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Australia has announced a 4.6% increase in skilled visa income thresholds effective July 1, 2025. The updated salary requirements apply to employer-sponsored visas like subclass 482, 186, and 494. Learn what this means for skilled migrants and employers.
Australia has announced an increase in skilled visa income thresholds, effective from July 1, 2025. This adjustment, aligned with the Average Weekly Ordinary Time Earnings (AWOTE) indexation, ensures that skilled workers receive fair wages comparable to Australian workers.
Why Is the Income Threshold Increasing?
Australia revises skilled visa income thresholds annually to prevent foreign workers from being underpaid compared to domestic employees. This measure maintains labour market integrity and supports fair wage practices for migrant workers.
New Income Thresholds Effective July 1, 2025
For those planning to apply for Australian skilled visas, understanding these changes is crucial.
Core Skills Income Threshold (CSIT)
• The CSIT will rise from AUD 73,150 to AUD 76,515.
• This adjustment affects applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
• This ensures that workers within those core skilled jobs are being paid fairly.
Specialist Skills Income Threshold (SSIT)
• The SSIT will increase 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), targeting highly specialized roles.
• This change is targeting highly specialized occupations, that require a higher pay bracket.
Temporary Skilled Migration Income Threshold (TSMIT)
• The TSMIT, used for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187), will also increase from AUD 73,150 to AUD 76,515, matching the CSIT.
• This is subject to legislative approval.
• This change ensures that regional skilled workers are also protected by the wage increase.
Who Will Be Affected?
The changes will apply to new nomination applications submitted from July 1, 2025, for the following 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 nomination applications from July 1, 2025, must meet the updated income thresholds or the annual market salary rate, whichever is higher. This protects the workers by guaranteeing a fair wage.
• Existing Visa Holders: These changes do not impact current visa holders or applications lodged before July 1, 2025.
• Regional Visas: Those looking at regional visas should be aware of the TSMIT increase.
Impact on New Applicants
Employers nominating foreign workers for these visas must meet the new thresholds or ensure salaries align with the Annual Market Salary Rate (AMSR), whichever is higher. This policy ensures that migrant workers receive competitive wages comparable to their Australian counterparts.
Exemptions for Existing Visa Holders
These changes will not affect current visa holders or applications lodged before July 1, 2025. The updated income thresholds only apply to new applications submitted from this date onward.
What Employers Need to Know
Employers nominating workers for subclass 482, 494, 186, and 187 visas must demonstrate that they have accurately determined the annual market salary rate and will not pay overseas workers less than Australian counterparts.
If the annual salary is less than AUD 250,000, employers must prove that the wage is no less than the relevant income threshold.
• Accurately determine the Annual Market Salary Rate (AMSR).
• Ensure the proposed salary is not lower than the AMSR.
• Verify that the salary meets or exceeds the new visa income thresholds.
Final Thoughts
The 4.6% increase in skilled visa income thresholds is part of Australia’s broader Migration Strategy, reinforcing fair labor conditions for skilled migrants. Employers and prospective visa applicants should prepare for these changes to ensure compliance with the new regulations.
Source: https://travelobiz.com/australia-work-visa-income-thresholds-july-2025-changes/
