Australia has revised its income thresholds for employer-sponsored visas, setting a new minimum salary benchmark of AUD 76,515 ($52,545) for most skilled migration categories, as part of efforts to align foreign worker pay with domestic wage standards.
The updated thresholds, announced by the Department of Home Affairs, apply to visa applications lodged between July 1, 2025, and June 30, 2026.
Also, it will affect several key migration pathways, including the Skilled Employer Sponsored Regional visa (subclass 494), Regional Sponsored Migration Scheme (subclass 187), Skills in Demand visa (subclass 482), and Employer Nomination Scheme (subclass 186).
What they are saying
At the top end of the scale, highly specialised professionals will now be required to meet a significantly higher income benchmark of AUD 141,210 ($96,454) under the Specialist Skills Income Threshold.
The revised thresholds form part of Australia’s annual wage indexation policy, which ties migration salary requirements to movements in Average Weekly Ordinary Time Earnings.
Authorities say the approach is designed to ensure foreign workers are not underpaid relative to Australian employees and to maintain integrity within the labour market.
- Under the new framework, the Temporary Skilled Migration Income Threshold (TSMIT) remains aligned with the Core Skills Income Threshold at AUD 76,515 for the 2025–2026 migration cycle.
- This figure represents the minimum salary employers must offer when nominating foreign workers under eligible visa streams.
The government noted that these thresholds will continue to be reviewed annually, with the next adjustment scheduled to take effect from July 1, 2026, for new nomination applications.
- For foreign professionals seeking employment in Australia, the changes introduce stricter entry conditions, particularly for mid-level roles, where salary offers must now meet or exceed the revised benchmarks. However, the policy is also expected to improve earnings potential and financial stability for successful applicants.
Employers, on the other hand, will face tighter compliance requirements, as they must demonstrate that offered salaries meet both the updated thresholds and prevailing market rates. This is aimed at preventing wage suppression and ensuring fair competition between local and foreign workers.
- Sectors such as hospitality, retail, and parts of the healthcare industry are expected to see notable impacts, as employers adjust compensation structures to meet the new standards. Reports suggest the policy could lead to upward wage pressure in industries heavily reliant on migrant labour.
The Australian government maintains that the changes are necessary to balance labour market needs with worker protection.
What you should know
The latest adjustment comes amid tightening migration quotas and growing labour market pressures.
- In November 2025, Nairametrics reported that Australia released final nomination figures for its 2025–2026 skilled migration programme, allocating a total of 20,350 visa places across its two main state-nominated pathways.
- According to the Department of Home Affairs, 12,850 slots were assigned to the Subclass 190 (Skilled Nominated) visa, while 7,500 places were allocated to the Subclass 491 (Skilled Work Regional) visa.
- The figures reflected a more constrained migration outlook, with most states recording declines in their allocations compared to previous years.
Earlier in June 2025, projections indicated that Australia could face a shortfall of 250,000 skilled workers in finance, technology, and business (FTB) roles by 2030, highlighting structural gaps in the labour market.
Despite rising demand, Australia’s education and training systems have struggled to produce sufficient graduates to meet industry needs. Workforce estimates show the country will require approximately 3.5 million FTB professionals by 2030, representing an increase of about 450,000 workers from current levels.
