The 457 visa scheme has a minimum pay threshold to make sure that the visa holders are financially capable enough to support themselves in Australia. This pay threshold is known as the ‘Temporary Skilled Migration Income Threshold (TSMIT).

The TSMIT is very essential for new qualifying candidates of 457 visas, as generally they are not qualified to get government support and benefits.

Besides, ensuring financial sufficiency of the visa holders for survival, the TSMIT also aims is to ensure the 457 scheme is just used for positions which require experienced and skilled workers, rather than entry-level and lower wage positions.

To make sure that the threshold keeps matching the salary increase in Australia, the Temporary Skilled Migration Income Threshold is annually indexed in keeping with the overall weekly income.

For the time period of February 2011 to February this year, the latest available overall weekly income increased by 4.2%. For the last financial year, the TSMIT was positioned at $49 330 AUD. Hence, indexation on 1 July, 2012 will result in $51 400 TSMIT.

The latest TSMIT will come into effect from July 1, which is assessed during time of taking the visa decisions. Thus, any visa application, irrespective of their lodging time, if evaluated after the period of July 1 2012, have to be paid a salary which is more than $51 400.

The 457 visa scheme identifies that higher wages reduce the threat that lower proficiency in English pose for foreign professionals. Hence, highly paid candidates are not necessarily required to fulfill the English language criteria. The level of salary for this exemption is presently decided as $88 410.

Applying the same rise of 4.2% leads to the increasing English language exemption to $92 000. This new level of exemption will come into effective from 1 July, 2012.