The Temporary Skilled Migration Income Threshold (TSMIT) applies to the 482 TSS and 186 nomination applications.
In order for your nominated role to be sponsorable and eligible, your sponsoring employer needs to show that the Australian market rate for your role is at least equal to TSMIT (which is currently AUD $53,900 per annum). With this requirement, the Department case officer is comparing the Australian market salary rate for the nominated occupation (not your actual salary) against TSMIT. If the market rate for the nominated role is below TSMIT, then the position itself is deemed to be not eligible and this may result in the refusal of the business nomination application.
Consequently, even if your (proposed) guaranteed annual salary is above the market rate and TSMIT, if the Australian market rate itself is below TSMIT, then the position is not sponsorable.
What is the Australian market rate for my role?
Your sponsoring employer needs to demonstrate that the terms and conditions of your employment are no less favourable than the terms and conditions of employment for an equivalent Australian citizen or permanent resident. This can be shown by providing a copy of the contract of an Australian citizen or permanent resident that is working in the same position and location as your nominated role.
Relevant industrial award
Your nominated occupation may be governed by a relevant industrial award which will specific the salary that you should be paid. For example, a registered nurse working in Victoria will have his or her terms and conditions of employment governed by the Nurses Award 2010, including the salary that he or she should be paid.
You can be paid a salary higher than the level specified in the relevant award.
No equivalent Australian working
Your employer may not have an Australian citizen or permanent resident that works as an employee in the same role and location as your nominated role.
If this is the case, then your employer can provide evidence of what the Australian market salary rate is for your nominated role and show that your GAE is at least equal to the market rate. This is generally demonstrated by providing Australian market salary survey data. This data needs to be relevant to the nominated role and the location where you will be working (i.e. market salary data, such as Hays Salary Guides, will usually give specific data for various capital cities around Australia).
Finding the appropriate market data for your role/industry is really just a matter of completing research. So here some of the resources that I use for finding market data:
Example where the ‘Australian market rate’ is below TSMIT
Max has been nominated by XYZ Pty Ltd. XYZ Pty Ltd currently employs several Australian employees in its workplace who perform the same work as that which Max will undertake as a 457 visa holder. XYZ Pty Ltd currently pays these Australian employees $50,000 annually as per the industrial award that applies in that workplace. Consequently, $50,000 is the applicable ‘market salary rate’ as dictated by the relevant industrial award
In this situation, the 457 nomination would be refused on the basis that the ‘Australian market rate’ for the nominated role is below TSMIT. Even if XYZ Pty Ltd is willing to pay Max a salary of $53,900 or above, this will not be sufficient. As explained above, this requirement is comparing the Australian market salary rate for the nominated occupation, not the applicant’s actual salary, against TSMIT.