TSMIT sets the minimum salary level that must be paid to temporary skilled migrants in order for them to be eligible for sponsorship.
The TSMIT helps ensure that skilled migrants are paid fair wages and prevents exploitation in the labor market.
From 1 July 2023, the TSMIT increased from $53,900 to $70,000. This is significant because it affects employers looking to sponsor skilled workers from overseas to address skills shortages in their industry.
As from the new financial year, businesses looking to sponsor a skilled worker will need to meet the new TSMIT of $70,000 or the annual market salary rate, whichever is higher.
The annual market salary rate refers to the average salary for a specific job in Australia. It is determined by factors such as industrial awards, recent job adverts, or advice from unions or employer organisations.
The change to the TSMIT will not affect existing visa holders and nominations lodged before 1 July 2023.
The Temporary Skilled Migration Income Threshold (TSMIT) is an important factor to consider for businesses looking to sponsor skilled overseas workers.