Salary Packaging and Visa 482: Effect on Market Rate

Salary packaging (or salary sacrifice) is a common way to structure pay in Australia — but when tied to a 482 visa, it creates some legal complexity worth understanding.

What is salary packaging

Salary packaging is an arrangement between employer and employee in which part of the salary is converted into non-cash benefits, such as a car, a laptop, or extra superannuation. These benefits often carry a tax advantage.

How the Department assesses the “market salary rate”

The core condition of the 482 visa is that the foreign employee must be paid no less than the market salary rate — the market rate for that position for someone with equivalent skills in Australia.

When assessing the market salary rate for comparison, the Department and Fair Work look at total remuneration — including:

• Base salary
• Salary packaging components (the cash-equivalent value)
• Superannuation (10.5%+ compulsory)

But importantly: the way “market rate” is derived from the ABS Survey of Employee Earnings is usually based on base salary, not the total package. So the comparison is not always straightforward.

Risks of using salary packaging with a 482 visa

Risk 1: Base salary below market rate but total package sufficient Some employers structure pay with a low base plus high packaging. The Department may consider whether the base salary meets the “genuine” market rate.

Risk 2: Packaging disguising a low real wage If packaging is used to lift the total to the market-rate threshold while the actual cash in hand is low, the Department may view this as failing to meet the sponsor’s obligations.

Practical recommendations

• Make sure the base salary (before packaging) already meets or comes close to the market rate
• Clearly document all pay components in the contract
• Consult a migration agent when designing the pay structure for a 482 employee

How much is the market salary rate

The market salary rate is determined using the ABS Survey of Employee Earnings (SEES) or an equivalent source for each occupation and state. Check with the Fair Work Commission or the Department’s website for the specific threshold for your position.