Australia’s natural environment and high standard of living make it an attractive destination for skilled professionals worldwide. One key pathway for foreign workers to secure employment in Australia is through employer-sponsored visas, such as the Temporary Skill Shortage (TSS) visa (subclass 482). For businesses looking to tap into the global talent pool and for skilled migrants seeking career opportunities in Australia, understanding the Temporary Skilled Migration Income Threshold (TSMIT) is crucial.
What Is TSMIT?
The Temporary Skilled Migration Income Threshold (TSMIT) is the minimum annual salary that employers must offer when sponsoring an overseas worker. It ensures that sponsored workers are paid in line with Australian wage standards, protecting both foreign workers and local job markets.
As of the fiscal year 2024, the TSMIT is set at AUD 73,150. This threshold applies to several employer-sponsored visa categories, including:
Temporary Skill Shortage (TSS) Visa (subclass 482)
Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494)
Employer Nomination Scheme (ENS) Visa (subclass 186)
Regional Sponsored Migration Scheme (RSMS) Visa (subclass 187) - Closed for new application
Why Does TSMIT Matter?
For Employers:
As an employer looking to sponsor overseas talent, adhering to TSMIT is critical. Offering a salary below the TSMIT can lead to visa refusals and non-compliance issues with Australia’s migration laws. Meeting or exceeding this threshold allows you to:
Secure Top Talent: Access highly skilled professionals from around the world to fill critical skill shortages in your business.
Comply with Migration Laws: Avoid penalties or visa refusals by meeting the legal wage requirements.
Attract Quality Candidates: Offering competitive salaries will help attract the best overseas workers to your company, contributing to business growth.
For Overseas Workers:
For skilled professionals considering an employer-sponsored visa, TSMIT guarantees that you will earn a fair wage while working in Australia. The TSMIT also ensures:
Fair Compensation: You are assured a minimum salary of AUD 73,150, which is in line with Australian market standards.
Visa Security: Meeting TSMIT is often a key criterion in visa approvals, giving you peace of mind during your migration process.
Pathway to Residency: Employer-sponsored visas such as the ENS and RSMS often provide pathways to permanent residency, ensuring long-term career stability.
Key Requirements for Employers Sponsoring Overseas Workers
To sponsor a skilled worker from overseas, your business must meet several criteria, including:
Labour Market Testing (LMT): You must demonstrate that you’ve attempted to recruit Australian workers before looking for international candidates.
Market Salary Rate Compliance: The role offered to the overseas worker must have a market salary rate that aligns with Australian workers in similar positions. The salary must also meet or exceed the TSMIT.
Relevant Skills and Experience: The worker you’re sponsoring must have the qualifications, skills, and experience necessary for the position.
What to Keep in Mind When Sponsoring Overseas Workers?
Ensure Your Business Is Eligible
Not every employer can sponsor overseas workers. You must be an approved standard business sponsor, demonstrating that your business legally operates in Australia and complies with employment and migration laws.
Salary in Line with Market Salary Rate
In addition to meeting TSMIT, the salary you offer must be in line with the market salary rate for the role. For example, if the typical salary for an Australian performing the same job is $85,000 AUD, you cannot offer less to an overseas worker, even if it meets the $73,150 AUD TSMIT.
Superannuation
When offering a salary to a sponsored worker, remember that superannuation is excluded from the TSMIT. As an employer, you must contribute at least 11% (current rate) of the worker’s salary to their superannuation fund, which is in addition to the base salary.
How TSMIT Impacts Workers in Lower-Paid Occupations?
Not all occupations will meet the TSMIT threshold, particularly those in industries where salaries are typically lower. For these roles, employers may find it challenging to sponsor overseas workers unless they can offer positions that meet or exceed $73,150 AUD annually. In such cases, employers may need to consider alternate visa options or programs for temporary, seasonal, or lower-paid positions.
How We Can Help
At MEA Group, we specialise in helping Australian employers navigate the complexities of sponsoring overseas workers. From securing a qualified sponsorship to ensuring compliance with TSMIT and other migration laws, our legal experts are here to support your business every step of the way.
If you're an overseas worker seeking to make Australia your new home, we can guide you through the employer-sponsored visa process, ensuring your application is strong and meets all requirements.
Conclusion
The TSMIT is a crucial component of Australia's skilled migration framework, designed to ensure fair wages for overseas workers while protecting local labour markets. Employers must offer competitive salaries, while workers benefit from the assurance that they will be paid fairly for their skills and expertise.
Whether you're an employer looking to sponsor talent or an overseas worker aspiring to start your career in Australia, understanding TSMIT is the first step toward a successful migration experience.
Contact MEA Group today to learn more about how we can assist you with your employer sponsorship and migration needs.