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Australia to Raise Skilled Visa Income Thresholds from July 2025

Annual indexation of skilled visa income thresholds from 1 July 2025

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    Annual Adjustment to Protect Local Workers' Wages

    In a move designed to align skilled migrant wages with Australian workers’ earnings, the Australian Government has announced that from 1 July 2025, skilled visa income thresholds will rise by 4.6%. This adjustment corresponds with the latest changes in the Average Weekly Ordinary Time Earnings (AWOTE) and reflects Australia’s ongoing efforts to maintain a fair and balanced migration system.

    This development forms part of the broader Migration Strategy and follows recommendations set forth in the Migration Review, aiming to ensure that the integrity of Australia’s workforce is preserved by preventing wage undercutting through the skilled migration program.

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    Key Changes to Skilled Visa Income Requirements

    Several major skilled visa streams will be impacted by the upcoming income threshold adjustments:
    • Core Skills Income Threshold (CSIT): The CSIT will increase from AUD 73,150 to AUD 76,515. This change affects nomination applications under the Core Skills stream of the upcoming Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
    • Specialist Skills Income Threshold (SSIT): The SSIT will rise from AUD 135,000 to AUD 141,210, impacting nominations for the Specialist Skills stream of the Skills in Demand visa (subclass 482).
    • Temporary Skilled Migration Income Threshold (TSMIT): Applicants for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187) will also see an income threshold rise, matching the new CSIT figure of AUD 76,515.
    However, this adjustment remains contingent on the passage of the necessary legislative approvals.

    Also Read A Complete Guide to Australian Tourist Visa

    What Employers and Applicants Need to Know

    Starting 1 July 2025, new nomination applications must comply with the updated income thresholds or meet the annual market salary rate, whichever is higher. This ensures skilled migrants are offered competitive salaries that align with current Australian workforce standards.

    Importantly, these changes will not affect:

    • Existing skilled visa holders
    • Nominations lodged before 1 July 2025.

    This grandfathering approach ensures that individuals and employers already partway through the migration process are not retroactively impacted.

    Why Annual Indexation Matters

    Annual indexation of skilled migration thresholds plays a crucial role in Australia’s migration policy by:

    • Maintaining wage parity between local and skilled migrant workers,
    • Protecting Australian labor standards
    • Supporting a sustainable and fair immigration system.
    By adjusting thresholds yearly in accordance with AWOTE, Australia reinforces its commitment to a migration program that complements, rather than competes with, the domestic workforce.
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    Sponsorship Requirements

    Key requirements for the Australia Family Visa dictate that the sponsor must be residing in Australia as an Australian Permanent Resident, Citizen, or qualified New Zealand Citizen. Additionally, the sponsor must:
    • Be at least 18 years old
    • Demonstrate sufficient income to support the applicant
    • Meet character and health standards if a qualified New Zealand Citizen residing in Australia

    For Permanent Subclass Visas, sponsors must commit to providing financial support and accommodation to the applicant for two years following their arrival in Australia.

    Other Family Members

    Carers, Dependent Relatives, Sisters, and Brothers can also migrate to Australia initially on a Provisional Visa, with the possibility of later obtaining Permanent Resident status. Sponsorship requirements remain consistent, requiring sponsorship by an Australian Permanent Resident, Citizen, or qualified New Zealand Citizen.

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    Looking Ahead

    The increase in skilled visa income thresholds represents a significant step toward a more equitable and sustainable migration system. Employers planning to sponsor skilled workers should begin preparing for these changes to ensure compliance when the new rules take effect in July 2025.

    With Australia increasingly focusing on ensuring that migration supports its broader economic and social goals, such updates will likely continue to shape the future landscape of the nation’s skilled migration program.
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