Skilled Visa Minimum Income Threshold Increase: What Changes on 1 July 2026

Australian employers should not wait until the new financial year to review sponsorship plans. The skilled visa minimum income threshold increase taking effect on 1 July 2026 will raise the salary floor for employer-sponsored nominations, and businesses that delay action risk higher costs, reworked salary approvals, and recruitment delays.

What Are the New Skilled Visa Income Thresholds from 1 July 2026?

For Skills in Demand subclass 482 Core Skills nominations and Employer Nomination Scheme subclass 186 nominations lodged on or after 7 December 2024, the relevant salary threshold is the Core Skills Income Threshold, also known as CSIT.

The Department of Home Affairs currently sets the CSIT at $76,515 for nominations lodged from 1 July 2025 to 30 June 2026. From 1 July 2026, the CSIT is reported to increase to $79,499 for nominations lodged on or after that date.

For Skills in Demand subclass 482 Specialist Skills stream nominations, the relevant threshold is the Specialist Skills Income Threshold, also known as SSIT. The Department of Home Affairs currently sets the SSIT at $141,210 for nominations lodged from 1 July 2025 to 30 June 2026. From 1 July 2026, the SSIT is reported to increase to $146,717.

For Skilled Employer Sponsored Regional subclass 494 nominations, the relevant salary threshold is the Temporary Skilled Migration Income Threshold, also known as TSMIT. It is currently set at $76,515. Employers should monitor the Department of Home Affairs published salary requirements for the 2026–27 TSMIT figure.

Skilled Visa Income Threshold Summary

Why Does the Skilled Visa Minimum Income Threshold Increase Each Year?

The Australian migration framework now provides for annual indexation of minimum income thresholds on 1 July each year, linked to Average Weekly Ordinary Time Earnings, also known as AWOTE. The most recent ABS data records 3.8% annual growth in full-time adult ordinary time earnings to November 2025.

This indexation mechanism is now embedded in the framework, which means employers should plan on the basis that the salary floor will continue to rise each year.

Why the 1 July 2026 Deadline Matters for Employers

The difference between lodging an employer-sponsored nomination on 30 June 2026 and 1 July 2026 may determine whether the case is assessed against the lower or the newly indexed salary threshold.

The Department of Home Affairs salary settings apply by reference to the period in which the nomination application is lodged. In practical terms, that means the applicable threshold may differ depending on whether a matter is lodged before or after 1 July.

For employers, this means the decision is not whether to monitor this in late June. The decision is whether to use the coming weeks and months to identify viable matters early enough to be ready to lodge before the skilled visa minimum income threshold increase takes effect.

Income Thresholds Are Not the Only Salary Test

Employers should not fall into the trap of treating these thresholds as the only salary test. The CSIT, SSIT, and TSMIT all operate alongside the Annual Market Salary Rate requirement, commonly known as AMSR.

The AMSR requires employers to pay at least the relevant threshold and at least the market rate for the same role and location, with the higher of the two prevailing in practice.

If an employer is paying less than $250,000, it must demonstrate that the AMSR has been determined correctly, that the sponsored worker will not be paid less than an equivalent Australian worker, and that both the AMSR and the worker’s guaranteed annual earnings, excluding non-monetary benefits, meet the relevant threshold.

That means employers cannot solve this issue simply by increasing a salary figure on paper. The occupation, location, market evidence, and remuneration settings all need to align.

Which Employers Should Act Now?

The skilled visa minimum income threshold increase should be treated as urgent by employers who:

• Are planning subclass 482, 494, or 186 nominations in the next two months
• Have proposed salaries close to the current $76,515 threshold
• Are considering Specialist Skills cases that may be affected by the increase to $146,717
• Run sponsorship approvals through multiple stakeholders in HR, finance, operations, and legal
• Recruit at scale and face compounding cost effects across multiple nominations

Even relatively small threshold shifts can affect multiple business decisions at once, including salary bands, internal approval limits, cost-centre allocations, recruitment offers, and the viability of future sponsorship pathways.

What Employers Should Do Now

The thresholds have already risen, the indexation mechanism is embedded, and the latest ABS earnings data points to further upward pressure. Employers best placed to manage this will treat sponsorship planning as part of a broader workforce and cost strategy, not a last-minute compliance exercise.

Practical steps to take now:

1. Review remuneration and budgeting for upcoming subclass 482, 494, and 186 nominations against the confirmed 1 July 2026 thresholds.

2. Confirm proposed salaries satisfy AMSR, as threshold compliance alone is not enough.

3. Identify nominations ready to lodge before 1 July 2026 where the current thresholds still apply.

4. Audit your sponsorship pipeline and identify roles where the proposed salary is only marginally above the current threshold.

5. Align HR, finance, and legal teams now, not in late June.

6. Obtain case-specific immigration advice early if there is any uncertainty about stream, occupation, AMSR, or lodgement timing.

Get Tailored Advice on the Skilled Visa Income Threshold Changes

If your business is considering sponsorship under the subclass 482, 494, or 186 programs, early advice may make a material difference. Bell Legal Group can review your sponsorship pipeline, assess proposed salary settings and AMSR evidence, and advise on nomination timing before the next threshold changes take effect.

A timely review can help preserve flexibility, manage cost exposure, and reduce the risk of avoidable nomination issues. Contact Bell Legal Group on 07 5597 3366 for tailored, practical advice.