian 457 visa is a temporary work visa that allows employers to sponsor foreign skilled workers to work and live in Australia for a maximum period of four years, provided they meet wage and English language requirements. This visa scheme is highly responsive to the Australian labour market and helps Australia fill genuine skill shortages in many areas. TSMIT is the minimum salary level that an employee must be paid in order for a Subclass 457 nomination to be accepted by DIAC. The changing salary requirement is based on figures of annual average Australian wage from Australian Bureau of Statistics.
The increase is aimed to ensure salaries for subclass 457 visa holders keep pace with annual wage growth for all Australians. Besides, a DIAC spokesman also said the wage requirements ensured foreign workers were not being employed ahead of local workers and stated that overseas temporary skilled workers would not be a cheaper option.
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