- Effective from July 1, 2023, the TSMIT threshold increased from $53,900 to $70,000. This change aims to ensure that 482 visa holders are paid at acceptable market rates and that Australian workers are not disadvantaged.
- The Annual Market Salary Rate (AMSR) stipulates that overseas workers cannot be paid less than an Australian worker in a similar role. Employers must demonstrate how they’ve determined the AMSR for the role they’re nominating.
- For salaries exceeding $250,000, there is no requirement to demonstrate that the salary is at the market rate. Additionally, some occupations may have salary caveats above the TSMIT level.
TSMIT stands for the ‘temporary skilled migration income threshold’.
The Government wants to be sure that 482 visa holders are paid at an acceptable market rate for the work they carry out and that Australian workers aren’t disadvantaged. The threshold now stands at $70,000, which means that anyone nominated on a 482 visa must be paid at this level or above, or be paid the correct annual market salary rate for the role, whichever is higher (more on that below).
This is based on a standard Australian working week of 38 hours. Superannuation payments, bonuses and commission payments must be paid on top of this.
Overseas workers can’t be paid any less than an Australian worker in an equivalent role working for the same employer. This is known as the ‘annual market salary rate’ (AMSR).
If there is an Australian with similar experience and qualifications working in the same role and in the same location, it is expected that the 482 TSS visa holder will receive similar remuneration.
Employers will need to show how they’ve determined the AMSR associated with the role they’re nominating.
If there is no Australian working in a comparable position, the employer can demonstrate that their proposed salary is acceptable by carrying out market research and gathering employment data published by the ABS or recruitment providers. If you use a Registered Migration Agent to manage your application, they will generally provide assistance with this.
Some sources you might wish to consult when determining what an employee should be paid when there is no equivalent worker include the Government’s Job Outlook website, remuneration surveys prepared by reputable recruitment agencies such as Seek and Robert Half, and material published by unions or employer associations.
Additionally, you can collect up recent advertisements for similar roles in the same geographic area.
What’s important here is that you don’t present vague and outdated information to the Department. If the Labour Market Testing (LMT) requirement of a 482 nomination is not met and this happens, your nomination will be refused. Nomination fees and the costly Skilling Australian Funds (SAF) Levy are non-refunded if this happens.
The AMSR cannot be lower than TSMIT.
Additionally, an employer cannot inflate their employee’s salary if the general market rate for the work falls below the TSMIT level.
Salaries over $250,000
The rules are a little different if the nominee’s proposed salary exceeds $250,000. Where this is the case, there is no requirement to demonstrate that you’re paying a salary at the market rate.
DAMA and TSMIT
There are some concessions for workers sponsored under a Designated Area Migration Agreement (DAMA).
Some occupations in certain areas are eligible for ‘reduced TSMIT’.
The 2023 update was the first TSMIT increase in a number of years. The changes don’t impact existing 482 visa holders and did not apply to any approved nominations made prior to 1 July 2023.
Existing 482 visa holders
If a 482 visa holder is nominated by a new sponsor, they must be paid at least the salary stated on their current 482 nomination. However, if this is below $70,000 they will need to be offered a minimum salary of $70,000 in the nomination with the new sponsor.
It’s important to note that some occupations have salary caveats. This means that the nominee must be paid at or above the caveat level regardless of the updated TSMIT amount.
If the salary caveat is under $70,000 (such as a Customer Service Manager with a caveat of $65,000), the nominee needs to be paid at least $70,000.
In the same vein, an occupation such as Recruitment Manager (with a salary caveat of $80,000) cannot be paid a lower amount even though TSMIT has increased.
Employers must pay overseas workers superannuation at a rate of at least 11 percent and this is payable on top of the employee’s salary.
If you’re planning to apply for a 482 visa or you’re an employer and want to know more about becoming an approved sponsor, call True Blue Migration today and speak with a Registered Migration Agent.