Australia Raises Temporary Skilled Migration Income Threshold by 4.5%

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Key Takeaways:

TSMIT in Australia will increase to $73,150 from July 1, 2024, ensuring fair wages for skilled migrants.
New threshold impacts applications from July 1, 2024; current visa holders and prior nominations remain unaffected.
Employers must engage in Labour Market Testing immediately to sponsor workers under the current $70,000 TSMIT.

What is the New Temporary Skilled Migration Income Threshold in Australia?

Starting July 1, 2024, the Temporary Skilled Migration Income Threshold (TSMIT) in Australia will see an increase from $70,000 to $73,150. This change aims to ensure that employers meet the new income threshold or the Annual Market Salary Rate (AMSR), whichever is higher. The TSMIT is the minimum salary paid to temporary skilled migrants sponsored by employers in Australia.

Australia Raises Temporary Skilled Migration Income Threshold by 4.5%

“Employers must meet the new threshold from July 1, 2024, to ensure fair wages for skilled migrants,” reports VisaVerge.com

Who Will Be Affected by the Increase?

The new TSMIT will impact all nomination applications submitted from July 1, 2024. However, current visa holders and nominations submitted before July 1 will not be affected by this change.

The increase follows the government’s commitment made during the Jobs and Skills Summit in September 2022. At that time, several measures were planned to improve the country’s skilled migration program, with an intention to:

Support the Australian economy with skilled migration,
Safeguard the integrity of the visa system by preventing underpayment,
Address skills shortages by attracting highly skilled professionals to work in Australia.

How Can Employers Prepare for the Changes?

Employers wishing to sponsor workers under the current TSMIT of $70,000 should begin the Labour Market Testing (LMT) process immediately. The process requires sponsors to demonstrate genuine efforts to recruit local workers before they can sponsor an overseas employee.

If you want to lodge a visa application under the current TSMIT, you must complete the LMT process, allowing for the 28-day advertising period. The applications must be lodged with the Department of Home Affairs the day after this period ends.

Salary Conditions for Different Visas

For employers nominating workers for subclass 482, 494, 186, and 187 visas, specific salary conditions apply:

Pay overseas workers at least the same as an equivalent Australian worker,
Ensure the Annual Market Salary Rate (AMSR) is accurate and exceeds the TSMIT.

Why Is the Increase in Temporary Skilled Migration Income Threshold Important?

The increase of the TSMIT to $73,150 is expected to ensure that skilled migrants receive fair wages, thus protecting against underpayment. Last year, in July, the government had already raised the TSMIT from $53,900 to $70,000, marking a 30% increase.

This progression aligns with ongoing efforts to improve the skilled migration system in Australia, making it more fair and attractive for professionals considering working in the country.

What Other Reforms Have Been Considered?

In addition to the TSMIT changes, Australian authorities are considering reforms to the points-based system for skilled migrants. These potential changes aim to:

Emphasize traits that facilitate successful employment,
Provide greater security for potential migrants,
Focus on industries with a skills shortage.

Such reforms are intended to streamline the process for skilled migrants and ensure their integration into the workforce.

For additional details on skilled migration and related procedures, you can visit the official Australian Department of Home Affairs website.

Conclusion

From July 1, 2024, the Temporary Skilled Migration Income Threshold increase to $73,150 is a significant step toward ensuring fairer wages and protecting skilled migrants from underpayment. Employers need to prepare for this change by initiating the Labour Market Testing process if they wish to lodge applications under the current threshold. By adhering to these new regulations, Australia continues to maintain the integrity of its skilled migration program while addressing the skills shortage in its workforce.

Learn Today:

Glossary

Temporary Skilled Migration Income Threshold (TSMIT): The minimum salary required to be paid to temporary skilled migrants sponsored by employers in Australia, ensuring fair wages and preventing underpayment. This threshold is set to increase from $70,000 to $73,150 starting July 1, 2024.
Annual Market Salary Rate (AMSR): The prevailing annual salary for a job position in the Australian labor market. Employers sponsoring skilled migrants must pay at least the AMSR or the TSMIT, whichever is higher, to ensure fair compensation aligned with local standards.
Labour Market Testing (LMT): A process that requires employers to demonstrate genuine efforts to recruit local Australian workers before they are allowed to sponsor an overseas employee. This includes an advertising period of at least 28 days to show attempts to fill the position locally.
Subclass 482 Visa: A temporary work visa for skilled workers to fill positions where employers cannot find a suitably skilled Australian worker. Employers must adhere to specific salary conditions, including paying at least the TSMIT or AMSR for such nominations.
Jobs and Skills Summit: A government initiative aimed at addressing economic challenges, including workforce skills shortages and the fair treatment of skilled migrants. Commitments made during the summit in September 2022 include measures to enhance Australia’s skilled migration program.

This Article In A Nutshell:

Starting July 1, 2024, Australia’s Temporary Skilled Migration Income Threshold (TSMIT) will increase from $70,000 to $73,150. Employers must meet this new threshold or the Annual Market Salary Rate (AMSR), whichever is higher. This change aims to ensure fair wages and attract highly skilled professionals to work in Australia.
— By VisaVerge.com

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