Reminder: Minimum Income Threshold Changes Effective 1 July 2025
Take a look at our previous newsletter for an overview of the upcoming changes and guidance to help you remain compliant with market salary requirements.
Changes to Minimum Income Thresholds
From 1 July 2025, skilled visa income thresholds will be increased by 4.6%. This is in line with changes to the annual Average Weekly Ordinary Time Earnings (AWOTE).
Please note below the different salary increases for the different visa subclasses:
• The Core Skills Income Threshold (CSIT) will increase from AUD73,150 to AUD76,515. This will impact nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
• The Specialist Skills Income Threshold (SSIT) will increase from AUD135,000 to AUD141,210. This will impact nomination applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482).
• The Temporary Skilled Migration Income Threshold (TSMIT) will increase from AUD73,150 to AUD76,515. This will impact nomination applications lodged for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187). This is in line with the CSIT and subject to approval of relevant legislation.
New nomination applications from 1 July 2025, must meet the new relevant income threshold or the annual market salary rate, whichever is higher. The increased skilled visa income thresholds will not apply to existing visa holders and nominations lodged before 1 July 2025.
Ongoing Employer Obligations: Market Salary Rates under Subclass 482 and 494 Visas
To comply with Australian immigration law, employers sponsoring workers under the Skills in Demand (subclass 482) or Skilled Employer Sponsored Regional (subclass 494) visas must adhere to strict requirements regarding market salary rates. These obligations ensure fair treatment and prevent the underpayment of overseas workers.
The market salary rate is the typical rate of pay an Australian worker would receive for performing equivalent work in the same location. Employers must ensure that:
• The sponsored employee is paid at least the market salary rate; and
• The salary must also meet or exceed the relevant Income Threshold, which is reviewed periodically by the Department of Home Affairs.
Here is what employers need to know:
1. Ongoing Compliance
Employers must ensure that the salary paid to the sponsored employee remains aligned with the market salary rate for the entire visa period, not just at the time of nomination. Failure to do so can result in sanctions, including cancellation of sponsorship approval.
2. Annual Review
Market salary rates can change due to inflation, industry standards, or updates to relevant awards and enterprise agreements. Employers are expected to:
• Conduct an annual salary review to confirm continued compliance; and
• Adjust salaries as necessary to reflect updated market rates.
3. Documentation and Evidence
Employers must keep thorough records to substantiate how the market salary rate was determined including any adjustments during the visa period.
4. No Undercutting
The principle of equal pay for equal work is central. Sponsored workers must not receive a lower salary than an Australian citizen or permanent resident performing the same or a similar role in the same location.
Industrial Awards
Certain occupations in Australia are governed by industrial awards, which establish minimum pay rates and employment conditions. For instance, a registered nurse in Victoria would be covered under the Nurses Award 2010.
Employers are responsible for ensuring that the salary offered to an employee complies with the relevant award. If the award rate increases during the course of a visa holder’s employment, the employer must review and adjust the salary accordingly.
Failure to meet ongoing salary obligations may constitute a breach of the sponsor’s obligations under Australian migration law.
