Australia is making important changes to its skilled migration system. There will be a 4.6% increase in income thresholds for skilled visa programs starting from July 1, 2025. This change, announced by the Department of Home Affairs, reflects the country’s rising average wages.
It is also part of the government’s broader Migration Strategy aimed at ensuring fair pay and protecting the labor market. If you are a skilled professional planning to move to Australia, these changes may affect your visa application.
Here is everything you need to know about the updated thresholds, their effects, and how to prepare.
Understanding the New Income Thresholds
The Australian government has started annual adjustments of skilled visa income thresholds to match the Average Weekly Ordinary Time Earnings (AWOTE). This 4.6% increase will take effect on July 1, 2025. It impacts several main visa programs aimed at bringing skilled workers to Australia. Here is a detailed breakdown of the new thresholds:
| Threshold Type | Previous Threshold | New Threshold (Effective July 1, 2025) | Applies To | Description |
|---|---|---|---|---|
| Core Skills Income Threshold (CSIT) | AUD 73,150 | AUD 76,515 | – Core Skills stream of Skills in Demand (subclass 482) visa – Employer Nomination Scheme (subclass 186) visa | Targets skilled workers in core occupations, ensuring salaries align with Australia’s wage growth. |
| Specialist Skills Income Threshold (SSIT) | AUD 135,000 | AUD 141,210 | – Specialist Skills stream of Skills in Demand (subclass 482) visa | Designed for highly specialized professionals in high-demand roles, reflecting their expertise and market value. |
| Temporary Skilled Migration Income Threshold (TSMIT) | AUD 73,150 | AUD 76,515 | – Skilled Employer Sponsored Regional (subclass 494) visa – Regional Sponsored Migration Scheme (subclass 187) visa | Supports fair pay for skilled migrants working in regional Australia, subject to legislative approval. |
A critical update is that all new nomination applications submitted on or after July 1, 2025, must meet the higher of either the updated income threshold or the Annual Market Salary Rate (AMSR).
The AMSR shows the typical salary for a role in the Australian labor market.
This helps ensure that skilled migrants are paid fairly and that local workers are not undercut. Importantly, these changes will not affect existing visa holders or nominations lodged before July 1, 2025.
Why Are These Changes Happening?
The Australian government’s decision to raise income thresholds is based on its Migration Strategy, shaped by the 2023 Migration Review. The strategy aims to:
- Ensure Fair Wages: By tying thresholds to the Average Weekly Ordinary Time Earnings (AWOTE), the government makes sure that skilled migrants’ salaries match those of Australian workers. This helps prevent wage suppression.
- Protect Local Labor: The higher thresholds protect Australian workers by making sure employers do not use skilled migration to offer below-market salaries.
- Attract High-Caliber Talent: The increased thresholds, especially for the Specialist Skills stream, focus on professionals with specialized skills in high-demand areas like technology, engineering, and healthcare.
- Support Sustainable Migration: These changes support Australia’s goal of creating a skilled migration system that fosters economic growth while meeting labor market needs.
This change is part of a larger effort to improve Australia’s immigration system. This includes introducing the Skills in Demand (subclass 482) visa in December 2024 and aiming to reduce net overseas migration over the next four years. The government is also tackling issues like visa hopping and ensuring that migration supports national priorities such as housing and infrastructure.
What This Means for Skilled Migrants
For skilled professionals worldwide, these changes present both opportunities and challenges. Here’s a closer look:
1. Higher Entry Standards
The increased thresholds show Australia’s commitment to attracting highly skilled professionals who earn competitive salaries. For instance, the Specialist Skills Income Threshold (SSIT) rising to AUD 141,210 highlights the government’s goal to recruit top talent in specialized fields.
If you’re a tech expert, engineer, medical professional, or another valuable specialist, your skills are in high demand. These changes could improve your migration pathway. However, lower-paid roles may face tougher scrutiny, so applicants need to ensure their job offers meet the new requirements.
2. Competitive Advantage for High Earners
The higher thresholds serve as a filter that prioritizes professionals with job offers reflecting market standards. If your role has a salary above the new thresholds or the AMSR, you’re likely to encounter an easier application process.
This is especially true for jobs on the Core Skills Occupation List (CSOL), which includes 456 in-demand roles identified by Jobs and Skills Australia.
3. Planning Ahead is Crucial
If your current job offer is close to the existing thresholds (e.g., AUD 73,150 for CSIT or TSMIT), you may struggle to meet the new requirements after July 1, 2025. To avoid issues, consider submitting your nomination before this date.
Employers must also complete Labour Market Testing (LMT) requirements, such as advertising the position for 28 days, to show that no suitable Australian candidates are available. Starting this process early can help ensure you meet deadlines and secure your application under the current thresholds.
Implications for Employers
Employers sponsoring skilled migrants will need to change their strategies to comply with the new thresholds. Key considerations include:
- Budget Adjustments: Employers must make sure that salary offers for nominated positions meet or exceed the updated thresholds or the AMSR. This may require adjusting payroll budgets, especially for roles near the previous thresholds.
- Labour Market Testing: For nominations requiring LMT, employers should start advertising positions right away to complete the mandatory 28-day period before July 1, 2025, if the salary is below the new threshold.
- Superannuation Increase: From July 1, 2025, the Superannuation Guarantee rate will rise from 11.5% to 12%. This will add to the cost of sponsoring skilled workers. This applies to Skills in Demand (subclass 482) visa holders and must be included in budgeting.
