Annual Indexation of Skilled Visa Income Thresholds: Key Changes from 1 July 2025
The Australian government has announced an increase in the income thresholds for skilled visa applicants, effective from 1 July 2025. These changes aim to maintain the alignment between the wages of skilled migrants and Australian workers, ensuring that the skilled migration program does not inadvertently create competition that undermines the local labour market. This annual adjustment to income thresholds reflects the commitment outlined in the Migration Strategy, following recommendations made by the Migration Review.
What Are the Key Changes?
From 1 July 2025, the income thresholds for various skilled visa categories will be indexed by 4.6%, in line with the Average Weekly Ordinary Time Earnings (AWOTE) for Australian workers. The adjustments will impact visa categories such as the Skills in Demand visa (subclass 482), the Employer Nomination Scheme visa (subclass 186), and others that fall under the skilled migration stream.
The new thresholds are as follows:
Core Skills Income Threshold (CSIT): This threshold will rise from AUD 73,150 to AUD 76,515. It will affect nominations for the Core Skills stream under the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
Specialist Skills Income Threshold (SSIT): For the Specialist Skills stream under the Skills in Demand visa (subclass 482), the SSIT will increase from AUD 135,000 to AUD 141,210.
Temporary Skilled Migration Income Threshold (TSMIT): The TSMIT, which is relevant for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) visa (subclass 187), will also rise from AUD 73,150 to AUD 76,515. This increase aligns with the Core Skills Income Threshold.
These adjustments ensure that skilled migration aligns with the general wage growth experienced by Australian workers, preventing any undue advantage that might arise from using skilled migration as a means to offer lower wages than the market rate.
Implications for New Nomination Applications
Effective from 1 July 2025, all new nominations must meet the revised income thresholds or the annual market salary rate, whichever is higher. This means that employers who wish to sponsor skilled migrants must ensure that the wages offered to these workers align with the updated thresholds. Failure to comply with the new thresholds may result in the refusal of nomination applications.
It is essential for employers to be aware of these upcoming changes and plan accordingly, especially as new skilled visa applications and nominations post-1 July 2025 will be subject to the updated requirements.
Impact on Existing Visa Holders
It is important to note that these changes will not affect existing visa holders. Individuals who have already been granted a skilled visa or who have lodged their nominations prior to 1 July 2025 will not be impacted by the new income thresholds. The changes apply only to new applications and nominations submitted after the specified date.
Why Are These Changes Important?
The annual indexation of skilled visa income thresholds is an important part of Australia’s migration policy. By ensuring that wages for skilled migrants are aligned with those of local workers, the government aims to avoid creating wage disparity in the labour market. It also helps to prevent the exploitation of the skilled migration program, which could potentially lead to undercutting Australian wages. Furthermore, these adjustments reflect the government's ongoing commitment to the principles of fairness and equity in the immigration process.
As Australia continues to attract skilled workers from across the globe, the government remains focused on ensuring that skilled migration meets the needs of the Australian economy, while simultaneously safeguarding the interests of local workers.
Conclusion
The upcoming increase in skilled visa income thresholds represents an important shift in Australia’s immigration policy. By adjusting the thresholds annually in line with the AWOTE, the government ensures that skilled migration continues to support the Australian workforce without undermining local labour market conditions. Employers and prospective skilled migrants should be prepared for the upcoming changes and ensure that their nominations meet the revised criteria.
With the increased threshold, the government reinforces its stance on fair wages and maintains the integrity of the skilled migration system.
Contact Information
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