The Australian Government has announced that, starting 1 July 2025, income thresholds for various skilled visa categories will rise by 4.6%. This adjustment aligns with the annual Average Weekly Ordinary Time Earnings (AWOTE) indexation, aiming to ensure that wages for skilled migrants keep pace with those of Australian workers and to prevent the undercutting of local wage standards.
Revised Income Thresholds
The updated thresholds are as follows:
- Core Skills Income Threshold (CSIT): Increasing from AUD 73,150 to AUD 76,515. This affects nomination applications under the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
- Specialist Skills Income Threshold (SSIT): Rising from AUD 135,000 to AUD 141,210. This pertains to nominations under the Specialist Skills stream of the Skills in Demand visa (subclass 482).
- Temporary Skilled Migration Income Threshold (TSMIT): Increasing from AUD 73,150 to AUD 76,515. This applies to the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme visa (subclass 187), subject to legislative approval.
Implications for Employers and Visa Applicants
From 1 July 2025, all new nomination applications must meet the updated income thresholds or the annual market salary rate, whichever is higher. Employers planning to sponsor skilled migrants should review and adjust their workforce plans and salary structures accordingly to comply with these new requirements.
It’s important to note that these changes will not affect existing visa holders or nominations lodged before 1 July 2025.
Government’s Rationale
The annual indexation of skilled visa income thresholds reflects the Government’s commitment to protecting local wages and attracting global talent to address skill shortages. By ensuring that the salaries of skilled migrants increase in line with those of Australian workers, the Government aims to maintain fair wage practices and uphold the integrity of the labour market.
Next Steps for Employers
Employers intending to nominate skilled workers under the affected visa subclasses should:
- Review Salary Structures: Ensure that proposed salaries for new nominations meet or exceed the updated thresholds.
- Plan Ahead: Consider the financial implications of the increased thresholds in workforce planning and budgeting.
- Stay Informed: Keep abreast of any further legislative developments, especially concerning the approval of changes to the TSMIT.
Conclusion:
The forthcoming increases in skilled visa income thresholds reflect Australia’s commitment to fair labour practices and its intent to keep skilled migration in harmony with domestic wage growth. Employers and prospective visa applicants must prepare accordingly to meet the new standards set to take effect on 1 July 2025. Staying informed and proactive will be key to navigating these changes successfully.
