TSMIT Temporary Skilled Migration Income Threshold Australia 2026

April 10, 2026

The temporary skilled migration income threshold plays a central role in Australia’s skilled visa system. Whether you’re an employer sponsoring overseas talent or a skilled professional planning to work in Australia, understanding how this threshold works is essential. In simple terms, the temporary skilled migration income threshold (TSMIT) sets the minimum salary level that must be offered to foreign workers under employer-sponsored visa programs. It ensures that migrant workers are paid fairly and that local job markets are not undercut. This guide explains TSMIT Australia, current salary benchmarks, policy logic, eligibility impact, and practical implications—based on the latest available information and aligned with guidance from the Department of Home Affairs.

Latest TSMIT Australia Update

The temporary skilled migration income threshold (TSMIT Australia) is periodically updated to reflect wage growth in Australia. As per recent updates aligned with guidance from the Department of Home Affairs, the TSMIT salary Australia has increased to AUD 79,499 per year (excluding superannuation), effective from 1 July 2026.

This updated threshold applies to new employer-sponsored visa nominations lodged on or after the effective date. Employers must ensure that offered salaries meet both the TSMIT and the Annual Market Salary Rate (AMSR), as the higher of the two is considered during assessment.

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What is the Temporary Skilled Migration Income Threshold?

The temporary skilled migration income threshold (TSMIT) is the minimum salary an Australian employer must pay if they want to hire a worker from another country.

In simple words: If a company wants to sponsor you for a work visa, they must offer you at least a fixed minimum salary set by the government.

Why is TSMIT Important?

The temporary skilled migration income threshold (TSMIT) is important because it helps keep the system fair for everyone—both for overseas workers and for people already working in Australia.

Think of it as a salary safety rule set by the government.

Here’s how it helps:

1. Prevents underpayment

Employers cannot offer very low salaries to foreign workers just to save money.

2. Protects local jobs

It ensures businesses don’t replace Australian workers with cheaper overseas workers.

3. Ensures fair pay

If you’re coming to Australia on a sponsored visa, you should earn a salary similar to what an Australian worker would earn in the same role.

4. Maintains trust in the visa system

By setting clear salary rules, the government ensures that employer-sponsored visas are used for genuine skilled jobs—not for low-paid work.

In short, TSMIT makes sure that skilled migration is based on real skills and fair salaries, not cheap labor.

Which Visas Use TSMIT?

TSMIT mainly applies to employer-sponsored visas, where a company in Australia hires and sponsors a worker from another country.

The most common visas include:

  • Subclass 482 (Temporary Skill Shortage visa): Used when employers need skilled workers for temporary roles.

  • Subclass 186 (Employer Nomination Scheme visa): A permanent residency visa for skilled workers sponsored by an employer.

  • Subclass 494 (Skilled Employer Sponsored Regional visa): For jobs in regional areas of Australia.

For all these visas, the employer must offer a salary that meets the TSMIT requirement—otherwise, the visa application can be refused.

Current TSMIT Australia Salary (Latest Update)

As of March 2026, the temporary skilled migration income threshold in Australia is set at AUD 73,150 per year (excluding superannuation), according to the Department of Home Affairs.

This figure represents the minimum base salary that must be offered to skilled migrant workers under employer sponsored visa programs. It’s important to understand that this is not just a guideline—it’s a strict eligibility requirement.

In practical terms, the TSMIT salary in Australia applies only to guaranteed annual earnings. This means employers cannot include variable components like bonuses, overtime, or superannuation to meet the threshold. Only the fixed base salary counts.

At the same time, meeting TSMIT alone is not enough. Employers must also ensure that the offered salary aligns with the market salary rate, which reflects what an Australian worker would earn in the same role. Immigration authorities will always assess both conditions, and the higher salary benchmark must be satisfied.

This becomes particularly relevant in industries or regional areas where wages may naturally be lower. Even in such cases, employers are not permitted to offer a salary below the temporary skilled migration income threshold. If they do, the nomination is likely to be refused regardless of other factors.

From a compliance perspective, failing to meet the TSMIT Australia requirement can lead to visa refusal, increased scrutiny, or even penalties for employers. That’s why both applicants and sponsors should treat this threshold as a non-negotiable baseline rather than a flexible range.

TSMIT vs Market Salary Rate: What’s the Difference?

The difference between the temporary skilled migration income threshold and the market salary rate (also known as the Annual Market Salary Rate – AMSR) is crucial for employer-sponsored visas in Australia. While TSMIT sets the minimum legal salary, the market salary rate reflects what an Australian worker earns in the same role—and employers must meet whichever is higher.

Understanding the Two Concepts

1. TSMIT (Temporary Skilled Migration Income Threshold)

This is a fixed national minimum salary level set by the Department of Home Affairs. It ensures that skilled migrants are not underpaid and that overseas hiring does not undermine local wage standards.

