As a leading immigration lawyer at Migration Guru, with over 90 years of collective experience in Australian migration law, I am dedicated to keeping you informed about significant updates that impact your business and migration plans. From July 1, 2024, a major change to the Temporary Skilled Migration Income Threshold (TSMIT) will come into effect, which will influence Australian companies that sponsor overseas workers.
Key Changes to the TSMIT
The TSMIT is an essential element of Australia’s skilled migration program, ensuring that visa holders receive a minimum salary to maintain a reasonable standard of living and to protect local wages. Here are the crucial updates:
Increase in TSMIT: The new TSMIT will be set at $73,150 per annum, plus superannuation. This adjustment reflects changes in the labor market and cost of living, based on the Consumer Price Index (CPI) in Australia.
Implications for Sponsoring Companies
For Australian businesses that depend on the Temporary Skill Shortage (TSS) visa (subclass 482) to address labor shortages, the new TSMIT brings several important considerations:
Increased Salary Offers: Employers must ensure that new job offers for TSS visa candidates meet or exceed the new TSMIT. This may require budget adjustments or re-evaluations of salary structures, especially in sectors that previously offered salaries close to the old threshold.
Updated Labour Market Testing (LMT): Companies must demonstrate genuine efforts to recruit local workers before sponsoring an overseas employee. This will involve updating LMT procedures to reflect the new TSMIT, ensuring that job advertisements and recruitment efforts comply with the revised regulations.
Contract Adjustments for Current Sponsored Workers: Employers should review and potentially adjust the salaries of current employees on TSS visas to ensure compliance with the new TSMIT. Although these changes primarily affect new applications, proactive adjustments can prevent future complications.
Preparing for the Changes
To ensure a smooth transition to the new TSMIT requirements, Australian companies should take the following steps:
Review and Update Salary Budgets: Assess the financial impact of the new TSMIT on your organization and adjust salary budgets accordingly to 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 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 labor standards.
For more information about these updates or any other immigration advice, please get in touch with Migration Guru. Our team, with over 90 years of collective experience in Australian migration law, is here to assist you through every step of the process. Readers are encouraged to follow us on Facebook for all the updates.
