The Australian Government has announced that the Temporary Skilled Migration Income Threshold (TSMIT) will be increasing from $70,000 to $73,150 from 1 July 2024.

New nomination applications from this date will need to meet the new TSMIT of $73,150 or the annual market salary rate, whichever is higher. This change will not affect existing visa holders and nominations lodged before 1 July 2024.  Based on recent policy announcements we can expect an increase to the TSMIT annually going forward.

From 1 July 2024, the Superannuation Guarantee will also be increasing to from 11% to 11.5%. The superannuation guarantee will be increasing annually until it reaches 12% on 1 July 2025.

T&S would recommend that businesses who may be unable to offer salaries at the new TSMIT level, to commence Labour Market Testing for their required positions as soon as possible and ensure nominations are lodged before 1 July 2024. Further, if you have a sponsored employee (with a salary under $73,150) and a visa expiring soon, you may wish to have their nominations lodged before 1 July 2024. We also advise to keep the superannuation guarantee in mind when budgeting for a candidate’s salary and that this superannuation increase is implemented into payroll from 1 July 2024 onward.

For a more specific assessment or further information, please contact the APAC team at T&S LLP.