Why Meeting the Salary Threshold Is Not Enough
Most employers preparing for sponsorship focus on one number: the minimum salary threshold. They check the CSIT, confirm the salary clears it, and move forward.
What they often discover later is that there is a second salary requirement that applies at the same time, and it is the one that causes more problems.
The two salary tests that apply simultaneously
When nominating a position for sponsorship, employers must satisfy two separate conditions.
The first is the migration threshold. the CSIT or SSIT, depending on the stream. From 1 July 2026, the CSIT is AUD 79,423.
The second is the Annual Market Salary Rate (AMSR). This is what an Australian worker would typically earn for the same role, in the same location, at a comparable level of experience and responsibility.
For positions with salaries below AUD 250,000, employers must establish the AMSR and ensure the sponsored worker is not paid less than it.
Both conditions must be met at the same time.
Why this matters in practice
Consider a business that wants to sponsor a registered nurse in regional New South Wales. The CSIT is AUD 79,423. The employer offers AUD 80,000, just above the threshold.
If comparable registered nurses in that region typically earn between AUD 88,000 and AUD 95,000, the offered salary may fall below the market rate. Clearing the threshold does not resolve that issue.
The Department of Home Affairs uses industry salary data, comparable job advertisements, award rates, and the employer's own pay structures to assess whether the salary reflects what an Australian would realistically earn in the role.
The practical implication for employers
Before settling on a salary figure, employers should check two things, not one. The salary must clear the applicable threshold, and it must reflect the genuine market value of the role in that location and industry.
Sources useful for establishing the market rate include Seek Salary Insights, LinkedIn Salary data, Fair Work Commission award rates, and industry association benchmarking surveys. Documenting the sources used is also good practice, as this can support the nomination if the salary is questioned.
Frequently asked questions
What happens if the Department thinks my salary is below market rate?
The Department may issue a Request for Further Information, asking the employer to justify the salary. This adds time to the process. In more significant cases, the nomination can be refused.
Can non-monetary benefits be counted toward the market salary rate?
Generally, the comparison is based on monetary salary. Some specific allowances may be considered in particular circumstances, but this needs careful assessment before relying on it.
Speak with Seven Corp before finalising a salary offer. A review at this stage is considerably more efficient than addressing a Request for Further Information after the nomination is lodged.