2. Market Salary Rate (AMSR)

This represents the actual salary paid to Australian workers in the same occupation and location. It is not a fixed number and varies depending on:

  • Industry standards

  • Job location (metro vs regional)

  • Experience and skill level

  • Employer size and structure 

Understanding the “Whichever is Higher” Salary Rule

When applying for an employer-sponsored visa, salary is not decided by just one number. Under Australia’s migration rules set by the Department of Home Affairs, employers must follow a simple principle:

The offered salary must be the higher of:

  • the temporary skilled migration income threshold (TSMIT), or

  • the market salary rate for that role

In simple terms, TSMIT is the minimum starting point, but it is not always enough. If the same job pays more in the Australian market, the employer must match that higher salary.

How This Works in Practice

For example, if the TSMIT is AUD 73,150 but the typical salary for the role is AUD 90,000, the employer cannot offer 73,150. The salary must be aligned with the market rate of AUD 90,000.

This ensures that overseas workers are paid fairly and are not offered lower wages than Australian employees doing the same job.

What Salary Components Are Considered

Another important point is that only the guaranteed base salary is considered when assessing both TSMIT and market salary requirements.

Payments such as superannuation, bonuses, overtime, or allowances are generally not included unless they are guaranteed. This means the base salary alone must meet the required threshold.

Why Employers Must Prove the Salary

Employers are required to show that the salary offered is consistent with Australian standards. This is usually done by comparing:

  • salaries paid to Australian employees in similar roles

  • employment contracts for equivalent positions

  • industry salary benchmarks

If there is no direct comparison within the business, external market data is used to justify the salary level.

Why This Rule Matters

This requirement is critical because it directly affects visa approval. If the salary is below TSMIT, or below the market rate, the application is likely to be refused.

By enforcing this rule, Australia ensures that skilled migrants are paid fairly while also protecting local job markets.

Why TSMIT Exists: Policy & Economic Logic

The temporary skilled migration income threshold is not just a number—it reflects Australia’s broader economic and migration strategy.

1. Protecting Local Workers

Without TSMIT, employers could hire overseas workers at lower wages, reducing opportunities for local talent.

2. Preventing Wage Exploitation

It ensures that migrants are not vulnerable to underpayment or unfair employment practices.

3. Encouraging Skilled Migration Only

Higher salary thresholds naturally filter for genuine skill shortages, not low-wage labor.

Visa Types Affected by TSMIT Australia

The temporary skilled migration income threshold (TSMIT Australia) applies across key employer-sponsored visa programs and is assessed at the nomination stage by the Department of Home Affairs.

Employers must ensure that the base salary (excluding superannuation) meets both:

  • The applicable income threshold

  • The market salary rate

1. Temporary Skill Shortage Visa (Subclass 482)

This is the most commonly used employer-sponsored visa.

Key Requirements:

  • Salary must meet the relevant income threshold (e.g., Core Skills Income Threshold)

  • Must align with market salary rate

  • Position must be genuine and full-time

This visa often serves as a pathway to permanent residency (Subclass 186), making salary compliance critical long term.

2. Employer Nomination Scheme Visa (Subclass 186)

A direct permanent residency visa for skilled workers.

Key Requirements:

  • Salary must meet or exceed TSMIT benchmarks

  • Must reflect Australian market salary standards

  • Occupation must be on the relevant skilled list

Consistent salary levels during prior visas (like 482) strengthen approval chances.

3. Skilled Employer Sponsored Regional Visa (Subclass 494)

Designed to encourage migration to regional Australia.

Key Requirements:

  • Same salary rules as other employer-sponsored visas

  • Must meet both TSMIT and market salary rate

  • Role must be located in a designated regional area

Leads to permanent residency Subclass 191, where ongoing salary compliance plays a role.

How TSMIT Impacts Visa Approval

The TSMIT salary in Australia is a critical factor assessed during the nomination stage of employer-sponsored visas. According to the Department of Home Affairs, both the temporary skilled migration income threshold and the market salary rate must be satisfied for approval.

If Salary is Below TSMIT

If the offered base salary is below the current temporary skilled migration income threshold (AUD 73,150), the nomination will be refused automatically under migration regulations. No further assessment is conducted.

If Salary Meets TSMIT but Not Market Rate

Meeting TSMIT alone is not sufficient. Case officers assess whether the salary aligns with the Annual Market Salary Rate (AMSR) by comparing:

  • Salaries of equivalent Australian workers within the business

  • Industry benchmarks and Fair Work awards

  • Job role, location, and experience level

If the salary is below market rate, the application may be refused due to underpayment risk and labour market distortion concerns.

