Regional Sponsored Migration Scheme - Subclass 187

1. What are the salary requirements for Regional Sponsored Migration Scheme Subclass 187?

Employers who wish to nominate workers for subclass must meet certain salary and employment condition requirements. These requirements help to ensure that:

• overseas workers are paid no less than an Australian worker would doing the same work in the same location, that is, the 'annual market salary rate (AMSR)'
• these visa programs are not used to undercut the Australian labour market

If the overseas worker will be paid an annual salary less than AUD250,000 you need to show:

• you have determined the AMSR correctly
• the overseas worker will not be paid less than the AMSR, that is, less than an Australian worker would be paid
• both the AMSR and what the overseas worker will be paid, excluding any non-monetary benefits in both cases, is no less than the Temporary Skilled Migration Income Threshold (TSMIT).

Temporary Skilled Migration Income Threshold

The Temporary Skilled Migration Income Threshold (TSMIT) is currently AUD53,900.

Both the AMSR for the nominated occupation and the guaranteed annual earnings you will pay to the worker must be at least as much as the current TSMIT.

The TSMIT does not include non-monetary benefits such as accommodation or a car. Such benefits must be paid in addition to the TSMIT.

Annual market salary rate

The Annual market salary rate (AMSR) is determined by looking at what you would pay equivalent Australian workers, enterprise agreements or industrial awards, job outlook information, advertisements for the last 6 months in the same location, remuneration survey or advice from unions or employer associations.

Determining the AMSR Where there is an equivalent Australian worker The AMSR is what you are paying this worker.

If the worker's salary is based on an enterprise agreement or industrial award, you provide:

• the name of the agreement or award as recorded by the Fair Work Commission, where applicable
• the salary level or occupation group that applies to the nomination

If there is no relevant agreement or award, or you are paying your Australian employees above the award rate, provide:

• copies of relevant employment contracts and
• pay slips for this employee

Note:

• An Australian worker who is more or less experienced than the nominee and does similar work at a different pay grade is not considered equivalent to the nominee.
• If the nominated overseas worker will be paid less than the equivalent Australian worker, we will refuse the nomination.
• If you provide only generic market salary data or salary surveys, we will refuse the nomination.

Where there is no equivalent worker but there is an enterprise agreement or industrial award

Provide:

• the name of the agreement or award as recorded by the Fair Work Commission, where applicable
• the salary level or occupation group that applies to the nomination

Where there is no equivalent worker, agreement or award

You must determine and then show us what the ASMR is.

Explain how you used relevant information to determined what the equivalent worker will be paid. Relevant information must include at least two of the following:

• Job Outlook information
• advertisements from the last six months for equivalent positions in the same location (e.g. state, urban vs regional area)
• remuneration surveys completed by a reputable organisation
• written advice from unions or employer associations

Note:

• If you provide vague, unlabelled salary surveys and do not explain how you have determined the AMSR, we might refuse your nomination application.
• If the market salary rate determined is a 'range', explain and provide specific details regarding why you selected that AMSR.

2. How to undertake Labor market testing?

You must show the Department of Immigration you can't find an suitable Australian worker. Before you nominate an overseas worker, you will need to test the local labour market.

Labour market testing generally involves advertising the position in Australia.

How and when you test the market, and what proof the Department of Immigration require, will depend on which stream you are nominating under.

Check first to see if:

• you are exempt or
• alternative arrangements apply

Sponsors must provide a copy of the advertising material used to advertise the position must be provided (i.e. a copy of the two advertisements that meet our requirements) when you nominate an applicant.

Advertising must be done:

• within the 4 months immediately before lodging a nomination application
• if within 4 months of lodging the nomination application, and if the sponsor or an associated entity has made any Australian citizen or permanent resident workers redundant or retrenched them from positions in the nominated occupation - since the date that these events occurred. Note: when this occurs, information about these redundancies or retrenchments must also be provided.

The advertisement was in Australia, in English and included the following information:

• the title, or a description, of the position. Note, multiple positions in one advertisement are acceptable
• the skills or experience required for the position
• the name of the approved sponsor or the name of the recruitment agency being used by the sponsor and
• the salary for the position - if the annual earnings for the position are lower than AUD96,400. Note: it is acceptable to publish a salary range—for example AUD80,000 to AUD90,000.

at least 2 advertisements were published in any of the below:

• on a prominent or professional recruitment website with national reach (for example jobactive.gov.au) that publishes advertisements for positions throughout Australia.
• industry specific recruitment websites relevant to the occupation that are in significant use by the industry are an acceptable method of LMT advertising.
• a general classifieds website or an advertisement solely through social media notification (such as Twitter or Instagram) are not acceptable methods. LinkedIn's online recruitment platform is acceptable for LMT purposes. Job vacancies restricted to LinkedIn profile members only are not acceptable for LMT purposes.
• in national print media—that is, newspapers or magazines with national reach that are published at least monthly and marketed throughout Australia
• on national radio—that is, radio programs that are broadcast or syndicated nationally or
• on the business' website if the sponsor is an accredited sponsor.
• advertisements including on websites, are expected to have run for at least 4 weeks.
• applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks.

