From 1 July 2026, the Australian Government increased skilled visa income thresholds by 3.8% in line with changes to the annual Average Weekly Ordinary Time Earnings (AWOTE). This matters for employers sponsoring overseas workers and for visa applicants whose nomination depends on meeting the correct salary threshold.
The change affects new nomination applications for the Skills in Demand visa (subclass 482), the Employer Nomination Scheme visa (subclass 186), the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme visa (subclass 187). Existing visa holders and nominations lodged before 1 July 2026 are not affected by this indexation change.
If you are planning a sponsored skilled visa application, it is important to check which income threshold applies, whether your nomination is being lodged on or after 1 July 2026, and whether your proposed salary satisfies both the threshold and the annual market salary rate. If you are unsure, a MARA-registered migration agent can help assess your circumstances before you lodge.
What changed on 1 July 2026
On 1 July 2026, the Department of Home Affairs announced that skilled visa income thresholds would rise by 3.8%. The Department said the increase reflects the annual change in AWOTE, which is the wage measure used to index these thresholds each year. You can read the Department’s announcement here.
According to Home Affairs, the revised thresholds from 1 July 2026 are:
- Core Skills Income Threshold (CSIT): AUD79,423, up from AUD76,515.
- Specialist Skills Income Threshold (SSIT): AUD146,576, up from AUD141,210.
- Temporary Skilled Migration Income Threshold (TSMIT): AUD79,423, up from AUD76,515.
The Department also stated that new nomination applications lodged from 1 July 2026 must meet the new relevant threshold. The change does not apply to nominations lodged before that date, and it does not alter the position of existing visa holders.
Which visas are affected
The income thresholds are relevant to employer-sponsored skilled migration pathways. They do not affect every Australian visa, but they are important for employers and applicants who are using a sponsored route or a labour agreement pathway.
Skills in Demand visa (subclass 482)
The subclass 482 visa is the main temporary employer-sponsored skilled visa. Home Affairs says the updated CSIT applies to the Core Skills stream, while the updated SSIT applies to the Specialist Skills stream. When comparing pathways, it is worth checking the official visa page for more information.
Employer Nomination Scheme visa (subclass 186)
The subclass 186 visa is a permanent employer-sponsored visa. The 1 July 2026 indexation affects nomination applications for the Core Skills-related salary settings that Home Affairs applies to this visa. For current official information, see the Department’s subclass 186 page.
Skilled Employer Sponsored Regional visa (subclass 494)
The subclass 494 visa is a regional employer-sponsored pathway. The TSMIT increase matters for nomination applications made on or after 1 July 2026, including where the sponsor is relying on standard settings rather than a labour agreement. Home Affairs’ subclass 494 page provides the current official details.
Regional Sponsored Migration Scheme visa (subclass 187)
The subclass 187 visa is also affected by the TSMIT update where nomination settings rely on that threshold. Although this pathway is no longer broadly available in the same way as newer sponsored visas, the Department’s announcement still expressly refers to it for the purposes of the income threshold change.
Why AWOTE indexation matters
AWOTE is the wage benchmark used to keep skilled visa income thresholds moving broadly in step with Australian earnings. In practice, this means the salary floor for sponsored skilled migration is reviewed annually rather than remaining fixed for long periods. The Department linked the 1 July 2026 increase directly to this indexation approach in its announcement published on 1 July 2026.
For employers, the indexation is a reminder that a salary offered in June may not satisfy the threshold in July if the nomination is lodged after the change takes effect. For applicants, the issue is not only whether the nominated occupation is eligible, but whether the proposed remuneration is high enough and properly documented.
This is particularly important for businesses preparing sponsorship packages across the end of the financial year. A role that comfortably met the threshold before 1 July 2026 may need to be rechecked if the nomination is delayed or revised after the new thresholds begin.
How the threshold interacts with the annual market salary rate
Meeting the income threshold is not the only salary test. Home Affairs also requires sponsors to show that the nominated position will be paid at least the annual market salary rate, or AMSR, where applicable. The salary requirements page explains that if the worker will be paid less than AUD250,000, the sponsor must show the AMSR has been correctly determined and that the overseas worker will not be paid less than an Australian worker in a comparable role. See the Department’s salary requirements guidance for more detail.
This means an application can fail even if the salary appears to sit above the threshold, because the Department may also examine whether the pay is realistic for the occupation, location and duties of the role. The threshold and the AMSR work together, not separately.
Who should check the new thresholds carefully
The 1 July 2026 changes are most relevant to the following groups:
- Employers preparing a new nomination for a sponsored skilled worker.
