TSMIT Increase from $70,000 to $73,150
From 1 July 2024, the Temporary Skilled Migration Income Threshold (TSMIT) will be increased from $70,000 to $73,150.
All employer nomination applications submitted on or after 1 July 2024 must meet the updated TSMIT of $73,150 or the Annual Market Salary Rate (AMSR), whichever is higher.
Important note: the increased TSMIT does not apply to workers who are currently on an applicable visa. The TSMIT applies to salaries of applicants nominated after the TSMIT increase date of 1 July each year. If you sponsor a worker on an applicable visa, there is no requirement to raise their salary annually.
What is the TSMIT?
Introduced in 2009, the Temporary Skilled Migration Income Threshold (TSMIT) sets the minimum salary threshold for workers on visa subclasses 482 (Temporary Skill Shortage), 494 (Skilled Employer Sponsored Regional) and 186 (Employer Nomination Scheme). The TSMIT also applies to Permanent Residence (subclass 191) visa applicants, who must evidence meeting the minimum TSMIT threshold for three years.
History of TSMIT – A Timeline
Recent Changes in TSMIT
The TSMIT was changed after the Review of the Migration System on 21 March 2023. The panel reported that TSMIT no longer served its ‘intended purpose and should be updated’ and had also been failing to ‘protect migrant workers from underpayment’[i]. Based on this proposed reform direction, TSMIT was revised for 2023 and on the 1st of July, it was increased to $70,000 to reflect current market conditions. The Government also committed to raising the TSMIT annually in line with Wage Price Index, whereby this year it will be raised again to $73,150. Overseas workers must be paid the TSMIT or annual salary market rate (ASMR) – whichever is higher.
Impact of TSMIT Increase
Impacts on Employers
For Australian Companies that rely on the Temporary Skill Shortage Visa to fill labour shortages, the reformed TSMIT will have several impacts.
- Employers hiring workers on subclass 482, 494 and 186 visas after 1 July 2024 must pay workers the updated TSMIT of $73,150. Employers unwilling to pay this minimum threshold will have to find alternative ways to recruit workers on other visa subclasses or hire local workers.
- Employers conducting Labour Market Testing (Job Advertisements) for positions nominated after 1 July 2024 must include a salary above the updated TSMIT of $73,150.
Impacts on Visa Applicants
For visa applicants sponsored on a 482, 494 or 186 visa, the updated TSMIT means a higher minimum salary.
Conclusion
The increase in the Temporary Skilled Migration Income Threshold (TSMIT) will require adjustments for both employers and new visa applicants. Effective 1 July 2024, employers must adhere to labour market testing obligations and ensure new nominations meet the updated TSMIT or Annual Market Salary Rate (ASMR). Consequently, visa applicants will face higher minimum salary requirements for the relevant visa subclasses. This adjustment aims to enhance the protection of migrant workers from underpayment and align the TSMIT with prevailing market conditions and the growing Wage Price Index.
[i] Parkinson, Dr.M., Howe, Prof.J. and Azaris, Mr.J. (2023). REVIEW OF THE MIGRATION SYSTEM. [online] Australian Department of Home Affairs. Available at: https://www.homeaffairs.gov.au/reports-and-pubs/files/review-migration-system-final-report.pdf.