Temporary Skilled Migration Income Threshold (TSMIT) concessions under the Orana DAMA
The TSMIT value is set by legislation to ensure that a migrant worker can financially support themselves in Australia, and acknowledges the additional costs temporary residents incur (such as health care and education costs). The current value of the TSMIT is $53,900 excluding superannuation.
When calculating whether the salary paid by an employer meets the TSMIT, annual earnings may consist of the base salary plus guaranteed earnings such as housing, company car and guaranteed overtime where this is the industry standard. If an employer intends including these guaranteed earnings to meet TSMIT requirements, they must be valued and written into the agreed employment contract.
Use of concessions must not undermine relevant industrial awards nor market salary rates for an equivalent Australian employee in the same location.
There are two TSMIT concessions available under the Orana DAMA
Concession Type 1
Businesses must demonstrate that annual monetary earnings will be at least 90% of TSMIT whilst also meeting Award requirements and Annual Market Salary Rate expectations for the specific occupation and location.
Concession Type 2
Businesses must demonstrate that monetary earnings will be at least 90% of TSMIT and non-monetary earnings (food and board) must not be more than 10% of TSMIT, with the total package being at least equal to the TSMIT.
There are very specific rules as to what constitutes eligible non-monetary earnings:
- The benefits must relate to the actual living costs of the employee, and they would have genuinely been paid by the employee had the employer not paid them
- The benefit must be measurable (and able to be documented/verified)
- The benefit must be guaranteed in the employment contract and must be consistent with that of other, similar employees
- The benefit excludes non-guaranteed overtime, bonuses and commissions.
As per Concession Type 1, total earnings must also at least meet award requirements and Annual Market Salary Rate expectations for the specific occupation and location.