9 Important changes after July 1, 2023 that international students need to know

The Australian Government has announced many important changes related to international students come into effect from July 1, 2023 including visa 485 extension, working hours, increase in VACs and minimum wages.

1. Extension of Subclass 485 (Temporary Graduate) Visa

International higher education graduates with eligible qualifications will be granted an extra two years of post-study work rights to address the shortage of skilled workers. The extended stay will be implemented from 1st July 2023. Current settings, detailed in the published policy, will be increased by two years. This will extend the post-study stay in Australia from:

• two years to four years for select Bachelor degrees

• three years to five years for select Masters degrees

• four years to six years for all Doctoral degrees.

Note: The extension is in addition to the existing one to two years of work rights for eligible students who study, live, and work in regional areas.

The list of occupations and qualifications eligible for post-study work rights extension has been published with over 3,000 eligible courses available. Only the Bachelor’s or Master’s course on this list is eligible. All doctoral degrees are eligible. You can find the full list with the link below.

2. Increase in Subclass 500 (Student) Visa Work Hours

• From July 1, 2023, holders of a Student Visa (subclass 500) or related Bridging Visa will be able to work 48 hours per fortnight instead of 40 hours. As with the usual work hours limit rules, student visa holders can still work unlimited hours during term and semester holiday (non-study) periods.

• Student visa holders working in the aged care sector will be exempt from the capped work hours and will have unlimited work rights until 31st December 2023.

3. Increase in 2023 Australian Minimum Wage

• The Australian Government’s Fair Work Commission has announced an increase in the national minimum wage from $21.38 per hour to $23.23, or from $812.60 to $882.80 a week (pre-tax), following the Fair Work Commission (FWC) Annual Wage Review 2022-23. This increase will come into effect from the first full pay period commencing on or after 1 July 2023.

• Award minimum wage increase:  Awards are legal documents that outline the minimum pay rates and conditions of employment. From the first full pay period on or after July 1, 2023, adult minimum award wages increase by 5.75%.

4. Increase in Visa Application Charges (VACs)

VISA	Before 1 July	After 1 July
Tourists	$150	$190
International students	$650	$710
Working Holiday	$510	$635

From 1st July 2023, visa application charges (VACs) are increased by the 2023-24 forecast consumer price index (CPI) of 3.25%.

• Visitor, Working Holiday, Work and Holiday, Training, Temporary Activity, and Temporary Work (Short Stay Specialist) visas increased by a further 21% in addition to CPI.

• Business Innovation and Investment Program visa fees are increased by a further 46% in addition to CPI.

• The remaining visa fees are increased by 6% in addition to CPI.

5. Superannuation

• The most common type of contribution regularly going into your super account is likely to be the Superannuation Guarantee – or SG for short – which is the contribution your employer (whether large or small) is required to make into a super fund on your behalf. The SG is part of the remuneration you receive from your employer. The amount is a percentage of your gross salary or wages. The percentage is set by the Australian Government and changes over time.

• The percentage rate for Superannuation Guarantee contribution payments by your employer is currently 11%. The SG percentage rate is scheduled to increase by 0.5% every year until it reaches 12% from July 1, 2025.

You can see past and future SG rates in the table below.

6. Myki fares increase to $10 a day

• From July 1, 2023, a single public transport fare will rise 40c a day - from $4.60 to $5 - while a daily fare will increase by 80c - from $9.20 to $10.

• Weekend fares will also increase by 8.7 per cent, with a daily weekend ticket going from $6.70 to $7.20 and a single ticket from $3.35 to $3.60.

• Check with your school and university to see if you have a concession as an international student for 50% off these fares.

7. Electricity bills increase

Electricity prices will increase between 20 and 25 percent from July 1 for about 600,000 customers across three states, the Australian Energy Regulator has confirmed.

8. Temporary Skilled Migration Income Threshold (TSMIT)

From 1 July 2023, the TSMIT will increase from $53,900 to $70,000. New nomination applications from​ this date will need to meet the new TSMIT of $70,000 or the annual market salary rate, whichever is higher. This change will not affect existing visa holders and nominations lodged before 1 July 2023.

9. More pathways to permanent residence

Significant modifications are set to overhaul the subclass 186 Permanent Residency program by the close of 2023.

In the past, only those holding subclass 482 Temporary Skill Shortage Visa (TSS) with an occupation listed on the Medium and Long-term Strategic Skills List (MLTSSL) could apply for permanent residency. This constraint will no longer apply. By the end of 2023, the Temporary Residence Transition (TRT) stream of the Employer Nomination Scheme (subclass 186) visa will be available​ for all Temporary Skill Shortage (TSS) visa holders whose employers wish to sponsor them.

Applicants will need to continue to work in the occupation nominated for their TSS visa(s). The Department of Home Affairs will reduce eligibility for the TRT stream from three years to two years of employment with the sponsoring employer. Applicants will need to meet all other nomination and visa requirements for the TRT stream of the Employer Nomination Scheme visa.

To facilitate these pathways, the Government is also removing limits on the number of Short-term stream TSS visa applications that visa holders can make in Australia. This is an interim measure to assist those currently onshore who would normally need to go offshore to make further visa applications.

These changes are in line with the Government’s commitment at the Jobs and Skills Summit in September 2022 to expand pathways to permanent residence for temporary skilled sponsored workers. The changes will provide more equitable access to permanent residence. They will also provide more certainty to TSS visa holders and their employers about the permanent residence pathways available. Employers will be able to alleviate skills shortages by ensuring a permanent employer sponsored pathway is available for a wider range of occupations.

Source: Department of Home Affairs, Federal Register of Legislation