Skilled Visa Income Thresholds to Increase from 1 July 2025: What You Need to Know

Australia is set to implement a 4.6% increase in skilled visa income thresholds starting 1 July 2025. This adjustment aligns with the annual Average Weekly Ordinary Time Earnings (AWOTE) and reflects the government’s commitment to fair pay practices under the Migration Strategy. The changes ensure that skilled migration does not undercut Australian workers, maintaining parity between local and migrant wages.

Why Are Income Thresholds Indexed?

Income thresholds for skilled visas are indexed annually to match national wage growth. This policy ensures:

  • Fairness between Australian and migrant workers.

  • Prevention of wage exploitation.

  • Alignment of skilled migration with broader economic goals.

New Income Thresholds Effective 1 July 2025

From 1 July 2025, the following income thresholds will apply to new nomination applications. Employers and visa applicants must meet these thresholds or the annual market salary rate (whichever is higher):

Income Threshold Current (AUD) From 1 July 2025 (AUD) Affected Visas
Core Skills Income Threshold (CSIT) $73,150 $76,515 Subclass 482, Subclass 186
Specialist Skills Income Threshold (SSIT) $135,000 $141,210 Subclass 482
Temporary Skilled Migration Income Threshold (TSMIT) $73,150 $76,515 Subclass 494, Subclass 187 (Pending)

Who Will Be Affected?

New Nomination Applications: These changes apply only to nomination applications lodged on or after 1 July 2025. Employers must ensure that the salary offered meets or exceeds the updated thresholds.

Existing Visa Holders: Current visa holders and nominations submitted before this date will not be impacted by these changes.

Impact on Specific Visa Subclasses

  1. Core Skills Income Threshold (CSIT):

    • The CSIT will rise from $73,150 to $76,515.

    • This affects applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).

  2. Specialist Skills Income Threshold (SSIT):

    • The SSIT will increase from $135,000 to $141,210.

    • This impacts nominations for the Specialist Skills stream of the subclass 482 visa.

  3. Temporary Skilled Migration Income Threshold (TSMIT):

    • The TSMIT will also increase from $73,150 to $76,515.

    • It applies to the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) visa (subclass 187), pending legislative approval.

Why This Matters for Employers and Applicants

The updated thresholds emphasize Australia’s commitment to attracting global talent while protecting domestic workers’ rights. By ensuring competitive salaries for skilled migrants, these changes aim to enhance workplace fairness and support Australia’s economic objectives.

Employers planning to sponsor skilled workers should review their remuneration packages to ensure compliance with the new thresholds. Similarly, prospective visa applicants must understand how these changes affect their eligibility.

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