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Recent Increases to Australia’s TSMIT

In Short

  • The Temporary Skilled Migration Income Threshold (TSMIT) increased from $53,900 to $70,000 (excluding superannuation) on 1 July 2023.
  • This change affects employer-sponsored visa applications lodged after this date, requiring nominated positions to meet or exceed the new TSMIT.
  • The increase aims to ensure fair compensation for migrant workers and maintain the integrity of Australia’s skilled migration program.

Tips for Businesses

Review and adjust salary offerings for sponsored positions to comply with the updated TSMIT. Ensure that new nomination applications reflect this change to avoid processing delays or refusals. Stay informed about further adjustments to migration policies that may impact your workforce planning.


Table of Contents

As a business sponsoring and nominating foreign workers, it is essential you are aware of the recent increases to Australia’s Temporary Skilled Migration Income Threshold (TSMIT). This article explores these changes, when they come into effect and how they affect you.

What is TSMIT?

TSMIT refers to the ‘Temporary Skilled Migration Income Threshold’. It operates as a minimum market salary for foreign workers for all employer-sponsored and nominated visas. These employers legally cannot pay sponsored workers below this salary threshold. 

The TSMIT, before 30 June 2023, stands at $53,900 (excluding superannuation). 

On 27 April 2023, the Australian government announced that the TSMIT would increase to $70,000 (excluding superannuation). This increase will take effect from 1 July 2023. 

Why Will the TSMIT Increase?

This is the first increase in the TSMIT in a decade. The change is one of many components of the Albanese Government’s responses to the independent ‘Review of the Migration System’ led by Dr Martin Parkinson. 

The primary basis for the new figure of $70,000 is the amount taken as indexed over the last ten years. 

This increase aims to achieve the following objectives:

  • increasing the integrity of the skilled worker programs in Australian migration;
  • increasing the productivity and capacity of the Australian workforce;
  • ensuring migration conditions are aligned with the market rates of Australian equivalent workers so that migrants are paid fairly;
  • excluding low-wage roles that do not align with the threshold of ‘skilled’ migrants in Australia; and
  • keeping the threshold low enough to enable younger workers and students with ‘upcoming skills’ to migrate to Australia.

Note that this is not an exhaustive list.

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What if My Business Has a 482 Nomination Approved Before 1 July 2023?

If your 482 nomination application was approved before 1 July 2023, this change will not affect your approval status. 

What if My Business is Preparing to Lodge a 482 Nomination Application Before 1 July 2023?

The Department of Home Affairs has yet to release information about how nomination applications lodged before 1 July 2023 will be treated. However, we are of the view that the new TSMIT will not impact nomination applications lodged before 1 July 2023.

What If My Business is Preparing to Lodge a 482 Nomination Application After 1 July 2023?

New 482 nomination applications lodged after 1 July 2023 must meet the new TSMIT of $70,000 or the annual market salary rate, whichever is higher.

What If I Am On a 482 Visa and Paid Below the TSMIT/$70,000?

The Minister for Immigration has discussed arrangements (often called ‘grandfathering arrangements’) that should exempt you from being impacted by this increase under your current visa arrangements. However, if your visa expires and you proceed to apply for a new 482 visa, you will then need to satisfy whichever requirements apply at that current time. 

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Key Takeaways

There are several upcoming changes to the Australian migration framework. It is essential to stay aware of these changes to ensure you satisfy the requirements and comply with migration law. 

Should you have any concerns regarding how these changes will affect your business, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions

What is the TSMIT before 30 June 2023?

The TSMIT, before 30 June 2023, stands at $53,900 (excluding superannuation). 

What is the TSMIT from 1 July 2023 onwards?

The TSMIT will increase to $70,000 (excluding superannuation) from 1 July 2023 onwards.

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Yin Chiew

Yin Chiew

Practice Leader | View profile

Yin is a Practice Leader at LegalVision and specialises in Corporate Immigration. She is LegalVision’s first point of contact for businesses looking to sponsor foreign skilled workers to Australia. She advises startups, SMEs and international corporations across various industry sectors, including health and medical, resources, construction, technology, manufacturing, professional services, hospitality and life sciences.

Qualifications: Bachelor of Laws, Graduate Diploma of Legal Practice, Bachelor of Arts, University of Technology Sydney.

Read all articles by Yin

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