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Upcoming changes to the Temporary Skilled Migration Income Threshold (TSMIT)

From July 1, 2024, significant changes to the Temporary Skilled Migration Income Threshold (TSMIT) will come into effect, impacting Australian companies that sponsor overseas workers. The TSMIT is a crucial component of Australia’s skilled migration program, setting the minimum salary that must be offered to overseas skilled workers to ensure that visa holders can maintain a reasonable standard of living while not undercutting local wages. 

Key changes to the TSMIT 

The Australian Government periodically reviews the TSMIT to reflect changes in the labour market and cost of living. This upcoming adjustment is one of the most substantial in recent years. As outlined in the Migration Strategy, the TSMIT is projected to increase to a range between $72,500 and $74,000 per annum, plus superannuation, based on the Consumer Price Index (CPI) in Australia. This calculation is based on the indexed CPI which is estimated to fall between 4.2% and 4.5% (calculated against $70,000). 

Implications for Sponsoring Companies 

For Australian companies that rely on the Temporary Skill Shortage (TSS) visa (subclass 482) to fill labour shortages, the new TSMIT will have several implications: 

  • Increased salary offers: Employers must ensure that new job offers for TSS visa candidates meet or exceed the new TSMIT. This may necessitate budget adjustments or re-evaluation of salary structures, particularly in industries that previously offered salaries close to the existing threshold or have salaries which are inclusive of superannuation. 


  • Updated Labour Market Testing (LMT): Companies must demonstrate that they have genuinely attempted to recruit local workers before sponsoring an overseas employee. The LMT requirements will likely need updates to reflect the new TSMIT. This involves advertising the position at the new salary level, ensuring that job listings and recruitment efforts are compliant with the updated regulations. 


  • Contract adjustments for current sponsored workers: Employers should review and potentially adjust the salaries of current employees on TSS visas to ensure ongoing compliance with the new TSMIT. While the changes primarily affect new applications, staying ahead of regulatory adjustments can prevent future complications. 

Preparing for the changes 

To smoothly transition into the new TSMIT requirements, Australian companies should: 

  • Review and Update Salary Budgets: Assess the financial impact of the new TSMIT on your organisation and adjust salary budgets accordingly. This proactive step can help avoid disruptions in hiring plans. 


  • Audit Existing Sponsored Workforce: Conduct an audit of current TSS visa holders’ salaries to identify any adjustments needed to comply with the new threshold. 


  • Revise Labour Market Testing Procedures: Update LMT procedures to ensure all job advertisements reflect the new TSMIT. This includes revising internal processes for documenting and reporting LMT activities. 

The upcoming increase in the Temporary Skilled Migration Income Threshold is a pivotal change for Australian employers who sponsor overseas workers. By preparing ahead of the July 1 implementation, companies can ensure compliance with new regulations, maintain the ability to attract top international talent, and uphold fair labour standards.  

For further guidance and detailed information on the upcoming changes, please get in touch with our expert team at to arrange an online consultation. 

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