Farm Sponsorship Costs in 2026–27: Why Paying the Award May Not Be Enough
• Hari Yellina
Information checked 15 September 2026. Australian general information; individual circumstances and the current official requirements still need to be checked.
Paying the correct award rate does not automatically make a farm position suitable for skilled sponsorship. An employer may also need to establish the annual market salary rate and meet the income threshold for the particular migration pathway.
These are three different questions. The employment instrument establishes employment entitlements. The market-salary assessment examines comparable Australian employment. The migration threshold sets a further nomination requirement. Passing one test cannot substitute for the others.
The thresholds for 2026–27
Home Affairs’ salary requirements page lists the following thresholds for nominations lodged from 1 July 2026 to 30 June 2027.
| Threshold | Amount | Pathways identified by Home Affairs |
|---|---|---|
| Core Skills Income Threshold (CSIT) | $79,423 | Skills in Demand subclass 482 Core Skills stream and Employer Nomination Scheme subclass 186. |
| Specialist Skills Income Threshold (SSIT) | $146,576 | Skills in Demand subclass 482 Specialist Skills stream. |
| Temporary Skilled Migration Income Threshold (TSMIT) | $79,423 | Skilled Employer Sponsored Regional subclass 494 and Regional Sponsored Migration Scheme subclass 187. |
The relevant stream and any applicable agreement still need checking. These amounts are not a universal wage floor for PALM workers, Working Holiday Makers or every person employed on a farm. They also do not establish that a particular occupation is eligible for sponsorship.
Why the market salary matters
For the nominations covered by its salary guidance where annual earnings are below $250,000, Home Affairs requires evidence supporting the annual market salary rate (AMSR). The overseas worker must not be paid less than that rate. Both the AMSR and the worker’s salary, excluding non-monetary benefits, must meet the applicable threshold.
A genuine equivalent Australian worker can provide relevant evidence. The comparison needs to reflect the work, workplace and location, and the employee’s experience and pay level. Where there is no equivalent worker, the evidence must still establish the market rate for the actual position. Housing or a vehicle does not count towards the threshold merely because it has value to the employee.
Two hypothetical salary checks
Assume a skilled farm-management position is being assessed under a pathway with a $79,423 threshold. Occupation eligibility, other criteria and the market evidence would need their own assessment.
| Proposed arrangement | What the figures show |
|---|---|
| Established AMSR $84,000; proposed salary $80,000 | The proposed salary exceeds $79,423 but is below the assessed market salary. Clearing the threshold alone does not satisfy the salary test. |
| Established AMSR $77,000; proposed salary $79,423 | Increasing the offer to the threshold does not, by itself, resolve a market salary below the threshold. Both figures must satisfy the relevant requirement, unless a valid pathway-specific concession applies. |
These examples are arithmetic checks, not an assessment of a real nomination. A revised number needs evidence; changing a job title or inflating a market assessment on paper does not establish a genuine eligible role.
A sponsorship budgeting worksheet
Prepare this worksheet before committing to a recruitment budget. Enter confirmed amounts and the evidence behind them; leave unresolved amounts visibly pending.
| Budget line | Evidence to obtain |
|---|---|
| Employment pay | Applicable award or enterprise agreement, correct classification, ordinary hours, penalties, overtime, allowances and contractual commitments. |
| Market salary | Comparable worker or other reliable market evidence, with duties, location and experience recorded. |
| Migration salary test | Subclass, stream, nomination date, threshold and any concession expressly available under the applicable agreement. |
| Employer on-costs | Superannuation, workers compensation and other applicable employer costs, calculated separately from cash remuneration. |
| Recruitment and application expenses | Current written estimates for the actual recruitment, application and professional services required. Confirm who may lawfully bear each cost. |
| Travel and settling in | Any employer commitments for travel, temporary accommodation, induction or relocation, with cash and non-cash items separated. |
| Contingency | Uncertain costs and dates, responsible decision-maker and the point at which the proposed start date must be reconsidered. |
Check the agreement and the actual role
Labour agreements can have their own negotiated conditions, including concessions where expressly available. Do not assume an industry concession applies to every farm or nomination. Have the actual pathway and supporting evidence checked before lodging or promising sponsorship.
Read this alongside Orchard Tech’s farm-pay guide. The first question remains what the employee must lawfully be paid; the sponsorship assessment adds further requirements.
Sources and review date
Checked 15 September 2026.
- Home Affairs: Salary requirements, nominations lodged 1 July 2026–30 June 2027
- Home Affairs: Labour agreements and agreement-specific conditions
Feature image: AI-generated illustration with fictional people and setting.
About the author
Hari Yellina is Chief Executive Officer at Orchard Tech. His articles explain practical agricultural workforce and workplace questions. Explore the Knowledge Centre.
