Australia’s migration policy has seen a significant transformation over the past year. The 2024–25 financial year brought with it sweeping changes designed to better align migration with labour market needs, economic contribution, and national infrastructure pressures. Now, as the 2025–26 financial year begins, the migration system continues to evolve—ushering in new income thresholds, higher visa costs, and further measures aimed at streamlining and tightening eligibility.
This article outlines the key changes implemented during the 2024–25 financial year and highlights what individuals, students, sponsors, and employers can expect in 2025–26.
What Changed in the 2024–25 Financial Year
Reduction in Migration Program Planning Levels
In 2024–25, the permanent Migration Program was reduced from 190,000 to 185,000 places. The majority of these places—approximately 71 per cent—were allocated to the skilled stream. This included:
-
- 44,000 places for employer-sponsored visas (up from 36,825)
- 16,900 places for skilled independent visas (down from 30,375)
- 4,000 places for the Global Talent visa (down from 5,000)
The cut reflects the government’s objective to focus on migrants who can contribute to Australia’s economic needs while managing pressure on housing and infrastructure.
Introduction of the Skills in Demand (SID) Visa
In December 2024, the government replaced the Temporary Skill Shortage (TSS 482) visa with the new Skills in Demand (SID) visa, split into three streams:
-
- Specialist Skills – for roles with very high salaries and hard-to-fill positions
- Core Skills – for the majority of occupations listed under skilled migration
- Essential Skills – for critical sectors like aged care and disability services
Each stream comes with different eligibility criteria, particularly regarding salary thresholds. This visa model is designed to simplify skilled migration while meeting specific economic needs.
Student Visa Reform
The student visa program underwent major structural changes during 2024–25:
-
- Visa application charges were raised from $710 to $1,600
- Financial requirements were increased, requiring applicants to show funds equal to 75% of the national minimum wage
- A two-tier processing model was introduced, favouring institutions with a high level of compliance
- Onshore applications now require a valid Confirmation of Enrolment (CoE)—letters of offer are no longer accepted
These changes aim to improve the quality and integrity of student intake and reduce misuse of student visa pathways.
Migration Reduction Target
The government set a goal to reduce net overseas migration from a peak of 510,000 in 2022–23 to 250,000 by mid-2025. This measure was introduced to relieve pressure on housing, infrastructure, and essential services.
Additionally, the government flagged a potential cap of 30% on new international student enrolments per institution, although this was not implemented during 2024–25.
What to Expect in This New Financial Year
Visa Application Charges Effective from 1 July 2025
The Australian Government has updated visa application charges for key visa subclasses as follows:
- Partner Visa (subclass 820/801 or 309/100): $9,365 AUD
- Student Visa (subclass 500): $2,000 AUD
- Working Holiday Visa (subclass 417): $670 AUD
- Visitor Visa (subclass 600):
- Offshore applications: $200 AUD
- Onshore applications: $500 AUD
- Skills in Demand (SID) 482 Visa: $3,210 AUD
- Employer Nomination Scheme (subclass 186): $4,910 AUD
- Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494): $4,910 AUD
These updated VAC fees reflect the government's revised cost recovery approach to visa processing.
Full Rollout of SID Visa Salary Thresholds
From 1 July 2025, updated income thresholds for the SID visa will be officially applied:
- Specialist Skills stream: Threshold rising from $135,000 to $141,210
- Core Skills stream: Threshold rising from $73,150 to $76,515
These new benchmarks ensure that skilled workers entering Australia are compensated at market-competitive rates and that roles are genuinely in demand.
Potential Introduction of a Student Enrolment Cap
The proposed cap of 30% on new international student enrolments per institution remains under consideration. If implemented during 2025–26, this could:
- Limit enrolment numbers for low-compliance providers
- Prioritise institutions that offer student support and accommodation
- Reduce the overall volume of international student intake
The goal is to ease infrastructure strain and ensure quality education standards.
Increased Sponsor and Employer Scrutiny
The Department of Home Affairs is expected to further enhance employer and sponsor monitoring, including:
- Expanded compliance auditing
- Stricter requirements for labour market testing
- Greater penalties for non-compliance or misrepresentation in visa applications
Employers must ensure they remain up-to-date with sponsorship obligations and salary benchmarks to avoid enforcement actions.
More reforms are expected to take place this new financial year, so it’s essential to speak with an expert before taking any steps. Staying informed and seeking professional advice can help you avoid costly mistakes and ensure your application meets the latest eligibility criteria and compliance requirements.
The 2024–25 financial year marked a deliberate shift toward skilled, economically valuable migration, with new visa structures, increased student regulations, and enhanced enforcement.
As we move through 2025–26, migrants and sponsors must now navigate higher visa fees, stricter salary thresholds, and more rigorous processing across all major visa categories. This is not about closing Australia’s doors to migrants—but about building a stronger, more sustainable migration system that supports the country’s long-term economic resilience and planning. To succeed, every applicant must be well-prepared, financially capable, and fully compliant.
Confused About the Best Time to Apply? We're Just a Call Away.
At NB Migration Law, our experienced team of migration lawyers and agents is ready to help you navigate these evolving changes. Whether you’re a skilled professional, student, employer, or family sponsor, we provide tailored, up-to-date advice aligned with the latest legislation.
Book your complimentary consultation today to explore your options and plan your next steps with confidence.