Australia is set to implement updated income thresholds for employer-sponsored skilled visas starting July 1, 2025. Confirmed by the Department of Home Affairs, these changes are intended to align with national wage growth and ensure fair compensation for foreign professionals.
What’s Changing?
Beginning in July, the required minimum salary for several visa streams will rise to ensure that incoming skilled migrants receive equitable pay.
Core Skills Income Threshold (CSIT)
The CSIT will increase to $50,350.74.
Applies to:
- Skills in Demand Visa (Subclass 482 – Core Skills stream)
- Employer Nomination Scheme (Subclass 186)
This ensures foundational roles are compensated in line with labor market trends.
Specialist Skills Income Threshold (SSIT)
The SSIT will rise to $92,974.
Applies to:
- Skills in Demand Visa (Subclass 482 – Specialist Skills stream)
This threshold targets high-paying, highly specialized roles.
Temporary Skilled Migration Income Threshold (TSMIT)
The TSMIT will align with CSIT at $50,319.32.
Applies to:
- Skilled Employer Sponsored Regional Visa (Subclass 494)
- Regional Sponsored Migration Scheme (Subclass 187)
This supports regional relocation efforts with consistent income standards.
Visas Affected
These new income thresholds apply to nomination applications submitted on or after July 1, 2025, under the following visa categories:
- Temporary Skill Shortage Visa (Subclass 482) – Core and Specialist Skills streams
- Employer Nomination Scheme (Subclass 186)
- Skilled Employer Sponsored Regional Visa (Subclass 494)
- Regional Sponsored Migration Scheme (Subclass 187)
Employers must provide either the new threshold salary or the Annual Market Salary Rate (AMSR), whichever is higher.
Why The Update?
The 4.6% increase reflects Australia’s annual wage indexation based on Average Weekly Ordinary Time Earnings (AWOTE). It is part of broader migration reforms that aim to:
- Align skilled migration salaries with market trends
- Prevent wage undercutting in competitive sectors
- Support regional development and business needs
- Promote transparency and fairness in the migration system
These updates follow recommendations from the federal Migration Review and are designed to improve the integrity of Australia’s skilled migration program.
Who Will Be Affected?
- Employers: Must meet the new salary requirements for nominations lodged on or after July 1, 2025.
- Future skilled visa applicants: Must meet the updated income thresholds to be eligible.
Who Is Not Affected?
- Existing skilled visa holders
- Nomination applications submitted before July 1, 2025
Applications lodged before the deadline will continue under the current salary thresholds.
What To Do Next
Employers and prospective applicants should review the updated thresholds and prepare well ahead of time. Planning in advance can ensure eligibility and help avoid processing delays once the new rules take effect.
Australia’s updated income thresholds reinforce the country’s commitment to a fair and competitive skilled migration system. These reforms are designed to support workers, regions, and employers alike by ensuring income levels match the evolving demands of Australia’s labor market.