What Changed on 25 March 2026

A new legislative instrument took effect on 25 March 2026, overhauling how sponsors must demonstrate the Annual Market Salary Rate (AMSR) when nominating workers under the employer-sponsored visa framework. The change applies to nominations under Subclass 482 (Skills in Demand), Subclass 494 (Skilled Employer-Sponsored Regional), and Subclass 186 (Employer Nomination Scheme).

Previously, sponsors often had to rely on industrial instruments such as enterprise agreements to substantiate the nominated salary. Where those instruments lagged behind real-world remuneration, particularly in fast-moving sectors such as technology, resources, and professional services, sponsors faced genuine difficulty establishing an accurate AMSR.

The New Flexibility: Payroll Data and Salary Surveys

Under the updated rules, sponsors may now rely on actual payroll data or external salary surveys to evidence the AMSR, where enterprise agreements do not reflect current market conditions. This gives HR teams the ability to attach existing remuneration policies and recent payslips directly to the nomination, rather than negotiating bespoke enterprise agreement clauses.

The reform is expected to reduce nomination preparation time and address the historical mismatch between industrial instruments and private-sector salary movements. Migration consultancy Konnecting and the Migration Institute of Australia's quarterly meeting documents have both confirmed the new instrument has been published.

What Has Not Changed: Salary Floor Requirements

The new flexibility does not remove existing salary floor obligations. Sponsors must still demonstrate that the nominated salary satisfies all of the following:

• The salary is at least equal to what an equivalent Australian worker would be paid in the same role.
• The salary meets or exceeds the Temporary Skilled Migration Income Threshold (TSMIT) (for Subclass 482 Temporary Skills shortage stream nominations) or the Core Skills Income Threshold (CSIT) (for Core Skills stream nominations).
• The nominated position is genuine and the salary is not artificially suppressed.

Note that both the TSMIT and CSIT are scheduled to rise by 3.9% on 1 July 2026. Sponsors planning nominations should factor in this indexation when benchmarking salaries now.

Who Is Affected

The change applies retrospectively to nominations already lodged but not yet decided as at 25 March 2026. This means pending nominations may benefit from the updated evidentiary approach without the need to withdraw and re-lodge.

Employers across all sectors are affected, but the practical benefit is most pronounced in industries where enterprise agreements consistently understate market rates, including information technology, mining and resources, and professional services.

What Scrutiny to Expect from Home Affairs

Migration practitioners have cautioned that greater flexibility in evidence type does not mean reduced scrutiny. Home Affairs officers are expected to assess the consistency and credibility of the evidence package as a whole. Sponsors relying on payroll data or salary surveys should prepare to provide supporting documentation such as:

• Organisation charts confirming the nominated position's level and reporting structure.
• Detailed position descriptions aligned to the nominated occupation.
• External benchmarking reports from recognised salary survey providers.
• Internal remuneration policies applied consistently across the workforce.

Nominations that rely on salary figures not supported by coherent documentation risk refusal or significant delays.

Practical Steps for Sponsors

1. Audit existing payroll records to confirm the nominated salary is consistent with what comparable employees in the organisation actually receive.
2. Source an external salary benchmark from a recognised provider if internal data alone is insufficient to establish the AMSR.
3. Review pending nominations lodged before 25 March 2026 to assess whether updated evidence should be submitted proactively.
4. Account for the 1 July 2026 threshold increase when calculating whether the nominated salary will remain compliant post-indexation.
5. Ensure Standard Business Sponsorship compliance, as inadvertent underpayment findings arising from AMSR miscalculations can jeopardise sponsorship status.

Key Takeaways

• From 25 March 2026, sponsors may use payroll data or external salary surveys to establish the AMSR for Subclass 482, 494, and 186 nominations.
• The change applies retrospectively to undecided nominations lodged before that date.
• Salary floor obligations, including TSMIT and CSIT compliance and the equivalent-Australian-worker test, remain unchanged.
• Home Affairs will expect a consistent, well-documented evidence package regardless of which AMSR methodology is used.
• The TSMIT and CSIT are set to increase by 3.9% on 1 July 2026. Sponsors should benchmark now to avoid non-compliance at the time of decision.

The content of this article is intended for general informational purposes only and does not constitute legal advice. Immigration law is complex and subject to change. The information provided may not reflect the most current legal developments. For advice specific to your circumstances, please consult a registered Australian migration lawyer. For full terms governing use of this website and its content, please refer to our Website Terms and Conditions.

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