Australia Increases Skilled Visa Income Thresholds by 4.6% Starting July 1 – Know the Impact
Starting July 1, 2025, the Australian government will implement a 4.6% increase in skilled visa income thresholds. This change will directly affect employer-sponsored visa programs and aims to ensure that wages offered to skilled migrants align with the evolving Australian job market and economy.
What’s Changing?
Three major salary thresholds will be revised:
- Core Skills Income Threshold (CSIT): Increased from AUD 73,150 to AUD 76,515
- Temporary Skilled Migration Income Threshold (TSMIT): Now set to AUD 76,515
- Specialist Skills Income Threshold (SSIT): Increased from AUD 135,000 to AUD 141,210
These new thresholds apply to visa subclasses such as 482, 186, 494, and 187. If you are applying for a skilled visa through an employer sponsorship after July 1, these new figures will be used to assess your eligibility. Nominations lodged before this date will follow the previous thresholds.
Why the Change?
This increase is part of a broader strategy by the Australian government to protect the integrity of its skilled migration system. The adjustment aligns salary expectations for foreign workers with current national wage growth. It ensures that:
- Skilled migrants are not underpaid or exploited
- Employers do not bypass the local workforce by offering lower wages
- The migration system supports high-quality, high-earning talent
By indexing the thresholds to national wage data, the government is future-proofing skilled migration against inflation and changing labor market conditions.
Impact on Employers
Employers planning to sponsor foreign talent must now reassess their recruitment and compensation strategies. From July 1 onwards:
- All salary offers must meet or exceed the new threshold.
- The higher of the market salary rate or threshold will be used to determine eligibility.
- Rising superannuation contributions (moving to 12% from July) will further increase total compensation obligations.
Employers need to prepare for higher costs associated with hiring skilled migrants. This may particularly affect industries that rely heavily on overseas talent, such as healthcare, IT, and engineering.
In addition, businesses will need to maintain accurate documentation to justify salaries and market rate assessments. Delays or errors in meeting these new requirements could result in nomination rejections or compliance issues.
What It Means for Skilled Migrants
For prospective skilled workers, these changes present both challenges and opportunities:
- You will need to secure job offers that meet the updated salary criteria.
- If your qualifications and experience don’t align with high-paying roles, you may face difficulty securing sponsorship.
- On the positive side, migrants entering Australia can expect better job security, fairer pay, and stronger protections under the revised structure.
It’s advisable to enhance your professional profile, ensure your skills are in demand, and engage with reputable employers familiar with the skilled visa process.
What You Should Do Next
For Employers:
- Start reviewing upcoming hiring plans now.
- Adjust budget allocations to reflect the increased thresholds and superannuation rates.
- Ensure your HR and legal teams are aligned with the new salary and nomination requirements.
For Skilled Workers:
- Stay updated with job opportunities in high-demand fields.
- Prepare documentation early—this includes qualifications, experience letters, and salary negotiations.
- Partner with experienced migration consultants to avoid delays or application errors.
Final Thoughts from Emigrantz
Australia’s increase in skilled visa income thresholds is a clear signal that the country continues to prioritize high-quality migration while ensuring wage fairness. For employers, this is a reminder to plan ahead and ensure full compliance. For skilled professionals, it presents a renewed opportunity to enter Australia on stronger financial and legal footing.
At Emigrantz, we support skilled professionals and employers in navigating the evolving migration landscape. From documentation and eligibility assessments to end-to-end visa processing, we ensure a smooth and transparent journey.
Reach out to Emigrantz today to find out how these changes affect your migration path and how we can help you prepare with confidence.