Increase to Minimum Visa Salary
1 mins reading time
The Department of Home Affairs have announced that the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $70,000 to $73,150 effective from 1 July 2024.
What is the TSMIT?
The TSMIT is the minimum salary set by the Australian Government that can be offered by employers to migrants. The Australian Government periodically reviews the TSMIT to ensure that migrants are receiving pay that is commensurate to the changes in the labour market and cost of living.
When sponsoring foreign workers, employers need to demonstrate that the Australian Market rate for the sponsored position is above the TSMIT and that, by extension, the visa holder will be paid above the TSMIT.
What does this mean for you?
Any employer sponsored nomination applications (i.e. for the subclass 482, 494 and 186 visa) that are lodged from 1 July 2024 must identify earnings above TSMIT and visa applicants will need to have guaranteed annual earnings of at least $73,150.
Employers will continue to be obligated to pay the visa applicant the market salary rate which will also need to be over $73,150.
It is important to remember that any Labour Market Testing also reflects the new TSMIT.
This will also mean that Regional businesses which may have access to a 10% discount in limited circumstances to the TSMIT must now ensure the minimum salary in their applications must be over $65,835.
How can MK help?
If you require any further advice around the changes to the TSMIT or any other migration related queries, please contact one of our experts.
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Increase to Minimum Visa Salary
The Department of Home Affairs have announced that the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $70,000 to $73,150 effective from 1 July 2024.
What is the TSMIT?
The TSMIT is the minimum salary set by the Australian Government that can be offered by employers to migrants. The Australian Government periodically reviews the TSMIT to ensure that migrants are receiving pay that is commensurate to the changes in the labour market and cost of living.
When sponsoring foreign workers, employers need to demonstrate that the Australian Market rate for the sponsored position is above the TSMIT and that, by extension, the visa holder will be paid above the TSMIT.
What does this mean for you?
Any employer sponsored nomination applications (i.e. for the subclass 482, 494 and 186 visa) that are lodged from 1 July 2024 must identify earnings above TSMIT and visa applicants will need to have guaranteed annual earnings of at least $73,150.
Employers will continue to be obligated to pay the visa applicant the market salary rate which will also need to be over $73,150.
It is important to remember that any Labour Market Testing also reflects the new TSMIT.
This will also mean that Regional businesses which may have access to a 10% discount in limited circumstances to the TSMIT must now ensure the minimum salary in their applications must be over $65,835.
How can MK help?
If you require any further advice around the changes to the TSMIT or any other migration related queries, please contact one of our experts.