- Visa applicants whose employer intends to lodge a nomination on or after 1 July 2026.
- People switching from another temporary visa to an employer-sponsored skilled visa.
- Employers and workers relying on labour agreements, where salary provisions may differ but still require careful checking.
- Regional sponsors where the relevant threshold affects the nomination pathway.
Onshore and offshore applicants should both pay attention. Being outside Australia does not reduce the importance of the salary test, because the key issue is the nomination and visa criteria that apply at the time of lodging, not the applicant’s location alone.
Common mistakes to avoid after 1 July 2026
A small salary shortfall can create a major problem. One of the most common mistakes is assuming that a salary amount that was acceptable in June will still be acceptable if the nomination is lodged in July without further review. Another common error is relying on base salary alone without checking guaranteed earnings, allowances and the precise way the remuneration package is structured under the relevant rules.
Other issues can include using outdated threshold figures from earlier Home Affairs guidance, overlooking the distinction between nomination and visa criteria, or failing to align the employment contract with the evidence provided in the nomination submission.
For employers, the safest approach is to review salary settings before advertising, before issuing an offer, and again immediately before lodging the nomination. For applicants, it is sensible to confirm that the nominated salary and job description match the employer’s supporting documents exactly.
Evidence Home Affairs may expect to see
The precise documents will depend on the visa stream and the occupation, but salary-related evidence commonly includes an employment contract, job description, pay slips, payroll records, a remuneration breakdown and, where relevant, market salary comparison evidence. Employers should also be prepared to show that the role is genuine and that the salary is consistent with the duties and the labour market.
Applicants considering permanent employer-sponsored pathways should also check the occupation requirements and any skills assessment obligations on the relevant visa page, such as the Department’s subclass 186 Direct Entry stream page. Salary compliance is only one part of the overall eligibility picture.
Does the increase affect current visa holders?
Home Affairs states that the 1 July 2026 increase will not apply to existing visa holders and nominations lodged before that date. That distinction is important because indexation is generally applied to new nomination applications, not to older cases already on foot.
However, if a nomination is withdrawn, expires or needs to be resubmitted after 1 July 2026, the new threshold may become relevant. Because the outcome can depend on the exact procedural history of the case, it is wise to check the timing before assuming the old threshold still applies.
How employers and applicants can prepare
If you are planning a sponsored skilled visa application, it helps to treat the threshold increase as an early planning issue rather than a last-minute compliance problem. Start by identifying the relevant visa stream, then confirm the current threshold, then test whether the proposed package still meets both the threshold and the AMSR requirements.
- Confirm which visa subclass or stream applies.
- Check whether the nomination will be lodged before or after 1 July 2026.
- Review the salary package against the updated threshold and the AMSR.
- Make sure the employment contract, role description and evidence are consistent.
- Seek professional review before lodging if the role is close to the threshold or the circumstances are complex.
Frequently asked questions
Why did the thresholds increase by 3.8%?
Home Affairs said the increase reflects the annual change in AWOTE. The purpose is to keep skilled visa wage settings aligned with Australian earnings and maintain the integrity of the labour market test.
Does the new threshold apply if I lodged before 1 July 2026?
According to the Department, no. The change does not apply to nominations lodged before 1 July 2026.
Does meeting the threshold mean my visa will be granted?
No. Salary compliance is only one eligibility issue. The nomination and visa also need to satisfy the relevant occupation, skills, work experience, sponsorship and character requirements, among others.
Should employers wait until after 1 July 2026 to lodge?
Not necessarily. The best lodging time depends on the full strategy, the worker’s eligibility, and whether the salary already meets the relevant threshold. In some cases, lodging before the change may be sensible, while in others a revised package may be needed. A professional review is recommended.
Check your pathway before you lodge
If you are planning to sponsor an overseas worker, or you are a visa applicant relying on a sponsored skilled pathway, the first step is to confirm the correct threshold for your exact date of lodgement. You should also check whether the salary package, occupation and evidence all align with the visa criteria before any application is submitted.
AEMSA Migration can assist with general migration strategy and visa pathway review through a MARA-registered migration agent. If your matter involves a deadline, a borderline salary package, a labour agreement, or a transition between visa streams, it is sensible to obtain tailored advice before lodging.
This article provides general information only and does not constitute personalised migration advice. Your individual eligibility should always be assessed against the current law, policy and official Home Affairs guidance at the time you lodge.
Every person’s circumstances are different, so we recommend booking a consultation with us to discuss your situation.