Temporary Skilled Migration Income Threshold (‘TSMIT’) & 457 Visas

 

The Temporary Skilled Migration Income Threshold (‘TSMIT’) only applies to 457 visas. This threshold is set to ensure that all 457 visa holders have sufficient income to support themselves.

In order for your nominated role to be sponsorable under a 457 visa, your sponsoring employer needs to show that the Australian market rate for your role is at least equal to TSMIT (which is currently AUD $53,900 per annum). You will note that with this eligibility requirement (which is addressed as part of the 457 nomination application that your sponsoring employer prepares and lodges), the case officer is comparing the Australian market salary rate for the nominated occupation, not your actual salary, against TSMIT. If the market rate for the nominated role is below TSMIT, then the position itself is not sponsorable under a 457 visa.

Consequently, even if your (proposed) guaranteed annual salary is above the market rate and TSMIT, if the market rate itself is below TSMIT, then the position is not sponsorable.

Your employer also needs to pay you a guaranteed annual salary of at least the market rate.

The Department generally increases TSMIT every year in accordance with inflation.

What is the Australian market rate for my role?

Your sponsoring employer needs to demonstrate that the terms and conditions of your employment are no less favourable than the terms and conditions of employment for an equivalent Australian citizen or permanent resident. This can be shown by providing a copy of the contract of an Australian citizen or permanent resident that is working in the same position and location as your nominated role.

Relevant industrial award

Your nominated occupation may be governed by a relevant industrial award which will specific the salary that you should be paid. For example, a registered nurse working in Victoria will have his or her terms and conditions of employment governed by the Nurses Award 2010, including the salary that he or she should be paid.

You can be paid a salary higher than the level specified in the relevant award.

No equivalent Australian working

Your employer may not have an Australian citizen or permanent resident that works as an employee in the same role and location as your nominated role.

If this is the case, then your employer can provide evidence of what the Australian market salary rate is for your nominated role and show that your GAE is at least equal to the market rate. This is generally demonstrated by providing Australian market salary survey data. This data needs to be relevant to the nominated role and the location where you will be working (i.e. market salary data, such as Hays Salary Guides, will usually give specific data for various capital cities around Australia).

Finding the appropriate market data for your role/industry is really just a matter of completing research. So here some of the resources that I use for finding market data:

Example where the ‘Australian market rate’ is below TSMIT

Max has been nominated by XYZ Pty Ltd. XYZ Pty Ltd currently employs several Australian employees in its workplace who perform the same work as that which Max will undertake as a 457 visa holder. XYZ Pty Ltd currently pays these Australian employees $50,000 annually as per the industrial award that applies in that workplace. Consequently, $50,000 is the applicable ‘market salary rate’ as dictated by the relevant industrial award 

In this situation, the 457 nomination would be refused on the basis that the ‘Australian market rate’ for the nominated role is below TSMIT. Even if XYZ Pty Ltd is willing to pay Max a salary of $53,900 or above, this will not be sufficient. As explained above, this requirement is comparing the Australian market salary rate for the nominated occupation, not the applicant’s actual salary, against TSMIT.

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62 thoughts on “Temporary Skilled Migration Income Threshold (‘TSMIT’) & 457 Visas

  1. Audrey

    Hi,

    My current visa (485) is about to expire in May 2017. Instead of letting me go and hire someone new and to re train them, my company is willing to sponsor me however, they have not sponsored before. They have submitted the application for SBS in December 2016 (application status is received at the moment) but is still preparing the documents to attach. May I know how long will it take for SBS to get a case office/processed and how long will nomination and my visa application take.

    Also, i have been working in the company since Aug 2015, do we have to do LMT??

    Reply
  2. Debbie

    Hi PC

    we are in the process of sponsoring one of our employees for a 457 visa. Could you please advise what the current TSMIT is and if superannuation is included.

    Reply
  3. Marius

    Hello,

    Is it possible for employer to increase my salary? Do i need to sign new contract if I getting more money then it saying in my contact? I’m on 457 visa.
    Thank you!

    Reply
    1. Peng Cheng Post author

      Hi Marius,
      Your employer is allowed to increase your salary as a 457 visa holder.
      Sorry but whether you need to sign a new contract isn’t a migration law issue – you might want to speak with an employment law solicitor.
      PC

      Reply
    1. Peng Cheng Post author

      Hi Harris,
      Sorry but we would need to complete an assessment before we can determine the appropriate salary for the role – please see contact us page.
      PC

      Reply
  4. shane

    Hi
    Im looking at sponsoring myself under a 457 visa through registering a company. if this is to be done do i still need to pay myself the 53900 in the 1st year? If im not able to make that much of a profit what would happen?

    Also if im to do the same as a RSMS visa can i start a business in a regional area and sponsor myself and get the PR sooner?

