The Australian government has recently announced an increase in the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000 per annum. The TSMIT is the minimum salary that an employer must offer a skilled migrant worker to sponsor them for a temporary visa.
The increase in TSMIT is in response to concerns that the previous threshold was too low and was being used to exploit migrant workers. By raising the salary, the government aims to ensure that migrant workers are being paid a fair wage and to prevent the undercutting of wages for Australian workers.
The increase in TSMIT will come into effect on 1 July 2023 and will apply to all new Temporary Skill Shortage visa (subclass 482) nominations lodged on or after that date. The government has indicated that it will also be reviewing the TSMIT on an annual basis to ensure that it remains appropriate.
The TSMIT increase is part of a broader range of reforms that the government is undertaking to strengthen the Temporary Skill Shortage visa program. These reforms are aimed at ensuring that the program is meeting the needs of Australian businesses while protecting the rights of migrant workers.
The TSMIT increase has been welcomed by unions and migrant worker advocacy groups, who have been calling for reform to the Temporary Skill Shortage visa program for some time. However, some employer groups have expressed concerns that the increase in TSMIT will make it more difficult for businesses to attract skilled workers to Australia.
The increase in the Temporary Skilled Migration Income Threshold is a positive step towards ensuring that migrant workers are being paid a fair wage and that Australian workers are not being undercut. The reforms to the Temporary Skill Shortage visa program more broadly are also aimed at ensuring that the program is meeting the needs of Australian businesses while protecting the rights of migrant workers. It remains to be seen how these changes will impact the Australian labour market in the long term