Australia: Annual indexation of skilled visa income thresholds from 1 July 2025

In an effort to ensure parity of wages across skilled migrant workers and Australian workers, the Department of Home Affairs has announced that, from 1 July 2025, skilled visa income thresholds will be increased by 4.6%. This is in line with changes to the annual Average Weekly Ordinary Time Earnings (AWOTE).

Income thresholds are indexed annually to ensure that salaries for skilled migrants increase at the same rate as those for local Australian workers. This measure aims to ensure that sponsoring employers cannot use skilled migration to undercut Australian workers.

From 1 July 2025, indexation changes will be as follows:

• The Core Skills Income Threshold (CSIT) will increase from AUD 73,150 to AUD 76,515. This will impact nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).

• The Specialist Skills Income Threshold (SSIT) will increase from AUD 135,000 to AUD 141,210. This will impact nomination applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482).

• The Temporary Skilled Migration Income Threshold (TSMIT) used for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187) will increase from AUD 73,150 to AUD 76,515. This is in line with the CSIT and subject to approval of relevant legislation.

All new nomination applications from 1 July 2025 must meet the new relevant income threshold or the annual market salary rate, whichever is higher.

This change will not apply to existing visa holders and nominations lodged before 1 July 2025.

For more information on Australia or global immigration services please contact [email protected] and [email protected]

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