When sponsoring an overseas worker for a Subclass 482 or Subclass 186 visa, many employers assume that offering the minimum income threshold, currently $73,150, or $76,151 from 1 July 2024 is sufficient to secure approval. However, this is a common misconception.

The Income Threshold Is a Baseline, Not a Guarantee

The Core Skill Income Threshold (CSIT) sets the minimum salary that must be offered to a visa nominee to ensure they will earn enough to support themselves in Australia. However, simply offering this minimum amount does not mean your application will be approved.
If there is no enterprise agreement or industrial award in place for the role, the Department of Home Affairs will assess the Australian Market Salary Rate (AMSR) for the nominated occupation. This is where many employers encounter problems.

Example: The AMSR Can Be Higher Than the Threshold

Let’s say you’re sponsoring a Software Engineer. The TSMIT is $73,150, but the AMSR for Software Engineers in your location is $90,000. If you propose to pay only $73,150, the application may be refused because the proposed salary does not reflect market rates. The Department expects that overseas workers are paid equally to Australian workers in similar roles.

Enterprise Agreements and Awards Change the Assessment

• If your workplace is covered by an Enterprise Agreement, you must pay the nominee according to the rates outlined in that agreement.
• If an Industrial Award applies, the nominee’s salary must align with the minimum entitlements under that award.

However, if an enterprise agreement sets a salary below the relevant award, this will not be accepted. The Department will consider this a breach of industrial law, and the nomination is likely to be refused.

Don’t Overlook Fair Work and NES Obligations

Beyond salary, employers must ensure the nominee’s employment conditions comply with Fair Work legislation and the National Employment Standards (NES). This includes:

• Overtime pay (if applicable)
• Penalty rates for weekends, public holidays, or night shifts
• Annual leave, sick leave, and other minimum entitlements

Failure to comply with industrial law obligations may result in nomination refusal or even compliance action.

The Takeaway

Offering the threshold is only one part of a compliant visa nomination. You must ensure that:

• The salary reflects the market rate for the position,
• The employment terms comply with any applicable award or agreement, and
• You are meeting all obligations under Fair Work and NES.

If you’re unsure whether your offer meets the requirements, it’s essential to seek professional advice before lodging the application.