What is the Australian Market Salary Rate?

Why is the Australian Market Salary Rate important?

If you are a business looking to nominate a prospective foreign employee under the subclass 482 Temporary Skill Shortage visa program or the subclass 186 Employer Nomination Scheme visa program, one of the requirements that you will have to meet is the determination of the position’s Annual Market Salary Rate (AMSR).

To prevent foreign worker exploitation, the Department requires all employer sponsors to determine what an equivalent Australian citizen or Australian Permanent Resident would be paid in the same occupation and in the same location as the proposed foreign worker.

What is the Australian Market Salary Rate (AMSR)?

The Australian Market Salary Rate is a way of benchmarking what an Australian would be paid for a role. By doing this, the employer can show they are not proposing to pay their foreign worker less. The Australian Market Salary rate requirement is one of the ways foreign workers are protected from being exploited by Australian employers.

To meet the requirement, the AMSR must be determined for the specific occupation in the application. It can differ depending on role tasks, the level experience required and for some roles, the location of where the role is performed.

How can a business determine what the AMSR is?

A business can demonstrate the AMSR in several ways, including:

1. If the business already has an equivalent Australian worker whose salary is determined in accordance with an enterprise agreement or industrial award, providing the name and a copy of the agreement or award as recorded by the Fair Work Commission;
2. If the business already has an equivalent Australian worker in an equivalent role and an enterprise agreement or industrial award does not apply, the business can provide an explanation of the Australian worker’s salary arrangements and copies of the relevant employment contracts and pay slips to show the rate they are being paid;
3. If the business does not have an equivalent Australian worker and the prospective foreign employee’s salary is determined in accordance with an enterprise agreement or industrial award, providing the name of the agreement or award as recorded by the Fair Work Commission, specifying the salary level/occupation group that applies; or
4. If the business does not have an equivalent Australian worker and an enterprise agreement or industrial award does not apply, providing an explanation of how it has used relevant supporting evidence to determine the market salary rate, and provide at least two pieces of the following evidence:
   1. Labour Market Insights information (https://labourmarketinsights.gov.au/);
   2. Advertisements from the last 6 months for equivalent positions in the same location;
   3. Remuneration surveys completed by a reputable organisation; or
   4. Written advice from registered unions or employer associations.

Keep in mind that, if your business has an Australian worker with more or less experience than the prospective foreign worker, who is doing similar work at a lower or higher pay grade, they are not considered an equivalent Australian worker.

The salary (excluding superannuation) of the prospective foreign worker must also meet the Temporary Skilled Migration Threshold (TSMIT), which is currently $70,000.

For assistance navigating the intricacies of employer sponsorship, click here to book a free 10 minute consultation to speak with one of our experienced immigration lawyers.