In March 2026, the Australian Government introduced the Migration Legislation Amendment (Annual Market Salary Rate) Instrument 2026, which has significant implications for employer-sponsored migration programs. This amendment affects how employers determine the salary offered to overseas workers and is particularly relevant for businesses sponsoring skilled workers to Australia.
What is the Annual Market Salary Rate?
The Annual Market Salary Rate (AMSR) is the salary that an Australian worker would typically earn for the same role in the same location. Employers sponsoring overseas workers must demonstrate that the offered salary meets or exceeds the AMSR. Additionally, the salary must meet the minimum migration income threshold applicable to the visa subclass. Employers are required to pay whichever amount is higher.
The AMSR is applied primarily to employer-sponsored visa subclasses, including Subclass 482 (Skills in Demand visa), Subclass 186 (Employer Nomination Scheme), and Subclass 494 (Skilled Employer Sponsored Regional visa). These visas are widely used by Australian employers to fill skill shortages across various industries.
Key Changes Introduced in 2026
Prior to this amendment, the system relied heavily on rigid salary benchmarks, industrial awards, or pay scales. This often created challenges for employers sponsoring workers in specialised or emerging roles, where direct comparisons to Australian employees might not exist.
The 2026 amendment introduces greater flexibility in establishing the AMSR. Employers can now use a variety of evidence to demonstrate that the offered salary reflects market conditions, provided the resulting salary is not lower than the amount specified under the applicable industrial instrument. Acceptable evidence includes internal employment salary records, industry salary surveys, job advertisements for similar roles, and employment contracts or payslips of comparable Australian workers. The salary cannot fall below the minimum rate specified by relevant industrial instruments or awards.
For positions without a directly comparable Australian worker, employers can rely on labour market information such as industry wage reports, salary benchmarking data, and recruitment advertisements. This change provides clarity and reduces uncertainty for employers sponsoring workers in specialised fields.
Impact on Employers and Visa Applicants
Employers sponsoring overseas workers must ensure their salary offers are supported by credible evidence. This may involve reviewing internal pay structures, sourcing independent salary data, and documenting the decision-making process. Failure to comply can lead to visa refusals or compliance investigations.
For visa applicants, the amendment may make it easier to secure employer-sponsored visas for roles that previously faced strict salary assessment criteria. While the salary requirements remain the same, the flexibility in demonstrating compliance allows more employers to meet AMSR obligations and sponsor overseas workers without unnecessary delays. Crucially, this instrument applies retrospectively, meaning it benefits not only new applications lodged after March 25, 2026, but also undecided applications currently in the processing queue.
Why the Change Matters
The government introduced this amendment to better reflect real labour market conditions and to ensure migrant workers receive salaries comparable to Australian workers. It also reduces technical refusals caused by rigid benchmarks and strengthens protections against worker exploitation.
By providing a more flexible approach, the amendment ensures that skilled migration continues to support Australia’s labour market needs while maintaining fairness and transparency in wage standards.
Next Steps for Employers and Visa Holders
Employers planning to sponsor overseas workers should review the salary they intend to offer and ensure it aligns with the AMSR. Professional migration advice can assist in gathering appropriate evidence, demonstrating compliance with the legislation, and navigating complex visa requirements.
Visa applicants should confirm that their prospective employer is aware of the updated AMSR requirements. Seeking expert guidance ensures that sponsorship applications are prepared correctly, reducing the risk of delays or refusals. Furthermore, employers must anticipate the upcoming July 1, 2026 annual indexation, which will likely increase current baseline thresholds (such as the CSIT rates) and affect future salary compliance.
How NB Migration Law Can Help
The team at NB Migration Law has extensive experience in employer-sponsored migration and can provide practical guidance on the 2026 AMSR changes. We assist employers and prospective visa holders by reviewing salaries, preparing documentation, and ensuring compliance with Australian migration law.
Contact NB Migration Law today to understand how the Annual Market Salary Rate Instrument 2026 affects your sponsorship or visa application. Our team can help you navigate these changes with confidence and ensure your migration goals are achieved efficiently.