    Thanks

    Shane

    Reply
    1. Peng Cheng Post author

      Hi Shane,
      You may be able to start a business and then sponsor yourself for a 457 or 187 visa.
      Sorry but we would need to complete an assessment before we can advise in relation to your visa options – please see contact us page and information in relation to our consultation service.
      PC

      Reply
  5. Mary Ann

    My husband is being offered by a company in Australia to work with them with a salary of AUD 9000/month. He is presently working as a telecom engineer with 11 yrs work experience. The visa that will be provided by the company is a working visa. He is turning 50 on July 2016. Is there any chance for him to apply and acquire for a permanent residence visa?

    Reply
    1. Peng Cheng Post author

      Sorry but we would need to complete an assessment before we can advise in relation to his visa options – please see contact us page and information in relation to our consultation service.

      Reply
  6. Fiona

    Hi, I am trying to sponsor a worker on a 457 visa. The application was denied as the pay rate did not meet the threshold. If I decide to increase his pay to meet the threshold can I reapply & as the market rate is under the threshold will it be approved? Will I also have to increase my Australian workers pay to the threshold to get the application approved?

    Reply
    1. Peng Cheng Post author

      Hi Fiona,
      Yes you can change the salary details and lodge a new 457 nomination application.
      Yes increasing the salary of the Australian may allow you to satisfy the salary requirement – we would need to complete an assessment before we can determine if the Department will approve a revised application.
      PC

      Reply
  7. Gurmukh

    Hi I’m on 457 visa my package is 53900 but after on year I got 53872 in my gross income mean $28 less then 53900 is This gonna effect on my 186 visa or its normal plz answer me

    Reply
    1. Peng Cheng Post author

      Hi Gurmukh,
      This can occur if you took things like unpaid leave. Unpaid leave is allowed, but you need to make up for this time and lodge after you have completed 2 years of full time work.
      PC

      Reply
  8. Amanda

    Hi PC

    My employer sponsored me for 457 visa two years ago.
    Now I am going to apply permanent residency.

    My contract agreed salary was $54,600 but they were not agreed to pay me full amount so I took 8 weeks unpaid holidays instead and they deduct that from my annual payment.
    Now when I am applying for PR my lawyer said they have to pay me that whole money in Lum sum
    I am totally confused. Why would they pay me back when I took whole two months off?
    Do I have to work two months extra?

    Reply
    1. Peng Cheng Post author

      Hi Amanda,
      I’m not sure why your lawyer is suggesting this – suggest that you ask your lawyer.
      PC

      Reply
    1. Peng Cheng Post author

      Thanks so much for bringing this to my attention Satpal – we’ve contacted the other agent’s who’s behaviour is completely unacceptable.

      Reply
  9. linda

    Hi PC Sir,
    Recently ATO has increased the tax and due to increasing in tax, my employer has started to pay me $5 less in net income to meets my contract package which is $51400 so will I have any problem during my ENS application? or my employer must have to pay me same net income as he used to paid me before. will DIAC check my total annual salary or they check net income and tax separately.
    Thank you in advance

    Reply
    1. Peng Cheng Post author

      If you are holding a 457 visa, then the employer doesn’t be reducing the salary at all. They would need to lodge a new 457 nomination application and have the Department approve the new salary before reducing the salary.

      Reply
      1. linda

        Hi Sir,

        Thanks for replying, my employer is not reducing my salary. Department has approved $51400 per annum which I am still getting the only diffrences due to increasing in tax from july 2014 my employer has to pay to ATO more tax so he reduced $5 in net pay and increase $5 in gross pay a week.

        For example employer used to gave me $815.45 net pay a week and $988.46 gross pay a week But now he is giving me $810.46 net pay and $993.46 gross pay a week. my annual income is still the same, my hourly rate is also the same.

        Please advise me sir I only left two months to apply My ENS visa. just want to check weahter department check my annual income $51400 which they have approved and I am still getting that or they check net pay and gross pay separately .
        Please reply me sir, your advise will be appreciated.

        Reply
  10. mich

    Hi pc

    My question is i have 457 visa and my employer is not make profit from his business BUT he still OK to pay me as per TSMIT would that be is problem when i apply for my PR visa ? is there any requirement to maintain for employer to sponsor 457 employee ?

