Amendments to Income Thresholds for Subclass 457 Visas

As of 1 July 2010, the Temporary Skilled Migration Income Threshold (TSMIT) for subclass 457 Temporary Work visas will increase from $AUD45,220 to AUD$47,480. The TSMIT was introduced in September 2009 and is the minimum market salary rate of an occupation that an applicant can have to qualify for a subclass 457 visa. Notably, this rate is exclusive of superannuation.

An employer is still required to pay a temporary migrant worker the market rate for their occupation which may be much higher than the TSMIT.

Determining the TSMIT for a given occupation can be quite complicated and and subject to interpretation by case officers. It is therefore important that sufficient material is provided to prove the market rate of an occupation from the outset.

Moreover, the minimum salary level for applicants seeking an exemption from the English language proficiency test will increase from the current $AUD81,040 to $AUD85,090, unless other exemptions to English language requirements apply. The current exemptions from English language proficiency testing continue to include the following situations:

  1. Holding United Kingdom, Canadian, United States or New Zealand citizenship;
  2. Being nominated for an occupation where the requirements for registration, licensing or membership do not necessitate having proficient English; and
  3. Being nominated for an occupation which is listed in a legislative instrument as an exempt occupation such as managers or certain professionals.

Should English language proficiency testing exemptions not apply, primary applicants will be required to undertake the International English Language Testing System (IELTS) examination and score a minimum of 5.0 in all four sections of the test. For occupations requiring high level English skills, a greater IELTS score is necessary in some cases.

This is general information only and does not constitute legal advice.

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