Australia is set to end a decade-old freeze on the minimum wage for skilled migrant workers as part of an overhaul of what the government deemed as a ‘broken migration system.’

According to AP News, the government has described its migration system as one that fosters exploitation and favours attracting low-paid employees over filling critical skill shortages.

The country’s Temporary Skilled Migration Income Threshold had been frozen by a previous government at AUD 53,900 (approximately USD 35,690) a year since 2013.

A new minimum wage of AUD 70,000 (approximately USD 46,360) will apply from 1 July Home Affairs Minister Clare O’Neil said.

According to the Daily Telegraph (paywall), a new three-tiered assessment system will be brought in to reduce the complexity, slash red tape and improve Australia’s migration system.

The report recommends the creation of three different levels of regulation for migrants including a ‘light touch’ approach for very skilled and highly paid workers, a mid-tier who work above the temporary skilled migration income threshold, and a lower-wage group in areas of skills shortages like the care sector.

For the “mid-tier” group of skilled migrants applying for a position with a wage above AUD 70,000 (USD 46,360), the federal government will scrap rules requiring employers to advertise for a local candidate for four-weeks before a visa could be sponsored.

Temporary workers will also be able to ‘job switch,’ rather than be bound to the employer who originally sponsored their visa, which is among several measures designed to protect foreign workers from exploitation.

A government statement released today said that ‘around 90% of all full-time jobs in Australia are now paid more than the current Threshold, undermining Australia’s skilled migration system.’

O’Neil said, “What has emerged is a system where it is increasingly easy for migrants to come to Australia in search of a low-paid job, but increasingly difficult for migrants with the skills that we desperately need. One of the reasons there is so much exploitation in Australia is because we have allowed low-wage migration programs to operate in the shadows.”

Australia has long had one of the highest rates of immigration of any country within the Organization for Economic Cooperation and Development. But the migrant workforce that used to settle permanently has become increasingly temporary.

O’Neil said the Australian economy was ‘stuck in a productivity rut’ that migrant workers could help resolve.

According to O’Neil all temporary skilled workers in Australia, many of whom had become permanently temporary migrants living on various visas in the country for years, would be given clearer pathways to permanent residency by the end of the year.

O’Neil also criticised outdated preferred occupation lists that no longer reflect the needs of the economy or emerging technology industries, among other aspects of the migration system under the previous government that ruled for nine years until May 2022.

In September, the government increased its permanent immigration intake to 195,000, an increase of 35,000, for the current fiscal year that ends 30 June 30 as the nation grapples with skills and labour shortages.