Big Changes Coming: Australia's Skilled Visa Income Increasing from July 2025

Annual Indexation of Skilled Visa Income Thresholds from 1 July 2025

The Australian Government is set to increase the income thresholds for skilled migration visas starting 1 July 2025, aligning with the latest changes in the Average Weekly Ordinary Time Earnings (AWOTE). This adjustment ensures that skilled migrant wages remain in line with Australian workers, preventing the undercutting of local wages. This article explores the significance of these annual threshold adjustments and their impact on skilled migration in Australia.

Significance of Annual Indexation of Skilled Visa Income Thresholds

1. Ensuring Fair Wages for Skilled Migrants

Annual indexation ensures that the wages of skilled migrants grow at the same pace as those of Australian workers. By maintaining this balance, the government prevents employers from exploiting the skilled migration program to hire overseas workers at lower wages. The increase in thresholds by 4.6% reflects the broader effort to uphold fair labor standards. According to Home Affairs, the new changes will strengthen protections for local workers and promote fair wage practices.

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2. Impact on Core Skills and Specialist Skills Income Thresholds

From 1 July 2025, the Core Skills Income Threshold (CSIT) will increase from AUD73,150 to AUD76,515. This adjustment affects nomination applications under the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).

Similarly, the Specialist Skills Income Threshold (SSIT) will rise from AUD135,000 to AUD141,210, impacting the Specialist Skills stream of the Skills in Demand visa (subclass 482). These increases ensure that highly skilled migrants continue to receive competitive wages aligned with industry standards.

3. Protecting Australian Workers from Undercutting

By adjusting skilled visa income thresholds annually, the Australian Government ensures that the labor market remains fair and competitive. Employers are required to meet the new income thresholds or the annual market salary rate (whichever is higher) when lodging nomination applications from 1 July 2025. This mechanism prevents the exploitation of migrant workers and protects Australian jobs.

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4. Application of New Thresholds Across Visa Categories

The increase in income thresholds will affect several visa categories, including:

• Skills in Demand visa (subclass 482) – Core and Specialist Skills streams

• Employer Nomination Scheme visa (subclass 186)

• Skilled Employer Sponsored Regional visa (subclass 494)

• Regional Sponsored Migration Scheme (RSMS) visa (subclass 187)

However, these changes will not apply to existing visa holders or nominations lodged before 1 July 2025. Employers planning to nominate new skilled workers should prepare to meet the updated thresholds by reviewing salary structures and compliance obligations in advance.

5. Strengthening Australia's Migration Strategy

These changes align with recommendations from the Migration Strategy, emphasizing fairness and transparency in Australia’s skilled migration framework. As highlighted by Home Affairs, the government aims to streamline pathways for high-skilled migrants while safeguarding local employment standards.

The annual indexation of skilled visa income thresholds underscores Australia's commitment to maintaining fair labor practices while enhancing opportunities for skilled migrants. With adjustments scheduled from 1 July 2025, employers and prospective applicants should familiarize themselves with the new income requirements to ensure compliance.

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