Australia is once again stepping forward in reshaping its skilled migration system. In a bold and strategic move announced earlier this year, the Department of Home Affairs has confirmed that from 1 July 2025, the income thresholds for skilled visa programs will increase by 4.6% in line with the country’s rising average wages.
This change is part of the Australian government’s commitment to implement key recommendations from the Migration Review and align with its long-term Migration Strategy. So, what exactly is changing — and how does this affect skilled professionals from around the world planning to migrate to Australia?
The Numbers You Need to Know
Here’s a breakdown of the new income thresholds that will apply to new nomination applications submitted on or after 1 July 2025:
| Threshold Type | Previous Threshold | New Threshold (Effective 1 July 2025) | Applies To | Description |
|---|---|---|---|---|
| Core Skills Income Threshold (CSIT) | AUD 73,150 | AUD 76,515 | – Core Skills stream of Skills in Demand (subclass 482) visa – Employer Nomination Scheme (subclass 186) visa | Designed for skilled workers in core occupations. The threshold increase ensures applicants are offered salaries aligned with Australia’s wage growth. |
| Specialist Skills Income Threshold (SSIT) | AUD 135,000 | AUD 141,210 | – Specialist Skills stream of Skills in Demand (subclass 482) visa | Targets highly specialized professionals. The raised threshold reflects the high value and demand for specialist expertise in Australia. |
| Temporary Skilled Migration Income Threshold (TSMIT) | AUD 73,150 | AUD 76,515 | – Skilled Employer Sponsored Regional (subclass 494) visa – Regional Sponsored Migration Scheme (subclass 187) visa | Applies to regional employer-sponsored skilled migrants. The increase supports fair pay for those settling and working in regional Australia |
One key update is that all new nomination applications must meet whichever is higher: the new threshold or the Annual Market Salary Rate (AMSR). This ensures fairness and prevents wage undercutting in Australia’s job market.
⚠️ Note: These changes will not apply to visa holders or nominations lodged before 1 July 2025.
What This Means for Skilled Workers Globally?
For skilled professionals hoping to build a future in Australia, this update brings both challenges and opportunities.
1# A Higher Standard of Entry
The new thresholds signify that Australia is targeting higher-skilled professionals who are offered competitive salaries. Employers must now demonstrate that they’re offering salaries that reflect market realities — a move that enhances integrity and protects local workers from wage suppression.
2# More Competitive Applicants Will Thrive
If you are a tech expert, engineer, medical professional, specialist in demand, or have experience in high-value roles with competitive salary offers, your pathway to Australia just became stronger. The increased thresholds act as a filter, ensuring only genuinely skilled and well-compensated individuals are entering the skilled migration system.
3# Plan Now, Apply Early
Anyone aiming to apply under these skilled migration streams should take this opportunity to review their job offers, salary contracts, and timelines. Lodging a nomination before 1 July 2025 could be advantageous if your current salary offer is just under the new thresholds. After that date, new applications must meet the updated requirements.