Understanding the Temporary Skilled Migration Income Threshold (TSMIT) is essential for employers sponsoring Subclass 482 visa holders. A common question is whether you can pay below the threshold for part of the year and make it up later with higher pay.
What TSMIT Requires
The TSMIT sets a minimum income level for sponsored workers. It includes guaranteed salary and mandatory allowances but excludes discretionary bonuses and overtime. The Department expects employers to pay at least the TSMIT at all times, not just on average over 12 months.
Why Variable Salaries Fall Short
Some employers assume they can pay below the TSMIT for one period and exceed it later so the annual total still meets the threshold. This is a misconception. Case officers can monitor any time period. If your payroll records show the employee was paid below the TSMIT for any monitoring period, you are breaching sponsorship obligations regardless of annual totals.
For example, paying $80,000 from December to June and $100,000 from July to December when the nomination states $90,000 per year does not satisfy TSMIT because the first period is below the threshold.
Employer Obligations and Consequences
The obligation to meet the TSMIT rests with the employer. Paying less than the approved salary for any period is a breach and may lead to sanctions, including fines and loss of sponsorship approval. Visa holders should not be penalised for employer non-compliance, but their status can still be affected.
Best Practice Tips
- Ensure the sponsored employee’s salary never drops below the current TSMIT, even temporarily.
- Review payroll processes regularly to maintain compliance.
- If the TSMIT is increased by the Department, adjust salaries promptly to meet the new threshold.
- Keep clear records of pay rates and allowances to demonstrate compliance during audits.
Disclaimer: This information is general and should not be taken as legal advice. Requirements change over time and depend on individual circumstances.
Book a Consultation
Unsure about TSMIT compliance for your employees? VisaTasker’s registered migration agents can review your payroll arrangements and help you meet sponsorship obligations.
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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