Skilled‑visa sponsors must now calculate the Annual Market Salary Rate (AMSR) using a broader set of evidence, a change aimed at preventing nominations from being rejected simply because an award‑based wage falls below the income thresholds.
Visas to which the AMSR applies
- Subclass 482 – Skills in Demand visa
- Subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa
- Subclass 186 – Employer Nomination Scheme visa
- Subclass 187 – Regional Sponsored Migration Scheme visa
Current income thresholds
| Threshold type | Amount (AUD) | Applies to |
|---|---|---|
| Temporary skilled migration | $76,515 | Subclass 494 and 187 nominations |
| Core skills | $76,515 | Subclass 482 (core stream) and 186 nominations |
| Specialist skills | $141,210 | Subclass 482 (specialist stream) |
A nominee’s annual earnings are exempt from AMSR evidence only when they reach $250,000.
What the amendment changes
The amendment (see the new instrument) revises how the AMSR is calculated when a Fair Work instrument (modern award, state industrial instrument, or transitional instrument) applies to the position.
Previous approach – The AMSR had to be set at the wage prescribed by the Fair Work instrument, even if an equivalent Australian worker was being paid more. Consequently, if the award wage was below the relevant income threshold, the nomination could be refused, regardless of the employer’s willingness to pay higher.
New approach – Employers can now use alternative evidence:
- If an equivalent Australian worker exists: employment contracts, payslips, or other documentation of that worker’s remuneration can serve as the benchmark.
- If no equivalent Australian worker exists: reputable external sources such as recent job advertisements or remuneration surveys may be used.
The evidence must never be lower than the minimum stipulated by the Fair Work instrument, to ensure compliance with minimum employment standards.
How the three figures interact
The relationship can be expressed as a simple inequality:
Income threshold ≤ AMSR ≤ nominee’s earnings- The income threshold is the statutory minimum for the visa stream.
- The AMSR is the market salary determined by the employer using the allowable evidence.
- The nominee’s earnings must meet or exceed the AMSR.
Additional considerations:
- The terms and conditions (e.g., superannuation, leave entitlements) used to calculate the AMSR must match those offered to the nominee.
- Certain labour agreements may provide discounts to the income threshold.
Implementation timeline
- The amendment takes effect on 25 March 2026.
- It applies retrospectively to all nominations that have not yet been finally determined, indicating that earlier determinations may have been based on an incorrect interpretation of the AMSR rules.
Practical impact for sponsors
- Sponsors can now demonstrate market‑rate salaries with contracts or external salary data, reducing reliance on award wages that may sit below the thresholds.
- Care must be taken to ensure the chosen evidence satisfies both the Fair Work minimums and the inequality above, otherwise the nomination may still be refused.
Employers should review pending and upcoming nominations to confirm that the AMSR evidence aligns with the revised rules and that nominee salaries meet or exceed the calculated AMSR.
Source article: www.peakmigration.com.au
