Employer Sponsored Visa Income Thresholds Expected To Increase From 1 July 2026
- 3 days ago
- 3 min read
Last Updated: 27 Feb 2026
Income Threshold Increase Expected from 1 July 2026
The Australian Bureau of Statistics released the November 2025 Average Weekly Ordinary Time Earnings (AWOTE) figures, triggering indexed income threshold increases under Regulation 5.42A.
Based on this mechanism, employer sponsored visa income thresholds are expected to increase from 1 July 2026.
The Department of Home Affairs has not yet issued formal confirmation. However, Regulation 5.42A sets out the indexation formula, and previous years have followed this process.
These expected increases affect workforce budgets, nomination timing and recruitment planning for the 2026–27 financial year.
The anticipated CSIT increase from 1 July 2026 forms part of the broader employer sponsored visa income threshold adjustments linked to AWOTE indexation.
CSIT Increase 1 July 2026: Expected Salary Levels
If indexation proceeds in line with AWOTE growth, the thresholds are expected to move as follows:
Core Skills Income Threshold (CSIT)
Current: $76,515
Expected from 1 July 2026: $79,499
Specialist Skills Income Threshold (SSIT)
Current: $141,210
Expected from 1 July 2026: $146,717
These figures reflect projected indexation under Regulation 5.42A. The Department typically confirms updated thresholds closer to the end of the financial year.
Which Visa Subclasses Does This Affect?
The updated CSIT will apply to nomination applications lodged under:
Subclass 482 Skills in Demand – Core Skills stream
Subclass 186 Employer Nomination Scheme – Direct Entry stream
Subclass 186 Temporary Residence Transition stream
Subclass 482 and 186 Labour Agreement stream (unless the agreement states otherwise)
Subclass 494 Skilled Employer Sponsored Regional
The updated SSIT will apply to:
Subclass 482 Skills in Demand – Specialist Skills stream
Employers who remain unsure about their applicable threshold should confirm their position before lodging.
Important Distinction: Subclass 494 and TSMIT
Subclass 494 Skilled Employer Sponsored Regional and Subclass 187 TRT do not fall under automatic indexation through Regulation 5.42A.
These pathways remain linked to the Temporary Skilled Migration Income Threshold (TSMIT). Any increase to TSMIT requires a separate legislative instrument.
At present, TSMIT remains at $76,515 unless the Minister introduces a formal update.
Regional employers and Labour Agreement sponsors should assess this distinction carefully before lodging nominations.
No Retrospective Impact
If the Department confirms the increase, the new thresholds would apply only to nomination applications lodged on or after 1 July 2026.
These changes do not affect:
Nominations already lodged
Approved nominations
Existing visa holders
Nomination timing will determine which salary threshold applies.
Compliance Requirements Employers Must Meet
Employers must meet more than just the indexed income threshold.
Base Salary Only
The nominated salary must consist of guaranteed annual earnings. Employers cannot include superannuation or non-monetary benefits such as accommodation, vehicles or allowances.
Annual Market Salary Rate
Employers must also pay at least the Annual Market Salary Rate for the occupation. If the market rate exceeds the indexed threshold, the higher amount must apply.
Labour Agreements
Employers operating under a Labour Agreement must follow the salary terms set out in the agreement. Those terms may differ from standard thresholds.
What Employers Should Review Now
Employers planning nominations in mid-2026 should consider:
Whether to lodge nominations before 1 July
Budget adjustments for the 2026–27 financial year
Alignment between offered salaries and market benchmarks
Separate review of regional and Labour Agreement roles
Waiting for formal confirmation may reduce flexibility in workforce planning.
Planning to Sponsor Workers in 2026?
If you plan to sponsor workers under Subclass 482, 186 or 494, review your nomination strategy now.
For a full explanation of how income thresholds operate across employer sponsored visa pathways, refer to our comprehensive CSIT guide: https://www.racc.net.au/core-skills-income-threshold-australia
Need Help?
RACC’s registered migration agents assess how the expected CSIT increase may affect your nomination timing and salary compliance under Subclass 482, 186 and 494 pathways.
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