Australia’s skilled migration income threshold jumps from 1 July 2025

If you're planning to apply for a skilled visa in Australia or you're an employer sponsoring skilled workers, there's an important update you should know about. Starting 1 July 2025, the minimum salary levels required for several skilled visa categories will increase by 4.6%. This change is part of the Australian Government’s commitment to ensure fair wages for skilled migrants and protect the local workforce.

Why Are These Income Thresholds Increasing?

The increase aligns with the annual rise in the Average Weekly Ordinary Time Earnings (AWOTE) in Australia. Essentially, it means that the minimum salaries for skilled visa holders will grow at the same rate as wages for Australian workers. This prevents situations where skilled migration could be used to undercut local wages and ensures fair pay for everyone in the workforce.

What Are Skilled Visa Income Thresholds?

These thresholds are the minimum salaries employers must offer when nominating skilled overseas workers for certain visa types. The salary offered must meet or exceed the higher of:

• The relevant income threshold (which is increasing), or

• The Annual Market Salary Rate (AMSR) for the occupation (what an Australian worker would typically earn in that role).

This protects both skilled migrants and Australian workers by maintaining wage fairness.

Which Income Thresholds Are Changing?

From 1 July 2025, the following thresholds will increase:

Threshold	Current Amount (AUD)	New Amount (AUD) from 1 July 2025
Core Skills Income Threshold (CSIT)	73,150	76,515
Specialist Skills Income Threshold (SSIT)	135,000	141,210
Temporary Skilled Migration Income Threshold (TSMIT)	73,150	76,515

• CSIT affects nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).

• SSIT impacts the Specialist Skills stream of the Skills in Demand visa (subclass 482).

• TSMIT applies to the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (subclass 187), subject to legislative approval.

What Does This Mean for Visa Applicants and Employers?

• New nominations lodged on or after 1 July 2025 must meet the updated income thresholds or the AMSR, whichever is higher.

• Existing visa holders and nominations lodged before 1 July 2025 are not affected by this change.

• Employers should review their salary offers to ensure compliance with the new thresholds before submitting nominations.

• Applicants may want to consider lodging nominations before 1 July 2025 if their current salary offer does not meet the new thresholds.

Simple Example to Understand the Impact

Imagine you are applying for a skilled visa under the Core Skills stream. Currently, the minimum salary you need is AUD 73,150. From 1 July 2025, this will increase to AUD 76,515. If your employer offers you less than this new amount, your application might not be approved unless the market salary rate for your job is higher.

Why This Matters

These changes ensure that wages for skilled migrants keep pace with the Australian labor market, supporting fair competition and protecting local workers from wage undercutting. It also encourages employers to offer competitive salaries, attracting and retaining global talent for Australia’s economy.

Final Tips

• Check your visa subclass and understand which threshold applies.

• Confirm your salary offer meets the new threshold or the market rate.

• If possible, lodge your nomination before 1 July 2025 to avoid the higher threshold.

• Seek professional advice if you’re unsure about your eligibility or salary requirements.

This annual indexation is a positive step towards a balanced skilled migration program that benefits both migrants and the Australian workforce.

If you want to stay updated or need help navigating these changes, consider consulting migration experts like Red Migration specialized in Australian skilled visas.