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AR LAW Services  |  Lawyers & Consultants  |  Masters of Australian Migration and Visa Law

Likely changes to 457 visa – increase in TSMIT

Temporary Skilled Migration Income Threshold (TSMIT) appears likely to increase at the beginning of the 2016/2017 financial year, employers considering sponsorship of 457 visa holders are being urged to nominate workers as soon as possible, to prevent increased costs associated with the new income threshold.

Those Employers who are concerned about how they may be affected by these changes to the TSMIT may be able to bring forward their lodgment of a genuine position nomination, so as to retain the $53,900 TSMIT rate for a period of 12 months (the period of time a subclass 457 nomination application is valid). This will safeguard their application so as not to have to pay the new rate, which at $59,540 represents a 10% increase from the original rate. Once a genuine position application has been lodged, a 457 visa application can be lodged (which also has a validity period of 12 months.

Businesses operating in hospitality and the nursing industry are likely to be most affected by this increased income threshold, as workers in these occupations are usually on low wages. At nearly $60,000 per year, the new rate for the TSMIT is good news for overseas workers, but not necessarily for their bosses – they will be required to fork out an annual salary which  is well above the market rate, in hospitality and nursing based occupations. Local workers, such as cooks and pastry chefs, currently earn an average of $52,500 – $55,000 a year. Similarly, the health care industry employs nurses for around $55,000 a year (excluding over time/penalty rates). Over a period of two years and with multiple migrant workers in the one facility, this new payment scheme could prove to be a costly option for some employers.

Once a genuine position application has been lodged, a 457 visa application can be lodged (which also has a validity period of 12 months. The applicable TSMIT governing market rates is the TSMIT in place at the time the nomination application is approved.

Some of the eligible sponsorship positions that are most likely to be affected include the following:

  • Cook or Chef
  • Pastry cook
  • Café or Restaurant Manager
  • Accommodation and Hospitality Management
  • Hotel or Motel Manager
  • Program or Project Administrator
  • General Accountant


If you or anyone you know is about to lodge a 457 visa or

has had a 457 visa refused or cancelled please speak to one of the lawyers at our office for thorough advice on your options.

Call   03 9614 0218 or email

to arrange a free initial 30 Minute consultation at our Melbourne office.

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Note: this update, or any previous updates on this page, do not constitute legal advice and should not be relied upon as such. Please call our office to seek professional advice before acting or relying on any of the content on this page