Sponsorship compliance in focus: What employers need to know

With the new skilled migration frameworks now in effect as of 1 July 2025, it is especially important for employers of foreign workers to ensure they are meeting their sponsorship obligations.

Updated income thresholds for skilled visas

To ensure foreign workers are paid fairly and in line with market expectations, the Australian Government has increased key income thresholds:

• Temporary Skilled Migration Income Threshold (TSMIT) increased from $73,150 to $76,515
• Core Skills Income Threshold (CSIT) increased to $76,515
• Specialist Skills Income Threshold (SSIT) increased from $135,000 to $141,210.

These thresholds apply to various visa streams, including the new Skills in Demand (SID) visa and regional sponsorship programs. Employers must offer the higher of the relevant threshold or the Annual Market Salary Rate (AMSR) for the nominated role.

These changes mean roles that previously met the salary criteria may no longer qualify. Now is a good time to review current and planned nominations to ensure they remain eligible under the new rules.

Ensuring equivalent terms for sponsored workers

If you’re an approved sponsor, you have an obligation to ensure you’re providing sponsored visa holders with equivalent terms and conditions of employment to their Australian counterparts. It’s important to remember that the process doesn’t end after the initial nomination stage.

If it has been more than 12 months since a nomination was approved, you are obligated to make sure you have independently verifiable evidence that your worker is being paid the Annual Market Salary Rate (AMSR). Sponsors must maintain evidence demonstrating that the sponsored employee is being renumerated in a manner that is verifiable by an independent third party.

If you don’t maintain this evidence, you are considered to have failed your obligations under the Migration Regulations. The process might seem complex, but with the right support and systems in place, meeting these obligations is straightforward.

What records do you need to keep?

The records you need to keep depend on whether you employ an equivalent Australian worker.

If you employ an equivalent Australian worker

Scenario	Supporting evidence
The salary is determined in accordance with an enterprise agreement or industrial award	You’ll need to provide a copy of the agreement or award as recorded by the Fair Work Commission, where applicable. Note: The salary level and occupation group that applies to the nominated occupation must be specified.
An enterprise agreement or industrial award does not apply	Provide copies of relevant employment contracts and pay slips for other Australian workers performing equivalent work in your workplace.

If you do not employ an equivalent Australian worker 

Scenario	Supporting evidence
The salary is determined in accordance with an enterprise agreement or industrial award	A copy of the agreement or award, as recorded by the Fair Work Commission, where applicable will be sufficient evidence.      Note: the salary level and occupation group that applies to the nominated occupation must be specified.
An enterprise agreement or industrial award does not apply	You’ll need to provide at least two of the following: Job outlook information (see: www.jobsandskills.gov.au) Advertisements from the last six months for equivalent positions in the same location (e.g. state, urban versus regional area) Remuneration surveys completed by a reputable organisation; or Written advice from registered unions or employer associations.

 

Determining if there’s an equivalent Australian worker

When considering whether a sponsored employee is an equivalent Australian worker, the relative experience of the Australian worker and the primary sponsored person need to be taken into account. For example, a primary sponsored person with two years’ experience may not be entitled to earn the same as an Australian worker with 10 years’ experience, or one with a higher level of relevant qualifications.

Determining equivalent earnings

When you’re determining the earnings of an equivalent Australian worker, you should also consider the location where the primary sponsored person is working. Information that indicates a certain earning level for one region may not be acceptable for another region.

It is the sponsors’ responsibility to provide sufficient information to satisfy the Department that you have determined the market salary rate. Keeping vague, unlabelled salary surveys that do not clearly explain how you’ve determined the market salary rate might not provide sufficient, relevant information to demonstrate:

1. What the AMSR is (consequently, it would not have been demonstrated that the sponsored worker is not being paid less than the AMSR); and/or
2. That the AMSR has been determined using the specified method.

Failing to satisfy your sponsorship obligations

If you, as an employer, fail to satisfy your sponsorship obligation, there are a number of actions that may be taken by authorised departmental officers (as the Minister’s delegate). These include:

• Pursuing a civil penalty
• Barring a sponsor, for a specified period, from sponsoring further people under the terms of one or more existing specified approvals as a sponsor
• Barring a sponsor, for a specified period, from making future applications for approval as a sponsor in relation to one or more classes
• Cancelling the approval of a person as a sponsor in relation to one, multiple or all classes to which the sponsor belongs
• Serving an infringement notice
• Entering into an enforceable undertaking
• Issuing a warning.

In circumstances where evidence is obtained that sponsors have underpaid their Australian workers, the Department of Home Affairs also directs decision makers to consider referring the matter to the Fair Work Ombudsman (FWO).

Is your business migration ready?

Foreign worker sponsorship is not a set-and-forget arrangement. Employers should proactively assess their compliance and stay ahead by maintaining oversight of whether:

• Sponsored workers are performing the exact duties listed in their nomination
• They are being paid the correct salary for the correct location
• All required updates are being reported to the Department of Home Affairs.

At BDO, our migration services support businesses in understanding and fulfilling complex compliance obligations. Our team helps businesses reduce risk through compliance reviews, policy updates and internal audits.