If Salary is Artificially Inflated

If a salary appears unusually high relative to the business size or role, the Department may investigate:

  • Financial capacity of the business

  • Genuineness of the nominated position

  • Whether the role exists primarily for visa purposes

This can lead to requests for further information (RFI), delays, or refusal.

Real-World Example

  • A small café sponsors a “Restaurant Manager” at AUD 73,200 → High risk (barely above TSMIT, weak justification)

  • A mid-sized IT firm offers AUD 95,000 for a Software Engineer → Strong case (aligned with market rate)

How Employers Must Prove Salary Compliance

Employers sponsoring skilled workers must demonstrate salary compliance during the nomination process, as assessed by the Department of Home Affairs. This includes meeting both the temporary skilled migration income threshold and the Annual Market Salary Rate (AMSR).

Required Evidence

Employers typically need to provide:

  • Employment contract outlining salary terms

  • Detailed salary breakdown (excluding superannuation)

  • Payslips of Australian employees in similar roles

  • Industry salary benchmarks (e.g., job ads, salary surveys)

Market Salary Rate (AMSR) Requirement

In addition to TSMIT, employers must prove that the sponsored worker is paid no less than an equivalent Australian worker. This is known as the Annual Market Salary Rate.

Evidence may include:

  • Comparable internal employee salaries

  • External job market data (Seek, industry reports)

  • Independent remuneration surveys

Compliance Checks

Authorities assess several key factors:

  • Genuine position requirement: The role must align with the business’s actual operations and ANZSCO occupation

  • Business capacity to pay: Verified through financial documents such as BAS, tax returns, and profit & loss statements

  • Salary structure validity: Only guaranteed base salary is considered—superannuation and bonuses are excluded

  • Consistency with Australian standards: Ensuring fair employment conditions

Consequences of Non-Compliance

Failure to meet salary requirements can result in:

  • Nomination refusal

  • Visa refusal

  • Sponsorship cancellation

  • Potential penalties or restrictions on future sponsorship 

Common Mistakes to Avoid

1. Confusing Total Package with Base Salary

TSMIT applies to base salary only, not:

  • Superannuation

  • Bonuses

  • Overtime

2. Ignoring Market Salary Rate

Even if TSMIT is met, underpaying compared to local workers can lead to refusal.

3. Using Outdated Salary Data

Salary benchmarks must reflect current market conditions, not old figures.

4. Incorrect Job Classification

Choosing the wrong occupation can distort salary expectations and lead to rejection.

TSMIT and Pathway to Permanent Residency

TSMIT also impacts long-term migration outcomes.

Why It Matters for PR

  • Higher salaries strengthen PR applications

  • Demonstrates genuine skilled employment

  • Aligns with permanent visa requirements

For visas like Subclass 186, salary consistency is a key factor.

Future Trends in TSMIT Australia

While TSMIT is periodically updated, certain patterns are clear:

Likely Trends

  • Gradual increase aligned with wage growth

  • Stronger enforcement of compliance

  • Greater scrutiny of employer practices

Policy Direction

Australia is shifting toward:

  • High-skilled migration

  • Higher income thresholds

  • Reduced reliance on low-wage roles

How to Stay Compliant (Employers & Applicants)

For Employers

  • Always offer salary above TSMIT

  • Match market salary rates

  • Maintain proper documentation

For Applicants

  • Verify salary before accepting offer

  • Check occupation benchmarks

  • Avoid unrealistic job offers

Frequently Asked Questions

1. What is the current TSMIT Australia salary?

The current TSMIT salary in Australia is AUD 73,150 per year, excluding superannuation.

2. Does TSMIT include superannuation?

No, the temporary skilled migration income threshold applies only to base salary, not super.

3. Can salaries be below TSMIT in regional areas?

No, TSMIT applies nationwide, including regional areas.

4. Is TSMIT the same as the market salary rate?

No. TSMIT is a minimum threshold, while market salary reflects actual industry wages. Employers must meet both.

5. What happens if the salary is below TSMIT?

The visa nomination will be refused, regardless of other factors.

6. Does TSMIT change every year?

It may be updated periodically based on wage trends and government policy.

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Conclusion

The temporary skilled migration income threshold is one of the most critical elements in Australia’s skilled migration system. It ensures fair wages, protects local jobs, and maintains the integrity of employer-sponsored visas.

For both employers and skilled migrants, understanding TSMIT Australia and staying compliant with the latest TSMIT salary Australia standards is essential for successful visa outcomes.

By aligning job offers with both TSMIT and market salary rates—and following official guidance from the Department of Home Affairs—you significantly improve your chances of approval while staying on the right side of immigration law.

Risk & Disclaimer: Migration rules, eligibility criteria, salary thresholds, and processing times may change and vary based on individual circumstances. Always refer to the Department of Home Affairs or consult a registered migration agent for up-to-date and accurate information.

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