Fair Work High Income Threshold increase

Requirements, compliance, visa

From 1 July 2018, the Fair Work High Income Threshold (“FWHIT”) is now $145,400.

As this is an increase from last year’s threshold of $142,000, the change may affect the following business sponsors and visa applicants:

  • Sponsors who are conducting labour market testing in preparation for a TSS nomination application

Labour market testing policy states the annual earnings of the position must appear on the advertisement unless the annual earnings will be greater than the FWHIT.

If the nominee was relying on this exemption but the position has annual earnings less than $145,400, the business may have to re-advertise the position if salary details did not appear on the advertisement. As the current requirement is to advertise the position for at least 21 calendar days (soon to be 28 days), this can add considerable delay to the application.

  • Visa applicants relying on an age exemption to apply for the Temporary Residence Transition stream of the Employer Nomination Scheme (Subclass 186) visa

Generally, Subclass 186 visa applicants need to be under 45 years of age to apply for the visa. However, there is an age exemption if applicants can demonstrate they have been working for their sponsoring employer in their nominated occupation for at least three years on a Subclass 457 or TSS visa and their annual earnings in each period was at least equivalent to the FWHIT in each annual period.

Applicants aged 45 years and older who were preparing an application on this basis may no longer be eligible for this exemption if their current salary is less than $145,400.

Need further assistance? Our migration team monitors upcoming changes in law to help you anticipate and prepare for the changes. Please contact our migration team on info@themigrationagency.com.au.

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