EXPLANATORY STATEMENT
Migration Regulations 1994
SPECIFICATION OF INCOME THRESHOLD AND ANNUAL EARNINGS
(PARAGRAPH 2.72(10)(cc), SUBREGULATION 2.72(10AB) and PARAGRAPH 2.79(1A)(b))
- This Instrument is made under paragraph 2.72(10)(cc), subregulation 2.72(10AB) of Division 2.17 of Part 2A and paragraph 2.79(1A)(b) of Division 2.19 of Part 2A of the Migration Regulations 1994 (‘the Regulations’).
2. Item (1) of this Instrument revokes Instrument number IMMI 09/112 signed by the Minister on 10 September 2009 that specified the temporary skilled migration income threshold and annual earnings under the same provisions of the Regulations.
3. Item (2) of this Instrument specifies that for the purposes of paragraph 2.72(10)(cc) of the Regulations the temporary skilled migration income threshold is AUD 47,480. The purpose of this item is to provide for the annual indexation of the temporary skilled migration income threshold annually according to the Australian Bureau of Statistics Average Weekly Earnings data. This figure is currently 5% that is the annual seasonally adjusted wage change for all Australians. The temporary skilled migration income threshold will therefore be indexed upward from AUD 45,220 to AUD 47,480.
4. 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 are 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.
5. Item (3) continues to specify annual earnings of AUD 180,000 for the purposes of subregulation 2.72(10AB) of the Regulations and paragraph 2.79(1A)(b) of the Regulations. This figure remains at AUD180,000 as it continues to align with the ordinary taxable income of a taxpayer required to pay the highest rate of tax under Part I of Schedule 7 to the
Income Tax Rates Act 1986.
6. 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.
7. Paragraph 2.79(1A)(b) of the Regulations provides that regulation 2.79, that provides the obligation to ensure equivalent terms and conditions of employment, 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 sponsored 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 for this paragraph.
8. The effect of paragraph 2.79(1A)(b) of the Regulations where the primary sponsored person holds, or last held, Subclass 457 (Business (Long Stay)) 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.
9. Consultation was not necessary as the Instrument is of a minor or machinery nature and does not substantially alter existing arrangements.
10 The Office of Best Practice Regulation’s Business Cost Calculator and Assessment Checklists were used to determine that there was no compliance cost on business or impact on competition in relation to this instrument.
11. The Instrument, IMMI 10/037, commences on 1 July 2010.