The Australian Government has introduced important changes to the way employers determine the Annual Market Salary Rate (AMSR) under the Migration Legislation Amendment (Annual Market Salary Rate) Instrument 2026.
These amendments represent a significant shift in how salary benchmarks are assessed for employer-sponsored visa nominations, offering greater flexibility while reinforcing safeguards to ensure migrant workers are paid fairly.
The new instrument revises existing provisions under IMMI 18/033 and allows employers to adopt alternative methodologies when determining AMSR, particularly in situations where traditional industrial instruments do not fully apply.
Under the updated framework, employers now have broader options to determine appropriate salary levels using:
The key requirement remains unchanged:
The salary offered must not undercut Australian market standards.
Where an equivalent Australian worker is employed in the same role, location, and business, employers can determine AMSR by:
However, the salary offered to the sponsored worker must not be lower than what is specified under any applicable industrial instrument.
In situations where there is no comparable Australian employee, employers may determine AMSR using:
This approach provides flexibility for businesses operating in specialised or emerging roles where direct comparisons may not be available.
The amendments apply to nominations under key employer-sponsored visa categories, including:
These updates impact a significant portion of Australia’s skilled migration program and are particularly relevant for employers actively sponsoring overseas workers.
The amendments commenced on 25 March 2026 and apply to:
This means employers with pending applications should review their AMSR calculations to ensure compliance under the updated framework.
From a practical perspective, these changes introduce greater flexibility but also greater responsibility.
Employers now have more options to determine salary benchmarks, but they must ensure that:
Failure to meet AMSR requirements can lead to nomination refusals or compliance concerns, making accurate salary assessment critical.
At Provisa, we see this as a positive development for employers navigating complex workforce requirements. The updated AMSR framework allows businesses to better reflect real-world employment conditions, particularly in industries where standard award structures may not fully apply.
However, with increased flexibility comes the need for careful documentation, evidence-based salary benchmarking, and a clear understanding of compliance obligations.
For businesses sponsoring overseas talent, it is now more important than ever to ensure that nomination applications are prepared with accurate and defensible salary assessments.