    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Mich,
      That might be a problem. The Department needs to be satisfied that the employer can pay the nominated salary for at least a period of 2 years. I’d need to know more about the application before we can give definite advice.
      PC

      Reply
  11. Sammy Wae

    Hi Penny,

    I know that 186 visa don’t require to meet the TSMIT but wondering if the new employment contract we submit for 186 still has to be above the 53, 900 amount? Will it adversely affect my application if it’s below that amount, even if we show certified agreements and employment contracts of Australian workers? Because I was put in contract for 457 for $52, 000 two years ago. So they are wondering if we can apply with the same amount or whether they should put me in a higher salary. Your advice would be kindly received

    Reply
    1. Peng Cheng Post author

      Hi Sammy,
      We’ve had 186 applications approved where the salary is below TSMIT – as long as you can provide that it is consistent with the applicable market rate.
      PC

      Reply
  12. BEC

    I was sponsored by my employer in 2912 at the TSMIT rate of 51,400 and have been kept on that salary since. Should they now be paying me the new rate of 53,900?

    Also, they have not paid me any super payments in the past 8 months.

    Should I report them for under paying me or is that just shooting myself in the foot (I.e. will my visa be cancelled if they havent complied with the conditions on their end?)

    Thanks in advance,
    Bec

    Reply
    1. Peng Cheng Post author

      Hi Bec,
      TSMIT changes don’t apply to existing 457 visa holders.
      You can report your employer – but this can have adverse consequences for your employer and your visa. They should be paying superannuation.
      PC

      Reply
  13. ben

    Hi PC,

    How do you demnostrate the value of a company car as Guaranteed earnings? Or how would you structure it.

    We have someone we want to sponsor but they are paid a salary of $48,412 but we can give them a company car and fuel.

    This should take them well above the minimum.

    Thanks for your help!

    Reply
      1. ben

        Hi Peng
        So as long as the remuneration portion of the offer / contract nominates an agreed value and its signed by the employee (provided it forms a part of the guaranteed earnings) it will be deemed as the income by the DIAC?

        Reply
        1. Peng Cheng Post author

          HI Ben,
          GAE can only include the following types of payments and allowances:
          1. Your base wage
          2. Any payments which are applied or dealt with on your behalf or at your direction (e.g. your accommodation or housing allowance which your employer covers and pays directly to the landlord)
          3. The agreed monetary value of non-monetary benefits (e.g. health insurance, car, mobile phone and laptop etc.)
          The following cannot be counted towards GAE:
          1. Any payments or allowances which cannot be determined in advance such as commissions, incentive-based payments and bonuses, and overtime (unless the overtime is guaranteed)
          2. Reimbursements
          3. Compulsory superannuation contributions. Guaranteed contributions to superannuation that exceeds the contribution that is required under legislation can be counted towards GAE
          PC

          Reply
          1. Ben

            Hi Peng,

            Thanks so much for your help.

            I included the car and fuel in the contract as an agreed sum between the parties and the case officer for the nomination has come back and said it does not meet the requirements.

            “I noticed that the Base rate of Pay (not including vehicle allowances) is $48,412 per year as stated on the contract. The Base Rate of Pay must not fall below the TSMIT (indexed to $53,900) so 457 workers will not be disadvantaged in employment terms and conditions offered to Australian workers. The use of a company vehicle with fuel allowance would not be considered ‘earnings’ in this case.”

            Any advice on a response to this ?

            Kind Regards,
            Ben

          2. Peng Cheng Post author

            Hi Ben,
            Extract from the Department’s policy guidelines – with my clients, usually I’d just extract this and send it back to the case officer:

            Regulation 2.72(10A) provides an exception to the requirement prescribed by regulation 2.72(10)(cc). That is, even if the base rate of pay under the ‘market salary rate’ is below the TSMIT, the nomination criteria relating to payment of equivalent terms and conditions of employment may nevertheless still be satisfied if the guaranteed earnings for the nominated person will be equal to or greater than the TSMIT, provided it is reasonable to disregard the fact that the base rate of pay is below the TSMIT.

            Example

            Kind Inc. is an approved standard business sponsor and wishes to nominate Andrea for a position in its workplace. Kind Inc. provides a copy of Andrea’s employment contract, which indicates the following:

            Annual Salary: AUD 29 000.00 (base rate of pay)

            AUD 29 907.20 (AUD 16 000 taken as FBT x by gross-up rate of 1.8692)

            Total earnings: AUD 58 907.20

            Although Andrea’s base rate of pay is below the TSMIT, her guaranteed earnings of AUD 58 907.20 (AUD 29 000 + AUD 29 907.20) are above the TSMIT. As all the other nomination criteria have been met, the processing officer approves the nomination on the basis that it is reasonable to take into account the FBT.

            On the matter of convincing your case officer that your car allowance can be included, that just depends on how this allowance is worded in your employment contract.

            PC

  14. James

    Hello Peng,

    Regarding the salary level thresholds of 53.900 AUD

    Does my employer can giving me an annum amount less than this specified above ? because there’s nobody earning the amount of 53.900 AUD

    Thanks…

    Reply
    1. Peng Cheng Post author

      Hi James,
      TSMIT of $53,900 just affects nominations that are decided after 1 July 2013 – so it doesn’t affect 457 visas that were already decided before this date.
      PC

      Reply
      1. James

        Thanks peng for your answer.

