TSMIT: Minimum Salary Threshold for Employer Sponsorship
The Temporary Skilled Migration Income Threshold (TSMIT) is the minimum salary an employer must pay a sponsored overseas worker. For the Core Skills stream, TSMIT is $73,150 per year. For the Specialist Skills stream, the threshold is $135,000 per year. The salary must be at least the TSMIT or the annual market salary rate for the occupation, whichever is higher. TSMIT is calculated based on guaranteed base salary excluding superannuation, bonuses, and non-monetary benefits.
Quick Facts
| Stream | Minimum Salary |
|---|---|
| Core Skills | $73,150/year |
| Specialist Skills | $135,000/year |
| Essential Skills | Varies by occupation |
| Regional 494 | $73,150/year |
| Annual review | Yes — adjusted periodically |
What Counts Toward TSMIT
The TSMIT calculation is specific about what constitutes "salary."
Included
- Base salary: Your guaranteed annual earnings before tax
- Guaranteed allowances: Fixed allowances paid regularly (e.g., tool allowance, on-call allowance)
Excluded
- Superannuation: The 12% employer super contribution is NOT counted. If your package is $85,000 including super, your base salary is approximately $75,893 — which is above TSMIT, but only just.
- Bonuses: Performance bonuses, signing bonuses, and discretionary payments are excluded because they're not guaranteed.
- Non-monetary benefits: Company car, housing, health insurance, phone allowances — these don't count.
- Overtime: Extra hours and overtime payments are excluded.
- Commission: Sales commissions and variable income don't count.
- Reimbursements: Travel expenses, relocation costs, and similar reimbursements are not salary.
The Market Salary Rate
The employer must pay TSMIT OR the annual market salary rate, whichever is higher. The market salary rate is what an equivalent Australian worker would be paid for the same role in the same location.
Example: If TSMIT is $73,150 but the market rate for a software engineer in Sydney is $120,000, the employer must pay at least $120,000.
The Department assesses market salary rate using:
- Industry salary surveys
- Comparable positions in the company
- Comparable positions at competitor organisations
- Enterprise agreements or modern awards
TSMIT by Visa Stream
Core Skills: $73,150
The standard threshold for most employer-sponsored occupations on the Core Skills list. This replaced the old TSS visa TSMIT of $70,000 in 2024.
Occupations in this stream include IT professionals, engineers, accountants, nurses, and many other skilled roles. The vast majority of employer-sponsored workers fall into this stream.
Specialist Skills: $135,000
The premium threshold for high-income professionals. No occupation list required — any occupation qualifies if the salary reaches $135,000.
This stream attracts executives, senior specialists, and high-value professionals. The high salary eliminates the need for labour market testing and skills assessments.
Essential Skills: Variable
The Essential Skills stream allows salaries below $73,150 for specific shortage occupations. The threshold varies by occupation and is set through labour agreements or Ministerial determination.
Regional 494: $73,150
The Subclass 494 regional visa uses the same $73,150 TSMIT. However, some DAMA arrangements allow concessions of 10-30% below TSMIT for designated regional areas.
How TSMIT Affects Your Options
If Your Salary Is Above $135,000
You qualify for the Specialist Skills stream — the broadest, fastest, and most flexible pathway. No occupation list restrictions, no skills assessment, no labour market testing. See our streams comparison.
If Your Salary Is $73,150–$134,999
You qualify for the Core Skills stream, provided your occupation is on the Core Skills Occupation List. You'll need to meet all standard requirements including skills assessment and labour market testing.
If Your Salary Is Below $73,150
Standard sponsorship is generally not available. Your options are:
- Labour agreements: Some DAMAs and industry agreements allow below-TSMIT salaries
- Essential Skills stream: If your occupation qualifies
- Salary negotiation: Discuss a salary increase to reach the threshold
- Different visa pathway: Consider skilled migration, regional visas, or student visas
TSMIT Calculations: Examples
Example 1: Software Developer, Sydney
| Component | Amount |
|---|---|
| Base salary | $95,000 |
| Superannuation (12%) | $11,400 |
| Annual bonus (discretionary) | ~$10,000 |
| Total package | $116,400 |
| TSMIT calculation | $95,000 (base only) |
| Meets TSMIT? | Yes ($95,000 > $73,150) |
Example 2: Chef, Melbourne
| Component | Amount |
|---|---|
| Base salary | $65,000 |
| Superannuation (12%) | $7,800 |
| Overtime (estimated) | $8,000/year |
| Total package | $80,800 |
| TSMIT calculation | $65,000 (base only) |
| Meets TSMIT? | No ($65,000 < $73,150) |
The chef would need a salary increase to $73,150 or a labour agreement that allows a lower threshold.
Example 3: Part-Time Worker
TSMIT applies pro-rata for part-time positions. If the role is 0.6 FTE (3 days per week), the pro-rata TSMIT is $73,150 × 0.6 = $43,890.
However, the hourly rate must still be equivalent to at least $73,150 for full-time work. You can't pay a lower hourly rate just because the worker is part-time.
TSMIT History and Changes
| Year | TSMIT Amount |
|---|---|
| 2013–2023 | $53,900 (frozen for a decade) |
| July 2023 | $70,000 (major increase) |
| December 2024 | $73,150 (indexed) |
| 2026 | $73,150 (current) |
The TSMIT was frozen at $53,900 for nearly a decade, despite wage growth. The 2023 increase to $70,000 was the first change in over 10 years and represented a significant policy shift. Annual indexation now applies.
Frequently Asked Questions
Is TSMIT before or after tax?
Before tax (gross salary). The $73,150 is your gross annual salary before tax and superannuation.
Does superannuation count toward TSMIT?
No. Superannuation is paid by the employer on top of your salary and is not included in the TSMIT calculation.
What if my salary is exactly $73,150?
That meets TSMIT, but only if the market rate for your occupation isn't higher. If comparable Australian workers earn $80,000, you must be paid at least $80,000.
Can the employer include allowances to reach TSMIT?
Fixed, guaranteed allowances (like a tool allowance or shift allowance) can be counted. Variable or discretionary allowances cannot.
Is TSMIT adjusted for regional areas?
The standard TSMIT applies nationally. However, some DAMAs allow concessions of up to 30% below TSMIT in designated regional areas.
What happens if my salary drops below TSMIT during the visa?
This would be a breach of the sponsorship conditions. The employer is obligated to pay at least the nominated salary for the duration of the visa. A salary reduction below TSMIT should be reported and could result in sponsorship sanctions.
