AUSTRALIA | Changes to the Australian visa system have had an impact on the country's migrant workforce, especially in the hospitality industry.
The Australian hospitality industry is set to face a visa shakeup.
The industry is a significant contributor to the country’s economy, employing over 900,000 workers as of 2023. It accounts for approximately seven percent of Australia’s total employment, with a growth rate of 3.6 percent in 2023. The industry continues to face a high demand for skilled labour, particularly in roles such as chefs, cooks, and hotel managers, with no indication of slowing down.
As of early 2024, the job vacancy rate for accommodation and food services stands at approximately 3.7 percent – a significant and notably higher-than-average job vacancy rate that reflects the industry’s ongoing challenges in filling positions.
This shortage highlights the critical need for hospitality employers to explore visa solutions to address these staffing issues effectively. Therefore, it is important for employers to stay informed about immigration law updates to assist with making informed decisions on recruiting and retaining skilled visa workers.
The Temporary Skill Shortage Visa (Subclass 482), commonly referred to as the TSS or 482 visa, has allowed Australian employers to address labour shortages by sponsoring overseas skilled workers to fill positions that cannot be filled by the local workforce. In the hospitality industry, the 482 visa is a particularly useful option as it enables businesses to recruit skilled chefs, cooks, and restaurant managers.
Effective from the 1st of July 2024, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from AUD 70,000 to AUD 73,150. This change will affect new nominations lodged from the 1st of July 2024 onwards, but it won’t be applied retrospectively to nominations already approved or lodged prior to this date. This change is aimed at ensuring migrant workers are not underpaid compared to local workers.
Also effective from the 1st of July 2024, significant changes to conditions 8107, 8607, and 8608 will improve the labour market mobility of 482 visa holders to allow those who stop working for their sponsor more time (up to 180 days at a time or a total of 365 days across their entire visa period) to find a new sponsor, apply for a different visa, or arrange to depart Australia. During this time, they can work for other employers (even in occupations not listed on their visa) to ensure they can support themselves while they look for a new sponsor. This flexibility will also allow them to immediately commence working for a new prospective sponsor while waiting for their 482 visa work rights to be transferred to the new sponsor.
From 23 November 2024, the work experience requirement for the 482 visa will be reduced from two years to one year. This is a significant change intended to make it easier for recent graduates to qualify for the visa and will benefit recent graduates looking to enter the workforce. In turn, this will help businesses address skills shortages more effectively.
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