482 and 186 Salary Compliance Checklist Before 1 July 2026

From 1 July 2026, salary compliance will become an important issue for employers preparing subclass 482 Skills in Demand visa nominations and subclass 186 Employer Nomination Scheme nominations.

For many businesses, the focus is often on whether the offered salary meets the required income threshold. However, that is only one part of the assessment. Employers must also consider whether the nominated salary reflects the annual market salary rate for the role.

This means a nomination may still face problems even if the salary meets the relevant threshold, if the Department is not satisfied that the worker is being paid at the correct market rate for the occupation, location, experience level and duties involved.

For employers planning to lodge a nomination close to or after 1 July 2026, now is the right time to review salary figures, contracts, internal approvals and supporting evidence.

Why Salary Compliance Matters for Employer-Sponsored Visas

Employer-sponsored visas are designed to help Australian businesses fill genuine skill shortages where suitable local workers are not available. Because of this, salary settings are closely reviewed during the nomination process.

The salary must generally satisfy two key requirements:

1. The relevant income threshold for the visa stream; and
2. The annual market salary rate for the nominated position.

The required salary is not simply the minimum threshold amount. In practice, the employer must usually meet the higher figure.

For example, if the applicable threshold is AUD 79,499 but the market salary rate for the role is AUD 90,000, offering AUD 79,499 may not be enough. The employer would need to show that the nominated worker is being paid in line with the market rate for that position.

This is where many nominations become risky. A salary may look compliant at first glance, but the supporting evidence may not be strong enough to show that the amount is fair, current and occupation-specific.

What Is Changing From 1 July 2026?

From 1 July 2026, employer-sponsored income thresholds are expected to increase as part of annual indexation.

The Core Skills Income Threshold, commonly referred to as CSIT, is expected to increase from AUD 76,515 to AUD 79,499.

The Specialist Skills Income Threshold, commonly referred to as SSIT, is expected to increase from AUD 141,210 to AUD 146,717.

These thresholds are relevant to different streams of the subclass 482 Skills in Demand visa and may also be relevant to subclass 186 Employer Nomination Scheme nominations.

The key date is the nomination lodgement date. If a nomination is lodged before 1 July 2026, the current threshold may apply. If it is lodged on or after 1 July 2026, the updated threshold is expected to apply.

This is why employers should avoid relying only on the date an employment contract or offer letter was issued. A contract prepared before July may still need to be reviewed if the nomination will be lodged after the new threshold takes effect.

Which Employers Should Review Salaries Now?

Employers should review their salary position if they are planning to lodge a subclass 482 or subclass 186 nomination around July 2026.

This is especially important for businesses with sponsored workers whose salary is close to the current threshold. A salary that is compliant before 1 July 2026 may fall below the updated amount after the change.

For example, a salary of AUD 77,000 may currently sit above the Core Skills Income Threshold of AUD 76,515. However, from 1 July 2026, it would fall below the expected updated threshold of AUD 79,499.

A gap of only a few thousand dollars can affect whether a nomination can proceed.

Employers should also review salaries where:

• The nominated salary was set months ago;
• The employment contract has not been updated recently;
• The worker is moving from a 482 visa to a 186 nomination;
• The business is preparing multiple nominations;
• The role has changed since the original sponsorship;
• The worker has gained seniority or additional responsibilities;
• Market salary evidence is limited or outdated.

Early review gives employers time to update contracts, obtain internal budget approval, gather evidence and avoid rushed decision-making close to lodgement.

Subclass 482: Core Skills and Specialist Skills Streams

For the subclass 482 Skills in Demand visa, the relevant threshold depends on the stream.

The Core Skills stream generally applies to occupations listed on the Core Skills Occupation List. This may include roles across industries such as healthcare, construction, hospitality, trades, engineering, business services and technology.

The Specialist Skills stream is designed for highly specialised occupations and generally applies a higher salary threshold. This stream may be relevant for senior or specialised roles in areas such as technology, finance, engineering, science and other high-skill sectors.

Employers must confirm the correct stream before determining which salary threshold applies. Using the wrong threshold can create problems at nomination stage and may delay or weaken the application.

