Australia continues to refine its skilled migration framework to ensure fair wages and alignment with national economic trends. From 1 July 2025, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $73,150 to $76,515.
This blog explores what the TSMIT is, how the increase affects visa applicants and employers, and what you need to do to stay compliant and prepared.
What Is the TSMIT?
The Temporary Skilled Migration Income Threshold (TSMIT) is the minimum base salary (exclusive of superannuation) that must be offered to foreign workers applying under employer-sponsored visas. It acts as a safeguard to ensure that overseas workers are not underpaid and that migration does not undermine local wage conditions.
The TSMIT applies to key visa subclasses such as the Temporary Skill Shortage (subclass 482), Skilled Employer Sponsored Regional (subclass 494), and Employer Nomination Scheme (subclass 186).
Key Update: TSMIT Rises to $76,515 in 2025
- New Threshold: $76,515 per annum (excluding superannuation)
- Effective Date: 1 July 2025
- Previous Threshold: $73,150 (from 1 July 2023)
- Annual Indexation: Based on Average Weekly Ordinary Time Earnings (AWOTE)
The increase of $3,365 reflects the government's ongoing commitment to linking skilled migration thresholds with actual wage trends in the Australian economy.
Why the TSMIT Is Increasing
As part of the 2023 Migration Strategy, the government introduced an indexation mechanism to ensure the TSMIT remains responsive to labour market conditions. The increase to $76,515 is the result of applying the AWOTE-based indexation model.
This approach aims to:
- Prevent wage suppression
- Align skilled migration with workforce needs
- Protect migrant and local worker rights
- Provide transparency and predictability for employers
Who Will Be Affected by the New TSMIT?
👨💼 Skilled Visa Applicants
If you're planning to apply for an employer-sponsored visa from 1 July 2025 onwards, you must ensure your proposed salary is at least $76,515 (exclusive of super). If your offer falls below this threshold, you will be ineligible for sponsorship.
🏢 Employers
Australian employers seeking to sponsor overseas talent must offer salaries at or above the new TSMIT, and also match the local market salary rate. The increase may impact businesses in industries such as retail, hospitality, and aged care, where wages may fall below the new threshold.
Considering a move to Australia or need assistance with your visa application? Book a visa consultation with our experienced Registered Migration Agents. Let us help you navigate the complexities of the Migration Program and take your first step towards a promising future in Australia.
Visa Subclasses Affected by the TSMIT Increase
The new threshold will apply to new nominations under these employer-sponsored visas:
- Temporary Skill Shortage (subclass 482)
- Skilled Employer Sponsored Regional (subclass 494)
- Employer Nomination Scheme (subclass 186)
The TSMIT must be met in addition to the market salary rate, ensuring that the employment conditions reflect Australian standards.
How Does the New TSMIT Affect Application Strategy?
For Skilled Workers:
- If applying before 1 July 2025, ensure your salary meets the current $73,150 threshold.
- If applying on or after 1 July 2025, the minimum salary must be at least $76,515.
For Employers:
- Review your workforce planning and determine if any pending sponsorship applications should be lodged before the change.
- Adjust salary offers for new sponsored positions to meet or exceed the new threshold.
- Consult a migration agent to understand how the increase may affect your current and future workforce needs.
Frequently Asked Questions (FAQ)
Q: Will current visa holders be affected by the increase?
A: No, the TSMIT increase only applies to new nomination applications submitted on or after 1 July 2025.
Q: Does TSMIT include superannuation?
A: No, TSMIT refers to base salary only, excluding superannuation contributions.
Q: Is the TSMIT indexed every year now?
A: Yes, starting from July 2025, the TSMIT will be annually indexed based on Average Weekly Ordinary Time Earnings (AWOTE).
Key Takeaways for Migrants and Employers
- The TSMIT will increase to $76,515 from 1 July 2025.
- Employers must meet or exceed this threshold when offering roles to overseas workers.
- The change is part of a broader reform to ensure a fair and sustainable migration system.
- Skilled workers should plan applications accordingly, especially if their expected salary is close to the threshold.
Final Thoughts: Preparing for the 2025 TSMIT Increase
The rise in the TSMIT to $76,515 signals Australia’s ongoing effort to attract highly skilled migrants while protecting employment standards. Whether you’re an employer planning to sponsor workers or a migrant planning your move, now is the time to prepare.
Early planning, up-to-date knowledge, and sound professional advice can ensure a smooth transition and compliance with the evolving migration system.
Related Reading
- Australia’s New Skills in Demand (SID) Visa Replaces the Temporary Skills Shortage (TSS) Visa – What does it mean to those with existing TSS applications
- Comparison of the Skills in Demand Visa (Subclass 482) vs. Temporary Skill Shortage (TSS) Visa (Subclass 482)
- Comprehensive Guide to the Core Skills Stream of Australia’s Skills in Demand Visa (Subclass 482)
- Explanation of the Specialist Skills Stream – Skills in Demand Visa (Subclass 482)
- Skills in Demand Visa (Subclass 482): New Changes, Eligibility & Pathways to PR in Australia
- Three-Tiered Pathway Structure of the Skills in Demand Visa (Subclass 482) Explained in Detail
- Australian Government Introduces Core Skills Occupation List: Major Overhaul in Skilled Migration Program
- The Rise of U.S.-Born Residents in Australia: A 30-Year Growth Story (1996–2023)
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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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