Employer-Sponsored Salary Thresholds to Rise 3.9% on 1 July 2026

Australia’s employer‑sponsored income thresholds are set to increase by approximately 3.9% on 1 July 2026, based on the Australian Bureau of Statistics (ABS) November 2025 Average Weekly Ordinary Time Earnings (AWOTE) release and the automatic indexation formula in the Migration Regulations.‍At the time of writing, the Department of Home Affairs has not yet updated its public salary‑requirements guidance for the 2026–27 program year, and there remains a theoretical possibility of Government intervention before 1 July 2026.

What Are the New Thresholds from 1 July 2026?

The two principal thresholds affected are the Core-Skills Income Threshold (CSIT) and the Temporary Skilled Migration Income Threshold (TSMIT), along with the Specialist-Skills Income Threshold (SSIT) for high-salary Tier 1 roles. The table below summarises the projected changes.

ThresholdCurrent (AUD)Projected from 1 Jul 2026 (AUD)CSIT / TSMIT76,515~79,499SSIT (Tier 1 roles)141,210~146,717

Which Visas Are Affected?

These thresholds apply to nominations lodged under three employer-sponsored visa subclasses. Employers must ensure the nominated salary meets the applicable threshold at the time the nomination is lodged, not at the time the visa is granted.

Visa SubclassNameApplicable ThresholdSubclass 482Skills in Demand (SID) VisaCSIT (Core Skills stream) or SSIT (Specialist Skills stream)Subclass 186Employer Nomination SchemeCSIT / TSMITSubclass 494Skilled Employer-Sponsored RegionalCSIT / TSMIT

Why the Lodgement Date Matters

The threshold that applies to a nomination is the one in force on the date the nomination is lodged with the Department of Home Affairs. Employers who lodge before 1 July 2026 can rely on the current threshold of AUD 76,515, provided all other nomination requirements are met.

Employers who miss this window and lodge on or after 1 July 2026 will need to satisfy the projected new threshold of approximately AUD 79,499. A salary package that is compliant today could result in a nomination refusal if lodged after the indexation date without adjustment.

Industries and Employers Most at Risk

The projected increase is particularly significant for industries that routinely nominate workers at or near the current minimum. Hospitality, aged care, and early-stage technology companies sponsoring entry-level positions are among those most exposed. A 3.9% rise can convert a currently compliant package into a non-compliant one overnight, triggering nomination refusals and potential Fair Work Act underpayment issues for existing sponsored workers.

Practical Steps for Employers

1. Audit all current and pending nominations against the projected AUD 79,499 threshold.
2. Identify sponsored employees whose base salary falls between AUD 76,515 and AUD 79,499.
3. Seek internal remuneration approval to adjust affected salary packages before 1 July 2026.
4. Prioritise lodgement of nominations at risk before the financial-year changeover.
5. Review employment contracts to confirm whether guaranteed allowances can be included in the income calculation.
6. Monitor the Department of Home Affairs for official confirmation of the new thresholds.

A Note on the Annual Market Salary Rate

Separately, rules governing the Annual Market Salary Rate (AMSR) for subclass 482, 494 and 186 nominations have also been overhauled in 2026. Employers must ensure their nominated salary meets both the applicable income threshold and the AMSR for the occupation, whichever is higher. Legal advice is recommended before lodging nominations in sectors where market rates fluctuate significantly.

Key Takeaways

• The CSIT, TSMIT and SSIT are projected to rise by approximately 3.9% on 1 July 2026, based on ABS AWOTE data. This is not yet officially confirmed by the Department of Home Affairs.
• The applicable threshold is locked in at the date the nomination is lodged, making pre-July lodgement strategically significant for many employers.
• Subclass 482, 186 and 494 nominations are all affected.
• Hospitality, aged care and early-stage technology employers nominating near the current minimum are most at risk.
• Employers should audit sponsored staff cohorts now and secure remuneration approvals well before 30 June 2026.

The content of this article is intended for general informational purposes only and does not constitute legal advice. Immigration law is complex and subject to change. The information provided may not reflect the most current legal developments. For advice specific to your circumstances, please consult a registered Australian migration lawyer. For full terms governing use of this website and its content, please refer to our Website Terms and Conditions.

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