Skilled Visa Salary Thresholds Set to Rise: What to Expect from 1 July 2025

From 1 July 2025, the Australian Government will implement a 4.6% increase in income thresholds for skilled visa categories. This change aligns with the annual indexation based on the Average Weekly Ordinary Time Earnings (AWOTE) and is designed to ensure that skilled migrants are paid fairly and in line with local market conditions.

The updated thresholds will apply to new nomination applications lodged on or after 1 July 2025:

1. Core Skills Income Threshold (CSIT): Increasing from AUD 73,150 to AUD 76,515. This applies to the Core Skills stream of the proposed new Skills in Demand visa (expected to replace the current subclass 482) and the Employer Nomination Scheme visa (subclass 186).

2. Specialist Skills Income Threshold (SSIT): Rising from AUD 135,000 to AUD 141,210, applicable to the Specialist Skills stream of the new Skills in Demand visa.

3. Temporary Skilled Migration Income Threshold (TSMIT): Increasing from AUD 73,150 to AUD 76,515. This threshold applies to the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme visa (subclass 187), subject to legislative approval

Implications for Employers and Applicants

• New Applications: Nomination applications submitted on or after 1 July 2025 must meet or exceed the new income thresholds or the relevant annual market salary rate, whichever is higher.

• Existing Applications: Nominations lodged and visa holders granted before 1 July 2025 will not be impacted by the changes.

The indexation of income thresholds is a key part of the Government’s commitment to strengthening integrity within the skilled migration program. It ensures wages for sponsored skilled workers are in step with those of Australian workers, helping to protect against wage undercutting and exploitation.

Preparing for the Changes

For Employers:

Review Compensation Packages: Make sure the offered salaries meet the updated thresholds or reflect current market rates for the nominated occupation.

Plan Ahead: If you're considering sponsoring a skilled worker, it may be beneficial to lodge your nomination before 1 July 2025 to take advantage of the existing thresholds.

For Skilled Visa Applicants:

Understand Eligibility: Ensure the salary offered by your sponsoring employer meets the new requirements if you're applying on or after 1 July 2025.

Discuss Timing: Talk to your employer or migration agent about whether lodging your application before the changes take effect is in your best interest.