TSMIT stands for “Temporary Skilled Migration Income Threshold”. This TSMIT was first introduced in 2009, it is the lowest amount of money employers have to pay migrant workers they sponsor. The TSMIT is made on the purpose to ensure that sponsoring employers don’t treat them unfairly and the conditions of Australian workers are also safeguarded.

In 2009, the TSMIT was set at AUD 45,220 per year, on 1 July 2013, the TSMIT was set at AUD 53,900. On the 27 April 2023 Hon Clare O’Neil MP (Minister for Home Affairs) announced the Australian Government will increase the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000 on the 1 July 2023.

So there have been a massive increase in the threshold. This threshold has been increased for doing some concrete changes in the migration system. The government has declared this rise of new threshold as a part of a larger migration strategy in retort to the independent Review of the Migration System led by Dr Martin Parkinson, which found “Australia’s migration system is broken”.

So, before knowing the details about current threshold increase let’s look at the factors why TSMIT is an important part of migration system in Australia

The Government wants to make sure that people who have a 482 visa are paid fairly for the work they do, and that this doesn’t hurt workers who are from Australia. This will make it easier for bosses and people moving to a new country to know what to expect, and will make our skilled worker program even better. The migration system thinks it’s important.

TSMIT means different things depending on how it’s used in visa requirements, TSMIT represents either:

• the minimum salary that an employer must pay someone whom they wish to sponsor under that visa, or
• the minimum salary that the visa holder must earn in order to meet the criteria for that visa.

The TSMIT does not include non-monetary benefits such as accommodation or a car. Such benefits must be paid in addition to the TSMIT.

The Temporary Skilled Migration Income Threshold (TSMIT) is applicable to more than just temporary visas, including the Subclass 482 – Temporary Skill Shortage Visa and the Subclass 494 – Skilled Employer Sponsored Regional (Provisional) Visa. Furthermore, it is noteworthy to mention that the minimum threshold requirement for the Employer Nomination Scheme visa subclass 186 and the Regional Sponsored Migration Scheme visa subclass 187, if applicable, is identical. The Annual Market Salary Rate (AMSR) requirement, coupled with the previous, constitutes a key condition for business nomination applications.

This change has been estimated for a significant amount of time, as it has remained unchanged for many years. Well, this began on the consultation of a proposal to restructure Australia’s temporary skilled migration program, to ensure this program provides Australia with the skills we need to take our nation forward. It means this threshold has been set to secure job and skills that are genuinely in shortage.

In addition to the TSMIT change, The Australian government has also announced that by the end of 2023, all Temporary Skill Shortage (TSS) (subclass 482) visa holders will have a pathway to permanent residency providing employers and migrants with more assurance. This measure is intended to provide employers and migrants with additional assurance and strengthen the skill capability within the permanent skilled migration program.

The pathway’s goal is to give employers and migrants more confidence. It will also boost the skill level in Australia’s permanent skilled program. The government stopped a visa called subclass 457 on April 18, 2017. This visa was meant for skilled workers to work temporarily in Australia. The government did this to prevent too many people from settling in Melbourne, Sydney, and Brisbane.

This means that it is likely that people can get a 186 visa easily through the Temporary Residence Transition stream because the rules won’t be changed much. If you want to apply for this type of visa, you must have worked full-time for at least 3 years while holding a 482 visa. Unpaid time off does not count as work time for your sponsor. This means that if someone wants to stay in a country for a long time, they would need to get two 482 visas. These visas usually allow people to stay for a certain amount of time, but sometimes there are special rules that apply.

This would make the existing limited exception, due to expire on 30 June 2024, and available for those who held 482 visas during the pandemic, outdated.

In upcoming months, we assume that many changes will happen to Australia’s migration system to be announced which will benefit the workers and migrants.

As things change with immigration law in Australia, students with visas should know how to get help from experts. So, select to work with an experienced Registered Migration Agent to direct you when applying for a Student Visa in Australia: as it were somebody who has worked in thousands of applications can know all nuances of the enactment, what really applies and what doesn’t apply to you, and what the finest technique is for you.

At ESI Global, we pride ourselves on delivering exceptional visa services with a proven track record of successes. Whether it’s expert 186 & 482, 485 and 485 Subsequent Entrants, 500 Student Visa and 500 Subsequent Entrants, 190, 491, 494, 600, 408, 309, and 188 visa services – we’ve got you covered.

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