Understanding the Temporary Skilled Migration Income Threshold (TSMIT) and variable payment practices is crucial for employers sponsoring workers on a Subclass 482 Temporary Skill Shortage visa. Some sponsors wonder if they can vary salaries during the year as long as the total annual earnings exceed the TSMIT. This approach can be risky.
Why TSMIT Matters
The TSMIT is the minimum salary that must be paid to a sponsored worker. It is set by the Minister and reviewed periodically. Employers must guarantee a base salary and any guaranteed bonuses or allowances that meet or exceed the TSMIT. Non-monetary benefits, discretionary bonuses, and overtime do not count toward the threshold.
The Variable Salary Myth
Some employers think they can pay less than the TSMIT for part of the year as long as they make up the difference later. Monitoring periods can be any slice of time the Department chooses. If a Department officer sees a period where pay falls below the approved salary or TSMIT, the sponsor may be sanctioned. For example:
- Nomination states earnings of AUD $90,000 per year.
- Sponsor pays $80,000 for six months and then $100,000 for the next six months.
- Even though the total reaches $90,000, the six-month period below the TSMIT exposes the sponsor to compliance action.
The salary must consistently demonstrate that the TSMIT is met at all times, not just on average.
Employer Obligations
Meeting the TSMIT is an employer obligation. Visa holders should not be asked to accept salaries below the threshold. Sponsors must ensure:
- The nominated annual salary meets or exceeds the current TSMIT and market salary rate.
- Payments stay above TSMIT for every pay cycle and monitoring period.
- Records clearly show guaranteed earnings, separate from non-guaranteed benefits.
Best Practice Tips
- Review your payroll processes to ensure salaries never fall below the nominated amount or TSMIT.
- Adjust salaries as soon as the TSMIT is updated by the Department.
- Keep clear pay slips and documentation in case of audits.
- Seek professional advice if you are unsure about TSMIT calculations or obligations.
Disclaimer: This is general information only and should not be considered legal advice. Salaries and TSMIT requirements change periodically. For personalised guidance on meeting TSMIT obligations, consult a registered migration agent.
📞 Book a Consultation
Concerned about TSMIT compliance for your 482 workers? VisaTasker can review your payroll practices and advise on meeting income threshold requirements.
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