Concessions

For some occupations, concessions for Temporary Skilled Migration Income Threshold (TSMIT) and English language requirement may be applied for.

AGE

Age concessions for the ENS and SESR visa programs apply as follows:

• 55 years for Overseas Workers in skill level 1-4 occupations; and
• 50 years for Overseas Workers in skill level 5 occupations

PERMANENT RESIDENCY (PR)

A permanent residency pathway for Overseas Workers may be available via the Subclass 494 (Skilled Employer Sponsored Regional) (SESR) and through the Employer Nomination Scheme (ENS) Subclass 186 visa programs.

SALARY (TSMIT) CONCESSION

An employer has to show that the salary offered to a prospective Overseas Worker is at least what an Australian citizen or permanent resident could expect doing the same job in the same location.

There is also a minimum threshold that must be paid. From July 1, 2024, the threshold, known as the Temporary Skilled Migration Income Threshold (TSMIT), is $73,150pa.

Refer to the Department of Home Affairs fact sheet on Designated Area Migration Agreement AMSR and TSMIT requirements for more detailed information.

Concessions on TSMIT are available for employers for the occupations listed in the Table of Approved Occupations. There must be a strong business case provided to support a TSMIT concession.

For the concessional occupations, an employer must provide the Overseas Worker with an amount of Annual Earnings which is equal to or greater than the Annual Market Salary Rate and Reduced TSMIT.

• ‘Annual Market Salary Rate’ has the same meaning as in the Migration Regulations and is determined in accordance with the instrument which specifies the method for determining the Annual Market Salary Rate for an occupation nominated under section 140GB of the Migration Act or an occupation in relation to which a position is nominated under regulation 5.19 of the Migration Regulations.
• ‘Reduced TSMIT’ means 90% of TSMIT.

 

TSMIT CONCESSION TYPE 1

Reduced TSMIT, and Earnings to include Guaranteed Overtime

‘Reduced TSMIT’ applies.

‘Earnings’ has the same meaning as in the Migration Regulations except that it also includes guaranteed overtime where:

• The guaranteed overtime is consistent with standard industry practice within the sector;
• There are equivalent Australians performing equivalent work in the employer’s workplace at the same location and whose arrangements have been guaranteed in an industrial arrangement for those workers; and
• At the time of Nomination, the employer provides evidence that the hours are guaranteed within the employment contract for the Overseas Worker, and confirms the hours are consistent with the National Employment Standards; and
• Application of the concession is subject to the Earnings being in line with applicable Industrial Awards or Enterprise Agreements and not below levels for Australian employees in comparable roles.

 

TSMIT CONCESSION TYPE 2

Reduced TSMIT, and Earnings to include Guaranteed Overtime and Non-Monetary and Monetary Benefits
Same as Type 1 with the addition that ‘Earnings’ also includes Monetary and non-monetary benefits, where:

• The benefits support the living costs of the Overseas Worker;
• The Overseas Worker would have incurred that cost had it not been provided by the Third Party;
• The benefits are quantifiable;
• The benefits are consistent with the terms and conditions provided to existing Australians employed in a similar position;
• The benefits are guaranteed in the employment contract; and
• The benefits exclude contingent payments such as overtime (other than guaranteed overtime) bonuses and commissions.

When calculating an Overseas Worker’s Earnings, the value of board (comprising accommodation and meals) should not exceed the Regional Victoria Homestay fee (source https://www.homestaynetwork.org/homestay-regional-victoria).

 

ENGLISH LANGUAGE CONCESSION

For the Occupations listed in the Table of Approved Occupations, the following English language concessions are available:

• TSS 482 & SESR 494 concession: overall score of IELTS 5.0, with no minimum component score (unless registration or licensing requires a higher level of English, in which case that higher level of English applies)
• ENS concession: average score of IELTS 5.0 with no component being less than IELTS 4.0 (unless registration or licensing requires a higher level of English in which case that higher level of English applies).

• The English language requirements may be met if a visa applicant would be regarded as an ‘exempt applicant’ for the purpose of the legislative instruments applicable to TSS, SESR and ENS visas.

IELTS means the International English Language Testing System or the equivalent in another accepted English language test.

Other accepted English language tests are:

• Occupational English Test (OET);
• Test of English as a Foreign Language internet-based test (TOEFL iBT);
• Pearson Test of English (PTE) Academic test; or
• Cambridge English: Advanced (CAE) test.

An exemption applies to citizens of the UK, US, Canada, NZ and Ireland. There are a few other categories of people who may be granted an exemption.