Australia Increases Skilled Migration Income Threshold | Australia Immigration Updates

Employers will be required to meet the new TSMIT of $73,150 or the annual market salary rate, whichever is higher. This change ensures that skilled migrants receive fair and competitive wages, aligning with the evolving economic conditions and cost of living in Australia.

Impact on Existing Visa Holders and Nominations

The increase in TSMIT will not affect existing visa holders or nominations lodged before 1 July 2024. Those who have already been approved or have their applications in process under the current threshold of $70,000 will continue under those terms. This provision ensures a smooth transition for both employers and employees currently engaged in the skilled migration program.

Government Commitment to Jobs and Skills

The adjustment in TSMIT is part of the Australian Government’s broader strategy to address workforce needs and economic stability, as outlined during the Jobs and Skills Summit held in September 2022. By increasing the income threshold, the government aims to attract higher-skilled migrants who can contribute significantly to the Australian economy while ensuring they are compensated in line with prevailing market conditions.

Broader Implications for Skilled Migration

This increase in TSMIT reflects ongoing efforts to refine Australia’s skilled migration policies to better match labor market demands and economic goals. The threshold is reviewed periodically to ensure it remains relevant to current economic conditions. The latest adjustment follows extensive consultations with industry stakeholders and economic experts to balance the needs of employers with the rights and expectations of skilled migrants.

Future Considerations

Employers looking to nominate skilled migrants should prepare for the new threshold by reviewing their salary structures and ensuring compliance with the updated requirements. Additionally, potential migrants should consider this new threshold when planning their applications and assessing potential job offers in Australia.

Aligning with Economic Goals

The rise in TSMIT is not just a measure to ensure fair wages but also a strategic move to attract talent that can drive innovation and growth within key sectors. As Australia continues to compete globally for top talent, maintaining an attractive and fair skilled migration program is crucial for sustaining long-term economic growth and addressing skill shortages in critical industries.

The increase in the Temporary Skilled Migration Income Threshold to $73,150 from 1 July 2024 underscores Australia's commitment to maintaining a robust, fair, and competitive skilled migration system. By ensuring that skilled migrants are adequately compensated, the government aims to support economic growth, address skill shortages, and enhance the overall quality of the workforce. Employers and potential migrants alike should stay informed about these changes to navigate the skilled migration process effectively.