- Employer-sponsored visa compliance now extends beyond salary thresholds, with Home Affairs placing greater scrutiny on AMSR calculations, Labour Market Testing evidence, payroll records, and sponsor compliance obligations.
- The 2026 AMSR reforms give employers more flexibility in determining market salary rates, but businesses must retain clear evidence showing sponsored workers are paid at or above equivalent Australian market rates.
- Subclass 407 training visas now require sequential approvals, meaning sponsorship and nomination approval must occur before the visa application can be lodged, significantly increasing planning time for employers.
If you are an Australian business owner, an overseas founder with an Australian company, or considering starting a business in Australia from overseas, 2026 has brought a series of significant changes to the employer-sponsored visa framework that directly affect how you sponsor, pay, and manage skilled overseas workers.
From new flexibility in determining market salary rates to mandatory sequential lodgement for training visas and salary threshold increases from 1 July, getting these details wrong can mean nomination refusals, compliance breaches, and loss of sponsorship status.
This guide covers every major change across the:
- Subclass 482 Skills in Demand,
- Subclass 494 Skilled Employer Sponsored Regional,
- Subclass 186 Employer Nomination Scheme, and
- Subclass 407 Training Visa programs
what has changed, when it applies, and what your business needs to do.
Review your payroll and sponsorship records before lodging any nomination. Incorrect salary calculations, outdated ASIC records, incomplete Labour Market Testing evidence, or mismatched job duties are some of the most common reasons employer-sponsored nominations face delays, requests for information, or refusal.
What changed to AMSR rules from 25 March 2026?
Australia introduced greater flexibility in how employers can determine the Annual Market Salary Rate (AMSR) for sponsored visa nominations, including the use of market evidence and equivalent worker salary data in certain circumstances.
What is the Annual Market Salary Rate (AMSR)?
The Annual Market Salary Rate (AMSR) is a core requirement for employer-sponsored visa nominations. When sponsoring an overseas worker, employers must demonstrate that the proposed salary equals or exceeds what an equivalent Australian worker would earn for the same role in the same location. This requirement exists to protect Australian wage standards and prevent sponsored roles from undercutting local pay.
The AMSR applies to nominations under Subclass 482, 494, 186, and 187 where the nominated annual earnings are below $250,000. Roles with nominated earnings at or above $250,000 are exempt from AMSR requirements.
How did AMSR rules change in March 2026?
The Migration Legislation Amendment (Annual Market Salary Rate) Instrument 2026 (LIN 26/038) commenced on 25 March 2026. It applies to all nomination applications lodged on or after that date, and to nominations lodged earlier that were still pending a decision at that date.
The key change is greater flexibility in how employers can determine the AMSR, particularly where a Fair Work instrument, state industrial instrument, or transitional instrument applies to the role.
How does the new AMSR calculation methodology work?
The updated AMSR methodology gives employers more flexibility in how they determine market salary rates for sponsored visa roles, while still ensuring overseas workers are paid fairly and in line with Australian wage standards.
How is AMSR calculated when a Fair Work instrument applies?
Previously, employers were required to use the relevant industrial instrument to determine the AMSR. Under the new rules, employers have two options:
- Use the rate set out in the Fair Work instrument, state industrial instrument, or transitional instrument as before, or
- Use alternative evidence, either employment documents of an equivalent Australian worker, or relevant market information, provided the resulting salary is at least equal to or above the instrument rate
The alternative method is only available where it produces a salary higher than the instrument rate. It cannot be used to justify a salary below what the award or enterprise agreement would require.
How is AMSR calculated when no industrial instrument applies?
If no Fair Work, state, or transitional instrument applies to the role, employers must determine the AMSR using either:
- Employment documents of an equivalent Australian worker in the same role and location, or
- Relevant market information where no equivalent Australian worker exists
What should employers do to comply with the new AMSR rules?
- Review all pending and upcoming nominations to confirm AMSR calculations comply with the new methodology
- Retain clear documentation of how the AMSR was determined whether via a Fair Work instrument, employment documents of an equivalent Australian worker, or relevant market information
- Update internal recruitment and sponsorship policies to reflect the 25 March 2026 changes
- Seek advice from a registered migration agent if you are unsure which methodology applies to your role
How are skilled visa salary thresholds changing from 1 July 2026?
