A REVIEW of the Temporary Skilled Migration Income Threshold (TSMIT) is underway, having been recommended by the 2014 integrity review of the 457 visa scheme.

The 457 integrity review recommended that the TSMIT be retained at the current level of $53,900 until a further review could be conducted.

The review is headed up by John Azarias, who also headed the 457 integrity review panel. AREEA is seeking the input of its members using temporary working visas.

What is the TSMIT and what does it do?

The TSMIT is a salary threshold used by the 457 visa program as an indicator that an occupation is skilled and to ensure that a visa holder has reasonable means of support while in Australia. It was implemented on 14 September 2009, replacing the Minimum Salary Level, and is contained in a legislative instrument.

The TSMIT is a salary ‘floor’ although some concessions are available, for example, under a designated area migration agreement (DAMA). While technically available, no regional concessions to the TSMIT have yet been granted.

The TSMIT is separate to the ‘market rate’ salary requirements where 457 visa sponsors must pay an overseas worker the same salary as that received by an equivalent Australian worker.

If the market salary rate for an occupation in Australia is below the TSMIT, an employer cannot nominate that occupation to be filled by a 457 visa holder. However, if the market base rate of pay is below the TSMIT but guaranteed annual earnings are above it, that position may still be eligible for a 457 visa.

It is intended that the TSMIT be commensurate with the salary paid to skilled workers in Australia.

Key questions for the review

The review is interested in stakeholder feedback:

• Whether a single TSMIT should apply to all circumstances regardless of occupation, location or position;
• If variations to the TSMIT are made, how they should apply;
• The appropriate legislative mechanism for specifying the TSMIT;
• The extent to which the current settings could be impairing industry’s ability to employ skilled overseas workers; and
• Whether labour agreements might effectively accommodate industries where the market salary rate is lower than the TSMIT.

Click here for the TSMIT discussion paper. The discussion paper, further background and information can also be accessed via the Department of Immigration and Border Protection website.

AREEA welcomes member feedback to inform its submission to the review. Please contact AREEA’s senior workplace policy adviser, Lisa Matthews, on (03) 6270 2256 or at [email protected].