Income threshold increases for skilled visas — effective 1 July 2025

What's changing?

From 1 July 2025, income thresholds that apply to certain skilled visas and employer-sponsored nominations in Australia will be indexed upwards by approximately 4.6% in line with changes in the Average Weekly Ordinary Time Earnings (AWOTE). This affects several visas used by employers and skilled migrants.

Which visas are impacted?

• Core Skills Income Threshold (CSIT) — used for employer-sponsored skilled streams such as the Skills in Demand (subclass 482) Visa and the Employer Nomination Scheme (subclass 186).
• Minimum threshold increases to AUD 76,515.
• Specialist Skills Income Threshold (SSIT) — used for higher-earning professionals under the Skills in Demand (subclass 482).
• Minimum threshold increases to AUD 141,210.
• Temporary Skilled Migration Income Threshold (TSMIT) — applicable to regional and certain other skilled programs (e.g. subclass 494 and subclass 187 tied to regional sponsorship).
• Minimum threshold increases to AUD 76,515.

Practical implications

These threshold adjustments do not apply retrospectively to existing nomination applications lodged before 1 July 2025, but they will apply to new nomination applications lodged on or after that date.

Employers now need to ensure the proposed remuneration meets either the relevant threshold or the annual market salary rate, whichever is higher. This protects wage standards while maintaining visa integrity.

For prospective sponsored employees and employers, these changes may affect planning, offers of employment, negotiations around remuneration, and long-term strategy — especially for candidates targeting employer-sponsored pathways to permanent residency.

Significant 2024–2025 Skilled Visa Structural Changes (Context for 482)

Although not a new announcement on its own, it's important contextual background that continues to affect planning for employer-sponsored skilled pathways.

• Temporary Skill Shortage (TSS) Visa Has Been Replaced — In December 2024, the Temporary Skill Shortage (TSS) visa (subclass 482) was formally replaced by the Skills in Demand (SID) visa. The new system modernises employer-sponsored work visas and introduces clearer streams and pathways with general validity of up to four years.
• Expanded Flexibility in Employment Mobility — Under the new SID visa framework, primary applicants have greater flexibility, including defined periods to seek alternative sponsorship if employment ends, reflecting policy intent to make the system more responsive to labour market needs.
• Work Experience Thresholds and Eligibility — Streamlining reforms have reduced minimum work experience requirements in some streams, lowering barriers for certain applicants and aligning with broader strategic migration objectives.

How This Affects You

For Skilled Workers:

• Confirm that your proposed salary meets the updated minimum thresholds when evaluating employer-sponsored opportunities.
• Understand how income thresholds interact with skill lists and occupation eligibility, particularly in the Skills in Demand framework.
• For Employers:
• Adjust workforce planning and remuneration offers to ensure compliance with the updated income thresholds.
• Align sponsorship strategies with income requirements and permanent residency timelines.
• For Long-Term Planning:
• Changes like income threshold indexation are part of broader objectives to balance wage integrity with targeted skill attraction. Early strategy — rather than reactive application preparation — is essential.

More Updates Worth Knowing

Since 2024, Australia's skilled migration framework continues to evolve:

• The Skills in Demand visa replaced the older TSS visa, introducing a new structure designed to respond to modern workplace needs.
• Work experience and eligibility requirements have been refined, impacting planning for employer sponsorship and future PR pathways.
• Permanent residency sequences associated with employer-sponsored visas are now clearer but remain complex.

Staying Informed

Migration policy evolves — sometimes rapidly. We filter official changes and explain their practical effect on eligibility, timing, employer obligations, and strategic planning.

For personalised interpretation of any update on this page, book a consultation with one of our consultants, where we align policymaker intent with your specific circumstances.