The Temporary Skilled Migration Income Threshold (TSMIT) will increase from $70,000 to $73,150 effective from 1 July 2024

The Temporary Skilled Migration Income Threshold (TSMIT) is a minimum income requirement that employers must meet when sponsoring an overseas worker. It is set by the Department of Home Affairs to ensure overseas workers are paid at least the same as an Australian worker would be paid for the same work in the same location ie. the ‘annual market salary rate’ (AMSR).

The AMSR is determined by considering various sources of information, such as industrial awards, job outlook information, recent job advertisements in the same location, remuneration surveys, or existing employee records.

To sponsor an overseas worker, employers must ensure that the AMSR for the nominated occupation AND the guaranteed annual earnings of the overseas worker are at least equal to or higher than the TSMIT. If the AMSR is lower than the TSMIT, an application cannot be lodged for that position, even if the nominated salary is above the TSMIT

New nomination applications lodged on or after 1 July 2024 will need to meet the new TSMIT or the annual market salary rate, whichever is higher.

This change will not affect existing visa holders and nominations lodged prior to 1 July 2024

• Review upcoming nomination applications: For any new nomination applications that will be lodged on or after 1 July 2024, employers need to ensure the nominated salary meets the new TSMIT of $73,150 or the higher annual market salary rate for that occupation/position.
  
  
• Monitor requirements for existing temporary skilled visas: Although the TSMIT increase does not affect existing visa holders, employers sponsoring overseas workers on temporary skilled visas should still take note of the change. While no immediate action is necessary if an employee's current salary is below the new $73,150 TSMIT, when it's time to renew or extend their Temporary Skill Shortage (TSS) visa, their guaranteed annual earnings must meet or exceed the new TSMIT level effective 1 July 2024. Employers should plan accordingly and be ready to revise remuneration packages to comply with the new TSMIT requirement for any future TSS visa applications or renewals after that date.
  
  
• Stay updated: Be on the lookout for any further information from the Department regarding future income thresholds and requirements, particularly for the new Skills in Demand visa expected to be introduced in late 2024 to replace the TSS.
  
  
• Seek professional advice: If unsure about meeting the new requirements, employers should consult immigration experts or lawyers for guidance on TSMIT, determining the appropriate AMSR and other related matters