The Department of Home Affairs has increased the income thresholds applying to certain employer sponsored visa nomination applications lodged on or after 1 July 2026.

The changes are particularly relevant to employers and skilled workers using the Subclass 482 Skills in Demand, Subclass 186 Employer Nomination Scheme and Subclass 494 Skilled Employer Sponsored Regional visa pathways.

New Income Thresholds

Two main income thresholds apply to employer-sponsored nominations, depending on the visa and nominated stream.

Income ThresholdPrevious AmountFrom 1 July 2026Relevant Visa PathwaysCore Skills Income Threshold (CSIT)AUD 76,515AUD 79,423Subclass 482 Core Skills stream and relevant Subclass 186 nominationsSpecialist Skills Income Threshold (SSIT)AUD 141,210AUD 146,576Subclass 482 Specialist Skills streamTemporary Skilled Migration Income Threshold (TSMIT)AUD 76,515AUD 79,423Relevant Subclass 494 nominations and limited transitional Subclass 187 cases

The CSIT and TSMIT have both increased to AUD 79,423 per year, while the SSIT has increased to AUD 146,576 per year.

Who Is Affected?

The updated thresholds generally apply to nomination applications lodged on or after 1 July 2026.

Nomination applications lodged before 1 July 2026 are generally assessed against the income threshold that applied at the time of lodgement.

The increase does not automatically mean that every existing sponsored worker must immediately receive a salary increase to the new threshold. However, the updated amount must be considered when an employer lodges a new nomination, including a nomination connected with a new visa application, a further Subclass 482 visa or a change of position.

Employers must also continue to meet their existing sponsorship obligations and pay sponsored employees in accordance with the approved nomination, employment contract and applicable workplace laws.

The Income Threshold Is Not the Only Salary Requirement

Meeting the relevant income threshold does not automatically mean that the proposed salary is acceptable.

Employers must also determine the Annual Market Salary Rate for the nominated position. A sponsored worker’s guaranteed annual earnings must generally:

• meet or exceed the applicable income threshold;
• be no less than the Annual Market Salary Rate for the position; and
• be comparable to the earnings and conditions offered to an equivalent Australian worker.

In practice, the market salary for some occupations may be higher than AUD 79,423. In those cases, simply offering the minimum income threshold may not be sufficient.

What Employers Should Review

Employers preparing a new nomination should review the proposed salary before submitting the application.

Employment contracts and nomination documents should clearly set out the worker’s guaranteed annual earnings and ensure that the salary is supported by appropriate market salary evidence.

Where an existing sponsored employee will require a new nomination after 1 July 2026, employers should check whether the current remuneration package meets both the updated threshold and the applicable market salary rate.

Salary arrangements that fall below the relevant requirements may result in nomination refusal and may also raise sponsorship compliance concerns.

What Counts Towards the Threshold?

The relevant assessment is generally based on the worker’s guaranteed annual earnings, rather than income that may or may not be received.

Non-guaranteed or variable payments should generally not be relied upon to meet the threshold, including:

• discretionary bonuses;
• variable commissions;
• overtime payments;
• expense reimbursements; and
• allowances that are not guaranteed or cannot be given a clear monetary value.

The treatment of fixed allowances and non-monetary benefits will depend on how the remuneration package is structured and documented.

Employers should therefore avoid relying solely on a headline “package value” without checking which components can legally be counted as guaranteed annual earnings.

What This Means for Regional Sponsorship

The TSMIT applying to relevant regional employer-sponsored nominations has also increased to AUD 79,423.

This means employers using the Subclass 494 pathway must account for the same updated base threshold as the CSIT, while also satisfying the market salary requirements for the nominated regional position.

The Subclass 187 visa is no longer generally open to new applicants, although the updated threshold may remain relevant to limited transitional cases where applicable.

Key Takeaways

From 1 July 2026:

• the CSIT has increased to AUD 79,423;
• the TSMIT has increased to AUD 79,423;
• the SSIT has increased to AUD 146,576;
• the updated thresholds generally apply to nominations lodged on or after 1 July 2026;
• existing sponsored workers are not automatically required to receive an immediate increase solely because the thresholds have changed;
• new nominations must satisfy both the applicable income threshold and the Annual Market Salary Rate; and
• employers should carefully review which parts of a remuneration package qualify as guaranteed annual earnings.

Employers planning to sponsor a worker, renew an existing arrangement or lodge a new nomination should review the salary structure before submitting the application. Skilled workers should also confirm that the proposed salary and employment conditions meet the requirements of their intended visa pathway.

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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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