Employers – Challenges due to the new Temporary Skilled Migration Income Threshold

Since 01 July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) rose to $70,000. This means that for all applicants who lodged their nomination and visa from 01 July 2023, the minimum salary that must be paid is $70,000.

The main reason for the Temporary Skilled Migration Income Threshold (TSMIT) increase is so that migrant workers are paid a fair and competitive salary comparable to those salaries paid to equivalent Australian workers.

Although the increase has a good perspective, the businesses have been facing challenges to sponsor international workers mostly those businesses that faces labour shortages and their main resource of labor is international workers.

The Temporary Skilled Migration Income Threshold (TSMIT) has been increased the last time in 2013, and for 10 years the TSMIT remained at $53,900. The increase enforced in July 2023 to $70,000 represents an increase of $16,100 which is approximately 29%.

By having to comply with the TSMIT increase from July 2023, businesses have been facing challenges to meet the new salary requirement as it represents a great jump mainly if your main labour resource is found in the international market.

Therefore, businesses are facing increase in labour costs, increases on expenses paid to the Government to maintain the international labour, reduction on their overall profits and less sponsorship programs being offered to internationals.

Although the Department of Home Affairs sees the Temporary Skilled Migration Income Threshold (TSMIT) with positive eyes, the business owners seems not be empathetic to the decision due to the financial impact on businesses.

Written by Ross Ahmadzai

12 Jan, 2024

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