Temporary Skilled Migration Income Threshold (TSMIT)
The Temporary Skilled Migration Income Threshold (TSMIT) commences on 14 September 2009 and is currently $45,220 per annum.
A nomination under the Subclass 457 visa program will be refused in most cases if the market salary rate for the nominated position is below this level of income.
The TSMIT has no bearing on what the Subclass 457 visa holder should be paid in the workplace.
Example given by DIAC
If the market salary rate for an occupation is $39,500 – that is, the market salary rate amount that is paid to equivalent Australian in the employer's workplace – then the nomination would normally be refused, as the salary is below TSMIT. Even if the sponsor decided to offer the nominee a salary of $45,220, then the nomination could still be refused, as it is the market salary rate that the department compares to TSMIT, not the actual salary proposed.
There will be specially trained officers with investigative powers to monitor workplaces and conduct site visits to determine whether employers are complying with the redefined sponsorship obligations.
Breach of sponsorship obligations could result in fines up to $33,000, the cancellation of an employer's approval as a sponsor or barring them from making further applications for overseas workers.
DIAC can also obtain information from the Commissioner of Taxation to ensure correct salary levels are being paid to visa holders.
If you are an employer or you have questions or concerns about the above, please click this link to contact Visa Lawyers Australia.