The Australian Government has introduced targeted amendments to how the Annual Market Salary Rate (AMSR) is calculated for employer-sponsored visa nominations. The Migration Legislation Amendment (Annual Market Salary Rate) Instrument 2026 (LIN 26/038) amends the principal instrument, IMMI 18/033, effective 25 March 2026. These changes apply to nominations for the following visa subclasses:

Subclass 482 (Skills in Demand) visa

Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) visa

Subclass 186 (Employer Nomination Scheme) visa

The amendments do not alter the requirement that the nominee must be paid at least the AMSR (if worker paid below $250,000 pa). They also preserve the relevant income thresholds (typically $76,515 or $141,210 for specialist streams).

What Has Actually Changed?

Previously, where a Fair Work instrument, state industrial instrument, or transitional instrument applied to the occupation, the AMSR was strictly tied to the amount payable under that instrument to an equivalent Australian worker.

Now, nominators have optional flexibility in those situations. You can choose an alternative methodology based on real-world evidence, but only if the resulting AMSR is not less than the amount under the industrial instrument. This aims to better reflect diverse employment arrangements and prevailing labour market conditions, rather than defaulting solely to minimum award rates.

The ‘no instrument’ scenarios remain largely unchanged — they already relied on employment documents or relevant information.

Why the Change?

This change flows from the Government recognising that modern awards and industrial instruments often set minimum pay rates and conditions, but this is not the whole story.

In some industries or workplaces, actual market rates (evidenced by contracts, payroll data, or broader labour market information) may be higher due to skills shortages, enterprise agreements, or specific role demands.

The amendments thus aim to provide greater accuracy and flexibility without lowering protections. The alternative method is optional and must not undercut the industrial instrument rate. This reduces rigidity in complex cases where no direct equivalent worker exists in the same workplace or where award structures don't fully capture market realities.

For many sponsors — particularly those paying at or near the Temporary Skilled Migration Income Threshold (TSMIT) or core skills threshold — the previous restrictions around industrial instruments may not have been a major issue.

Positions that offer salaries that comfortably meet or exceed both the threshold and any applicable award are unlikely to receive any practical impact from these changes. However, the added flexibility could be useful in scenarios involving:

• Businesses with unique remuneration structures or limited direct comparators.
• Evidence-based justifications using internal payroll data or reliable market benchmarks.

These changes reflect a growing alignment between migration wage rules and mainstream Australian employment law. Just as the Better Off Overall Test (BOOT) under the Fair Work Act 2009 looks beyond strict award minimums to assess real-world outcomes, the updated AMSR framework now allows evidence of actual paid rates — while maintaining the industrial instrument as a firm floor. The goal appears to be reducing artificial rigidity and ensuring sponsored workers are paid in line with genuine labour market conditions, without undercutting Australian workers.

Key Practical Points

Transitional application: The new rules apply to nominations lodged on or after 25 March 2026, and to earlier nominations that remain undecided at commencement. Pending applications may therefore benefit from the flexibility.

Evidence expectations rise: While the framework is more flexible, decision-makers will scrutinise the method chosen, the quality of evidence, and the reasoning provided. Generic or weak data could still lead to refusal. Strong, documented justification remains essential.

No obligation to use the alternative methods.

Risk management: Always identify whether an equivalent Australian worker exists, select the appropriate methodology, gather robust supporting evidence (contracts, payslips, market reports, etc), and prepare a clear written explanation in the form of a letter if the remuneration figure involved some calculations.

The Takeaway

This is not a relaxation of wage protections. Fundamentally it is a refinement to make AMSR determination more responsive to real labour market conditions while safeguarding against undercutting Australian workers.

For sponsors dealing primarily with threshold-level salaries, the day-to-day difference may be modest. For others facing award rigidity, it offers welcome practical flexibility.

Employers and migration agents should review upcoming nominations in light of these changes, particularly any on-hand applications that are subject to the new rules. As always, thorough documentation and consistent salary justification will be key to smooth approvals.

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