Australia Raises Temporary Skilled Migration Income Threshold

Surya Rathee
[Published 17 Jun, 2024 | 04:01 AM]
About Author - 5 min read
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Starting from 1 July 2024, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $70,000 to $73,150. This means any new nomination applications from this date must meet the new TSMIT of $73,150 or the annual market salary rate (AMSR), whichever is higher.

It's important to note that this change will not affect current visa holders or nominations submitted before 1 July 2024. This adjustment aligns with the Government’s commitment made at the Jobs and Skills Summit in September 2022.

While this increase may represent an increased cost for some employers, it will be welcomed by many temporary visa holders and those looking to apply for Australia PR - in light of cost-of-living challenges.

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Salary and Employment Conditions for Employers

Employers who want to nominate workers for visas like subclass 482, 494, 186, and 187 must follow specific salary and employment conditions. These requirements ensure that:

• Employers pay overseas workers at least as much as an Australian worker doing the same job in the same location, known as the 'Annual Market Salary Rate (AMSR)'.
• These visa programs are not used to undercut the Australian labour market.

If the overseas worker’s annual salary is less than AUD 250,000, the employer must:

• Correctly determine the AMSR.
• Ensure the overseas worker's pay is not less than the AMSR, meaning not less than what an Australian worker would earn.
• Ensure both the AMSR and the worker’s guaranteed annual earnings, excluding non-monetary benefits, are no less than the TSMIT.

Temporary Skilled Migration Income Threshold

The TSMIT is currently set at:

• AUD 53,900 for nomination applications submitted up to and including 30 June 2023.
• AUD 70,000 for nomination applications submitted on or after 1 July 2023.

Both the AMSR for the nominated occupation and the guaranteed annual earnings you pay the worker must be at least as much as the current TSMIT. Non-monetary benefits like accommodation or a car are not included in the TSMIT and must be provided in addition to it.

Annual Market Salary Rate (AMSR)

The Annual Market Salary Rate (AMSR) is determined by:

• What an equivalent Australian worker is paid.
• Enterprise agreements or industrial awards.
• Job outlook information.
• Advertisements for similar positions in the same location over the last six months.
• Remuneration surveys or advice from unions or employer associations.

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Determining the AMSR

When There Is an Equivalent Australian Worker

If there is an equivalent Australian worker, the AMSR is what you are paying them. If their salary is based on an enterprise agreement or industrial award, provide:

• The name of the agreement or award as recorded by the Fair Work Commission, if applicable.
• The salary level or occupation group that applies to the nomination.

If there is no relevant agreement or award, or you are paying above the award rate, provide:

• Copies of relevant employment contracts.
• Pay slips for this employee.

Note that an Australian worker who is more or less experienced and does similar work at a different pay grade is not considered equivalent to the nominee. If you plan to pay the nominated overseas worker less than the equivalent Australian worker, the nomination will be refused. Generic market salary data or salary surveys alone will also lead to refusal.

When There Is No Equivalent Worker but There Is an Agreement or Award

Provide:

• The name of the agreement or award as recorded by the Fair Work Commission, if applicable.
• The salary level or occupation group that applies to the nomination.

When There Is No Equivalent Worker, Agreement, or Award

You must determine and show what the AMSR is by using relevant information, which could include at least two of the following:

• Job Outlook information.
• Advertisements from the last six months for equivalent positions in the same location (e.g., state, urban vs. regional area).
• Remuneration surveys completed by a reputable organization.
• Written advice from unions or employer associations.

The upcoming increase in the Temporary Skilled Migration Income Threshold represents a pivotal change for Australian employers who sponsor skilled workers wanting to immigrate to Australia. By preparing ahead of the July 1 implementation, companies can ensure they comply with the new regulations, maintain their ability to attract top international talent and uphold fair labour standards.

Read More: Australia launches new National Innovation Visa Program

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Source: immi.homeaffairs.gov.au