TSMIT (Temporary Skilled Migration Income Threshold) Raised to $70,000

Employers who wish to nominate workers for subclass 482, 186 and 187 must meet certain salary and employment condition requirements. These requirements help to ensure that:

• overseas workers are paid no less than an Australian worker would doing the same work in the same location, that is, the ‘annual market salary rate (AMSR)‘
• these visa programs are not used to undercut the Australian labour market

If the overseas worker will be paid an annual salary less than AUD 250,000 you need to show:

• you have determined the AMSR correctly
• the overseas worker will not be paid less than the AMSR, that is, less than an Australian worker would be paid
• both the AMSR and what the overseas worker will be paid, excluding any non-monetary benefits in both cases, is no less than the Temporary Skilled Migration Income Threshold (TSMIT).

The Temporary Skilled Migration Income Threshold (TSMIT) is AUD 70,000 from 1 July 2023.

Both the AMSR for the nominated occupation and the guaranteed annual earnings you will pay to the worker must be at least as much as the current TSMIT.

The TSMIT does not include non-monetary benefits such as accommodation or a car. Such benefits must be paid in addition to the TSMIT.

The Annual market salary rate (AMSR) is determined by looking at what you would pay equivalent Australian workers, enterprise agreements or industrial awards, job outlook information, advertisements for the last 6 months in the same location, remuneration survey or advice from unions or employer associations.

Determining the AMSR

Where there is an equivalent Australian worker

The AMSR is what you are paying this worker.

If the worker’s salary is based on an enterprise agreement or industrial award, you provide:

• the name of the agreement or award as recorded by the Fair Work Commission, where applicable
• the salary level or occupation group that applies to the nomination

If there is no relevant agreement or award, or you are paying your Australian employees above the award rate, provide:

• copies of relevant employment contracts and
• pay slips for this employee

Note:

• An Australian worker who is more or less experienced than the nominee and does similar work at a different pay grade is not considered equivalent to the nominee.
• If the nominated overseas worker will be paid less than the equivalent Australian worker, we will refuse the nomination.
• If you provide only generic market salary data or salary surveys, we will refuse the nomination.

Where there is no equivalent worker but there is an enterprise agreement or industrial award

Provide:

• the name of the agreement or award as recorded by the Fair Work Commission, where applicable
• the salary level or occupation group that applies to the nomination

Where there is no equivalent worker, agreement or award

You must determine and then show us what the AMSR is.

Explain how you used relevant information to determine what the equivalent worker will be paid. Relevant information could include at least two of the following:

• Workforce Australia information
• advertisements from the last six months for equivalent positions in the same location (e.g. state, urban vs regional area)
• remuneration surveys completed by a reputable organisation
• written advice from unions or employer associations

Note:

• You must provide sufficient evidence. As a general rule if you do not provide at least 2 independent sources of information in determining the AMSR we are likely to consider the requirement not met
• If you provide vague, unlabeled salary surveys and do not explain how you have determined the AMSR, we might refuse your nomination application.
• If the market salary rate determined is a ‘range’, explain and provide specific details regarding why you selected that AMSR.

Related:

• Fact sheet – Raising the TSMIT
• Market Salary rate
• TSMIT- AUD 70K