ENS 186 High Income Threshold and Salary Packaging
When applying for the Employer Nomination Scheme (ENS) subclass 186 visa, applicants over 45 can be exempt from the age requirement if they have been paid above the Fair Work High Income Threshold (FWHIT) for the two years prior to application. A common question is whether an employee can salary-sacrifice part of their wages (for example into super or a novated car lease) and still claim to meet the high-income threshold. This article explains how the ENS 186 high income threshold works and why salary sacrifice can affect age exemption eligibility.
In practice, the Department treats the FWHIT as a hard earnings threshold. In one case I reviewed, the applicant’s accountant had sacrificed around $29,000 per year to reduce taxable income. The applicant asked whether those sacrificed amounts could still count towards the FWHIT. My view as a migration agent is clear: they cannot. You can either enjoy the tax benefits of salary sacrifice or meet the migration benefit of the high-income threshold – not both. Meeting the ENS 186 high income threshold requires careful planning of taxable income.
If your taxable income falls below the FWHIT due to salary sacrifice, you may no longer qualify for the age exemption. Applicants must decide which outcome is more important and plan accordingly.
Key Takeaways
• For the ENS 186 age exemption, only gross earnings count towards the FWHIT.
• Amounts salary-sacrificed into super, novated leases or other benefits will reduce your qualifying income.
• Decide early whether you prefer the migration benefit (meeting the FWHIT) or the tax benefit of salary packaging.
How VisaTasker Can Help
Australian migration rules can be complex, and every situation is different. Our registered migration agents can review your circumstances and provide clear, practical advice on the best pathway forward for you.
Disclaimer: This article contains general information only and may not apply to your specific circumstances. For personalised guidance on your visa application, please book a consultation with one of our registered migration agents.
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Reviewed by VisaTasker Migration Services
MARA Registered Migration Agent · MARN 2318017
This article is written and reviewed by VisaTasker Migration Services, a MARA-registered migration agency based in Australia. As registered agents, we are bound by the Migration Agents Code of Conduct and required to provide accurate, up-to-date advice based on Australian migration legislation. Information is reviewed against the latest Department of Home Affairs policy.
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