Australia’s employer-sponsored visa salary thresholds will increase from 1 July 2026.  Employers and visa applicants need to understand how these changes could directly impact whether an application succeeds or fails.

What is changing

From 1 July 2026, the minimum salary thresholds will increase:

  • Core Skills Income Threshold (CSIT): AUD 79,499 (up from AUD 76,515)
  • Specialist Skills Income Threshold (SSIT): AUD 146,717 (up from AUD 141,210)

Important: These thresholds apply to guaranteed base salary only and exclude superannuation and non-monetary benefits.

They apply to:

  • Skills in Demand visa (subclass 482)
  • Employer Nomination Scheme (subclass 186)

Any nomination lodged on or after 1 July 2026 must meet the new threshold or the Annual Market Salary Rate (AMSR), whichever is higher.

Why this matters

This is not just a technical adjustment.

  • For employers: Higher thresholds mean increased salary commitments, which can impact hiring decisions and budgets
  • For candidates: Falling below the threshold means the role will not qualify for sponsorship, regardless of experience

The timing risk most people overlook

The salary threshold is based on the application lodgement date, not the decision date.

  • Lodge before 1 July 2026, and current thresholds apply
  • Lodge on or after 1 July 2026, and higher thresholds apply

For roles close to the minimum salary, this creates a narrow window.

Why Labour Market Testing can derail your timeline

Even if you are aware of the deadline, Labour Market Testing (LMT) can slow you down.

Most roles must be advertised for at least 28 days to demonstrate that no suitable Australian worker is available.

This means:

  • Delays in starting LMT can push applications past the deadline
  • Missing the deadline can result in higher salary obligations

Why these increases happen every year

Income thresholds are indexed annually in line with Australian wage growth, ensuring skilled migrant salaries rise alongside local workers’ wages and preventing undercutting of the domestic labour market.

The adjustment is based on wage data from the Australian Bureau of Statistics and applied automatically under migration law, which means:

  • Increases will continue each year
  • Salary thresholds will keep rising
  • Long-term workforce planning is essential

What employers should do

To avoid refusals and delays:

  • Ensure Labour Market Testing is conducted using the new income thresholds
  • Review salary packages early
  • Prepare nomination documentation in advance
  • Review roles close to the minimum threshold
  • Build annual increases into hiring budgets

This is especially important for ongoing sponsorship programmes and employees transitioning to permanent residence.

What candidates should consider

If you are planning to move to Australia on a sponsored role:

  • Confirm your salary meets both current and upcoming thresholds
  • Understand your application timeline
  • Avoid delays that could affect eligibility
  • Seek advice early if your offer is close to the threshold

Higher salary thresholds will impact eligibility, costs and application timelines. Acting early is the only way to stay ahead. If you are planning to sponsor talent or move to Australia, now is the time to review your position and secure your application under the current requirements. Contact our registered migration agents today at [email protected] or +61 (0) 3 8651 4500.