Australia continues to adjust its migration policies to maintain fairness in the labour market and ensure overseas workers are paid competitively. Beginning 1 July 2026, the Australian government will introduce a 3.75% increase in skilled visa income thresholds, aligning them with changes in the Average Weekly Ordinary Time Earnings (AWOTE).
While these adjustments may appear technical, they have meaningful implications for both employers sponsoring overseas workers and skilled migrants seeking employment in Australia. Understanding how the new thresholds compare with previous requirements helps clarify who will be affected and how employers must adapt.
Why Australia Is Raising Skilled Visa Salary Thresholds
Australia’s migration system aims to strike a balance between attracting global talent and protecting local workers. Salary thresholds play a central role in this system. Furthermore, they ensure that employers hiring overseas workers pay wages comparable to those earned by Australian employees performing the same role.
This also means that, without such safeguards, employers could potentially hire foreign workers at lower salaries, which would place downward pressure on wages in the domestic labour market. By indexing thresholds annually, the government keeps visa salary requirements aligned with real wage growth across Australia.
The upcoming increase reflects this principle: as national earnings rise, so must the minimum salaries offered to sponsored migrant workers.
New Skilled Visa Income Thresholds
Two major salary benchmarks used in employer-sponsored visas will increase.
| Income Threshold Type | Current Threshold (2025–2026) | New Threshold (From 1 July 2026) |
| Core Skills Income Threshold (CSIT) | AU$76,515 | AU$79,499 |
| Specialist Skills Income Threshold (SSIT) | AU$141,210 | AU$146,717 |
The difference between these thresholds reflects the level of expertise required. The Core Skills threshold applies to a broad range of skilled occupations, while the Specialist Skills threshold targets highly specialised roles that typically command significantly higher salaries.
Visa Categories Affected
Several employer-sponsored visa programs rely on these salary benchmarks. The most notable include:
- Skills in Demand Visa (Subclass 482)
- Employer Nomination Scheme Visa (Subclass 186)
In comparison, regional visa programs such as Subclass 494 and Subclass 187 rely on a different salary benchmark called the Temporary Skilled Migration Income Threshold (TSMIT).
Although these visas operate within the same migration framework, the salary benchmarks they use vary depending on the skill level, location, and purpose of the visa program.
Who Will Be Affected
The impact of the new thresholds depends largely on when a nomination application is submitted.
Applications lodged on or after 1 July 2026 must comply with the updated salary requirements. In contrast, applications submitted before that date will continue to be assessed under the previous thresholds, even if they are still pending.
Moreover, equally important, existing visa holders will not be affected. The increase only applies to new nominations, not to workers who are already sponsored under current arrangements.
This distinction helps maintain stability for both employers and migrant employees who are already part of the system.
Comparing Salary Thresholds Over Time
Australia’s salary thresholds have gradually increased over the past decade, reflecting broader wage growth across the economy.
| Period | Temporary Skilled Migration Income Threshold |
| 2013 – 2023 | AU$53,900 |
| July 2023 – June 2024 | AU$70,000 |
| July 2024 – June 2025 | AU$73,150 |
| July 2025 – June 2026 | AU$76,515 |
This steady progression illustrates how Australia has shifted from a long period of static salary requirements to a system of regular indexation.
Understanding the Temporary Skilled Migration Income Threshold (TSMIT)
The TSMIT applies primarily to regional migration pathways, including:
- Skilled Employer Sponsored Regional (Provisional) Visa – Subclass 494.
- Regional Sponsored Migration Scheme Visa – Subclass 187.
Unlike the Core or Specialist thresholds, the TSMIT focuses on ensuring regional employers still meet national wage standards when sponsoring migrant workers.
Importantly, the TSMIT calculation does not include non-monetary benefits such as accommodation, vehicles, or other perks. Employers must offer these in addition to the base salary, not as part of it.
The Role of the Annual Market Salary Rate
Beyond salary thresholds, employers must also demonstrate compliance with the Annual Market Salary Rate (AMSR). The AMSR represents what an Australian worker would normally earn for the same job. It acts as a second safeguard to prevent underpayment of migrant workers.
Employers determine the AMSR using evidence such as:
- Salaries paid to equivalent Australian employees.
- Enterprise agreements or industrial awards.
- Occupation profiles from Jobs and Skills Australia.
- Recent job advertisements for similar roles.
- Independent remuneration surveys or advice from industry bodies.
In practice, this means employers cannot simply meet the minimum visa threshold. They must also show that the offered salary matches the genuine market rate for that occupation.
When There Is an Equivalent Australian Worker
If a company already employs an Australian worker in a similar role, determining the AMSR becomes straightforward. The salary paid to that employee typically establishes the benchmark.
However, the government carefully examines whether the worker is truly comparable. Differences in experience, seniority, or job responsibilities can invalidate the comparison.
If an employer attempts to pay a migrant worker less than an equivalent Australian employee, the nomination application will likely be refused.
When No Equivalent Worker Exists
In situations where no comparable Australian employee exists, employers must rely on broader labour market data.
Evidence may include industry salary surveys, job advertisements in the same location, or expert advice from employer associations or unions. Importantly, relying solely on generic salary statistics without supporting evidence may lead to a rejected application.
Why These Changes Matter for Employers and Migrants
The upcoming threshold increase may appear modest at 3.75%, but it reflects a broader policy shift. Australia is gradually moving toward dynamic salary thresholds that evolve with national wage growth.
For employers, this means sponsorship planning requires greater attention to future salary adjustments. For skilled migrants, the changes reinforce the expectation that overseas workers will receive competitive wages consistent with Australian standards.
In contrast to earlier migration policies where thresholds remained unchanged for years, the current system prioritizes regular updates and stronger labour market protections.