Temporary Skilled Migration Income Threshold (TSMIT) Increase | 2024

In 2024, Australia is set to implement a significant change to its Temporary Skilled Migration Income Threshold (TSMIT), a key component of the nation’s skilled migration program. Effective from July 1, 2024, the TSMIT has been raised to $73,150 per annum, up from the previous threshold of $70,000. The TSMIT is a crucial component of the nation’s skilled migration program, serving as a benchmark to ensure that temporary skilled workers are remunerated at rates that reflect the prevailing market conditions and support the integrity of the local labor market. The change has a direct impact on 482 visa, 494 visa and 186 visa sponsorship arrangement.

It is prominent to note that this change will not affect the existing visa holders and nominations lodged prior to 1 July 2024 and that they are in line with the Government’s commitment at the Jobs and Skills Summit in September 2022.

What is the TSMIT?

The TSMIT is the minimum annual salary that employers must offer to skilled migrants in order to sponsor them under various visa subclasses, such as the Temporary Skill Shortage (TSS) 482 visa, 494 visa and 186 visa. This threshold aims to protect the Australian labor market by ensuring that overseas workers are not hired at wages lower than what would be offered to Australian citizens or permanent residents for similar roles.

Rationale Behind the Increase

The decision to raise the TSMIT in 2024 is driven by several factors:

1. Inflation and Cost of Living: Over recent years, the cost of living in Australia has risen, and wages have generally increased. Adjusting the TSMIT helps maintain its relevance and effectiveness in protecting local wages.
2. Labor Market Conditions: The Australian labor market has evolved, with certain industries experiencing skill shortages and others facing oversupply. Updating the TSMIT reflects current economic conditions and labor demands.
3. Policy Consistency: Regular adjustments to the TSMIT ensure consistency with the government’s broader immigration and labor market policies, promoting fairness and competitiveness.

Impact on Employers and Migrants

The increase in the TSMIT will have several implications:

• For Employers: Businesses looking to sponsor skilled migrants will need to meet the new salary requirements. This may increase the financial burden on some employers, particularly small and medium-sized enterprises. However, it is also expected to encourage employers to prioritize local talent where possible and offer competitive salaries to attract the best international talent.
• For Migrants: Prospective skilled migrants will benefit from higher guaranteed salaries, which can help with their transition to living and working in Australia. It also ensures they are compensated fairly, in line with local standards.

The 2024 increase in the Temporary Skilled Migration Income Threshold is a strategic move to align skilled migration policies with current economic realities and labor market conditions in Australia. While it poses challenges for some employers, it ultimately serves to protect the integrity of the labor market and ensure fair compensation for all workers, both local and international. This adjustment underscores Australia’s commitment to maintaining a balanced and equitable approach to skilled migration.