Wages killer: Skilled visa pay crashes below Aussie average

In the years leading up to the May federal election, the Morrison Government and its supporters used Australian Taxation Office (ATO) data to lobby against Labor’s policy changes to negative gearing, claiming that those earning $80,000 were ‘middle-income earners’.

We also witnessed National’s MP, Barnaby Joyce, recently claim that he is struggling to support his family on his $211,000 parliamentary income.

Yesterday, the Australian Bureau of Statistics (ABS) released its annual Characteristics of Employment survey, which revealed that the median Australian earned only $1,100 per week ($57,200 p.a.) in the year to August 2019 – well below the $80,000 ‘middle’ income threshold often quoted by the Coalition:

In fact, earning just $85,852 annually would put someone in the top 25% of income earners nationally, whereas earning $125,632 would put someone in the top 10% of income earners.

The above data also makes a mockery of the federal government’s $53,900 Temporary Skilled Migration Income Threshold (TSMIT), which has been frozen in place since 2013-14.

This TSMIT wage floor has now fallen $3,300 (6%) below the median income of all Australians ($57,200), thus ensuring employers are incentivised to employ cheap migrants instead of local workers, as well as abrogating the need to provide training.

Amazingly, Big Australia shills like Abul Rizvi and the Migration Institute of Australia recently called for this TSMIT to be lowered below $53,900, thus further undercutting Australian workers.

Clearly, the wage floor for all skilled migrants (both permanent and temporary) should be set at least at the 75th percentile of earnings (and preferably even higher).

This would ensure that the scheme is used sparingly by businesses to employ only highly skilled migrants, not as a general labour market tool for undercutting local workers and eliminating the need for training.

Unconventional Economist
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    • almost nothing about failed daycare system in Australia – better to say non-existent daycare system

      four years in an average under-performing daycare in Sydney costs as much as a degree at Harvard, and an average rebate received from government is far far less than an average financial support received by Harvard
      at Harvard financial aid is 100% need based, 20% of students (mostly poorer) pay nothing, 55% receive scholarship (on average 50k) on average parents pay $12k per year (average for all students), and all students have an option of completing studies debt free

    • That woman is a dead set idiot. Everything she writes reeks of entitlement. I hope that the psycho can’t reproduce again.

    • You’re a sick bear.

      At the observed rate of decline, Sydney house prices were due to be down 50% or something by now. But in real life, they are up.

      At the current rate of decline, Sydney will run out of water at some time. In real life, it will run out of water never.

          • Because I have a 99%+ accuracy strike rate with my predictions, and so I’m very likely to be right. Again.

            You can tie yourself up in knots on the hows and whys, but this is pretty much a no brainer.

            If you think that 4m people in Sydney will be allowed to die of thirst, you are completely bananas. Therefore, the water won’t run out.

          • Dying of thirst, and turning the taps off are 2 different things.
            If the dam empties it will be impossible to provide fresh water on a scale that sydney requires. Even pumping salt water straight from the oceans would require a significant investment and not be achievable on a short time frame. The current system is predominantly powered by gravity not pumping.
            The fact is if it doesn’t rain, the dam will run dry.

          • I don’t have a crystal ball, but I don’t need a crystal ball. 4m will not die of thirst in australia. Not this year, not next year. Not even the year after.

            If it doesn’t rain, it will be solved with engineering & transportation. The detail doesn’t really matter.

            But jsut For example The big miners have a track record of building large scale desal and pumping the water hundreds of kilometres inland. These projects can be delivered in 18 months and only cost a few billion.

          • So in the next 6 month expect large scale construction of desal in sydney then. I wonder where exactly that will be. Does the government own the land yet?
            The existing desal plant provides a small fraction of sydneys water demands, hence the falling of dam levels despite running it.

          • Jumping jack flash

            ” These projects can be delivered in 18 months and only cost a few billion”

            I see what you did there

  1. Jumping jack flash

    “…median Australian earned only $1,100 per week ($57,200 p.a.) in the year to August 2019 – well below the $80,000 ‘middle’ income threshold often quoted by the Coalition:”

    Before or after tax?

    80k produces just under 1100 a week after tax, assuming no HECS/HELP or voluntary super salary sacrificing, etc.

    Wheras 52K before tax is ridiculously low. You would simply not be able to afford the economy-crushing load of debt that is required these days to supplement your income to be able to afford the necessities with that paltry amount of income.

    If our slaves are paid this, and they probably are if not less, then that’s probably the reason for the debt stagnating.

    I’d be surprised if the median 52K was before tax. There’s just simply too much debt and our lending standards aren’t *that* low, yet.