ARTICLE
1 April 2026

Annual Market Salary Rate Change In 2026: What Sponsors Need To Know

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Roam Migration Law

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A new instrument has changed the way annual market salary rate, or AMSR, is assessed for certain employer sponsored nominations. LIN 26/038 amends IMMI 18/033 and applies to nominations linked...
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A new instrument has changed the way annual market salary rate, or AMSR, is assessed for certain employer sponsored nominations. LIN 26/038 amends IMMI 18/033 and applies to nominations linked to the Subclass 482, 494, 186 and 187 visa programs.

The instrument commenced the day after registration. It also applies to nomination applications already lodged but not yet decided.

What AMSR means in employer sponsored migration

Before looking at the 2026 change, it helps to look at what AMSR is designed to do.

AMSR applies across a range of employer sponsored visa nominations. At its core, it is a wage safeguard. Its purpose is to make sure an overseas worker is not nominated on pay that falls below the market rate for the role in Australia.

The rule supports three outcomes. It helps protect migrant workers from underpayment. It helps prevent sponsored roles from pulling down local wage settings. It also supports a fairer labour market by requiring salary settings to reflect the real value of the role.

In practice, AMSR has not always been easy to assess. That is especially true in sectors where award coverage, internal pay structures and real market salary settings do not line up neatly. The 2026 amendment is aimed at that issue.

How AMSR was assessed previosuly 

Before this amendment, the AMSR method depended on two things:

  1. Whether a Fair Work instrument, state industrial instrument or transitional instrument applied to the role.
  2. Whether there was an equivalent Australian worker.

Where an industrial instrument applied, the instrument amount drove the AMSR outcome. Where no industrial instrument applied, the rate was drawn from relevant employment documents or relevant information.

The new AMSR method

The 2026 change adds flexibility where an industrial instrument applies. A sponsor now has another path.

If there is an equivalent Australian worker, the nominator can rely on relevant employment documents. If there is no equivalent Australian worker, the nominator can rely on relevant information.

That alternative method is only available where the resulting amount is greater than the amount paid, or that would be paid, under the Fair Work instrument, state industrial instrument or transitional instrument.

Awards and other industrial instruments often set the floor, not the full market position for a role. The explanatory statement says the added flexibility is intended to support a more accurate AMSR outcome that reflects prevailing Australian labour market wages and the range of employment settings in practice.

Income thresholds still apply

The income thresholds have not changed because of this instrument. Where the AMSR rules apply, the relevant threshold still needs to be met.

For Subclass 494 and Subclass 187 nominations, the AMSR must be at least the temporary skilled migration income threshold, currently $76,515.

For SID and ENS nominations, the AMSR must be at least the core skills income threshold, also currently $76,515. For SID nominations in the specialist skills stream, the higher threshold of $141,210 still applies.

The instrument also sits within the existing rule that the AMSR test is relevant where the nominee will earn less than $250,000 a year.

What this means for sponsors

In practical terms, this is a useful change for employers whose salary settings do not sit neatly within an award outcome. It gives sponsors another way to present a proper market rate case, while still preserving the industrial instrument as the minimum position.

The explanatory statement is clear on that. This is an enabling change, not a mandatory one, and it is described as beneficial in nature.

For employers preparing a new nomination, the main task is to get the salary evidence right from the start. For employers with a nomination already on foot, this amendment is worth reviewing straight away. A case that looked tight under the earlier approach may now have a stronger evidentiary path.

The broader point is simple. AMSR remains a live risk area in employer sponsored migration. This instrument does not lower the bar. It gives employers more room to show the true market salary for the role, where the evidence supports it

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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