Raise in Temporary Skilled Migration Income Threshold (TSMIT)

New Minimum Salary Level

The Australian Government has decided to increase the Temporary Skilled Migration Income Threshold (TSMIT) to $73,150. The threshold policy is starting from July 1, 2024. This increase follows their commitment at the Jobs and Skills Summit in 2022 and the Migration Strategy announcement in 2024.

Key Changes:

  • New Threshold

From July 1, 2024, any new applications for skilled migration visas must meet the new TSMIT policy. However, the new Temporary Skilled Migration Income Threshold (TSMIT) of $73,150 or the annual market salary rate, whichever is higher.

  • Market Salary Rule

If the market salary for a job is less than $73,150, the applicant cannot apply for a visa under that position.

  • Existing Applications: 

This change will not affect current visa holders and the applications submitted before July 1, 2024.

Background Information:

  • Previous Increase: 

The TSMIT was raised previously on July 1, 2023, from $53,900 to $70,000.

  • Salary Requirements: 

If you want to sponsor an overseas worker for a 482 TSS, 494, or 186 visa, their salary must meet the Temporary Skilled Migration Income Threshold (TSMIT) plus superannuation (11%).

Sponsoring Workers:

  • Salary Rules: 

Employers must consider the Annual Market Salary Rate (AMSR). They must ensure overseas workers are paid at least the same as Australian workers doing similar jobs in the same location. 

  • High Salaries: 

For salaries under AUD 250,000, you must prove:

  • The AMSR is calculated correctly.
  • The overseas worker is paid at least the AMSR.
  • The salary is at least the Temporary Skilled Migration Income Threshold (TSMIT), excluding non-monetary benefits like accommodation or a car.

Determining AMSR:

The AMSR is the usual pay for similar Australian workers. It can be determined by:

  • Comparing pay for equivalent Australian workers.
  • Referring to enterprise agreements or industrial awards.
  • Checking job advertisements from the past six months in the same area.
  • Using remuneration surveys or advice from unions or employer associations.

Future Updates:

The government will provide more information about future income thresholds and how they will be indexed later in 2024. This includes details for the new Skills in Demand visa.

In a nutshell, any new skilled migration visa application in Australia must meet a minimum salary threshold of $73,150. All these changes are starting from July 1, 2024. These measures will ensure that overseas workers are paid fairly and that the visa programs do not undermine the Australian job market. Asif Consulting is here to guide you further regarding obtaining jobs in Australia and with evolving visa policies. 

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