Temporary Skilled Migration Income Threshold (TSMIT)

The salary that is provided by the employer must at least meet the TSMIT. Additionally the salary should be equivalent to the salary of an Australian worker who is working in the same role and location. This is known as the Annual Market Salary Rate (AMSR).

The AMSR is the Annual Market Salary Rate for the nominated occupation. This is determined by the employer by assessing the earnings of the Australian workers in the same occupation in the same location as the proposed nominating employee.

When there is no equivalent worker, agreement or award, the employer must determine and show proof of AMSR. The employer can show at least two of the following in showing the AMSR:

1. Job outlook information

2. advertisements from the last 6 months for equivalent positions in the same location

3. remuneration surveys completed by a reputable organisation

4. written advice from unions or employer associations.

The main challenges that the AMSR faces are:

• Fluctuating salary rates

For nominated occupations or the specific locations are where the salary rate fluctuates drastically, the employers can ensure that the salary that is provided to the nominated employee is compliant with the TSMIT and is competitive with other salary offers in the market.

• Complex salary structures

For nominated occupations where there are complex salary structures such as bonuses and allowances. The sponsoring employer must ensure that the nominated employee will receive a base salary that meets the TSMIT.

The basic salary which meets the TSMIT must be exclusive of non monetary benefits such as accommodation, transport and any other employment perks. Also the TSMIT does not include other mandatory requirements like the contributions for the superannuation.

There are virtually no exemptions. However, there can be exemptions primarily related to specific Labour Agreement stream. The Labour Agreement stream in  the SC 494 visa are streams designed for employees where their employers have negotiated with the Australian government. These agreements usually address unique industry requirements and can include concessions on the TSMIT.