What Is TSMIT?

If you’re in the process if researching 457 visas then you’ve probably come across the word TSMIT and might be wondering what it actually means.

TSMIT stands for the Temporary Skilled Migration Income Threshold.

The Government wants to be sure that 457 visa holders are paid at an acceptable market rate for the work they carry out and that Australian workers aren’t disadvantaged. The threshold currently stands at $53,900, which means that anyone on a 457 visa must be paid at this level or above.

This is based on a standard Australian working week of 38 hours.

An employer cannot inflate their employee’s salary if the general market rate for the work falls below the TSMIT level.

For employees being paid under $250,000, employers must demonstrate that they are paying a market rate salary. For example, if there is an Australian with similar experience and qualifications working in the same role, it is expected that the 457 visa holder will receive similar remuneration.

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.

A nomination will not be approved unless the offered salary is above TSMIT. However, there are some concessions for workers in the Northern Territory who fall under the State’s Designated Area Migration Agreement (DAMA). Read more here.

TSMIT is regularly reviewed by the Government and this usually results in an increase. However, if the threshold does increase in future, the chances are that it won’t impact people who are already employed on 457 visas.

In 2009, TSMIT was $42,220, meaning it’s been rising at a rate of around 4% annually. Based on previous increases, the next rise (whenever it comes) is likely to push the threshold up to $56,000.

If you’re planning to apply for a 457 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 (WA) 08 6189 5333 (VIC) 03 9038 9070.

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