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Reversal of change to the 457 visa program regarding market salary rate evidence

June 17, 2015

Marco Deutsch

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On 16 June 2015, the salary threshold beyond which market salary evidence is no longer required was increased from $180,000 to $250,000, restoring the position that existed between 1 July 2013 and 18 April 2015. 
 
The Australian Senate disallowed the 18 April 2015 Legislative Instrument which purported to lower the threshold to $180,000. As a result of this disallowance, the Instrument from 1 July 2013 still applies.
 
Market rate exemption
 
As part of the 457 nomination application, the employer is required to evidence that the salary and other term and conditions of employment offered to the visa applicant are no less favourable than those offered to an Australian 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 (market salary rate exemption).
 
In light of the Australian Senate’s decision, the market rate exemption has been restored to the level last set on 1 July 2013, at an amount of AU$250,000. This decision may impact any 457 nominations currently lodged with DIBP where the previous AU$180,000 exemption was relied upon.  Your Fragomen client team will be in touch with you if you if further information is required for any 457 nominations currently processing with DIBP.
 
The Temporary Skilled Migration Income Threshold (TSMIT) has remained unchanged and continues to be AU$53,900.
 
Fragomen will continue to monitor these events closely and will provide further updates as they become available.


MARN 0849574

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