If your business has a Designated Area Migration Agreement (DAMA) and you’re preparing to lodge a nomination, you may be wondering how recent changes to the Temporary Skilled Migration Income Threshold (TSMIT) affect your application — especially if your labour agreement was approved before the threshold increased.
This is a common question for employers in regional Australia, and the answer depends on the specific wording of your labour agreement.
What Is the TSMIT and Why Does It Matter?
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The TSMIT is the minimum salary threshold that employers must meet when nominating a worker for certain sponsored visas, including the Subclass 482 Temporary Skill Shortage visa. When the TSMIT increases, employers need to ensure the salary they offer meets the new threshold at the time of nomination.
One of the key benefits of a DAMA is that it can provide concessions to the TSMIT, allowing employers in designated regional areas to offer salaries below the standard threshold for certain occupations. However, how these concessions interact with TSMIT changes can be confusing.
Labour Agreement Approved Before the TSMIT Increase
If your labour agreement was approved before the most recent TSMIT increase, the salary specified in your agreement may reference the old TSMIT amount. The key question is: do you need to meet the new TSMIT when lodging your nomination, or does the old rate still apply?
The answer lies in Schedule 5 of your labour agreement, which sets out the TSMIT concession terms. You need to carefully review the wording to determine:
- Whether the agreement references a specific dollar amount or a percentage of the TSMIT
- Whether the concession is tied to the TSMIT at the time of the agreement or at the time of nomination
- Whether the agreement specifies a minimum salary that is higher or lower than the current TSMIT
Can You Increase the Salary Above What Was Advertised?
Another common question arises when the salary you need to offer at nomination is higher than what was advertised during the labour market testing (LMT) phase. For example, if you advertised a salary range of $68,000 to $75,000 but now need to nominate at $78,000 to meet the new TSMIT.
Migration professionals have noted that nominating at a higher salary than advertised is generally less problematic than nominating at a lower one. The purpose of LMT is to demonstrate that no suitable Australian worker is available for the role. If you’re now offering a higher salary, it strengthens rather than undermines that position.
However, if the salary increase is significant, it may be worth considering whether fresh LMT should be conducted to ensure compliance.
Tips for DAMA Employers
- Review Schedule 5 of your labour agreement carefully before lodging a nomination
- Check the current TSMIT and compare it to the salary in your agreement
- Ensure the nominated salary meets or exceeds whichever threshold applies
- Keep records of your LMT and any salary adjustments
- Seek professional advice if the wording of your agreement is unclear
DAMA nominations involve multiple layers of requirements, and getting the salary right is one of the most critical steps. A mistake here can lead to nomination refusal and significant delays.
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Disclaimer: This blog post is intended for general informational purposes only and does not constitute legal or migration advice. Visa rules and policies can change, and individual circumstances vary. We recommend booking a consultation with one of our registered migration agents to discuss your specific situation.
Reviewed by VisaTasker Migration Services
MARA Registered Migration Agent · MARN 2318017
This article is written and reviewed by VisaTasker Migration Services, a MARA-registered migration agency based in Australia. As registered agents, we are bound by the Migration Agents Code of Conduct and required to provide accurate, up-to-date advice based on Australian migration legislation. Information is reviewed against the latest Department of Home Affairs policy.
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