Skilled Visa Income Thresholds Set to Rise from July 2025 Under Indexation Update

By Nikhil Seth, May 25, 2025

In a move aimed at maintaining wage parity between skilled migrants and Australian workers, the Department of Home Affairs has announced the annual indexation of skilled visa income thresholds, effective from 1 July 2025. The update reflects a 4.6% increase, aligned with changes to the Average Weekly Ordinary Time Earnings (AWOTE) as part of Australia’s broader Migration Strategy.

The revised thresholds apply to several key skilled visa streams and are expected to influence nomination applications for both temporary and permanent skilled migration programs.

Key Income Threshold Increases:

• Core Skills Income Threshold (CSIT): Will rise from AUD 73,150 to AUD 76,515. This applies to the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).

• Specialist Skills Income Threshold (SSIT): Will increase from AUD 135,000 to AUD 141,210, impacting the Specialist Skills stream under the subclass 482 visa.

• Temporary Skilled Migration Income Threshold (TSMIT): Matching the CSIT, it will also increase to AUD 76,515. This threshold affects the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) visa (subclass 187), pending legislative approval.

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The adjustment ensures skilled migrants receive salaries that grow in step with the broader Australian workforce, helping prevent wage undercutting and promoting fair employment practices across industries.

Implementation Details:The new thresholds will apply to all new nomination applications submitted on or after 1 July 2025. Employers must ensure that the offered salary meets or exceeds either the new threshold or the annual market salary rate—whichever is higher.

Importantly, existing visa holders and applications lodged before 1 July 2025 will not be affected by the new rates.

This indexation follows through on recommendations from the Migration Review and reaffirms the government's commitment to a fair and balanced migration system that supports both economic growth and workforce integrity.

For more details, visit the Department of Home Affairs website or consult the official AWOTE statistics from the Australian Bureau of Statistics.

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