July 1 2023:
TSMIT increase
A reminder for all our corporate and employer clients: the higher #TSMIT of $70,000*pa applies to all SC 482 nominations lodged on and from 1 July 2023.
What is the TSMIT?
The TSMIT is the temporary skills migration income threshold.
The TSMIT is part of the #sponsoredworkvisaprogram with a view to protecting sponsored foreign employees, by imposing guaranteed earnings tests.
The TSMIT is the first threshold test and works hand-in-hand with the market rates test. Generally speaking, employers must offer market rates $$$ to their non-Australian employee. Then, to succeed in sponsoring, the market rates must be the same or more than the legislated TSMIT.
These guaranteed earnings rules are to ensure: (a) the foreign-sponsored #employee can support themselves financially in Australia while working for their Sponsor; and (2) that the foreign employee is paid equivalent to an Australian employee doing a similar role in the same location.
Do contact us for advice should you wish to sponsor an overseas/ non-Australian employee, or require visa advice.
NOTE: The #GrattanInstitute recommended the $70K TSMIT as the “Goldilocks” #wagethreshold. Grattan illustrated that with small exceptions, most industries would be catered for under the new threshold and so in effect, would not be locked out of the sponsorship program.
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You can read more about the TSMIT changes here:
- Grattan Report
- Minister’s Media Alert
NOTES: *$70,000 pa of guaranteed earnings. The definition of guaranteed earnings excludes superannuation and certain other earnings.
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