On the 01 July 2025, the Department of Home Affairs announced that they will be increasing the Temporary Skilled Migration Income Threshold, known as TSMIT, to $76,515 from the previous amount of $73,150.
The TSMIT is the minimum amount that temporary workers must be paid while holding one of the following employer sponsored visas:
It is important to note that while the TSMIT outlines the minimum salary (excluding superannuation) that skilled employer sponsored workers must be paid, the salary must also be calculated in accordance with the Annual Market Salary Rate (AMSR) for an equivalent Australian worker.
How the increase will affect sponsors
Sponsors who are already employing workers under these visas will not be affected by these changes. The nominations for those positions would have been lodged prior to the changes coming into effect on 01 July 2024.
These changes will mainly impact employers who are looking to sponsor workers and will be lodging their nominations past this date. Where the Annual Market Salary Rate (AMSR) for the nominated position would be lower than the new amount of $76,515, it may be necessary for employers to try and lodge their nominations prior to the date the changes will apply.
As most nominations will require a 28-day advertising period, known as Labour Market Testing (LMT), employers should seek to post the LMT ads on or before 01 June2024 in order to be able to lodge nominations at the previous TSMIT. As the LMT advertisements will need to mirror the proposed salary for the position, any advertisements posted from 01 July 2025 should be in line with the new TSMIT of $76,515.
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Book consultation
If you are interested in getting more information about a visa, get in touch with Australian Migration Lawyers for a consultation.
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How we can help
Sponsors who are looking to employ workers in positions that would have an AMSR less than the new TSMIT will need to act quickly to get nominations prepared and lodged before 01 July. This means that it is crucial to ensure that all of the criteria have been met and all required documentation and evidence is collected and prepared as soon as possible.
It is also worth noting that nominations for these visas can be valid for a period of up to 12 months, so it may be possible to lodge nominations in advance where the AMSR rate would be lower than $76,515, with the visa applications to be lodged closer to the applicant’s current visa expiry. As such, we can assist sponsors in managing these applications now to lock in the lower salary rate prior to the changes coming into effect.
Please feel free to contact us so that we can discuss the process in more detail, and outline how we can help you safeguard you minimise the impact of these changes on your business.
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