The answer, like most answers from a competent lawyer, is – it depends. Several factors determine the 186 visa salary requirements for applying.
Meeting the Income Threshold Specified by the Legislative Instrument
The first factor is the income threshold specified by the legislative instrument (IMMI 18/033). According to the latest version issued on 1 July 2024, the minimum salary requirement is $73,150 (note that this amount does not include your superannuation and your non-monetary rewards). You must have at least this amount of salary to apply for a 186 visa. However, this number is not static and can potentially increase every new financial year.
For example, before 1 July 2023, the threshold was $53,900. Many professionals could meet this minimum requirement. However, the figure increased dramatically during the 2023-2024 financial year, reaching $70,000. By 1 July 2024, the threshold had risen to $73,150.
What about the next financial year? How much will the salary threshold be for a 186 visa application? $80,000? $90,000? We do not know the exact answer, but we do know that the threshold is indexed and will increase again.
The key takeaway here is that to apply for a 186 visa, your salary must meet the minimum salary threshold, which may change every year.
Meeting the Market Salary Rate
Meeting the income threshold outlined in the legislation alone might not be enough to qualify for a 186 visa. Imagine you’re a single engineer earning $75,000 plus superannuation, and your company also covers your accommodation in Sydney. Life sounds pretty great, right? So, can you apply for a 186 visa now?
The answer is not a simple yes or no, but most likely, it’s a no. Why? Because migration law requires that your salary must be equal to or higher than that of an (actual or hypothetical) equivalent Australian worker in the same location. According to the latest Seek remuneration survey, the average salary for engineers is around $100,000 in Sydney. So, despite your comfortable package and your salary being above the income threshold mentioned in the previous section, you might still fall short of the required income for applying for the 186 visa.
Thus, to be eligible to apply for a 186 visa, your salary must be paid at least equivalent to that of Australian citizens or permanent residents in the same occupation and location.
Meeting the Caveat for Some Occupations
So, if I am a general manager and I have about $140,000 plus superannuation per year, and I live in Sydney, and my salary is about the same as Australian citizens and PR. In addition to that, I drive a fancy Benz. I am good enough to apply for a 186, right? Sorry, the answer is still unfortunately no.
Why? Because certain occupations have caveats, which are conditions or restrictions attached to visa requirements. For a corporate general manager applying for a 186 visa, there is a caveat regarding the salary of the occupation. A general manager’s annual salary must be above $180,001 for them to apply for a 186 visa.
Therefore, for some occupations, the visa applicant’s salary has to meet the income threshold, match the average salary of Australian workers of the same occupation in the same location, and meet any potential caveat requirements.
Meeting the Exemption Threshold for People Over Age 45
What if you’re over 45 and want to avail yourself of the age exemption for employer nominated permanent residence? That’s not a problem if you have been a subclass 457 or 482 visa holder, have been working in the nominated occupation for the nominating employer for at least 2 years during the 3 years ending immediately before you apply, and your earnings for each year of that period were at least as much as the Fair Work High Income Threshold (now $175,000). In this context, ‘earnings’ is a defined term so be extremely careful when structuring a remuneration package to overcome the age threshold.
Conclusion
The question is quite simple: How much should your salary be to be eligible for applying for a 186 visa? The answer is complicated, as 186 visa salary requirements vary. That is why it would be better to call Longton Migration to get the right answers.
*Disclaimer: This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice before taking any course of action.*
