With the coming changes to the employer sponsored program many clients are looking forward to being able to transition to permanent residency 186 visas after working on a 482 for 2 years.  Short Term occupations will also become available for transition.

It is critical that all applicants remember the increase to the TSMIT that occurred on 1 July 2023.  When many applicants received their 482 visas the TSMIT was set at $53,900.  This was increased on 1 July to $70,000.  Consequently many current 482 visa holders are being paid less than $70,000.  

When an applicant comes to applying for a 186 visa and a new nomination is lodged for that visa the minimum salary must be $70,000.  It is not advisable that a salary increase occur merely to make this application as this may impact the question of genuineness of the position.  The remuneration must reflect the market rate and be at least $70,000.  This will particularly be an issue where there are several people in the business performing the sale role who are being paid under $70,000 per annum.  In this situation the market level for the position would not reflect market if the applicant is all of a sudden being paid more that his/her co-workers.  This in our view would cause and application to fail.

The increase to the TSMIT was designed to force employers to increase salary levels across the board not only to visa applicants.   When calculating the TSMIT the $70,000 does not have to be based on a base salary alone and can include regular overtime and penalties.  If relying on these overtime and allowances it should be reflected in the employment contract and be regular and rostered to support the annum wage.  Recent pay slips should also be available to support these claims showing consistent payments of overtime and penalties.   Superannuation cannot be included.

With a large number of 186 transition applications expected when these changes occur later this year it is advisable that clients address this issue now.

‍