As an employer, you might have a valuable worker you want to sponsor permanently in Australia, but the new Core Skills Income Threshold (CSIT) of $73,150 or the age limit for a Subclass 186 Employer Nomination Scheme (ENS) visa makes it challenging.
There are still options available. Whether you are struggling with the higher salary requirement or your employee is over the standard age limit, here’s what you need to know about alternative visa pathways and exemptions that might work for your business.
The new CSIT of $73,150 (excluding super) applies to most employer-sponsored visas, including the Subclass 186 (ENS) and Subclass 482 (Temporary Skill Shortage – TSS) visas. If you can’t meet this salary threshold or if your employee is older than the standard age limit, you may be concerned about their eligibility for permanent residency. Fortunately, there are alternative pathways and exemptions that could help you overcome these challenges.
What If You Can’t Afford the $73,150 Salary for a Subclass 186 or 482 Visa?
If your business cannot afford the $73,150 salary requirement, here are some options to consider:
DAMA (Designated Area Migration Agreement)
A DAMA allows employers in regional areas to sponsor workers under more flexible conditions, including:
- Lower salary requirements – Many DAMAs offer a concession to the CSIT, meaning you can sponsor employees at a lower salary threshold than $73,150.
- More occupations available – Some roles that aren’t eligible for standard sponsorship might be included in a DAMA.
- Age limit concessions – Some DAMAs allow workers older than 45 to apply for permanent residency.
If your business is in a regional area like Adelaide, Darwin, Cairns, or Warrnambool, you could use a DAMA to sponsor an employee at a lower salary while still meeting visa requirements.
Next step: Check if your business location qualifies for a DAMA and whether your employee’s occupation is on the DAMA occupation list for your region.
Company-Specific Labour Agreement
If your business does not operate in a DAMA-covered region, you can negotiate a Company-Specific Labour Agreement with the Department of Home Affairs. This allows your company to:
- Request a salary concession (if supported by market evidence)
- Sponsor employees for permanent residence even if they don’t meet standard criteria
- Include occupations not on standard visa lists
A Company-Specific Labour Agreement requires employer justification. You must demonstrate:
- Why standard visa options are not suitable for your business
- That there is a genuine need for the worker at a lower salary
- How you plan to train Australians in the long term
Next step: If you want to explore this, you’ll need to submit a Labour Agreement request to the Department of Home Affairs. This process can take time, so start as early as possible.
What If Your Employee Is Over the Age Limit for a 186 Visa?
For most employer-sponsored permanent visas, the age limit is 45 years. However, some exemptions allow employees to apply for PR even if they are older.
- High-Income Threshold Exemption
If your employee earns a base salary of at least $167,500 per year, they may be exempt from the age restriction when applying for a Subclass 186 visa under the Temporary Residence Transition (TRT) stream.
If your employee is 50 years old but has been on a Subclass 482 visa for at least three years and earns over $167,500 per year, they may still qualify for permanent residency.
Next step: If this applies to your employee, keep them on a 482 visa while they reach the required three years of work experience before applying for the 186 visa. - Age Concessions Through a DAMA or Labour Agreement
If your employee does not meet the high-income threshold, they may still qualify for permanent residency through:- A DAMA (some DAMAs allow permanent residency pathways up to 55 years of age).
- A Company-Specific Labour Agreement that negotiates an age concession.
Next step: Check if your industry or business qualifies for an exemption under a DAMA or Labour Agreement.
Key Takeaways
- If your employee doesn’t meet the CSIT of $73,150 or the age limit for a Subclass 186 visa, you still have alternatives available.
- DAMA may allow for lower salary requirements and age concessions for regional businesses.
- A Company-Specific Labour Agreement can allow you to request salary concessions and sponsor workers who don’t meet standard criteria.
- The High-Income Threshold Exemption may allow employees over 45 years old to apply for permanent residency if they earn over $167,500 per year.
- DAMA and Labour Agreements may also offer age concessions for employees who don’t meet the standard age limit.
Conclusion (Summary)
If you’re struggling with the salary threshold or age limit for employer sponsorship, there are multiple pathways available that can help. Whether through DAMAs, Company-Specific Labour Agreements, or age exemptions for high-income earners, it’s crucial to explore these alternatives and take the appropriate steps. Reach out to a migration specialist to navigate these options and find the best solution for your business needs.