Australia Increases Work Visa Income Thresholds: Key Changes Effective July 2025

Australia will raise the skilled visa income thresholds by 4.6%, effective July 1, 2025. This adjustment specifically targets employer-sponsored visas, including subclasses 482, 186, and 494. Understanding these changes is essential for both skilled migrants and employers.

Reasons for the Increase

The Australian government revises skilled visa income thresholds annually. This practice prevents the underpayment of foreign workers compared to local employees. By doing so, Australia maintains labor market integrity and promotes fair wage practices for migrant workers.

New Income Thresholds Effective July 1, 2025

For individuals planning to apply for Australian skilled visas, staying informed about these updates is crucial.

Core Skills Income Threshold (CSIT)

The CSIT will increase from AUD 73,150 to AUD 76,515. This change affects applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186). By raising this threshold, Australia ensures fair compensation for workers in core skilled jobs.

Specialist Skills Income Threshold (SSIT)

The SSIT will rise from AUD 135,000 to AUD 141,210. This applies to nomination applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482). This adjustment targets highly specialized occupations that command a higher salary.

Temporary Skilled Migration Income Threshold (TSMIT)

The TSMIT will also increase, rising from AUD 73,150 to AUD 76,515. This threshold pertains to the Skilled Employer-Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (subclass 187). Subject to legislative approval, this adjustment will help ensure that regional skilled workers receive fair wages.

Summary of Revised Thresholds

The upcoming changes will affect skilled workers applying for employer-sponsored visas. Here’s a look at the revised thresholds:

Who Will Be Affected?

These changes will apply to new nomination applications submitted from July 1, 2025, for specific visa categories:

• Skills in Demand Visa (Subclass 482)—Core Skills and Specialist Skills streams.
• Employer Nomination Scheme (Subclass 186).
• Skilled Employer-Sponsored Regional Visa (Subclass 494).
• Regional Sponsored Migration Scheme (Subclass 187).

Important Considerations for Visa Applicants

• Market Salary Rate: New applications must meet either the updated income thresholds or the Annual Market Salary Rate (AMSR), whichever is higher. This requirement safeguards workers by ensuring fair compensation.
• Existing Visa Holders: Current visa holders or applications lodged before July 1, 2025, will not be affected. The revised income thresholds will only impact new applications submitted after this date.
• Regional Visas: Applicants for regional visas should note the TSMIT increase.

Impact on New Applicants

Employers nominating foreign workers must adhere to the new thresholds or align salaries with the AMSR. This policy ensures that migrant workers receive competitive wages, equal to those of their Australian peers.

Exemptions for Existing Visa Holders

The updated thresholds will not impact existing visa holders or applications submitted prior to July 1, 2025. Only new applications from this date will be subject to the changes.

What Employers Need to Know

Employers nominating workers for subclasses 482, 494, 186, and 187 must verify that they have accurately determined the AMSR. They cannot pay overseas workers less than their Australian counterparts.

If the annual salary is below AUD 250,000, employers must ensure compliance with the new income thresholds. They should confirm that the proposed salary meets or exceeds the revised thresholds.

Final Thoughts

The 4.6% increase in skilled visa income thresholds reflects Australia’s commitment to fair labor conditions for skilled migrants. Employers and prospective visa applicants should prepare for these changes to ensure compliance with the new regulations.