When sponsoring an overseas worker under the Temporary Skill Shortage visa (subclass 482) (TSS visa), there are two requirements you must comply with to ensure that you are paying the correct salary for the nominated position. For instance, if your overseas worker earns an annual salary under AUD$250,000, you must ensure that their salary or annual earnings are:
- the same or above the current Temporary Skilled Migration Income Threshold (TSMIT); and
- the same or above the Annual Market Salary Rate (AMSR) for the nominated position.
The AMSR and the nominee’s annual earnings may differ as the Department of Home Affairs (DHA) will compare what the nominee is proposed to earn against what an equivalent Australian worker would make. Above all, these salary requirements ensure that businesses do not underpay and exploit overseas workers. They also ensure these visa programs do not undercut the Australian labour market. This article will discuss the two salary requirements you must meet when nominating a foreign worker under the TSS visa.
1. Ensure the Nominee’s Salary Meets or Exceeds the TSMIT
The TSMIT is set by the DHA each year. It currently stands at AUD$70,000 plus superannuation. Therefore, anyone on the TSS visa must receive a salary at this current rate or above.
To meet the TSMIT requirement, you must also ensure the following:
- the nominee’s annual earnings meet or exceed the TSMIT;
- the AMSR for the nominated position is no less than the TSMIT (however, you cannot pay your worker above the AMSR purely to meet the TSMIT);
- the TSMIT does not include non-monetary benefits; and
- any non-monetary benefits you offer are in addition to the TSMIT.
Non-monetary benefits are the worker’s entitlements, other than a salary, relating to their work performance. Common non-monetary benefits include:
- accommodation;
- travel costs;
- clothing; and
- food allowance.
You cannot include these benefits when calculating the TSMIT and AMSR.
A TSS visa application will be rejected if the proposed salary for the nominee is below the TSMIT. Moreover, some occupations will be subject to conditions that set a minimum remuneration level higher than the TSMIT.
2. Ensure the Nominee’s Salary Meets or Exceeds the AMSR
The AMSR is the salary that an Australian earns (or would earn) for performing equivalent work:
- on a full-time basis;
- for a year;
- in the same workplace; and
- at the same location.
The AMSR requirement ensures that the nominee receives no less than an Australian employee would in a similar role.
To meet this requirement, you must accurately determine the AMSR in consideration of relevant market salary research. What you may need to look at will depend on your situation and the nominated position. For example, you may need to look at:
- what you are currently paying an Australian worker performing the same job as the nominee;
- enterprise agreements or industrial awards;
- Labour Market Insights (an Australian Government initiative providing information about Australian careers, labour market trends and employment projections); and
- market salary research.
The table below outlines how to determine the AMSR in three scenarios and what information you must provide.
| Information Required | What This Means | Other Notes | |
| Where There Is an Equivalent Australian Worker An equivalent Australian worker is: + an Australian citizen or permanent resident; + employed in the same workplace as the nominee; + employed in the same location as the nominee; and + performing equivalent work to the nominee. | If the Australian worker’s salary is based on an enterprise agreement or industrial award, you must provide: + the name of the agreement or award as recorded by the Fair Work Commission (FWC) (if applicable); and + the salary level or occupation group that applies to the nomination. If there is no relevant agreement or award, or you are paying your Australian employees above the award rate, you must provide: + an explanation of the salary arrangements; + copies of relevant employment contracts; and + payslips for these employees. | Where an enterprise agreement or industrial award applies to an equivalent Australian worker, the AMSR is the annual earnings of the Australian worker in that agreement or award. Where there is no relevant agreement or award, but there is an equivalent Australian worker, the AMSR is determined based on relevant employment documents. | The DHA will refuse your nomination application if: + your nominee will be paid less than the equivalent Australian worker; or + you provide only generic market salary data or salary surveys. Take note that if a more or less experienced worker in the business than the nominee is doing similar work at a higher or lower pay grade, then they are not considered an equivalent Australian worker. |
| Where There Is No Equivalent Australian Worker but There Is an Enterprise Agreement or Industrial Award | You will need to provide: + the name of the agreement or award as recorded by the FWC (if applicable); and + the salary level or occupation group that applies to the nomination. | The AMSR is determined based on the relevant enterprise agreement or industrial award. | |
| Where There Is No Equivalent Australian Worker, Agreement or Award | You will need to determine and explain what the AMSR is by using relevant information, which may include at least two of the following: + Labour Market Insights information; + advertisements from the last six months for equivalent positions in the same location; + remuneration surveys completed by a reputable organisation (such as Hays and Payscale); or + written advice from unions or employer associations. | You determine the AMSR with supporting evidence. | The DHA will likely refuse your nomination application if you provide vague, unlabelled salary surveys and do not explain how you have determined the AMSR. Therefore, as a general rule, you should provide at least two independent sources of information in determining the AMSR. You must explain and provide details about the selected AMSR if the market salary determined is a range. |
There are certain situations where the DHA will examine applications carefully. Therefore, you should provide additional evidence where the nominee’s:
- annual earnings are AUD$65,000 or less; or
- salary package contains significant non-monetary benefits.
Furthermore, you may also need to provide additional evidence if the AMSR evidence presented reflects a wide range of salary data and/or inconsistent information.
Sponsoring overseas workers as an Australian business is complicated. Let us simplify it for you with this free employer guide.
Case Study
Carly owns a software company in Sydney that provides support to small businesses. She wants to employ a Software Engineer who will develop and maintain a user-friendly software solution for her clients. Carly wants to nominate a migrant worker for the position under a 482 visa and offer an annual salary package of $75,000, inclusive of superannuation.
In this instance, Carly’s 482 nomination application will likely be refused. While the TSMIT is set at $70,000, the AMSR for software engineers in Sydney generally exceeds $100,000. Accordingly, Carly must pay the higher of the two.
Furthermore, you should not factor non-monetary benefits, including superannuation, into the computation of the nominee’s salary for the purpose of determining compliance with TSMIT and AMSR. Consequently, the base salary rate (excluding superannuation) in this scenario fails to meet the requirements of both TSMIT and AMSR.
Key Takeaways
As an employer intending to sponsor an overseas worker under the Temporary Skill Shortage (TSS) visa, you must meet certain salary requirements set by the Department of Home Affairs. You must ensure that your nominee receives a salary no less than the TSMIT, which is currently AUD$70,000, and the Annual Market Salary Rate (AMSR). Additionally, the AMSR and annual earnings for your nominated position (excluding any non-monetary benefits) must be no less than the TSMIT.
The DHA will likely reject your nomination application if you fail to meet these requirements or provide insufficient evidence. If you need assistance with hiring foreign workers, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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