Effective March 25, 2026, the Migration Legislation Amendment (Annual Market Salary Rate) Instrument 2026 (LIN 26/038) allows more flexibility for employers who must determine the correct Annual Market Salary rate (AMSR).
The legislation applies to the following visas:
- Subclass 482 (Skills in Demand) visa (SID);
- Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) visa (SESR);
- Subclass 186 (Employer Nominated Scheme) visa (ENS);
- Subclass 187 (Regional Sponsored Migration Scheme) visa (RSMS).
Employers who wish to nominate workers for subclasses 482, 494, 186 and 187 must meet certain requirements. If they will pay the overseas worker an annual salary less than AUD 250,000 they must show that:
- they have determined the annual market salary rate (AMSR) correctly and
- they will not pay the overseas worker less than the AMSR, that is, less than an Australian worker would be paid and
- both the AMSR and the overseas worker’s pay, excluding non-monetary benefits, is no less than the relevant income threshold.
This instrument allows flexibility in determining the AMSR in circumstances where there is a relevant Fair Work instrument, state industrial instrument or transitional instrument.
The amendments allow the person making the nomination to use an alternative methodology for determining the AMSR, based on either relevant employment documents where there is an equivalent Australian worker, or on relevant information where there is not an equivalent Australian worker. In either scenario, the alternative methodology for determining the AMSR may only be utilised where the resulting amount is greater than the amount that is paid (or would be paid) to an equivalent Australian worker under the Fair Work instrument.
Regardless of the way in which the AMSR is determined, the Migration Regulations require the AMSR to be above a relevant threshold. For a SESR or RSMS visa, the AMSR must be at least the temporary skilled migration income threshold (currently AUD 76,515). For a SID or ENS visa, the AMSR must be at least the core skills income threshold (currently AUD 76,515). For SID visa applications in the specialist skills stream, a higher threshold (currently AUD 141,210) applies.
Erickson Insights & Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.