Starting 1 July 2025, employer sponsors will need to comply with increased income thresholds for skilled visa nominations. This change comes as part of the Australian Government’s annual update in line with Average Weekly Ordinary Time Earnings (AWOTE), reflecting broader efforts to align skilled migration wages with local Australian labour market standards.
Why the Change?
The 4.6% increase in thresholds aims to ensure that the skilled migration program continues to complement, rather than undercut, the wages of Australian workers. This adjustment reinforces the Government’s focus on protecting workplace standards and ensuring that the skilled migration system continues to deliver targeted, high-value talent to Australian industries.
Key Threshold Increases from 1 July 2025
Employers nominating skilled overseas workers after 1 July 2025 will need to meet the following new thresholds:
- Core Skills Income Threshold (CSIT)
Increased to AUD $76,515 (from $73,150)
Applies to:- Skills in Demand Visa (subclass 482 – Core Stream)
- Employer Nomination Scheme (subclass 186)
- Specialist Skills Income Threshold (SSIT)
Increased to AUD $141,210 (from $135,000)
Applies to Skills in Demand Visa (subclass 482 – Specialist Stream)
Important: From 1 July 2025, all new employer nominations must meet the updated income threshold. Existing nominations lodged before this date will not be affected by the changes.
What Should Employers Do Now?
- Review your workforce planning: If you anticipate nominating skilled workers under any of the above subclasses, ensure salary packages are being benchmarked against the new thresholds.
- Lodge pending nominations early: If your business is ready to nominate but has not yet submitted, doing so before 1 July 2025 could mean your nomination is assessed under the current income thresholds.
- Seek migration advice early: Navigating market salary rates and meeting new thresholds requires careful documentation and consistency across contracts, payroll records, and position descriptions.
Conclusion
The upcoming changes to Australia’s skilled visa income thresholds mark a significant shift in employer sponsorship requirements. From 1 July 2025, businesses nominating overseas talent will need to meet higher salary standards to align with local market expectations and support fair workplace conditions. Proactive planning, early nominations, and seeking expert migration advice can help employers navigate these updates smoothly and ensure compliance with the new thresholds. For businesses looking to secure top international talent, understanding and preparing for these changes now will be crucial to maintaining workforce stability and avoiding unnecessary delays.