Temporary Skilled Migration Income Threshold (TSMIT) increased from 1 July 2023
Australian employers who seek to sponsor or nominate foreign workers for:
- a Subclass 482 Temporary Skill Shortage (TSS) visa,
- Subclass 186 Employer Nomination Scheme (ENS) visa or
- Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa
must meet prescribed salary-related requirements to ensure that overseas workers are paid a fair wage and in line with the market salary rate for their proposed occupation.
These requirements make reference to the Temporary Skilled Migration Income Threshold (TSMIT) and the Annual Market Salary Rate (AMSR).
The Temporary Skilled Migration Income Threshold (TSMIT) refers to the threshold minimum wage that can be offered to a sponsored foreign worker. The Temporary Skilled Migration Income Threshold (TSMIT) was introduced in 2009 as a base salary threshold used by the Subclass 457 visa program, which was subsequently replaced by Temporary Skilled Shortage (TSS) subclass 482 visa.
The Annual Market Salary Rate (AMSR) refers to the earnings that an Australian worker earns (or would earn) for performing equivalent work on a full-time basis for a financial year, in the same workplace and at the same location as the nominated position.
In a significant change announced by the Australian Government a couple of weeks ago, starting from the 1st of July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from A$53,900 to A$70,000.
From 2009 to 2013, Temporary Skilled Migration Income Threshold (TSMIT) was reviewed and raised from $45,220 to $53,900 gradually. However, it has been frozen at $53,900 since 2013.
New nomination applications lodged after 1 July 2023 will be required to meet the new Temporary Skilled Migration Income Threshold (TSMIT) of $70,000 or the Annual Market Salary Rate (AMSR), whichever is higher.
In a recent communication from the Migration Institute of Australia, we were advised that these changes will not affect existing visa holders and approved nominations lodged before 1 July 2023.
Temporary Skilled Migration Income Threshold (TSMIT) increase – What will be the impact?
Skilled workers based in regional areas may be affected by this change, as well as industries that operate under awards because the base rate of pay under an award is usually quite low and difficult to reach A$70,000.