Important Changes to the Temporary Skilled Migration Income Threshold (TSMIT) Effective from 1 July 2024
The Australian government is making a significant update to the Temporary Skilled Migration Income Threshold (TSMIT), reflecting its ongoing commitment to maintaining fair wages and conditions for skilled migrants.
From 1 July 2024, the TSMIT will increase from $70,000 to $73,150. This change is part of the broader initiatives announced during the Jobs and Skills Summit in September 2022, aimed at ensuring Australia’s labour market remains competitive and fair.
What is the TSMIT?
The TSMIT is the minimum salary that must be offered to skilled migrants to qualify for certain temporary skilled visas in Australia. It ensures that the skilled migrants are paid adequately, in line with the local labour market conditions, and helps to prevent exploitation.
Key Changes Effective 1 July 2024
From 1 July 2024, any new nomination applications will need to meet the updated TSMIT of $73,150 or the annual market salary rate for the position, whichever is higher.
This means that employers must ensure their salary offerings are compliant with the new threshold or reflect the market rate, demonstrating fair compensation for the role.
The TSMIT impacts the following visas:
- Temporary Skill Shortage (subclass 482) Visa
- Employer Nomination Scheme (ENS) (subclass 186) Visa (via the Direct Entry stream only)
- Employer Sponsored Regional (subclass 494) Visa
Impact on Existing Visa Holders
It’s important to note that these changes will not affect existing visa holders or nominations lodged before 1 July 2024. Those currently holding visas or those whose nominations are in process before the cut-off date will continue to be assessed under the existing TSMIT of $70,000.
Businesses must ensure that they meet their sponsorship obligations though and continue to pay employees as mandated by any prior approval notifications.
Contact Visa Australia
The upcoming increase in the Temporary Skilled Migration Income Threshold from $70,000 to $73,150 may have significant impacts on businesses and wages.
Employers and prospective skilled migrants should take note of these changes to ensure compliance with the new requirements from 1 July 2024.
Staying informed about these updates is crucial for businesses that rely on skilled migration and for migrants planning to work in Australia. For more detailed information, contact our team today.
