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What are the remuneration requirements for a sponsored overseas worker on a temporary visa?

The remuneration requirements for the sponsorship of an overseas worker can be confusing. When considering what we mean by a sponsored worker, in this article we are looking at the following visas:

  1. Temporary Skill Shortage (482)
  2. Skilled Employer Sponsored Regional (Provisional) (494).

On 1 July 2023, the Temporary Skilled Migration Income Threshold (TSMIT) increased from $53,900.00 per annum to $70,000.00 per annum. The TSMIT is inclusive of taxation but exclusive of superannuation. It does not include non-monetary benefits such as a car allowance or accommodation.

It is vital to be aware that the remuneration requirement is more than simply paying the TSMIT amount. Employers must pay overseas workers no less than an Australian worker who is doing the same work in the same location, and this is known as the ‘annual market salary rate (AMSR)’. The next question then is, how do you determine the AMSR?

The AMSR can be determined in a number of ways:

  • what an equivalent Australian worker is paid
  • enterprise agreements or industrial awards
  • labour market insights information
  • advertisements for the last 6 months in the same location
  • remuneration survey or advice from unions or employer associations.

If the AMSR shows that a worker should be remunerated at $95,000.00 per annum, then this is the amount that must be paid. If they were to be paid the TSMIT in this case, the nomination application would be refused. It is important to understand what is meant by an equivalent Australian worker so that you are able to correctly determine the AMSR and this is an area where we are able to assist.

One final point to note; if your worker is going to earn an annual salary of $250,000.00 or above, you do not need to show that you have determined the AMSR.

If you would like to discuss any migration questions with our team, contact us today.