The TSMIT is the minimum income required for temporary skilled migrant workers to be classified as “skilled” and eligible for a temporary work visa.
The increase in the TSMIT is intended to ensure that temporary skilled migrant workers are protected from exploitation and are fairly compensated for their contributions to the Australian workforce. However, it may also increase the cost for employers to sponsor skilled migrant workers, which may impact their decision to do so.
The TSMIT increase is the government’s first action in response to the independent review of the Migration System, which highlighted issues with Australia’s current migration system. The review found that Australia’s migration system is broken, and this increase in the TSMIT is a step towards fixing some of the problems.
Indexation
The Government outlines that the new $70,000 income threshold is approximately where the TSMIT should have been if it had been properly indexed over the previous ten years. This means that temporary skilled migrant workers who were previously being paid less than their Australian counterparts will now be better protected against exploitation.
Worker Exploitation
Around 90% of all full-time jobs in Australia are now paid more than the current TSMIT. This indicates that there is a large number of temporary skilled migrant workers who are being paid less than their Australian counterparts, despite having similar qualifications and experience. This situation undermines Australia’s skilled migration system and creates an unfair environment for temporary skilled migrant workers.
Genuine Shortage
This increase in the TSMIT is a positive step towards addressing these issues and ensuring that temporary skilled migrant workers are protected from exploitation. It will also encourage employers to prioritise hiring Australian workers and ensure that temporary migrant workers are only hired when there is a genuine shortage of skilled labor in the local workforce.
For temporary skilled migrant workers who are already on a sponsored visa, their employers will need to ensure that their salary meets the new TSMIT requirements when their visa is due for renewal.
Employers who wish to sponsor temporary skilled migrant workers on a temporary work visa (subclass 482) or a permanent employer-sponsored visa (subclass 186 and 187) will need to ensure that the migrant worker will be paid a salary that meets the new TSMIT requirement.
This means that employers will need to offer a salary of at least $70,000 per annum (excluding any non-monetary benefits) for the migrant worker to be eligible for the sponsored visa.
It is important for employers to ensure that they are aware of the new TSMIT requirements and to make any necessary adjustments to their visa application processes.
For temporary skilled migrant workers who are already on a sponsored visa, their employers will need to ensure that their salary meets the new TSMIT requirements when their visa is due for renewal.
If you would like to discuss your employer-sponsored visa options, contact our office as below!
Unit 7, 242-244 Caroline Springs Blvd
Caroline Springs VIC 3023
