AMSR Changes (2026): Why Many Employers Will Now Need to Pay More

From 25 March 2026, changes to how the Annual Market Salary Rate (AMSR) is assessed are starting to affect employer-sponsored visa applications (subclasses 482, 494, 186 and 187).

At first glance, the rules appear unchanged. Employers can still rely on internal salaries, awards, or market data depending on the circumstances. But in practice, the outcome is shifting, and in many cases, towards higher required salaries.

The rule has not changed — but the scrutiny has

The AMSR framework still follows a simple structure:

• If there is a genuinely equivalent Australian worker, the salary must reflect what that worker is paid
• If there is no equivalent worker, the salary can be determined using external market data (such as job ads, salary surveys, and government data)

Market data is not something you can choose freely. It only becomes relevant when there is no equivalent Australian Worker.

What is an “equivalent Australian worker”?

This is where most applications now succeed or fail. An equivalent worker is not just anyone in a similar role. It must be:

• an Australian citizen or permanent resident,
• working in the same workplace and location,
• performing equivalent duties, and
• earning (or expected to earn) a comparable salary for that role on a full-time annual basis

Importantly:

This is the nuance that is now being applied more strictly.

Where the shift is happening

Previously, internal employees were often accepted as equivalent without much scrutiny. This allowed employers to anchor AMSR to existing salaries, even where those salaries were below broader market levels. That approach is now far less reliable.

There is increasing focus on whether the comparator truly matches the nominated role in terms of:

• level of responsibility
• experience and expertise
• scope of duties

If the comparison does not hold, it is no longer accepted, and the assessment moves to the market.

A simple example: Hairdresser salaries

Consider a typical salon scenario:

• Award-based salary: around $50,000–$55,000
• Market salary (based on current recruitment listings): typically $70,000–$80,000+

If a salon employs a genuinely equivalent Australian hairdresser at around $72,000, that figure can still be used as the AMSR.

However, if the only internal employee is more junior—for example, earning $58,000 with fewer responsibilities or less experience—that person is unlikely to qualify as an equivalent worker.

In that case, the employer cannot rely on the lower internal salary. The assessment shifts to market data, and the AMSR is likely to align with the higher market range.

The practical impact

This change does not introduce new salary thresholds or fundamentally alter the structure of the law. Instead, it removes the ability to rely on weak internal comparisons.

For employers, the consequence is straightforward:

• If your internal salaries reflect the real market, nothing changes
• If they do not, they are more likely to be challenged

In many cases, this results in AMSR being assessed at a higher, market-aligned level

What evidence is required?

The Department expects AMSR to be supported by clear and consistent evidence.

Depending on the situation, this may include:

• internal salary records
• awards or enterprise agreements
• or external market data such as job advertisements and salary benchmarks

However, what is appropriate—and sufficient—depends on whether a valid equivalent Australian worker exists. We have outlined this in detail here.

Bottom line

The AMSR framework is still:

• comparator first
• market data only where no valid comparator exists

What has changed is this: