Australia has announced a significant increase in the minimum salary thresholds required for skilled migration visas, a change set to take effect from July 1, 2025. This update will impact several key visa subclasses, including the Temporary Skill Shortage (subclass 482), Employer Nomination Scheme (subclass 186), and Skilled Employer Sponsored Regional (Provisional) visa (subclass 494).
These changes are part of the government’s broader migration reform agenda aimed at ensuring migrant workers are paid fairly and are not undercutting local wages.
What Are the New Salary Thresholds?
The Temporary Skilled Migration Income Threshold (TSMIT) and the Core Skills Income Threshold (CSIT) will rise from AUD 73,150 to AUD 76,515. The Specialist Skills Income Threshold (SSIT) will be raised from AUD 135,000 to AUD 141,210.
Here’s a quick breakdown:
| Threshold Type | Current (2024) | New (July 2025) |
|---|---|---|
| TSMIT / CSIT | AUD 73,150 | AUD 76,515 |
| SSIT | AUD 135,000 | AUD 141,210 |
These thresholds serve as the minimum annual salary benchmarks for sponsoring employers when hiring overseas talent.
Why Is Australia Raising These Salary Caps?
The salary increases are designed to:
- Align with market rates and protect local wage standards.
- Discourage exploitation of migrant workers.
- Ensure skilled migration contributes to economic productivity.
Minister for Immigration, Citizenship, and Multicultural Affairs, Andrew Giles, stated:
“We want to build a migration system that is fair, skilled, and focused on long-term national benefit — and fair wages are a cornerstone of that approach.”
Who Is Affected by This Change?
1. Employers
- Companies that rely on skilled overseas talent will need to adjust salary offers to meet the new thresholds.
- May impact small businesses or regional employers with tighter budgets.
- Must re-evaluate existing sponsorship plans and financial projections.
2. Skilled Visa Applicants
- Higher salary requirements may benefit applicants in high-demand, high-paying sectors like IT, engineering, and healthcare.
- Entry-level or mid-skill applicants in lower-paying roles may face challenges.
- Could influence the type of roles available under sponsored work visas.
Potential Benefits
- Better job quality for migrants.
- More transparent labor market practices.
- Encouragement for genuinely skilled roles over low-wage, high-volume migration.
Challenges and Criticism
Some business groups have raised concerns that the new thresholds may price out essential roles that don’t command such high salaries—particularly in hospitality, aged care, agriculture, and regional industries.
There are also worries about fewer visa approvals, as employers and sectors adjust to the new cost of hiring internationally.
What Should Employers and Applicants Do Now?
- Employers: Review salary structures and future hiring plans in advance of July 2025.
- Applicants: Consider reskilling or shifting toward higher-paying roles that meet the new thresholds.
- Migration agents: Stay updated on policy releases to guide clients accurately.
Conclusion
Australia’s decision to raise salary thresholds for skilled visas is a strong signal of its commitment to a high-quality, fair, and economically driven migration system. While the changes may create short-term challenges for some sectors, they are also expected to bring long-term benefits by attracting top-tier global talent and ensuring fair compensation standards across the board.
