EXPLANATORY STATEMENT

                                            Migration Regulations 1994

SPECIFICATION OF THE TEMPORARY SKILLED MIGRATION INCOME THRESHOLD AND THE SALARY ABOVE WHICH PARAGRAPHS 2.72(10)(c) AND 2.72(10)(cc) AND REGULATION 2.79  DO NOT APPLY

(PARAGRAPH 2.72(10)(cc), SUBREGULATION 2.72(10AB) and PARAGRAPH 2.79(1A)(b))

1. This Instrument is made under paragraph 2.72(10)(cc), subregulation 2.72(10AB) and paragraph 2.79(1A)(b) of Part 2A to the Migration Regulations 1994 (‘the Regulations’).

2.                  Paragraph 2.72(10)(cc) of the Regulations provides that the Minister must be satisfied that the base rate of pay (under the terms and conditions of employment mentioned in paragraph 2.72(10)(c)) that is provided, or would be provided, to an Australian citizen or an Australian permanent resident, will be greater than the temporary skilled migration income threshold specified by the Minister in an instrument in writing for this paragraph. 

3.                  The purpose of the instrument is therefore to set the temporary skilled migration income threshold at $45,220.

4.                  Subregulation 2.72(10AB) provides that paragraphs 2.72(10)(c) and 2.72(10)(cc) do not apply if the annual earnings of the person identified in the nomination are equal to or greater than the amount specified by the Minister in an instrument in writing for this subregulation. 

5.                  This instrument operates to specify annual earnings of $180,000 for the purposes of subregulation 2.72(10AB) of the Regulations.

6.                  Paragraph 2.79(1A)(b) of the Regulations provides that regulation 2.79 does not apply to a standard business sponsor of a primary sponsored person if:

• the primary sponsored person holds a Subclass 457 (Business (Long Stay)) visa or the last substantive visa held by the primary person was a Subclass 457 (Business (Long Stay)) visa; and
• the annual earnings of the primary sponsored person are equal to or greater than the amount specified by the Minister in an instrument in writing.

7.                  The effect of this paragraph of the Regulations is that a sponsor does not need to satisfy the obligation in respect of a primary sponsored person whose annual earnings are equal to or greater than an amount specified in an instrument in writing.

8.                  This instrument operates to specify annual earnings of $180,000 for the purposes of paragraph 2.79(1A)(b) Regulations.

9.                  The Regulations under which this instrument is made were developed in consultation with:

• a selection of industry peak bodies, unions, and State Governments through the Skilled Migration Consultative Panel;
• Department of Foreign Affairs and Trade;
• Department of Education, Employment and Workplace Relations;
• the Treasury;
• Attorney General’s Department;
• Australian Taxation Office;
• Migration Review Tribunal;
• the Office of the Privacy Commissioner; and
• the Attorney General’s Department.

The temporary skilled migration income threshold, and the salary above which paragraphs 2.72(10)(c) and 2.72(10)(cc) and regulation 2.79 do not apply, were developed in consultation with the Deputy Prime Minister, and the Prime Minister.

10. The Instrument, IMMI 09/112, commences on 14 September 2009.