From this financial year — that is, from 1 July 2023 — the Temporary Skilled Migration Income Threshold (TSMIT) rises from $53,900 to $70,000.

Many people tend to describe TSMIT simply as the minimum salary for migration, but this is in fact quite inaccurate.

TSMIT relates primarily to employer-sponsored visas (it was previously thought to apply to Subclass 491 holders as well, but Subclass 491 now has no income requirement). Today, let’s take a closer look at TSMIT.

Affected visa types

TSMIT applies to a range of skilled visas, including the Subclass 482 (Skills in Demand), Subclass 494 and the Subclass 186 permanent visa, as well as Subclass 187, which is now closed to new applications.

Did you know there’s also the Annual Market Salary Rate (AMSR)?

TSMIT & AMSR

The Annual Market Salary Rate (AMSR) is the rate of pay that each worker in an Australian industry receives for the occupation they perform.Even for the same occupation, the AMSR can vary according to years of work experience, work location and skill level.AMSR is also determined quite flexibly, and is generally established through one or more of the following applicable sources or methods:

Enterprise agreements / industrial awards (Minimum wages)

Job outlook information

Remuneration surveys

Job advertisements for similar roles in the same location

Advice from unions or employer associations

By comparison, TSMITis a uniform standard set by the federal government, requiring the salary for the nominated position to meet a prescribed universal level — namely $70,000 per annum.This standard took effect after 1 July 2023.

What are the respective TSMIT & AMSR requirements for Subclass 482, 494 and 186?

For a nomination application under Subclass 482, the employer must demonstrate that the salary for the nominated position is at least the TSMIT, and that it is equivalent to the AMSR.186 TRT Stream nomination applications must likewise satisfy both the TSMIT and the AMSR requirements at the same time.

Owing to the post-pandemic labour shortages across Australian industries, salary levels have risen to varying degrees over the past two years. The previous TSMIT of $53,900 was set back in 2013, so this increase brings the TSMIT more closely into line with current conditions across Australian industries.

Therefore, although the TSMIT requirement is not mandatory for Subclass 494 and Subclass 186 (Direct Entry) Stream nomination applications, given the conditions for later transitioning to Subclass 191 and the context of this TSMIT increase, employers should give due weight to the TSMIT requirement when setting the salary for the nominated position.

In addition, for nomination applications under a labour agreement, the existing TSMIT concession still applies — that is, the nominated position currently needs to meet an income threshold of $63,000 per annum.

When must the TSMIT be met

PART4

when

The TSMIT requirement concerns the salary level of the nominated position — that is, the earnings the nominee will receive in the nominated position once the nomination and visa are both approved.

Therefore, if the nominee is already an employed worker, the employer does not need to prove that the nominee’s salary already met the TSMIT before the nomination was lodged.

How to demonstrate the TSMIT is met

PART5

how

You need to use the employment contract to demonstrate that the nominee’s guaranteed annual earnings in the nominated position are at least above the TSMIT. Note that superannuation cannot be counted towards this.

Does the new TSMIT affect nomination applications already lodged?

PART6

in effect

The new TSMIT has no effect on Subclass 482 nomination applications lodged before 1 July 2023, but Subclass 482 nomination applications lodged after that date will need to meet the new TSMIT requirement.

For employer-sponsored nomination applications, when it comes to the employment terms of the nominated position, employers should also be aware that certain occupations carry additional minimum-salary requirements, and must ensure equal pay for overseas and local workers doing the same work.

Have more questions about employer-sponsored salary requirements? Get in touch with our customer service team and we’ll arrange for a professional consultant to assist you!

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