TSMIT salary explained: how it compares to award rates and the national minimum wage
The TSMIT salary is the minimum pay for sponsoring skilled migrants. See how it stacks up against award rates, the national minimum wage, and the national earnings line.
The TSMIT salary of $76,515 per annum sits at an index of approximately 70.6 against the national full-time adult ordinary-time earnings line of $108,352.
What is the TSMIT salary and how does it compare to awards?
The Temporary Skilled Migration Income Threshold (TSMIT) is the minimum annual salary an employer must pay to sponsor a skilled migrant under Australia’s temporary skilled visa programs, including the Subclass 482 Skills in Demand visa. As of 1 July 2025, the TSMIT is $76,515 per annum, plus superannuation. This figure is set by the Department of Home Affairs and is indexed annually based on average weekly earnings.
Where does the TSMIT sit on the salary index?
The Salary Index measures a gross annual salary against the national line of full-time adult ordinary-time earnings. According to the Australian Bureau of Statistics’ Average Weekly Earnings for May 2026, that line is $2,083.70 per week, or $108,352 annualised. The TSMIT of $76,515 gives an index of about 70.6 – well below the national average, but significantly above the national minimum wage.
For context, the national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 annualised, which sits at index 48.2. The TSMIT is about 46% higher than the minimum wage. Junior rates are lower: for example, a 20-year-old on the junior minimum earns $25.83/hr, annualised $51,000, index 47.1.
TSMIT versus award rates
A modern award sets minimum pay and conditions for a specific industry or occupation. Award rates are often lower than the TSMIT, especially for entry-level or trade roles. The Fair Work Commission reviews award rates annually; from 1 July 2026, award minima rose by 4.75%.
A comparison from shows the gap for workers with one year of experience:
- Carpenter: award rate ~$30.42/hr, annual $60,319 – TSMIT $76,515, difference $16,196
- Motor Mechanic: award rate ~$25.03/hr, annual $49,600 – difference $26,915
- Chef: award rate ~$24.92/hr, annual $49,380 – difference $27,135
- Cook: award rate ~$23.93/hr, annual $47,400 – difference $29,115
These are indicative rates; actual award rates vary by classification and location. The TSMIT is a fixed threshold, while award rates are structured by skill level and experience. This creates a situation where an employer may be legally required to pay a sponsored worker more than the award rate for an Australian worker doing the same job.
How TSMIT is set and indexed
The TSMIT was introduced in 2013 at $53,900 and remained unchanged for a decade. From 1 July 2023 it jumped to $70,000, then $73,150 in 2024, and $76,515 in 2025. The indexation is based on average weekly earnings, so it tends to rise faster than award rates, which are based on the annual wage review. The 2016 review noted that the average base rate of pay for 457 visa holders was $88,400 in 2015-16, well above the then-TSMIT of $53,900.
Implications for employers and workers
For employers, the TSMIT is a floor, but the actual salary must be the higher of the TSMIT or the Annual Market Salary Rate (AMSR). For lower-skilled occupations (skill levels 3 and 4), the AMSR may be close to the award rate, which can be well below TSMIT. This forces employers to pay above the market rate for sponsored workers. The pay guides on award rates can help employers understand minimum obligations.
For workers, the TSMIT ensures a minimum standard of living, but it does not account for dependants or higher living costs for temporary migrants, as noted in the 2016 review.
How the index helps
The Salary Index allows you to compare any salary to the national line. For example, a chef on the TSMIT of $76,515 sits at index 70.6, while the national average for the accommodation and food services industry is index 72.5 industries. That industry index is close to the TSMIT, suggesting that many sponsored chefs may be paid near the threshold.
You can also compare by state – for instance, Western Australia has an index of 106.9, much higher than the TSMIT, while Tasmania is 88.6. The TSMIT is a national threshold, but local market rates vary.
The bottom line
The TSMIT salary is a key benchmark for skilled migration, but it often sits well above award rates for trades and hospitality. Employers need to budget for the gap, and workers can use the index to see how their sponsored salary compares to the national average. The Salary Index offers more comparisons across industries and states.
Questions people ask
What is the TSMIT salary?
The TSMIT (Temporary Skilled Migration Income Threshold) is the minimum annual salary an employer must pay to sponsor a skilled migrant under temporary skilled visas like the Subclass 482. As of 1 July 2025, it is $76,515 per annum plus superannuation.
How does the TSMIT compare to award rates?
Award rates for many occupations, especially in trades and hospitality, are significantly lower than the TSMIT. For example, a motor mechanic on the award rate earns about $49,600 annually, while the TSMIT is $76,515. This gap can make it costly for employers to sponsor workers in lower-skilled roles.
Is the TSMIT indexed each year?
Yes, the TSMIT is indexed annually on 1 July based on average weekly earnings. It rose from $53,900 in 2013 to $70,000 in 2023, $73,150 in 2024, and $76,515 in 2025.