What is Temporary Skilled Migration Income Threshold (TSMIT)
The Temporary Skilled Migration Income Threshold (TSMIT) plays a vital role in safeguarding the income standards for overseas workers in Australia. For employers to meet TSMIT requirements, the guaranteed earnings for the nominated position must be equal to or greater than the TSMIT, ensuring that the income aligns with Australian market conditions. TSMIT has increased over recent years, reflecting changes in the economic landscape and labour market needs. Employers should note that TSMIT excludes non-monetary benefits like accommodation or a vehicle, which should be offered on top of the threshold salary to avoid undercutting fair wages. By meeting the TSMIT, employers demonstrate a commitment to fair wages, preventing the use of migration programs to undercut Australian workers.
What is Annual Market Salary Rate (AMSR)
The Annual Market Salary Rate (AMSR) is a benchmark that helps ensure overseas workers receive competitive pay equivalent to Australian standards. Calculating the AMSR involves a comprehensive analysis of current salaries within the industry, taking into account salaries of existing Australian workers in similar roles, applicable enterprise agreements, and relevant industry awards. Employers must also reference recent job advertisements and remuneration surveys to confirm that their AMSR determination aligns with market conditions. If no Australian equivalent is available, employers should use reliable industry data and advice to substantiate the AMSR. This process ensures that the AMSR is established transparently and that nominated workers are compensated fairly, consistent with the standards of the local workforce.
Ensuring Fair Wages
When sponsoring an overseas worker, it’s crucial to ensure they are paid fairly and competitively with Australian workers. This is intended to protect both the overseas worker and the Australian labour market. Here’s a breakdown of the key requirements:
- Annual Market Salary Rate (AMSR): You must determine the prevailing market rate for the position in Australia. This involves considering factors like:
- Wages paid to your existing Australian employees in comparable roles.
- Industry awards and agreements.
- Job market data and salary surveys.
- Recent job advertisements for similar positions.
- Temporary Skilled Migration Income Threshold (TSMIT): This is a minimum income threshold that applies to sponsored workers. The current TSMIT is AUD 73,150 per year (for nomination applications lodged between July 1, 2024, and June 30, 2025). Both the AMSR and the sponsored worker’s salary must meet or exceed this threshold.
Determining the AMSR
- If you have an Australian (PR/Citizen) employee in the same role: The salary you pay this employee will generally be the AMSR.
- If there’s an industry award or agreement: Refer to the award or agreement to determine the appropriate salary level.
- If neither of the above applies: You’ll need to gather evidence to support the AMSR, such as job advertisements, salary surveys, and/or advice from industry bodies.
Important Notes for TSMIT and AMSR
- The TSMIT and AMSR generally do not include non-monetary benefits like accommodation or a company car (subject to certain limited exceptions). These benefits are considered in addition to the minimum salary requirements.
- You cannot pay an overseas worker less than an Australian worker in the same role.
- Generic salary data or surveys alone are generally not sufficient to determine the AMSR.
- If Labour Market Testing is required, you should be advertising a salary consistent with the determined AMSR.
Ensure compliance with TSMIT and AMSR requirements for a smooth sponsorship process—contact Longton Migration for expert guidance today.
