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 10/037 signed by the Minister on 17 June 2010 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 49,330. 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.
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) specifies 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 AUD 180,000 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) 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 either:
- 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 2.79(1A)(b) is that the primary business sponsor does not have to satisfy the obligation, provided the primary sponsored person holds a Subclass 475 (Business (Long Stay)) visa, or their last substantive visa was a subclass 457 (Business (Long Stay)) visa and their annual earnings are equal to or greater than AUD 180,000.
9. Consultation was not necessary as, under section 18(1) of the Legislative Instruments Act 2003, the Instrument is of a minor or machinery nature and does not substantially alter existing arrangements.
10. The Office of Best Practice Regulation has advised that a Regulatory Impact Statement is not required (OBPR Ref 12611).
11. The Instrument, IMMI 11/041, commences on 1 July 2011.