In May 2023, the Government announced changes to the TSMIT threshold. Let’s take a closer look.
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 currently stands at $53,900, which means that anyone 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.
From 1 July 2023, the threshold will increase from $53,900 to $70,000.
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, 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What’s important here is that you don’t present vague and outdated information to the Department.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 you do, your nomination may be refused.
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 visa holders and won’t apply to any approved nominations made prior to 1 July 2023.
It’s important to note that some occupations come with salary caveats that are well above the TSMIT level. For example, Customer Service Managers can only be sponsored on 482 visas if they earn more than $65,000 annually. This of course is likely to change in line with the updated TSMIT threshold in July.
Employers must pay overseas workers superannuation at a rate of 10.5 per cent (at least) 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.