Note:

• the nominated position may be advertised in the same medium (such as newspaper advertisements - on two separate occasions) or in any two different mediums simultaneously, or on two separate occasions
• advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) - there is no requirement that the sponsor placed the advertisement themselves.

Labour market testing for non-immigration purposes

Outside of the immigration application context, Australian law may impose labour market testing requirements for particular industries to ensure that Australian workers are given priority.

The Building Code 2016, for example, imposes certain requirements on employers when they seek to employ people to undertake building work who are not Australian citizens or permanent residents. For more information, see Australian Building and Construction Commission.

Prospective sponsors are encouraged to ensure that they familiar with any such requirements before considering nominating an overseas worker for a particular position.

3. What are the exemptions to Labour Market Testing?

Labour Market Testing is not required where it would conflict with Australia's international trade obligations, in any of the following circumstances:

• the worker you nominate is a citizen/national of China, Japan or Thailand, or is a citizen/national/permanent resident of Chile, South Korea, New Zealand or Singapore
• the worker you nominate is a current employee of a business that is an associated entity of your business and the associated entity is located in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam), Chile, China, Japan, South Korea or New Zealand
• the worker you nominate is a current employee of an associated entity of your business and that associated entity operates in a country that is a member of the World Trade Organisation (WTO), and the nominated occupation is an Executive or Senior Manager occupation for the purposes of international trade obligations and the nominee will be responsible for the entire or a substantial part of your company's operations in Australia
• your business currently operates in a WTO member country or territory and is seeking to set up a business in Australia, and the nominated occupation is an Executive or Senior Manager occupation for the purposes of international trade obligations
• the worker you nominate is a citizen of a WTO member country or territory and has worked for you in the nominated position in Australia on a full-time basis for the last two years.

For the purposes of international trade obligations, the following occupations are considered to be Executives or Senior Managers:

• Advertising Manager (131113)
• Chief Executive or Managing Director (111111)
• Chief Information Officer (135111)
• Corporate General Manager (111211)
• Corporate Services Manager (132111)
• Finance Manager (132211)
• Human Resource Manager (132311)
• Sales & Marketing Manager (131112)
• Supply and Distribution Manager (133611)

Alternative submission requirements apply in the following cases:

Where the occupant to has to have an internationally recognised record of exceptional and outstanding achievement in a profession or a field (such as a sport, academia and research, or as a top-talent chef)

• Your submission should explain why the specific individual nominated is the only person, or one of very few people, who could undertake the nominated position.

Where there is new nomination for an existing TSS or subclass 457 visa holder solely because the annual earnings that will apply to the nominee have changed or a change in business structure has resulted in the nominee's employer lodging a new application to be approved as a standard business sponsor.

• Your submission should explain that the position is already filled by an existing TSS or subclass 457 visa holder, but why a new nomination is required (for example, due to a business restructure).

Where there is an intra-corporate transfer (ICT) the transfer of an existing employee of a company to another branch or associated entity of that company operating in Australia

• Your submission should explain the need for an ICT transfer and documentation outlining the transfer arrangement.

Where the annual earnings will be equal to or greater than AUD250,000

• Your submission should explain the methods of testing the local labour market. For example, how you found the overseas worker via an executive search process.

*Where the nominees are within:

-ANZSCO Minor Group 253 – Medical Practitioners (except General Practitioner (ANZSCO 253111) and Medical Practitioners nec (ANZSCO 253999))

-ANZSCO Unit Group 4111 – Ambulance Officers and Paramedics.*

• Your submission should explain the methods of testing the local labour market. For example, how you found the overseas worker via a regular bulk recruitment exercise.

4. How much is SAF levy?

On 12 August 2018, the Department of Immigration implemented the new SAF levy. This levy will contrubute to the Skilling Australians Fund operated by the Department of Education and Training, with the aim to grow apprenticeships and trainee programs to support Australian jobs and growth.

The levy replaced the former training benchmark requirements found in the predecessor visa, subclass 457.

Each nomination application must be accompanied with the levy payment at the time of application. The charges are:

• For business with annual turnover of less than $10 million: $1,200 per year
• For business with annual turnover of more than $10 million: $1,800 per year