Australia Changes TSMIT Minimum Salary Requirements For Employer-Sponsored Workers From 1 July 2024

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Australia Changes TSMIT Minimum Salary Requirements For Employer-Sponsored Workers From 1 July 2024

New Nomination applications for employer-sponsored workers will need to meet a minimum salary requirement of $73,150 from 1 July 2024 (up from $70,000) following the Australian Government’s recent announcement to increase the Temporary Skilled Migration Income Threshold (TSMIT).

Written by Sheila Woods (MARN: 0533879) of Interstaff 4 June 2024

Here’s what employers and skilled migrant workers need to know about the TSMIT changes.

How does the TSMIT increase impact new nomination applications?
What if the AMSR for the occupation is less than the new TSMIT?
Does the TSMIT increase affect current sponsored visa holders?
Why is the TSMIT increasing?

How Does the TSMIT Increase Impact New Nomination Applications?

Nomination applications that are lodged from 1 July 2024 to engage a worker on a 482 TSS Visa, 494 Regional Visa or 186/187 Permanent Residence Visa will need to meet either the new TSMIT minimum salary of $73,150 or the Annual Market Salary Rate (AMSR) for the person’s occupation – whichever is higher.

The AMSR ensures a migrant worker’s salary aligns with what an Australian worker would earn in the same role and location of work.

What if the AMSR for the Occupation is Less Than the New TSMIT?

The Annual Market Salary Rate (AMSR) for a worker’s occupation must be higher than the new TSMIT of $73,150 in order to lodge a Nomination application. If the employee’s AMSR is less than the new TSMIT, they cannot apply to be sponsored for work in that position.

Does the TSMIT Increase affect Current Sponsored Visa Holders?

No – the change to the TSMIT will not affect existing visa holders and nominations lodged before 1 July 2024.

Why is the TSMIT Increasing? | TSMIT Changes

As part of its commitment at the Jobs and Skills Summit in 2022 and in its Migration Strategy in 2023, the Government expects to increase the TSMIT annually so that it can be indexed accordingly.

As you may know, the TSMIT was frozen at $53,900 from mid-2013 until July 2023 when it increased to $70,000 to reflect the figure it would have been if it were indexed over the previous 10 years.

Strategic Immigration for Business | TSMIT Changes

To avoid costly nomination refusals, employers should ensure they comply with immigration requirements such as the Temporary Skilled Migration Income Threshold (TSMIT) and Annual Market Salary Rate (AMSR) for sponsored employees.

Should you have any queries regarding the TSMIT changes or about AMSR’s, you may wish to get in touch with Interstaff’s Migration Agents for professional advice.

Established in 1988, Interstaff has over 35 years of Australian visa and migration experience and provides strategic immigration advice to businesses and individuals Australia-wide and internationally. MARN: 0533879.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.