The Employer Nomination Scheme (ENS) Subclass 186 visa ordinarily has an upper age limit of 45 years, meaning that once an applicant turns 45 years old, they will need an age exemption to be eligible.
We have a separate article that addresses the various applicable age exemptions. This article deals with the most common of the age exemptions, being “Subclass 457/482 workers”.
What is the Subclass 457/482 worker age exemption?
Broadly speaking, to be classified as a “Subclass 457/482 worker”, you must:
- during the 3 years before the visa application is made:
- be employed in your nominated occupation for a total period of at least 2 years;
- hold one or more of a Subclass 457/482 visa for a total period of at least 2 years; and
- for each of those two years, your earnings for the year must be equal to or greater than the high income threshold (as applying at the end of the year).
Effectively, the provisions mirror that of the standard Temporary Residence Transition (TRT) stream of the ENS 186 visa, but with the added requirement that a person must have earnings equal to the Fair Work High Income Threshold (FWHIT).
What is the FWHIT?
The FWHIT increases each year on 1 July. For the most recent years, it is as follows:
- 1 July 2024 – 30 June 2025: $175,000
- 1 July 2023 – 30 June 2024: $167,500
- 1 July 2022 – 30 June 2023: $162,000
- 1 July 2021 – 30 June 2022: $158,500
What is included in earnings?
Earnings include:
- a person’s wage;
- amounts applied or dealt with in any way on the person’s behalf or as they direct; and
- the agreed money value of non-monetary benefits.
This includes for example, a person’s base salary, and any guaranteed allowances which have a predetermined value (i.e. $10k p/a car or housing allowance).
It does not include:
- payments the amount of which cannot be determined in advance;
- reimbursements; and
- contributions to a superannuation fund (except in certain limited circumstances).
What is the relevant period?
The calculation period starts from the date that you apply working backwards and using the current FWHIT. For example, if you apply today (the date of writing) on 6 May 2025, then as at the “end date” (i.e. today) the FWHIT is $175,000.
This means that the relevant periods (and relevant FWHIT) are:
- 7 May 2024 – 6 May 2025: $175,000
- 7 May 2023 – 6 May 2024: $167,500
This means that during those periods, your total annual earnings must add up to the FWHIT that applies “at the end of the year”.
What do I need to watch out for?
The main “at risk” people are those who have salaries close to the FWHIT, specifically where the FWHIT increases in the middle of their relevant periods as it’s the latter FWHIT figure to be utilised. It’s important to ensure that any salary increases account for this.
Utilising the same example above as follows:
- 7 May 2024 – 6 May 2025: $175,000 (second period)
- 7 May 2023 – 6 May 2024: $167,500 (first period)
Assuming a prospective applicant receives their pay rise at the beginning of a new calendar year, and their salaries are as follows:
- 1 January 2025 – 31 December 2025): $175,000
- 1 January 2024 – 31 December 2024): $170,000
- 1 January 2023 – 31 December 2024): $170,000
This person initially earns a salary of $170,000 and thus satisfies the first period. They end up satisfying part of the second period due to their 1 January 2025 salary increase (i.e. from 1 January 2025 – 6 May 2025).
However, the problem here is because the FWHIT increased on 1 July 2024 to $175,000.
Even though their salary increased on 1 January 2025 in line with the FWHIT and they were compliant between 1 January 2025 to 6 May 2025, it’s a requirement that their annual earnings for the total period was in line with the FWHIT “as applying at the end of the year”. Put plainly, their earnings between 7 May 2024 to 6 May 2025 must have been at least $175,000.
In this scenario, their salary would fall below $175,000 during the second period because their earnings would have been as follows:
- 1 January 2025 – 6 May 2025 at $175,000 p/a: ~$60,410
- 7 May 2024 – 31 December 2024 at $170,000 p/a: ~$111,010
- Total: $171,420
These figures are approximates, and simply utilised to demonstrate the above hypothetical problem.
How can we help?
If you are a company sponsoring, or are a foreign worker over 45 years of age (or anticipate only being eligible after you are over 45 years of age), please feel free to contact us by email at [email protected] or phone +61 3 9016 0484 to determine if pathways to permanent residence might be available.
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