        Also I would like to know regarding student visa.

        To providing financial funds to support yourself while in australia, if I have relatives who are they willing to offer me accomodation, food etc etc… Still I have to provide evidence of funds ? or I can get a letter from my relatives ?

        Thanks

        Reply
  15. Kristina

    Hi Peng,

    I just came across this website today and it is very ‘eye-opening’.

    In relation to the TSMIT – I have just been offered a job as an associate financial adviser with $50,000 plus super. My employer is willing to sponsor me once I pass the mandatory 3 month probation. Would that be possible?

    Thanks!

    Reply
    1. Peng Cheng Post author

      Hi Kristina,
      TSMIT has increased to $53,900. DIAC can’t approve a 457 nomination application if the salary is $50,000.
      PC

      Reply
  16. Andrea

    Hi PC,

    I am a bit confused with the definition of TSMIT. Does it only refer to salary paid in monetary term($), or other benefit can be included? To be specific, if my company offers me a car for private use, in this case, is my company allowed to pay me (base salary in monetary) less than TSMIT? I did some research in immigration website but still unsure about it.

    Thank you for your kind reply in advance. Cheers!

    Reply
    1. Peng Cheng Post author

      Hi Andrea,
      You can count the following towards TSMIT:

      1) Your base wage
      2) Any payments which are applied or dealt with on your behalf or at your direction (e.g. your accommodation or housing allowance which your employer covers and pays directly to the landlord)
      3) The agreed monetary value of non-monetary benefits (e.g. health insurance, car, mobile phone and laptop etc.)

      The following cannot count the following:

      1) Any payments or allowances which cannot be determined in advance such as commissions, incentive-based payments and bonuses, and overtime (unless the overtime is guaranteed)
      2) Reimbursements
      3) Compulsory superannuation contributions. Guaranteed contributions to superannuation that exceeds the contribution that is required under legislation can be counted towards GAE
      PC

      Reply
  17. Vaughn

    Hi Pc,

    If the market salary rate for a nominated position is to close to TSMIT would the sponsorship likely be refused.

    Cheers

    Reply
  18. JT

    Hi PC I´m getting sponsored for a 457, I´m british but born in Spain, worked for 12 years in a fine dinning retsaurant, got good level of english, got my cv, my birth certificate, but I haven´t got with me any documents of my graduate or anything like that, would that be a problem with my experience in this sector??

    Many thanks for your time.

    Reply
    1. Peng Cheng Post author

      HI JT,
      If you are relying on your experience to meet the qualfiications and/or experience requirement, that you just need to properly demonstrate this.
      PC

      Reply
  19. MT

    Hello ,
    I have lodged a 457 visa application and have the following questions that stand out :-

    1) The nominated occupations has a market salary rate above TSMIT but the actual salary paid to me or an Australian citizen is below TSMIT . Will this cause an issue ?

    2) My educational qualifications are in IT while i am applying a call center role. the case manager has asked for an explanation from me detailing my eligibility for the nominated occupation as per him my qualificatiosn are not a match to the occupation. Will this be an issue ?

    Reply
    1. Peng Cheng Post author

      Hi MT,
      1) Yes – you can’t satisfy the eligibility requirements with such an application
      2) Can’t advise on this since I don’t know anything about your application.
      PC

      Reply
  20. Bradley

    Hi I am currently on a 457 visa working in Melbourne. I wish to know if the TSMIT is increased in the future and my current salary is less will my current employer be obligated to up my salary according to the new TSMIT.

    Reply
    1. Peng Cheng Post author

      Hi Bradley,
      Your salary can’t be below TSMIT – which is increased according to inflation.
      PC

      Reply
  21. Sam

    Hello sir,
    My employer is happy to apply 457 visa but is he eligible to do so, the problem
    is he has already sponsored 3 people ( RSMS 857 ).
    1 one year ago, and two just recently. Have i got any chance ?

    Regards

    Reply
    1. Peng Cheng Post author

      Hi Sam – There is no limit on how many RSMS applicants a business can sponsor. If you meet the eligibility requirements, the visa will be granted.
      PC

      Reply
  22. Siobhan

    Hi my boss wants to sponsor me but there is absolutely no way i will earn 51400. nobody at work earns that much. What can we do ??

    Reply
  23. Peng Cheng Post author

    Hi,
    Yes your employer can act on your behalf if you let them. For the second part of your question, I refer you to the comment policy. I do not answer such broad questions.
    Thanks
    PC

    Reply
  24. Priyanka

    Can my employer in Australia lodge my visa application on behalf of me? What are the basic requirements in such a situation?

    Reply

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