Recent amendments to the Annual Market Salary Rate (AMSR) framework in the employer sponsored visa program has reshaped how sponsoring employers must demonstrate that the salary offered to an overseas worker is consistent with what an Australian employee would receive in the same role. While the AMSR has always been central to employer-sponsored visas, the new changes refine the rules, clarify long-standing ambiguities, and tighten the alignment between migration compliance and workplace law obligations.
It stands as a reminder to businesses seeking to sponsor visa holders: your employment contracts, pay structures, and classification decisions must now be watertight across both migration and Fair Work regimes.
The amendments introduce a more flexible and realistic approach to determining the AMSR, particularly in industries where:
Under the new framework, alternative evidence can be used to demonstrate the AMSR even where relevant Fair Work instruments apply.
This flexibility acknowledges what practitioners and employers have long known: Modern Awards outline minimum rates and are not a reflection of real-world market salaries. Many industries routinely pay above Award rates due to skill shortages, location-based wage variations, and industry norms.
The amendments apply to nominations for subclass 482, 494, and 186 visas, making them relevant across temporary and permanent employer-sponsored pathways.
The new approach recognises that Modern Awards do not always:
By allowing alternative evidence, the amendments create a more accurate and defensible picture of what the “market rate” truly is.
With the added flexibility, it becomes even more important to ensure that employment contracts and salary structures already meet the standards the Department has always required. This includes:
Any inconsistency, incorrect Award level, missing entitlements, or poorly drafted clauses, can undermine both the AMSR assessment and the nomination itself.
The amendments reinforce a trend we’ve seen for years: migration law cannot be siloed from employment law.
A business sponsor must certify as part of their nomination, that the employment contract to be entered into with the nominated worker will comply with applicable employment laws, including National Employment Standards (NES) within the meaning of the Fair Work Act 2009.
This is especially important for businesses operating in industries with complex Award coverage or where Award coverage is disputed.
The new AMSR framework requires a dual-lens approach.
Migration law expertise ensures:
Employment law expertise ensures:
When these two areas are not aligned, the consequences can be significant: nomination refusals, Fair Work investigations, back-pay liabilities, and reputational damage.
The AMSR amendments are a welcome development. They introduce clarity, reduce ambiguity, and recognise the realities of Australia’s labour market.
It has never been more important to ensure your employment contracts, salary structures, and Award classifications are fully compliant – not just for migration purposes, but under workplace law as well.
For businesses sponsoring overseas workers, the safest and most strategic approach is to obtain both migration and employment law advice before lodging a nomination or issuing a contract. Contact us to speak with one of our migration and employment lawyers today.
"*" indicates required fields
