Australian employers who wish to nominate overseas workers for skilled visas in Australia must follow strict salary and market rate rules. These rules apply to the Temporary Skill Shortage (subclass 482), Skilled Employer Sponsored Regional (Provisional) (subclass 494), Employer Nomination Scheme (subclass 186), and Regional Sponsored Migration Scheme (subclass 187) visas.
The purpose of these rules is to ensure that overseas workers are not paid less than Australian workers doing the same work and skilled visa programmes are not used to undercut wages in the Australian labour market.
All income thresholds are reviewed and increased annually on 1 July. If you submit your nomination after this date, you must meet the updated threshold, even if your employment contract was signed earlier. At SALIA Lawyers & Associates, we guide employers through every step of this process to ensure compliance and avoid costly mistakes.
The Key Salary Thresholds
When sponsoring an overseas worker, the Department of Home Affairs (DOHA) will assess the pay you offer against two separate salary tests: the annual market salary rate (AMSR) and the applicable income threshold.
AMSR
This is the rate an equivalent Australian worker would receive for the same job in the same location.
Applicable Income Threshold
The income threshold is the minimum salary amount set by the government, which varies depending on the visa type, stream, and the date the nomination is lodged. Please see below the applicable income thresholds for specific visas starting 1 July 2025:
- Temporary Skilled Migration Income Threshold (TSMIT)
The TSMIT applies to certain visas, including:
- Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)
- Regional Sponsored Migration Scheme (subclass 187)
| Application Period | TSMIT Amount |
| 1 July 2025 – 30 Jun 2026 | AUD 76,515 |
| 1 July 2024 – 30 Jun 2025 | AUD 73,150 |
| 1 July 2023 – 30 Jun 2024 | AUD 70,000 |
| 1 July 2013 – 30 Jun 2023 | AUD 53,900 |
Please note that non-monetary benefits such as accommodation or a car cannot be counted towards meeting the TSMIT.
- Core Skills Income Threshold (CSIT)
The CSIT applies to:
- Skills in Demand (SID) visa (subclass 482) — Core Skills stream
- Employer Nomination Scheme (subclass 186) — for applications lodged on or after 7 December 2024
| Application Period | CSIT Amount |
| 1 July 2025 – 30 Jun 2026 | AUD 76,515 |
| 7 December 2024 – 30 Jun 2025 | AUD 73,150 |
- Specialist Skills Income Threshold (SSIT)
The SSIT applies to:
- Skills in Demand (SID) visa (subclass 482) — Specialist Skills stream
| Application Period | SSIT Amount |
| 1 July 2025 – 30 Jun 2026 | AUD 141,210 |
| 7 December 2024 – 30 Jun 2025 | AUD 135,000 |
You will need to pass both of the salary tests. Even if the AMSR is high, your nomination can still be refused if it is below the required income threshold for that period, and the same applies the other way around.
Why Salary Compliance Is Important
Salary compliance is a core requirement for the DOHA to approve a nomination. Failure to comply will not only lead to nomination refusal but can also affect:
- Your approved sponsor status.
- Your ability to nominate workers in the future.
- The reputation of your business in the Australian market.
Sponsoring overseas workers can be one of the most effective ways to address skill shortages in your business, giving you access to a wider talent pool and helping you fill critical roles that may be hard to recruit locally. However, the process is highly regulated, and even small mistakes can cause delays, refusals, or compliance issues down the track.
One of the biggest challenges for employers is salary compliance. This is not simply about offering a competitive wage. It is about meeting strict legal requirements set by the DOHA, correctly determining the AMSR, and ensuring the offered salary meets the relevant government income threshold for the visa type and nomination period.
At SALIA Lawyers & Associates, we break down the complexity into clear, actionable steps. We work with you to:
- Accurately determine the AMSR for your nominated role.
- Verify the correct income threshold for your application date and visa subclass.
- Prepare the right evidence to support your nomination.
- Avoid common pitfalls that lead to refusals or compliance breaches.
By partnering with us, you can move forward with confidence, knowing your nomination meets every requirement. That means fewer delays, lower risks, and a better chance of securing the skilled talent your business needs.
Contact us today for expert guidance on skilled worker nominations and salary compliance, and let us help you build the team your business needs.
Frequently Asked Questions
- What is the difference between AMSR and TSMIT/CSIT/SSIT?
The AMSR is based on what an equivalent Australian worker earns. TSMIT, CSIT, and SSIT are fixed income thresholds set by the government. You must meet both.
- Can I include bonuses or commissions to meet the threshold?
Only if they are guaranteed in the contract. Discretionary bonuses do not count.
- Do part-time roles qualify for sponsorship?
Generally, no. The thresholds apply to full-time annual earnings.
- What if my contract is signed before 1 July but I lodge after?
You must meet the new threshold that applies at the time of lodgement.
- Can I sponsor someone if my business is in financial difficulty?
Possibly, but you must still prove you can meet salary obligations for the visa term.
