The Australian Government has confirmed that the minimum salary thresholds for employer-sponsored skilled visas will increase from 1 July 2026 as part of the annual indexation process.
The thresholds will rise by approximately 3.8–3.9%, reflecting annual growth in Average Weekly Ordinary Time Earnings (AWOTE) published by the Australian Bureau of Statistics.
The updated thresholds will apply to new nomination applications lodged on or after 1 July 2026 under key Australian employer-sponsored visa programs, including:
- Subclass 482 Skills in Demand Visa
- Subclass 494 Skilled Employer Sponsored Regional Visa
New Skilled Visa Income Thresholds (From 1 July 2026)
The revised minimum annual earnings thresholds will be as follows:
The Employer Nomination Scheme (Subclass 186) permanent residence pathway is also affected, as its salary requirement aligns with the Core Skills stream threshold.
These minimum salary levels apply to base salary only and exclude non-monetary benefits.
Who Will Be Affected?
The updated income thresholds will 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.
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 program maintains fair labour market standards.
Recommended Actions for Employers
Employers sponsoring overseas talent should consider the following steps:
- Review upcoming Subclass 482 and Subclass 494 nominations to determine whether applications can be lodged before 1 July 2026 under the current salary thresholds
- Update salary budgets and employment packages for roles expected to be sponsored after the new thresholds take effect
- Assess employees transitioning to permanent residence through the Subclass 186 visa
- Align HR, payroll and immigration strategies to maintain compliance with Australian immigration requirements
Annual Indexation of Skilled Visa Salary Requirements
The Australian Government will continue to index skilled visa salary thresholds annually in line with wage growth across the Australian labour market. This policy aims to ensure that skilled migrant wages remain competitive with Australian workers and prevents the undercutting of local salaries through migration programs.
Contact and Disclaimer
Should you have any questions regarding the above information, or require assistance with your immigration or global mobility matters, please don’t hesitate to contact our legal team at Hudson McKenzie. You can reach us by email at londoninfo@hudsonmckenzie.com or by telephone at +44 (0) 20 3318 5794.
For office locations, please visit our Our Offices page.
The information provided in this blog is for general guidance only and does not constitute legal advice.
Stay Connected
Get the latest insights on global immigration delivered straight to your inbox
