TSMIT. What is it and why it was increased?

This post is for everyone who asked me about «what is TSMIT?»

TSMIT (The Temporary Skilled Migration Income Threshold) is the minimum annual salary that must be paid to a professional in Australia (under employer sponsored visa). Thus, TSMIT applies to certain skilled stream visas, such as visas SC 482, 494, 186, and 187.

For visa nominations submitted before July 1, 2023, TSMIT was AUD 53,900 (per year), for nominations that have been and will be submitted since the beginning of this financial year, the TSMIT is AUD 70,000 (per year). It means that if the sponsor invites a professional to work in Australia, the business has to pay professional at least the TSMIT, but sometimes even more.

At this moment I have to introduce you to one more important part of this story – AMSR (the annual market salary rate). The Australian industry standard pay a worker receives for their occupation. AMSR may differ for an occupation based on years of experience, location and an employees’ skills. The AMSR ensures an overseas worker is paid no less than an Australian worker doing the same work in the same location.

Thus, the salary of a sponsored employee will be at least TSMIT and AMSR at the same time.

It is important to mention that TSMIT salary concessions (of up to 10 %) will still be applicable for Labour Agreements at the time of nomination lodgement. Moreover, the TSMIT change will not impact Aged Care Industry Labour Agreements which have a specified salary in AUD dollars.

In conclusion, I would like to say that this is the first increase to the TSMIT since 2013. Lifting the TSMIT means the skilled visa program is targeted at highly skilled workers who are less open to exploitation. We want to ensure migrants entering Australia under these programs have sufficient income to support themselves and their families.

You can ask me questions at any time.

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