From 1 July 2026, important changes to Australia's migration programme have come into effect, impacting both employers and visa applicants. The changes include revised minimum salary thresholds for employer-sponsored skilled visas and significant increases to visa application charges — with budget and timing implications for businesses sponsoring overseas talent and individuals preparing to lodge applications.
Higher Salary Thresholds for Employer-Sponsored Visas
As part of the annual wage indexation, the minimum salary requirements for skilled visa nominations have increased. The updated thresholds from 1 July 2026 are:
- Core Skills Income Threshold (CSIT): AUD 79,423
- Specialist Skills Income Threshold (SSIT): AUD 146,576
- Temporary Skilled Migration Income Threshold (TSMIT): AUD 79,423
These thresholds apply to new employer nominations lodged from 1 July 2026 under key employer-sponsored visa programmes, including:
- Subclass 482 Skills in Demand Visa
- Subclass 494 Skilled Employer Sponsored Regional Visa
The Employer Nomination Scheme (Subclass 186) permanent residence pathway is also affected, as its salary requirement aligns with the Core Skills stream threshold.
For new nominations lodged from 1 July 2026, the offered salary must satisfy the applicable income threshold or the Annual Market Salary Rate (AMSR), whichever is greater. These changes do not apply to existing visa holders or nominations submitted before 1 July 2026.
These minimum salary levels apply to base salary only and exclude non-monetary benefits.
Visa Application Charges Have Also Increased
In addition to the salary threshold increases, the Government has introduced a substantial increase in visa application charges — well above the usual annual indexation. Employer-sponsored visas, temporary work visas, visitor visas, graduate visas, partner visas, and Working Holiday visas have all become more expensive, with some categories experiencing particularly large increases. For employers planning to sponsor overseas talent, and individuals preparing to lodge visa applications, these changes may have significant budget and timing implications. Reviewing recruitment strategies and application plans in light of both the salary and fee increases is now more important than ever.
Market Salary Requirement Still Applies
Meeting the minimum salary threshold alone is not sufficient for employer sponsorship. Employers must ensure sponsored employees receive the market salary rate, meaning they must be paid at least the same as an Australian citizen or permanent resident performing the same role in the same location. This requirement ensures that Australia's skilled migration programme maintains fair labour market standards.
Who Is Affected?
The updated income thresholds apply to:
- Subclass 482 Skills in Demand visa nominations
- Subclass 494 Skilled Employer Sponsored Regional visa nominations
- Certain Subclass 186 employer-sponsored permanent residence applications
The increase will not affect existing visa holders or nominations submitted before 1 July 2026.
Recommended Actions for Employers
Employers sponsoring overseas talent should consider the following steps:
- Review upcoming Subclass 482 and Subclass 494 nominations and assess whether any applications can still be lodged under the previous thresholds
- Update salary budgets and employment packages for roles expected to be sponsored under the new thresholds
- Assess employees transitioning to permanent residence through the Subclass 186 visa
- Factor the increased visa application charges into recruitment and mobility budgets
- Align HR, payroll, and immigration strategies to maintain compliance with Australian immigration requirements
Annual Indexation of Skilled Visa Salary Requirements
The Australian Government indexes skilled visa salary thresholds annually in line with wage growth across the Australian labour market. This policy ensures that skilled migrant wages remain competitive with those of Australian workers and prevents the undercutting of local salaries through migration programmes. Employers and HR teams should factor annual threshold reviews into their long-term workforce planning.
How Hudson McKenzie Can Help
Hudson McKenzie advises employers and individuals on all aspects of Australian visa sponsorship, including employer nominations, salary compliance, and application strategy. If you have questions about how these changes affect your business or visa plans, contact our team to discuss your options.
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