Market Salary Rate Exemption Reversed

Australia

The Australian Senate has restored the market salary rate exemption level to AUD 250,000, the amount set in July 2013. The level was purportedly reduced to AUD 180,000 in April due to the entry of a legislative instrument by the Minister of Immigration and Border Patrol, however, the Senate voted to disallow the instrument on June 16, 2015. This decision may impact any pending subclass 457 visa nominations that relied on the previous AUD 180,000 exemption level.

Background

As part of a subclass 457 visa nomination application, the employer is required to prove that the salary and other terms and conditions of employment offered to the visa applicant are no less favorable than those offered to an Australian national performing equivalent work in the same location – known as the market salary rate requirement. The market salary requirement is not required to be demonstrated where the guaranteed earnings of the applicant are at or above a certain amount.

Where an instrument is disallowed by the Senate, the law reverts to the previous related legislative instrument.

What This Means for Employers

Fragomen client teams will contact affected employers if further information is required for any pending subclass 457 visa nominations. 

This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

MARN: 0849574

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