Immigration
Australia | Temporary skilled migration income threshold to increase from 1 July 2024
The summary
With effect from 1 July 2024, the current Temporary Skilled Migration Income Threshold (TSMIT) which applies to Temporary Skill Shortage (subclass 482) and Skilled Employer Sponsored Regional (subclass 494) visas will increase from A$70,000 to A$73,150. This will impact all nominations and visas lodged on or after 1 July 2024.
In addition, the superannuation guarantee (SG) rate is also increasing from 1 July 2024 from 11% to 11.5%.
If your organisation pays your Temporary Skill Shortage (subclass 482) or Skilled Employer Sponsored Regional (subclass 494) visa holders from an offshore payroll, or if superannuation is included as part of a total remuneration package, please take particular note to ensure that their approved earnings are not inadvertently reduced.
The details
All nominations for Temporary Skill Shortage (subclass 482) and Skilled Employer Sponsored Regional (subclass 494) visas must meet the Temporary Skilled Migration Income Threshold (TSMIT) or the annual market salary rate, whichever is higher. In addition, the cash components of a visa applicant’s guaranteed annual earnings must be greater than or equal to TSMIT. ‘Earnings’ for this purpose are defined as wages, amounts applied on the visa holder’s behalf, and the value of agreed non-monetary benefits, but do not include amounts that cannot be determined in advance, reimbursements and guaranteed contributions to superannuation.
To meet their sponsorship obligations, approved business sponsors must ensure that subclass 482 and 494 visa holders are paid in accordance with the guaranteed annual earnings as per their approved nomination. In addition, sponsors must ensure that subclass 482 and 494 visa holders are not being paid less than what an equivalent Australian worker would receive performing the same work in the same location.
As foreshadowed in the Jobs and Skills Summit, on 1 July 2023 the TSMIT was raised to A$70,000, the first increase for over a decade. With effect from 1 July 2024, the TSMIT will be further increased to A$73,150. This change will impact all nomination and visa applications lodged on or after 1 July 2024.
Importantly, the superannuation guarantee (SG) rate is also increasing from 1 July 2024 from 11% to 11.5% and it is
important that subclass 482 and 494 visa holders’ guaranteed annual earnings are not inadvertently reduced as a result of this SG rate change.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Stacey Tsui
Partner and Principal Solicitor
Cherie Wright
Partner and Principal Solicitor
Annalisa Symons
Director
Fariha Islam
Director
John O’Brien
Director
Arathi Tekkam
Director
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is” with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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