Increase in Income Thresholds under Sponsored Visas

Confirmed changes to income thresholds 

The Australian Government has confirmed that from 1 July 2025, the skilled visa income thresholds will increase by 4.6%. This adjustment aligns with the Government’s commitment to annually adjusting salary thresholds to be consistent with Australia’s market conditions and is based on the latest Average Weekly Ordinary Time Earnings (AWOTE) data from the Australian Bureau of Statistics.

New thresholds from 1 July 2025 

• Core Skills Income Threshold (CSIT): Increasing from $73,150 to $76,515 
• Specialist Skills Income Threshold (SSIT): Increasing from $135,000 to $141,210 
• Temporary Skilled Migration Income Threshold (TSMIT): applicable to the Skilled Employer Sponsored Regional (subclass 494) and Regional Sponsored Migration Scheme (subclass 187) visas is increasing from $73,150 to $76,515, in accordance with CSIT recommendations and pending legislative approval. 

Note: These figures do not include superannuation contributions. 

 What are the CSIT and SSIT? 

The CSIT and SSIT are salary requirements for employer-sponsored visas in Australia. They set the minimum market salary rate that must be paid to skilled migrants sponsored by employers. This helps ensure workers are paid fair and suitable wages that align with current market rates and support the proper implementation of Australia’s skilled migration program. 

Before the introduction of the CSIT and SSIT, the salary threshold for employer-sponsored visas was the Temporary Skilled Migration Income Threshold (TSMIT). Initially set at $53,900 in 2013, the TSMIT remained unchanged for 10 years, falling below most full-time job salaries. In 2023, it was raised to $70,000, and in 2024, to $73,150.  

CSIT applies to most employer-sponsored visa streams, including: 

• Skills in Demand (subclass 482) 
• Skilled Employer Sponsored Regional (subclass 494) 
• Employer Nomination Scheme (subclass 186) 

SSIT applies only to the Specialist Skills stream of the Skills in Demand (482) visa. It is intended for high-earning, specialised roles and is not occupation-list dependent.  

• Higher salary requirements: Employers must now ensure that from 1 July all new sponsored visa offers meet or exceed the updated CSIT and SSIT thresholds. This may require budget adjustments or a reassessment of salary structures, especially in industries that offered salaries near the previous threshold or included superannuation in total compensation.
• Increased visa fees: Visa application fees typically increase from 1 July each year, raising the cost of hiring skilled workers and potentially limiting access to talent.
• Application delays: The end of the financial year often leads to processing backlogs, so lodging applications early is essential. 

What sponsors should do now 

Act quickly – submit applications as soon as possible 

• Before the new thresholds: Employers should sponsor workers now before the new financial year to lock in the current salary thresholds and avoid increased costs. Employers who prepare early will be in a stronger position to manage costs and secure skilled workers.
• Prepare Labour Market Testing now: Before sponsoring overseas workers, employers must first demonstrate genuine efforts to hire locally. Labour Market Testing (LMT) should begin immediately to meet compliance requirements and avoid delays. Since visa applications must be lodged right after the 28-day advertising period, early preparation is crucial.
• To avoid delays: If LMT is delayed until May or June, businesses may struggle to meet the 28-day requirement and risk processing backlogs and compliance challenges when new salary thresholds take effect. 
• Update recruitment strategies: Once the CSIT and SSIT increase, the LMT requirements must reflect the confirmed income threshold. This involves advertising the position at the new salary level and ensuring that job listings and recruitment efforts are compliant with the updated regulations.  

How Absolute Immigration can help 

Absolute Immigration is committed to helping businesses navigate these expected changes. Our expert immigration Strategists and Advisers can: 

• Assess visa eligibility and help your business prepare for these changes to the CSIT and SSIT.
• Guide you through Labour Market Testing to avoid processing delays 
• Submit and manage applications early to prevent higher costs  

Contact Absolute Immigration at aisupport@absoluteimmigration.com today to get started.