News spreads quickly in the digital age. This is especially the case among migrants. If you are a visa holder or an aspiring migrant, chances are you use social media as a source of information. All too often, visa information on social media is incomplete, unreliable, or outright incorrect. I moderate a few online immigration forums; the amount of inaccurate visa content I see is staggering.
One recent example is the news about the increase in salary thresholds of employer-sponsored visas. It spread like wildfire on social media last week. The news provoked heated debates online, including accusations that it is false. I decided to clarify the situation for our clients and the public. If you are a business sponsor, overseas worker, or aspiring migrant, this article is for you.
First, let's start from the bottom line - Yes, the news is true. Now, let's break it down.
What are Salary Thresholds?
Salary thresholds determine the minimum annual salary businesses are permitted to pay their sponsored workers. They are a key requirement of employer-nominations for sponsored visas. They are used to protect lower-paid Australian jobs and to ensure that sponsored workers earn a reasonable income to sustain themselves.
There are two salary thresholds: the Core Skills Income Threshold (CSIT), currently set at $73,150 and the Specialist Skills Income Threshold (SSIT), which is $135,000 at present. They apply to the following employer-sponsored visas:
Skills in Demand (subclass 482)
Skilled Employer Sponsored Regional (subclass 494)
Employer Nomination Scheme (subclass 186)
Most employer-sponsored visas are subject to the CSIT of $73,150. The higher SSIT applies only to subclass 482 visas in the Specialist Skills stream. It is designed for certain high-paying jobs and is not directly tied to the occupation list.
Another salary requirement, the Australian Market Salary Rate, operates in conjunction with salary thresholds. I will be writing a separate article on it soon, stay tuned.
The Government states that salary thresholds should rise in line with Australian wage growth. This was not always the case.
Until 2023, a single salary threshold called the Temporary Skilled Migration Income Threshold (TSMIT) applied to employer-sponsored visas. It was set at $53,900 in 2013 and remained unchanged for 10 years.
The Government decided to increase the TSMIT to $70,000 in 2023 because over time, it fell below the salaries of most full-time jobs. It was not entirely clear how it arrived at the new figure. The sudden increase caused some agitation among businesses and migrants at the time. Eventually, most got used to it. However, there was more to come.
The Department of Home Affairs increased the TSMIT again in 2024, this time to $73,150. It also announced that it would implement a method to calculate annual updates (indexation) to salary thresholds.
Current thresholds and indexation
In December 2024, the new CSIT and SSIT came into effect. The Government also introduced legislation which dictates how the annual increase is to be calculated. Salary thresholds of sponsored visas are now indexed to full‑time salaries of Australians. Bear with me, this can be a little tricky to explain.
Put simply, salary threshold increases are determined by an Australian salary statistic known as AWOTE. This acronym refers to the average salary of full-time Australian workers. It is published by the Australian Bureau of Statistics twice every year.
If the November AWOTE is higher than the previous November AWOTE, employer-sponsored salary thresholds will be updated accordingly. The indexation takes effect every 1 July.
Why is there no official announcement?
Good question. Under the current legislation, the Government is not required to make any announcements on the updated salary thresholds before they come into effect.
Then how do you know the increase is true?
The Australian Bureau of Statistics published the November 2024 AWOTE on 20 February 2025. It increased by 4.6% over the preceding year. This means that the salary thresholds must increase accordingly on 1 July. Sharp-eyed immigration professionals and members of the public quickly noticed this, and the news spread rapidly over the internet.
So what are the new thresholds?
Starting 1 July 2025, the new salary threshold for most employer-sponsored visas (CSIT) will be $76,515. Applicants in the Specialist Skills stream of sc482 visas will need to be offered a salary of $141,210. These figures do not include superannuation payments.
Who is subject to the new thresholds?
Sponsors nominating workers for new sponsored visas on or after 1 July must comply with the new thresholds. This is also the case with existing holders of sc482 or 494 visas who are changing employers after 1 July.
Visa holders under the Labour Agreement streams of the sc482 and 494 visas may be paid salaries below the CSIT. The details of these concessions are specified in the relevant labour agreement.
I already hold a temporary sponsored visa – does this apply to me?
Not unless you plan to change employers.
If you hold a sc482 visa and plan to apply for permanent residency via the sc186 visa, your employer must meet the SCIT in effect at the time of nomination lodgement.
Closing thoughts
Salary threshold increases are now an annual exercise every 1 July, at least for the foreseeable future. Employers who rely on overseas sponsored workers should take note and be up to date with their obligations to pay lawful salaries correctly.
The Government is not required to announce the new thresholds before they come into effect. This has the potential to cause significant issues. It risks employers lodging nominations in good faith, without being aware that the salary thresholds have already increased. The assistance of a competent migration professional never been more essential.
Salary thresholds interact with the Market Salary Rate requirement. The annual threshold increase may push lower-paid jobs out of the standard employer-sponsored program and towards Labour Agreements. This type of sponsor-department agreement allows businesses to negotiate salary thresholds below the standard amount.
Stay tuned for more news on employer-sponsored visas. Subscribe to the next ImmiUpdate below to stay informed.
For more information please Contact Us or email elan@ryshermigration.com.au
Elan Rysher is a Registered Migration Agent and Qualified Student Counsellor. He is the main Writer for ImmiUpdates and the founder of Rysher Migration. Being a former migrant himself, Elan is passionate about helping others fulfil their Australian dream.
Information (or the lack of it) contained in ImmiUpdates should not be relied on as immigration assistance or advice. ImmiUpdates expressly disclaim any liability, arising at law, in equity or otherwise, for any information published or not published in past, the present or future editions of the blog. People seeking immigration assistance should seek advice from a registered migration agent and those seeking legal advice should consult a lawyer. The copyright in the newsletter belongs to Rysher Migration Services and no part of the blog is to be reproduced by any means without the written consent of Rysher Migration Services.