Temporary Skilled Migration Income Threshold Increases in Australia
The Australian government has announced an increase in the Temporary Skilled Migration Income Threshold (TSMIT) from $70,000 to $73,150, effective July 1, 2024. This 4.5% hike aligns with commitments made at the Jobs and Skills Summit in September 2022, emphasizing fair wages for skilled migrants and maintaining the integrity of the skilled migration program.
The TSMIT represents the minimum salary employers must pay to temporary skilled migrants they sponsor. The increase follows a significant rise in July 2023 when the TSMIT was raised from $53,900 to $70,000. The latest adjustment aims to further support the Australian economy, ensure skilled migration contributes positively, protect the integrity of the visa system by preventing underpayment, and address skills shortages by attracting highly skilled professionals to Australia.
The new TSMIT will impact all new nomination applications submitted from July 1, 2024, but will not affect current visa holders or nominations submitted before this date. Employers nominating workers for subclass 482, 494, 186, and 187 visas must comply with specific salary conditions, ensuring overseas workers are paid no less than an equivalent Australian worker and that the AMSR meets or exceeds the new TSMIT.
Companies looking to sponsor workers under the current TSMIT of $70,000 must begin the Labour Market Testing (LMT) process immediately. Visa applications must be lodged with the Department of Home Affairs the day after the 28-day advertising period concludes to meet the current threshold before the change.
Additionally, Australian authorities are considering reforms to the points-based system for skilled migrants, emphasizing traits that facilitate successful employment, secure skilled jobs, and address industry shortages. These reforms aim to provide greater security for potential migrants and focus on sectors with a high demand for qualified workers.
