Temporary Skilled Migration Income Threshold (TSMIT) in 2023.
The Temporary Skilled Migration Income Threshold will increase to $70,000 from 1 July 2023.
It has been held at $53,900 since 2013.
This increase, by the new Labor government, is the figure that was proposed by the Grattan Institute.
This change means that employers might be faced with a higher cost for sponsoring temporary skilled migrants.
For some employers this might mean that temporary overseas workers might become too expensive, compared to local workers or those on permanent visas.
The Temporary Skilled Migration Income Threshold is based on a standard Australian working week of 38 hours.
Superannuation payments, bonuses and commission payments must be paid on top of this.
$70,000 per year works out at about $35.50 per hour, plus the employer would also pay an extra $7,350 in superannuation contributions into the employers personal superannuation account.
A $70,000 gross wage would cost the employer $77,350 per year.
An Australian $70,000 gross annual wage would give the employee $55,383 per year, after $13,217 in tax (18.88%), and $1,400 Medicare levy (2%). Based on 2022/23 Tax Rates.