Subclass 186: Why Salary Should Be Reassessed

Salary should also be reviewed when a worker is moving from a subclass 482 visa to a subclass 186 Employer Nomination Scheme visa, including through the Temporary Residence Transition pathway.

A common mistake is assuming that because the salary was accepted for a previous 482 nomination, it will automatically satisfy a later 186 nomination. That is not always the case.

The salary must be assessed at the time of the new nomination. This means employers should check the current threshold, the market salary rate, the worker’s current duties and the evidence available to support the nominated salary.

If the worker’s role has changed, or if the market salary for that occupation has increased, the previous salary may no longer be sufficient.

The Market Salary Rate: The Most Important Evidence Issue

The annual market salary rate is the amount an equivalent Australian worker would reasonably be paid for the same role in the same location and industry.

This requirement is designed to ensure that sponsored workers are not paid less than Australian workers and that employers are offering genuine, fair employment conditions.

Evidence may include:

• Salary paid to equivalent Australian employees in the same business;
• Applicable modern awards or enterprise agreements;
• Recent job advertisements for similar roles;
• Industry salary surveys;
• Recruitment data;
• Position descriptions;
• Evidence of duties, seniority, qualifications and location.

The evidence should be specific. Generic salary data may not be enough if it does not match the nominated occupation, industry, location and level of responsibility.

For example, the market salary for a software engineer in Sydney may differ from a similar title in a regional location. A chef in a casual dining restaurant may have a different market rate from a head chef managing a large kitchen team. A construction project manager overseeing small residential projects may not have the same salary profile as one managing major infrastructure works.

The stronger and more specific the evidence, the easier it is to show that the nominated salary is appropriate.

Employer Salary Compliance Checklist

Before lodging a 482 or 186 nomination, employers should check the following:

• Confirm the nominated worker’s guaranteed annual earnings;
• Exclude non-guaranteed bonuses or discretionary payments from the salary calculation;
• Confirm whether the Core Skills or Specialist Skills threshold applies;
• Check whether the nomination will be lodged before or after 1 July 2026;
• Compare the salary against the updated threshold;
• Identify the annual market salary rate for the role;
• Review whether any Australian employees perform equivalent work;
• Check any applicable award or enterprise agreement;
• Update the employment contract if the salary needs to change;
• Gather salary evidence before lodgement;
• Make sure HR, finance and management understand the required salary;
• Obtain budget approval for any increase before the nomination is submitted.

This checklist should be completed before lodgement, not after a request for further information is received.

Common Mistakes Employers Should Avoid

One of the most common mistakes is applying the pre-July threshold to a nomination that will be lodged after 1 July 2026. The lodgement date is critical.

Another mistake is focusing only on the income threshold and forgetting the market salary requirement. The threshold is a minimum benchmark, not a complete salary assessment.

Employers should also avoid relying on outdated contracts, old salary evidence or broad online salary estimates that do not match the specific role.

Other common errors include:

• Using the wrong threshold for the visa stream;
• Including non-guaranteed bonuses in the salary figure;
• Assuming a previous 482 approval guarantees future compliance;
• Failing to review salary before a 186 nomination;
• Lodging without clear market salary evidence;
• Preparing salary documents too close to the deadline.

These issues can lead to delays, further document requests or nomination refusal.

Practical Example

Consider an employer preparing a subclass 482 nomination for a marketing specialist with a salary of AUD 78,000.

Before 1 July 2026, that salary may appear to meet the current Core Skills Income Threshold. However, if the nomination is lodged after 1 July 2026, the expected updated threshold of AUD 79,499 may apply.

The employer would then need to increase the salary to meet the new threshold. But the review should not stop there. If the market salary rate for a marketing specialist with similar duties and experience in that location is AUD 85,000, the employer may need to offer AUD 85,000 instead.

This is why employers should review both the threshold and the market salary rate before finalising contracts.

What Sponsored Workers Should Know

Sponsored workers should also be aware of the upcoming threshold change, especially if they are planning to continue with the same employer, renew a nomination or transition from a 482 visa to permanent residence through the 186 pathway.

Existing 482 visa holders are generally not required to change their salary simply because the threshold increases. However, if a new nomination is lodged after 1 July 2026, the updated requirements may apply.

Workers whose salary is close to the current threshold should speak with their employer early, particularly if a future nomination is being planned.