Key Points
- Effective July 1, 2025, Australia will increase salary thresholds for several employer-sponsored visa categories.
- The Core Skills Income Threshold (CSIT) will rise from AUD73,150 to AUD76,515, impacting Subclass 482 (Core Skills stream) and Subclass 186.
- The Specialist Skills Income Threshold (SSIT) will increase from AUD135,000 to AUD141,210, affecting Subclass 482 (Specialist Skills stream).
- The Temporary Skilled Migration Income Threshold (TSMIT) will rise from AUD73,150 to AUD76,515, impacting Subclass 494 and Subclass 187.
- Australia’s Superannuation Guarantee will also rise from 11.5% to 12% on July 1, 2025.
Overview
Australia is implementing key changes to its skilled migration salary policies starting July 1, 2025, as part of broader efforts to ensure foreign labor compensation aligns with market expectations and protects domestic wages. The Core Skills Income Threshold (CSIT), Specialist Skills Income Threshold (SSIT), and Temporary Skilled Migration Income Threshold (TSMIT) will all see substantial increases.
These changes will apply to new employer nomination applications under visa subclasses such as Subclass 482 (Temporary Skill Shortage), Subclass 186 (Employer Nomination Scheme), Subclass 494 (Skilled Employer Sponsored Regional), and Subclass 187 (Regional Sponsored Migration Scheme). Employers must ensure the nominated salary meets the new threshold or the applicable market salary rate—whichever is higher.
Significantly, the changes will not affect existing visa holders or applications submitted before July 1, 2025. Employers should take this time window to prepare for increased wage commitments in future sponsorship cases.
In parallel, Australia’s Superannuation Guarantee—the compulsory employer contribution to employees’ retirement funds—will increase to 12%, completing the planned gradual rise. This adjustment is expected to remain in effect until June 30, 2028.
Looking Ahead
Employers sponsoring foreign talent should review internal payroll systems and recruitment budgets to comply with the new income thresholds. With increased salary requirements and superannuation contributions, businesses may need to recalibrate total compensation packages and timelines for visa sponsorship.
Organizations planning to submit nominations near the July 1 implementation date should act promptly to avoid falling under the updated requirements. Immigration counsel can provide further guidance on eligibility criteria and ensure continued compliance with Australia’s evolving skilled migration framework.
