Migration (IMMI 18/033: Specification of Income Threshold and Annual Earnings and Methodology of Annual Market Salary Rate) Instrument 2018 dated 1 July 2023 incorporates the amendments made by Migration (Specification of Income Threshold and Annual Earnings and Methodology of Annual Market Salary Rate) Amendment Instrument (LIN 23/045) 2023 to increase the Temporary Skilled Migration Income Threshold from the rate of $53,900 to $70,000 from 1 July 2023 to ensure a better targeted skilled migration system.
The Temporary Skilled Migration Income Threshold (TSMIT) has been increased from $53,900 to $70,000. Therefore, from 1 July 2023, the annual market salary rate for the nominated occupation and the guaranteed annual earnings the nominator will pay to the worker must be at least $70,000.
TSMIT and Labour Agreement
The new $70,000 TSMIT will apply to labour agreement nominations lodged on or after 1 July 2023. The existing TSMIT salary concessions in the form of percentage reduction to TSMIT rate remains available through Labour Agreements. Before 1 July 2023 salary concessions of up to 10% for TSMIT at $53,900 amounted to minimum salary of $48,510; from 1 July 2023 salary concessions of up to 10% for TSMIT at $70,000 will amount to a minimum salary of $63,000.
The TSMIT change will not impact Aged Care Industry Labour Agreements which have a specified salary in dollars.
Salary Assessments for Australian Permanent Residency
For 6 months until 31 December 2023, the Department will allow non-monetary benefits such as accommodation or a car to go towards assessing AMSR for the Temporary Residence Transition stream of the Employer Nomination Scheme (subclass 186) visa. This is in recognition of the large increase in the TSMIT, but it is time limited to ensure it does not stifle wage growth in the longer term.
This applies for the calculation of the AMSR only, the actual guaranteed monetary earnings of the nominated worker would need to be at least TSMIT (excluding non-monetary benefits).
Employers must demonstrate that an equivalent Australian worker with the same level of skills and experience as the Nominee would also have been offered a similar salary. While applying these arrangements, careful consideration will be given to ensure that employers are not trying to exploit workers by offering non-genuine non-monetary benefits.