Published on 29 May 2024
Update: Income Thresholds for SID Applications
From 7 December 2024 to 30 June 2025, the following income thresholds will apply:
- Core Skills Income Threshold (CSIT):
- AUD 73,150 for Skills in Demand (SID) (subclass 482) Core Skills stream applications and Employer Nomination Scheme (ENS) (subclass 186) nominations.
- Specialist Skills Income Threshold (SSIT):
- AUD 135,000 for SID (subclass 482) Specialist Skills stream applications.
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Starting 1 July 2024, significant updates are set to impact Australia’s skilled migration landscape, particularly concerning the Temporary Skilled Migration Income Threshold (TSMIT). The threshold is poised to increase from AUD 70,000 to AUD 73,150. This change is pivotal for employers, migration agents, and potential skilled migrants, guiding strategic adaptations in response to the evolving Australian labour market.
Key Points for Employer Compliance
Salary Compliance: For nominations beginning 1 July 2024, the offered annual salary must not only comply with the new TSMIT but also include the requisite superannuation contributions, ensuring that overseas workers are compensated comparably to their Australian counterparts.
Labour Market Testing: Job advertisements for positions to be nominated after the TSMIT update should clearly state that the proposed salary meets or exceeds AUD 73,150. This adjustment is essential for maintaining transparency and fairness in hiring practices.
Application Timing: Employers planning to submit nominations before the change, where the salary is below AUD 73,150, should act swiftly. They must ensure that job advertisements for these roles are published immediately to fulfil the required 28-day advertising period before the nomination lodgement.
Affected Visa Categories and Implications
The TSMIT adjustment will affect several specific visa subclasses:
- Temporary Skill Shortage (subclass 482) Visa
- Employer Nomination Scheme (ENS) (subclass 186) Visa (Direct Entry stream only)
- Employer Sponsored Regional – SC494 Visa
This change will not impact current holders of the Temporary Skill Shortage (TSS) 482 visa or any nominations and visa applications submitted before the 1 July 2024 implementation date. However, all new nomination applications lodged on or after this date must meet the updated threshold of AUD 73,150 or the Annual Market Salary Rate (AMSR), whichever is higher.
Financial Implications for Employers
This increase in the TSMIT and the corresponding rise in visa application charges may heighten the cost of employing foreign nationals in Australia. Employers and global mobility program managers should carefully consider these increased expenditures for budgeting and planning purposes. It’s imperative for businesses that depend on skilled migrant labour to adjust their financial strategies and recruitment approaches to accommodate these changes.
Preparing for the Change
Employers should review current employment contracts, planned nominations, and recruitment policies to navigate these adjustments effectively. Engaging with migration experts or legal advisors may also help in understanding and implementing the required changes comprehensively.
Conclusion
The increase in the TSMIT is more than a mere adjustment of numbers—it’s a reflection of the evolving economic landscape and the government’s commitment to fair employment practices. By ensuring that skilled migrants receive wages comparable to their Australian counterparts, the policy supports a balanced and equitable labour market. For employers, staying ahead of these changes and preparing accordingly will be key to leveraging skilled foreign talent effectively while maintaining regulatory compliance.
Please note that visa regulations and policies can change, so it’s important to stay up to date with official government sources for the most accurate and current information.
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