In a significant update for skilled migration, the Australian government has announced a 4.6% increase in skilled visa income thresholds, effective from 1 July 2025. This change aligns with annual adjustments to Average Weekly Ordinary Time Earnings (AWOTE) and is part of the Migration Strategy aimed at ensuring skilled migrants’ wages keep pace with Australian workers.
This adjustment helps prevent businesses from using skilled migration to undercut local employees by maintaining fair salary standards for both Australian and overseas workers. Employers and visa applicants need to prepare for these changes to ensure compliance with the updated wage requirements.
Key Changes to Skilled Visa Income Thresholds
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Core Skills Income Threshold (CSIT)
- Current: AUD 73,150
- New (from 1 July 2025): AUD 76,515
- Applies to:
- Core Skills stream of the Skills in Demand visa (subclass 482)
- Employer Nomination Scheme visa (subclass 186)
The Skills in Demand visa (subclass 482) allows Australian businesses to hire overseas workers when suitable Australian candidates are unavailable. This income threshold increase ensures that temporary skilled workers are paid fairly, reinforcing the importance of maintaining strong workplace standards.
The Employer Nomination Scheme visa (subclass 186) provides a permanent residency pathway for skilled workers who are nominated by Australian employers. With the CSIT increase, employers must meet higher salary requirements to ensure their nominees receive fair compensation in line with Australian market rates.
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Specialist Skills Income Threshold (SSIT)
- Current: AUD 135,000
- New (from 1 July 2025): AUD 141,210
- Applies to:
- Specialist Skills stream of the Skills in Demand visa (subclass 482)
The Specialist Skills stream is designed for high-income skilled workers filling specialised positions in Australia. The increased threshold highlights the government’s commitment to attracting top-tier talent while ensuring wages remain competitive within the global job market.
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Temporary Skilled Migration Income Threshold (TSMIT)
- Current: AUD 73,150
- New (from 1 July 2025): AUD 76,515
- Applies to:
- Skilled Employer Sponsored Regional visa (subclass 494)
- Regional Sponsored Migration Scheme (RSMS) visa (subclass 187)
- Pending legislative approval
The Skilled Employer Sponsored Regional visa (subclass 494) allows businesses in regional areas to sponsor skilled workers, helping to address critical labour shortages. Similarly, the Regional Sponsored Migration Scheme visa (subclass 187) provides a pathway to permanent residency for skilled workers nominated by regional employers. The TSMIT increase aligns with national wage trends, ensuring that skilled workers in regional areas receive fair remuneration.
Who Will Be Affected?
From 1 July 2025, all new nomination applications must meet the revised income thresholds or the annual market salary rate, whichever is higher. Employers must review and adjust their salary offerings accordingly when sponsoring skilled workers.
🚨 Existing visa holders and applications lodged before 1 July 2025 will NOT be impacted by these changes.
Why This Matters
These updates aim to prevent skilled migration from undercutting Australian workers, ensuring fair wages and supporting economic growth. Employers and visa applicants should plan ahead to meet the new salary requirements.
Businesses that rely on skilled migration should assess the impact of these changes on their workforce planning. Reviewing salary structures and ensuring compliance with the updated thresholds will be crucial for smooth sponsorship processes.
📢 Need help navigating these changes? Contact our team at NB Migration Law for expert guidance on employer-sponsored visas and skilled migration pathways. Book a free consultation today!