In a move reflecting the country’s evolving economic standards, the Australian Government has officially increased the income thresholds for skilled visa applicants by 4.6%, effective July 1, 2025. The change, announced by the Department of Home Affairs, is aligned with updates to the Average Weekly Ordinary Time Earnings (AWOTE), which influences wage benchmarks across the nation.
What This Means
This adjustment affects a wide range of skilled visa categories, including the popular:
- Temporary Skill Shortage (TSS) visa (subclass 482)
- Skilled Independent visa (subclass 189)
- Employer Nomination Scheme visa (subclass 186)
- Regional Sponsored Migration Scheme (RSMS) visa (subclass 187)
The updated Temporary Skilled Migration Income Threshold (TSMIT) is designed to ensure that skilled migrants are paid wages that reflect the prevailing market rates for their occupations in Australia, thereby protecting both overseas workers and local labor markets.
Key Figures
Before the change, the TSMIT stood at AUD 70,000. With the 4.6% increase, it now rises to approximately AUD 73,220. This means employers who wish to sponsor skilled foreign workers must now offer a base salary that meets or exceeds this threshold — unless the market salary rate for the position is higher.
Implications for Applicants and Employers
For prospective migrants, the change could present new challenges. Applicants must ensure their offered salaries meet the revised requirements or risk having their visa applications denied. This could reduce the pool of eligible workers in lower-paid sectors.
For employers, the update may result in increased costs when hiring overseas talent. However, it also emphasises Australia’s commitment to fair labour standards and to attracting high-value professionals who can contribute meaningfully to the national economy.
Government’s Justification
The Department of Home Affairs stated that the change is part of ongoing efforts to:
- Maintain the integrity of Australia’s skilled migration program
- Prevent wage exploitation of temporary migrant workers
- Ensure that skilled visas are reserved for roles genuinely requiring overseas expertise
The adjustment also aligns with broader economic measures aimed at supporting wage growth and economic resilience.
Looking Ahead
This is not expected to be the last revision to the TSMIT. The Department hinted at annual reviews, suggesting that income thresholds may continue to rise in line with inflation and labor market conditions.
Prospective applicants are encouraged to consult with migration agents or legal advisors to understand how these changes may affect their eligibility and to prepare appropriately.
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