Hospitality industry gives raised migrant income threshold a serve
Industry leaders say hospitality and tourism will be disproportionately affected by the government’s $16,000 increase in the Temporary Skilled Migration Income Threshold.
Hospitality and tourism will be disproportionately affected by the government’s $16,000 increase in the Temporary Skilled Migration Income Threshold, with industry leaders saying the move will exasperate skills shortages in regional areas.
New figures reveal net overseas migration, which includes Australian citizens returning home, will hit 400,000 this financial year and 315,000 in 2023-24. The government said that previous projections, which had net overseas migration on track to reach 235,000 this financial year, had been blown out because of the surge of international students that accounted for about half the migration intake.
In revealing the government’s sweeping overhaul of the nation’s migration system on Thursday, Home Affairs Minister Clare O’Neil stressed that she was “not someone who advocates for a big Australia” and that changes to the visa system could well see a smaller migration intake.
The opposition’s immigration spokesman, Dan Tehan, said the new figures showed Labor was pursuing a big Australia “by stealth … They need to explain what impact this will have on housing, on rent, on congestion and on interest rates.”
Ms O’Neil confirmed the first part of the government’s reform agenda would be to raise the TSMIT from $53,000 to $70,000 from July 1, with the threshold remaining unchanged for existing visa holders.
Restaurant and Catering Australia chief executive Suresh Manickam said the government hadn’t properly considered the hospitality industry.
“This should be lowered,” he told The Australian. “If you wanted to be a chef, the minimum annualised salary is $67,000. The TSMIT as it applies to us is simply not workable. From that point of view, there needs to be a rethink about what this is all about.”
Mr Manickam said there was “little hope” for the skills shortage crisis faced by small businesses in the hospitality industry if the threshold came into force in July.
Australian Hotels Association chief executive Stephen Ferguson also said he harboured concerns over the impact of the TSMIT, chiefly for businesses operating in the regions.
“Where we’re concerned is especially when you get into sort of regional, rural, remote areas … that’s something we want to talk to the government about,” he said.
Tourism and Transport Forum chief executive Margy Osmond said while she welcomed changes to the migration system that made Australia competitive with other markets, changes to the TSMIT needed to be carefully considered.
“We understand increasing the income threshold is necessary after being stagnant for so long,” she said.
“However, we need to make sure the increase is carefully managed to avoid any unnecessary strain on businesses in regional and remote parts of Australia.”
Recruiters also raised concern, saying the income threshold would prompt businesses to raise the wages for migrant workers while not doing so for locals.
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