Introducing the New TSMIT 2023
As of 1st July 2023, the Australian Government has raised the TSMIT (Temporary Skilled Migration Income Threshold) from AUD $53,900 to AUD $70,000. This hike is vital for employers who are looking to sponsor overseas talent, as they must comply with the new minimum salary benchmarks.
Deciphering TSMIT
TSMIT, or Temporary Skilled Migration Income Threshold, is a financial benchmark implemented by the Australian Government to ensure that holders of 482 visa are remunerated at an appropriate market rate. This aims to protect both the overseas workers and the domestic labour market.
A Look into the Revised TSMIT for 2023
The fresh increase to AUD $70,000 is designed to reflect current market conditions. As per the revised TSMIT, overseas workers holding a 482 visa must be paid this new threshold or the correct annual market salary rate (AMSR) for their role, whichever is higher. Superannuation, bonuses, and commissions must be paid in addition to this. The threshold is based on a standard Australian working week, which is 38 hours.
Understanding AMSR
The Annual Market Salary Rate (AMSR) ensures that overseas workers cannot earn less than their Australian counterparts in equivalent roles within the same organisation. If an Australian employee with similar qualifications and experience is employed in the same position, the overseas worker is expected to receive comparable remuneration. Employers must elucidate how they’ve arrived at the AMSR associated with the nominated role.
In cases where no Australian counterpart exists, employers must resort to market research and consult employment data from reputable sources such as the ABS or recruitment providers. Reliable references include the Government’s Job Outlook website, surveys from recruitment agencies like Seek or Robert Half, and materials from unions or employer associations. Recent advertisements for similar positions can also be considered. It’s crucial that the information presented is accurate and up-to-date to avoid nomination refusal.
Additionally, the AMSR must not fall below the TSMIT, and employers are not allowed to artificially inflate the salary if the market rate is below TSMIT.
Exceptions for Salaries Above AUD $250,000
For nominees with proposed salaries exceeding AUD $250,000, employers are exempt from demonstrating that the salary aligns with the market rate.
Designated Area Migration Agreement (DAMA) and TSMIT
There are specific concessions for employees sponsored under a Designated Area Migration Agreement (DAMA). Some roles in certain areas may qualify for a ‘reduced TSMIT’.
Updates on Salary Caveats
Note that certain occupations have salary caveats that supersede the TSMIT. For instance, Customer Service Managers must earn over $65,000 annually to be sponsored on a 482 visa. These caveats are likely to be adjusted in line with the updated TSMIT.
TSMIT Reviews
The TSMIT update in 2023 is the first in several years and does not affect current visa holders or nominations approved prior to 1st July 2023.
Superannuation Requirements
Employers must pay overseas employees superannuation at a minimum rate of 10.5%, which is in addition to the employee’s salary.
Need Assistance with 482 Visas?
If you’re contemplating applying for a 482 visa or if you’re an employer seeking information on sponsorship, it’s advisable to consult a Registered Migration Agent. Get in touch with Migration Expert today to have your queries addressed by experts.
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