The Australian Government has announced an important update regarding the Temporary Skilled Migration Income Threshold (TSMIT). Effective from 1 July 2024, the TSMIT will increase from $70,000 to $73,150. This increase marks a significant adjustment aimed at aligning with the Government’s commitments made during the Jobs and Skills Summit in September 2022.
What is TSMIT?
The TSMIT is the minimum salary that must be paid to temporary skilled migrants sponsored by employers. It ensures that sponsored workers receive a fair wage that reflects the market salary for their occupation, preventing underpayment and exploitation.
Key Changes Effective 1 July 2024
- Increased TSMIT: The TSMIT will rise from $70,000 to $73,150.
- Application Impact: All new nomination applications submitted from 1 July 2024 must meet the new TSMIT of $73,150 or the annual market salary rate, whichever is higher.
- Existing Visa Holders: Current visa holders and nominations lodged before 1 July 2024 will not be affected by this change.
These adjustments reflect the Government's ongoing efforts to ensure that the wages of skilled migrants keep pace with the Australian labour market and economic conditions.
Background and Rationale
During the Jobs and Skills Summit in September 2022, the Government committed to several measures to enhance the country’s skilled migration programme. The increase in TSMIT is part of these measures, aimed at:
- Ensuring that skilled migration supports the Australian economy.
- Protecting the integrity of the visa system by ensuring skilled migrants are not underpaid.
- Addressing skill shortages in the Australian workforce by making it more attractive for highly skilled professionals to work in Australia.
Future Developments
While this change is significant, it is part of a broader strategy to refine Australia’s skilled migration policies. More information regarding future income thresholds and the indexation methodology will be made available later in 2024. This will also include details about the new Skills in Demand Visa, which is expected to address specific labour shortages more effectively.
What Should Employers and Migrants Do?
- Stay Informed: Regularly check updates on the Department of Home Affairs website to stay informed about any further changes.
- Plan Ahead: Employers planning to sponsor skilled migrants should prepare for the increased TSMIT and ensure that salary offers meet the new requirements.
- Seek Advice: Consider consulting with migration experts or legal advisors to understand the full implications of these changes on your business or migration plans.
Conclusion
The increase in the Temporary Skilled Migration Income Threshold to $73,150 from 1 July 2024 reflects the Australian Government’s commitment to maintaining a robust and fair skilled migration programme. By ensuring that the salaries of temporary skilled migrants remain competitive and fair, Australia continues to attract highly skilled professionals to support its economic growth and address critical skill shortages.
For ongoing updates and detailed information, keep an eye on the Department of Home Affairs website. These changes underscore the dynamic nature of migration policies and the importance of staying informed and prepared.
Considering a move to Australia or need assistance with your visa application? Book a consultation with our experienced Registered Migration Agents. Let us help you navigate the complexities of the Migration Programme and take your first step towards a promising future in Australia.
Remember:
This post is for general informational purposes only and is not a substitute for professional immigration advice. Given the uniqueness of every case, engaging with a registered migration agent is highly recommended for bespoke guidance and to navigate the specific details of your situation effectively. Book a visa consultation with a Registered Migration Agent
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