Australia is set to implement a 4.6% increase in skilled visa income thresholds, starting 1 July 2025, in line with adjustments to the Average Weekly Ordinary Time Earnings (AWOTE). This change delivers on the commitment outlined in the Migration Strategy, as recommended by the Migration Review.
The annual indexation of income thresholds ensures that wages for skilled migrants keep pace with Australian workers’ earnings. This helps prevent the undercutting of local wages, ensuring skilled migration benefits the economy without disadvantaging Australian workers.
Key Changes to Income Thresholds from 1 July 2025
The new thresholds, which apply to several key skilled visa categories, are as follows:
- Core Skills Income Threshold (CSIT):
- Current: AUD 73,150
- New: AUD 76,515
- This increase will affect nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
- Specialist Skills Income Threshold (SSIT):
- Current: AUD 135,000
- New: AUD 141,210
- This increase will impact applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482).
- Temporary Skilled Migration Income Threshold (TSMIT):
- Current: AUD 73,150
- New: AUD 76,515
- This threshold will apply to the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187).
For all new nomination applications lodged from 1 July 2025 onwards, applicants must meet the new income thresholds or the annual market salary rate, whichever is higher. Importantly, this change does not affect current visa holders or nominations that are submitted before the 1 July 2025 deadline.
Addressing Wage Equality and Protecting Australian Workers
The indexation of skilled visa income thresholds is designed to promote fairness and sustainability in the migration system. By ensuring that skilled migrants’ wages are set in line with the national earnings trend, the government reinforces its commitment to providing opportunities for skilled workers without undercutting local employment standards.
This increase also aligns with broader policy efforts to ensure that Australia’s migration system responds effectively to the evolving needs of the workforce, while maintaining protections for local job markets. As demand for skilled workers continues to rise, the indexation aims to ensure that the system is both fair to migrants and Australian workers alike.
The update comes as part of ongoing reforms to Australia’s migration landscape, ensuring that skilled migration continues to support Australia’s economic growth while upholding fair labour standards across the board.
For employers and potential migrants, the updated income thresholds will mean higher salary expectations for visa applicants moving forward, reflecting the increased costs and wages in the national economy.
