Starting from July 1, 2025, the Australian government will implement a 4.6% increase in income thresholds for Australian skilled visa, a move aimed at aligning migrant wages with those of local workers.
This adjustment is based on the latest data from the Average Weekly Ordinary Time Earnings (AWOTE) and is part of an annual indexation process designed to ensure fair remuneration for skilled migrants.
Key Changes to Income Thresholds
The new income thresholds will affect several visa categories, specifically:
- Core Skills Income Threshold (CSIT): This threshold will rise from AUD 73,150 to AUD 76,515. It applies to nominations under the Skills in Demand (subclass 482) and the Employer Nomination Scheme (subclass 186).
- Specialist Skills Income Threshold (SSIT): This threshold will increase from AUD 135,000 to AUD 141,210, impacting nominations under the Specialist Skills stream of the Skills in Demand visa (subclass 482).
- Temporary Skilled Migration Income Threshold (TSMIT): The TSMIT will also rise from AUD 73,150 to AUD 76,515, affecting the Skilled Employer Sponsored Regional (subclass 494) and the Regional Sponsored Migration Scheme (subclass 187) visas.
These changes ensure that wages for skilled migrants are competitive and prevent potential undercutting of local salaries by foreign workers.
Implications for New Applications for Australian Skilled Visa
From July 1, 2025, all new nomination applications must meet these updated income thresholds or the annual market salary rate, whichever is higher. Importantly, these changes will not affect existing visa holders or nominations lodged prior to this date.
Rationale Behind the Increase
The annual adjustments are part of the Australian government’s broader strategy to maintain a fair labor market.
By ensuring that skilled migrants are paid at least as much as their Australian counterparts, the government aims to uphold wage standards across various sectors and discourage exploitation of foreign workers.
The upcoming adjustments to skilled visa income thresholds reflect Australia’s commitment to fair labor practices and economic stability.
As Australia continues to attract skilled migrants to fill critical labor shortages, these changes are expected to enhance the attractiveness of its migration programs while safeguarding local employment conditions.
