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Income Thresholds Increasing from 1 July 2025

From 1 July 2025, income thresholds for skilled visas will increase by 4.6%, in line with updates to the Average Weekly Ordinary Time Earnings (AWOTE). These changes deliver on commitments outlined in the Australian Government’s Migration Strategy and reflect recommendations from the Migration Review.

This annual indexation ensures that wages for skilled migrants grow in step with Australian earnings—helping to prevent skilled migration from being used to undercut local workers.

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Minimum Income Threshold Australia

Updated Income Thresholds (Effective 1 July 2025)

Core Skills Income Threshold (CSIT)

Specialist Skills Income Threshold (SSIT)

Temporary Skilled Migration Income Threshold (TSMIT)

Important Note:

For nomination applications lodged on or after 1 July 2025, employers must offer a salary that meets or exceeds the new threshold or the annual market salary rate —whichever is higher.

These changes do not apply to:

  • Existing visa holders, or

  • Nominations lodged before 1 July 2025.

High Income Threshold Updates

The High Income Threshold will also raise from 1 July 2025:

  • Current: $175,000

  • New High Income Threshold (from 1 July): $183,100

  • New Compensation Cap: $91,550 (50% of the threshold)
The High Income Threshold applies in some cases for the National Innovation Visa (Subclass 858 Visa) and also for permanent residency under the Employer Nomination Scheme (subclass 186 Visa) when the applicant is over 45 years old.

 

If you're an employer planning to sponsor a skilled worker or a migrant assessing your eligibility, these changes could impact your plans.

Contact our team at Work Visa Lawyers for tailored advice and assistance.

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Sources: 

https://immi.homeaffairs.gov.au/news-media/archive/article?itemId=1308

https://www.fwc.gov.au/about-us/news-and-media/news/increase-application-fee-2025-26

 

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Thursday, 26 June 2025

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