The Department of Home Affairs has announced that the Temporary Skilled Income Threshold (TSMIT) will increase from 1 July 2024. The increase has significant ramifications for overseas workers and their employers. Before we dive into the change, let’s first understand what the TSMIT is.
What is TSMIT?
The Temporary Skilled Migration Income Threshold (TSMIT) is a minimum salary requirement for employers sponsoring overseas workers on temporary Employer Sponsored visas.
It applies to employer nominations for the following visas:
Temporary Skills Shortage (Subclass 482) visas
Skilled Employer Sponsored Regional (Subclass 494) visas
Employer Nomination Scheme (Subclass 186) visas
The TSMIT is used as an entry-level salary threshold to protect lower-paid Australian jobs and to ensure that sponsored workers earn a reasonable income to sustain themselves.
The TSMIT is assessed against the worker's guaranteed annual earnings and does not include superannuation. It also does not include bonuses and commissions unless they are guaranteed. Other salary-related requirements involve demonstrating that the proposed salary is at the market rate for the position.
The new Skills in Demand visa will also be subject to the TSMIT for applications in the Core Skills Pathway. The SDV is expected to open to applications by the end of 2024.
The 2023 TSMIT
Since 1 July 2023, Australian employers have been required to comply with an updated TSMIT of $70,000 for workers sponsored under the Subclass 482 or 494 visas. This change marked a significant increase from the previous TSMIT of $53,900, which had been stagnant since 2013.
Further Increase
From 1 July 2024, the TSMIT will increase from $70,000 to $73,150. New nomination applications from this date will need to meet the new TSMIT or the annual market salary rate for the position, whichever is higher.
Implications for Workers and Employers
Employers who intend to sponsor overseas workers with a salary between $70,000 and $73,150 will need to lodge the Nomination application before 1 July 2024.
In some cases, the requirement to place job adverts before nominating an overseas worker may defer the lodgement of some applications until after 1 July. That means that some employers may have to review the proposed salary figure to satisfy the new TSMIT.
Applicants and employers potentially affected by the TSMIT increase should seek advice from a registered Migration Agent as soon as possible to explore their options.
This change will not affect existing visa holders and nominations lodged before 1 July 2024 and nominations with a proposed salary above $73,150.
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For more information please Contact Us or email elan@ryshermigration.com.au
Elan Rysher is a Registered Migration Agent and Qualified Student Counsellor. He is the main Writer for ImmiUpdates and the founder of Rysher Migration. Being a former migrant himself, Elan is passionate about helping others fulfil their Australian dream.
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