Employer-Sponsored Visa Salary Thresholds Rising from 1 July 2026
Key Change
The Australian Department of Home Affairs has confirmed significant increases to employer-sponsored visa salary thresholds, taking effect 1 July 2026. The 2026 indexation increases the Core Skills Income Threshold (CSIT) and Specialist Skills Income Threshold (SSIT) automatically. The Temporary Skilled Migration Income Threshold (TSMIT) is expected to align but requires a separate legislative instrument.
The 2026 Salary Threshold Update
The new figures are based on the Australian Bureau of Statistics (ABS) data for Average Weekly Ordinary Time Earnings (AWOTE). Because wage growth has been steady, the automatic indexation under Regulation 5.42A has pushed the thresholds up by approximately 3.8% to 3.9%.
Comparison: 2025 vs. 2026
| Threshold Type | Current (Until 30 June 2026) | New (From 1 July 2026) | Affected Visas |
|---|---|---|---|
| TSMIT / CSIT | $76,515 | $79,499 | Subclass 482 (Core), 186, 494 |
| Specialist Skills (SSIT) | $141,210 | $146,717 | Subclass 482 (Specialist) |
| High Income Threshold | $175,000 | TBA (Est. $181,000+) | Exemption from certain rules |
Note on TSMIT vs. CSIT: While the Core Skills Income Threshold (CSIT) is indexed automatically, the TSMIT (used for regional 494 visas) technically requires a separate legislative instrument. However, the government has historically aligned these two, and the $79,499 figure is the confirmed target for both.
Critical Rules for Calculation
Meeting the new $79,499 (or $146,717) figure is not just about the total package. The Department of Home Affairs applies strict "guaranteed earnings" rules:
Base Salary Only
You cannot include superannuation to meet the threshold. For example, a $79,499 salary must be the base, with the 12% superannuation paid on top of that.
No Non-Monetary Benefits
Bonuses, commissions, company cars, or accommodation allowances cannot be used to reach the minimum threshold.
The "Market Rate" Rule
Even if you pay the new $79,499, you must still prove that this is the Annual Market Salary Rate (AMSR). If an Australian in the same role earns $90,000, you must pay the migrant $90,000, not the $79,499 floor.
Impact on New Applicants
If you lodge your nomination on or after 1 July 2026, the new higher rates apply. If your contract is for $77,000, your visa will be instantly refused because it falls below the new $79,499 floor.
Impact on Existing Visa Holders
Generally, if your visa is already granted or your nomination was lodged before 1 July, you are "safe" under the old rates for the duration of that specific visa. However, the increase becomes a problem during visa renewals or when transitioning from a 482 to a 186 Permanent Residency visa. If your salary hasn't kept pace with indexation, you may find yourself ineligible for PR.
Impact on Regional Sponsors (Subclass 494)
Regional employers often operate on tighter margins. The jump toward $80,000 makes sponsoring lower-level skilled roles in regional areas increasingly difficult, as local market rates for some trades may not naturally reach this level.
Strategic Recommendations
The "June Deadline"
Employers planning to sponsor workers at the current $76,515 rate should aim to lodge nominations by mid-June 2026. Remember that Labour Market Testing (LMT) must be completed 28 days before lodgement, meaning ads must be live by 1 May 2026.
Audit Current Staff
Businesses should review any 482 holders intending to apply for 186 PR in late 2026. If their salary is currently $77,000, they will need a pay rise to $79,499 before their PR nomination can be lodged.
Budgeting
Financial officers should update 2026–27 hiring budgets now to account for the ~4% increase in minimum payroll costs for sponsored talent.
Don't Get Caught Out
A nomination lodged on or after 1 July 2026 with a salary below $79,499 will be refused. If you are mid-process, consider whether to fast-track your lodgement before the deadline or negotiate a salary adjustment with your employer.
Need help? Our registered migration agents can advise on the best strategy for your employer sponsored visa application, including timing your nomination around the 1 July 2026 threshold change. Contact us for a consultation.