From 1 July 2026, the minimum salary thresholds for employer-sponsored visa nominations will increase under the government’s annual indexation of migration income requirements. The increase reflects annual indexation based on movements in Average Weekly Ordinary Time Earnings (AWOTE).
Threshold | 2026 |
CSIT: Core Skills Income Threshold | $76,515 |
SSIT: Specialist Skills Income Threshold | $141,210 |
TSMIT: Temporary Skilled Migration Income Threshold (Subclass 494) | $76,515 |
Which employer-sponsored visas are affected by the 2026 salary threshold changes?
- Subclass 482 Core Skills stream: CSIT applies
- Subclass 482 Specialist Skills stream: SSIT applies
- Subclass 186 Employer Nomination Scheme: CSIT applies
- Subclass 494 Skilled Employer Sponsored Regional: TSMIT applies
From 1 July 2026, skilled visa income thresholds are expected to increase under annual indexation. Employers should confirm the final thresholds with Home Affairs before lodging nominations on or after 1 July 2026.
What changed for the Subclass 407 Training Visa in 2026?
What changed for Subclass 407 visa applications?
The Migration Amendment (Training Visas, Sponsorship Requirements) Regulations 2026 commenced 11 March 2026 and applies to all Subclass 407 visa applications lodged on or after that date.
Previously, employers and applicants could lodge the Temporary Activities Sponsorship, Training Nomination, and visa application simultaneously. This is no longer permitted.
From 11 March 2026, the process is strictly sequential:
- Employer applies for and receives approval as a Temporary Activities Sponsor
- Employer lodges and receives approval of the Training Nomination
- Only after both approvals are in place can the trainee lodge the visa application
Why did Australia change the Subclass 407 visa process?
The Department of Home Affairs introduced the change to address misuse of the 407 program, specifically applicants using bridging visas to remain in Australia for extended periods without genuine skills transfer taking place.
How do the 2026 Subclass 407 changes affect employers?
- Sponsorship and nomination processing times can vary significantly, so employers should plan further in advance than under the previous concurrent lodgement process.
- Trainees in Australia nearing visa expiry may be unable to wait for approval and may need to depart and apply offshore or explore alternative visa options
- Applications lodged before 11 March 2026 continue to be assessed under the previous concurrent lodgement rules
Home Affairs is placing greater emphasis on sponsor integrity and audit readiness, not just visa eligibility. The 2026 changes show a stronger compliance focus around salary benchmarking, recruitment evidence, sponsorship obligations, and genuine business operations, especially for businesses sponsoring workers repeatedly or across multiple visa streams.
What is Labour Market Testing (LMT)?
Labour Market Testing (LMT) is a mandatory requirement for most Subclass 482 and Subclass 494 nominations. Employers must demonstrate they genuinely attempted to recruit an Australian worker before nominating an overseas candidate. LMT is not required for Subclass 186 nominations, though it is recommended as best practice.
What are the current Labour Market Testing requirements?
- Minimum of two advertisements in English targeting a national audience
- Each advertisement should include the job title or position description, required skills or experience, and the employer or recruiter name. Salary or salary range should be included where required under Home Affairs LMT rules.
- Advertising must be completed within four months before lodging the nomination
- Advertisements must run for a minimum of four consecutive weeks
Who is exempt from Labour Market Testing?
LMT is not required where:
- The nominated annual earnings are $250,000 or more
- LMT may not be required where an international trade obligation applies. Eligibility depends on the worker’s nationality, occupation, transfer arrangements, and the specific agreement, so employers should confirm the exemption before relying on it
- The nomination is for an existing 482 or 494 holder where a new nomination is required solely due to a change in annual earnings or a business structure change and the nominee remains in the same position
- The worker is an intra-corporate transfer from an overseas associated entity
What Labour Market Testing mistakes cause visa refusals?
- Advertising without including a salary or salary range
- Completing LMT more than four months before lodging the nomination
- Advertising for less than four consecutive weeks
- Failing to retain evidence, screenshots, printouts, links, and dates must be kept as Home Affairs can request evidence well after the nomination is lodged
What are the ongoing obligations for Standard Business Sponsors?
Becoming an approved Standard Business Sponsor is an ongoing compliance commitment, not a one-off process. Obligations apply from the date of sponsorship approval and continue for the duration of the sponsorship period.
