From 1 July 2024, the Australian Government will increase the Temporary Skilled Migration Income Threshold (TSMIT) from $70,000 to $73,150.
This change is expected to affect new nomination applications, ensuring that employers meet the new threshold or the annual market salary rate (AMSR), whichever is higher, VisaGuide.World reports.
It also aligns with the Government’s commitment to the Jobs and Skills Summit in September 2022, which aims to ensure fair wages for skilled migrants and maintain the integrity of the skilled migration.
The TSMIT is the minimum salary paid to temporary skilled migrants sponsored by employers. In addition, in July of last year, the Government decided to increase TSMIT from $53,900 to $70,000, which is an increase of 30 percent.
Who Is Affected By the New Increase in TSMIT?
According to the government, all new nomination applications submitted from 1 July 2024 must meet the new TSMIT of $73,150. However, this change will not affect current visa holders and nominations submitted before this date.
During the Summit held in 2022, the Government planned several measures to improve the country’s skilled migration program. Part of these measures was the increase of TSMIT, which aims to achieve the following points:
- Ensuring that skilled migration supports the Australian economy
- Protecting the integrity of the visa system by ensuring that skilled migrants are not underpaid
- Addressing the skills shortage in the Australian workforce by making it more attractive for highly skilled professionals to work in Australia.
Employers nominating workers for subclass 482, 494, 186, and 187 visas must comply with specific salary conditions:
- Pay overseas workers no less than an equivalent Australian worker
- Ensure the AMSR is correctly determined and meets or exceeds the TSMIT
Sponsors Wishing to Sponsor Workers Under the Current TSMIT Should Begin LMT Process First
Moreover, companies must first demonstrate genuine efforts to recruit local workers to sponsor an overseas employee. Suppose sponsors wish to sponsor workers under the current TSMIT ($70,000) before the changes take effect on July 1.
In that case, they must initiate the Undertake Labour Market Testing (LMT) process immediately, as visa applications must be lodged with the Department of Home Affairs the day after the 28-day advertising period concludes.
Last month, Australian authorities considered reforms to the points-based system for skilled migrants, which aimed to prioritize traits that facilitate successful employment. Such a review suggested emphasizing features that help migrants secure skilled jobs, provide greater security for potential migrants, and focus on industries with a shortage of qualified workers.