At EMSA, we are specialists in helping our corporate clients with employer sponsored migration strategy.

The Temporary Skilled Migration Income Threshold (TSMIT) is the minimum salary candidates can be paid when being sponsored by an Australian employer. The TSMIT relates to all the visas under the employer sponsored program including the 482, 494, or 186 visa programs.

From the 1st of July 2024, the TSMIT will be increase for all new applications.

Key Changes Effective 1 July 2024

Increase in TSMIT:

The TSMIT will increase from $70,000 to $73,150.
New nomination applications from this date will need to meet the new TSMIT of $73,150 or the annual market salary rate (AMSR), whichever is higher.This change will not affect existing visa holders and nominations lodged before 1 July 2024.

Requirements for Subclass 482 Nominations

To nominate workers under the subclass 482 visa, employers must adhere to specific salary and employment conditions. These ensure that:

  • Overseas workers are paid no less than an Australian worker doing the same job in the same location.
  • The AMSR is upheld, preventing the use of visa programs to undercut the Australian labour market.

Determining the Annual Market Salary Rate (AMSR)

If there is an equivalent Australian worker:

  • The AMSR is the salary paid to this worker.
  • If based on an enterprise agreement or industrial award, provide the name of the agreement or award as recorded by the Fair Work Commission.
  • If no relevant agreement or award exists, or if paying above the award rate, provide copies of relevant employment contracts and pay slips for this employee.

If there is no equivalent worker, agreement, or award:The AMSR is normally determined by Providing at least two of the following:

  • Job Outlook information.
  • Advertisements from the last six months for equivalent positions in the same location.
  • Remuneration surveys by reputable organizations.
  • Written advice from unions or employer associations.

Implications for Sponsoring Companies

For companies relying on the Temporary Skill Shortage (TSS) visa (subclass 482),Skilled employer Sponsored regional(SESR)(subclass 494) and Employer nominated permanent visa (subclass 186), the new TSMIT brings several important implications:

Increased Salary Offers:
  • Employers must ensure new job offers for TSS visa candidates meet or exceed the new TSMIT.
  • This may necessitate budget adjustments or re-evaluation of salary structures, especially in industries with salaries near the existing threshold or inclusive of superannuation.
Updated Labour Market Testing (LMT):
  • Companies must demonstrate genuine attempts to recruit local workers before sponsoring an overseas employee.
  • Update LMT procedures to reflect the new TSMIT in all job advertisements and recruitment efforts.
Contract Adjustments for Current Sponsored Workers:

Review and potentially adjust salaries of current TSS visa holders to ensure ongoing compliance.
While changes primarily affect new applications, proactive adjustments can prevent future complications.

Nominations lodged before 1 July 2024

Alternatively, if increasing the salary from $70,000 for nominees is not feasible, we strongly advise consulting with our migration experts. Nominations lodged before 1 July 2024 are not impacted by the changes, so prompt action to lodge these nominations is crucial.

For more information on what the changes mean for you or for help with your employer sponsored application, reach out to our customer service team at EMSA today on 07 3733-1566 or contactus@emsaus.com.