What salary obligations apply to sponsored workers?
- Pay the sponsored worker at least the AMSR for their role and location
- Pay at least the applicable income threshold: CSIT, SSIT, or TSMIT depending on the visa stream
- Salary calculations must be based on guaranteed annual earnings only, non-monetary benefits are excluded
- Sponsored workers must receive equivalent terms and conditions to Australian workers performing the same role
Can sponsored workers change occupations?
The sponsored worker must work only in the occupation approved in their nomination. If duties change significantly, a new nomination may be required.
Notify the Department of Home Affairs Within 28 Days Of:
- The sponsored worker ceasing employment or never commencing
- A significant change in the worker’s daily duties
- A change to the expected employment end date
- Changes to your business, legal name, trading name, business structure, or registered address
Can employers pass sponsorship costs to visa holders?
All costs associated with sponsorship and recruitment must be borne by the employer. These costs cannot be passed on to the visa holder, doing so is a breach of sponsorship obligations and may attract civil penalties.
What records must Standard Business Sponsors keep?
Sponsors must retain full records demonstrating compliance with all sponsorship obligations including employment contracts, payslips, position duty statements, and payroll records. Records must be kept for audit purposes and Home Affairs can request them at any time.
Consequences of non-compliance
- Infringement notices and civil penalty orders
- Cancellation of Standard Business Sponsor status
- Bars on future sponsorship applications
Employer-sponsored visa compliance extends beyond immigration law. Businesses sponsoring overseas workers must also maintain compliant payroll, superannuation, PAYG withholding, ASIC records, and employment conditions throughout the sponsorship period, not just at nomination stage.
Is your business ready to become a Standard Business Sponsor?
Before lodging a nomination, Home Affairs assesses the sponsoring entity itself. Outdated or incorrect ASIC records, wrong director details, incorrect registered address, or stale business information, create risk at the nomination stage before immigration compliance is even considered.
As a Standard Business Sponsor you must:
- Maintain accurate and current ASIC records at all times
- Ensure your registered office address is current and compliant
- Keep ASIC records current and notify Home Affairs of sponsor-related business changes within the required timeframe
- Demonstrate that your business is lawfully operating and financially capable of supporting a sponsored worker
How Sleek can help
Sponsoring an overseas worker involves more than immigration compliance. Your business needs to be properly structured, your payroll set up correctly, and your records audit-ready from day one. Here is how Sleek supports Australian employers through the process:
- Fast company setup: To become a Standard Business Sponsor, your business must be a legally operating Australian entity with up-to-date ASIC records. We handle company registration, ABN, and ongoing ASIC compliance end-to-end.
- Payroll and compliance: Sponsored workers must receive correct salaries, superannuation, and equivalent employment conditions from day one. Our accounting team manages payroll, PAYG withholding, and superannuation obligations correctly throughout the sponsorship period.
- Bookkeeping and record-keeping: Sponsorship audits require clean, accurate employment and payroll records. We keep your books organised and audit-ready year-round
- Ongoing ASIC compliance: Get unlimited support with Director changes, business structure updates, and registered address changes throughout the year.
- Transparent pricing: Clear, upfront pricing with no hidden fees or surprise add-ons.
Starting a business in Australia or expanding one, doesn’t have to be complicated. Get started with Sleek and have your business compliance foundations in place.
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Frequently Asked Questions
What changed for the Subclass 407 Training Visa from 11 March 2026?
Concurrent lodgement of the Temporary Activities Sponsorship, Training Nomination, and visa application is no longer permitted. From 11 March 2026, both the sponsorship and nomination must be approved before the trainee can lodge a visa application. Employers must plan significantly further in advance than before.
Who is exempt from Labour Market Testing?
LMT exemptions apply where nominated annual earnings are $250,000 or more, where the worker is a national of a country covered by Australia’s international trade obligations, for certain intra-corporate transfers, and for existing 482 or 494 holders where a new nomination is required solely due to a change in earnings or business structure.
What are my ongoing obligations as a Standard Business Sponsor?
Key obligations include paying the sponsored worker at least the AMSR and applicable income threshold, keeping the worker in their nominated occupation, notifying Home Affairs within 28 days of triggering events, covering all recruitment and sponsorship costs, and maintaining accurate employment and payroll records for audit purposes.
