New 457 visa salary threshold

The Department of Immigration and Citizenship (DIAC) today announced changes to the salary thresholds that apply to the subclass 457 visa program, maintaining the wage growth of temporary skilled workers.

The temporary skilled migration income threshold (TSMIT) will be indexed by 5 per cent for all new nominations, in line with the Australian Bureau of Statistics (ABS) report on average weekly earnings.

From today, the TSMIT will rise to $47 480, an increase that ensures that wages for subclass 457 visa holders keep pace with annual wage growth for all Australians.

“New nominations will not be granted for the subclass 457 program if the market salary rate for the position is below this threshold,” a DIAC spokesman said.

“Existing visa holders will be unaffected unless they change employer and a new nomination is lodged.”

The salary threshold at which English language testing can be waived is also being indexed by 5 per cent to $85 090.

Since major reforms to the subclass 457 program came into effect last September, employers have been required to pay workers the same terms and conditions as Australian workers undertaking equivalent work in the same workplace. This includes paying market salary rates.

Where there is an equivalent Australian worker in the workplace, the market salary rate should be determined by the industrial arrangements that apply to that worker – for example, a collective agreement, award, award conditions with above award salary rates or a common law contract.

If there is no equivalent worker onsite, the employer may reference collective agreements or awards for that position to substantiate the market rate. If there is no applicable agreement or award, other evidence such as remuneration surveys or earnings data must be provided.

“The department has made it clear that temporary skilled overseas workers should not be employed ahead of local workers as a cheaper option,” the spokesman said.

“The subclass 457 visa scheme is a demand-driven program designed to supplement, not replace, the local workforce when there are serious skills shortages.”