In a press club speech and later media release, the Minister of Home Affairs confirmed that the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $53,900 to $70,000 from 1 July 2023.
The TSMIT applies not just to temporary visas: the subclass 482 – Temporary Skill Shortage visa and subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa. It is also the minimum threshold for subclass 186 – Employer Nomination Scheme visa and subclass 187 – Regional Sponsored Migration Scheme visa, where available. This, along with the Annual Market Salary Rate (AMSR) requirement, are cornerstone criteria for business nomination applications.
This change has been a long time coming given it has not increased for many years. It requires that no nomination can be approved unless the nominee’s annual earnings excluding any non-monetary benefits and superannuation will not be less than the TSMIT. The definition of annual earnings is based on a similar term in the Fair Work Act 2009 (Cth) and can include agreed and guaranteed monetary benefits, such as yearly allowances.
There is a provision to disregard the TSMIT where reasonable, such as for medical practitioners who are usually independent contractors, but there is little scope otherwise.
The change will not affect existing visa holders, however workers whose visas are expiring and require a renewal after 1 July 2023 will need to meet the new TSMIT as part of their new nomination application.
