On 1 July 2011, Australia’s Temporary Skilled Migration Income Threshold (TSMIT) was increased by 3.9% from $47,480 to $49,330 to match the percentage increase in the Australian average weekly wage.

The threshold level is intended to ensure that all immigrants working in Australia on a 457 visa receive a fair income relative to Australian salary norms. The TSMIT also aims to ensure that immigrants are able to independently provide for themselves during their temporary stay in Australia, as they do not have access to Australian Government financial support while working here.

Australian businesses or individuals who sponsor overseas workers through the 457 visa program are required under the Migration Act to pay standard market salary rates to these employees. The recent change to the TSMIT means that any temporary position in the Australian workforce paying below $49,330 cannot be nominated under the 457 visa program.

This TSMIT increase will now apply to all visa applications that nominate an overseas person to work in Australia under a 457 visa where the Department of Immigration and Citizenship (DIAC) delivers its decision on or after 1 July 2011, regardless of when that application was initially lodged with the Department.

High-income ELR exemption level

The defining level of the high-income exemption from the English Language Requirement has also been increased by 3.9%, raising the exemption salary rate from $85,090 to 88,410 for all visa applications where DIAC’s decision is made on or after 1 July 2011.