Migration advisory firm This Is Australia has confirmed that, effective 1 July, the Core Skills Income Threshold (CSIT) for the Skills-in-Demand visa and Employer Nomination Scheme has risen from AUD 76,515 to AUD 79,423, while the Specialist Skills Income Threshold (SSIT) moves from AUD 141,210 to AUD 146,576. Existing visa holders are unaffected, but any new nomination lodged after 1 July must satisfy the higher figure.
![Core & Specialist Skills Salary Thresholds Climb – Sponsors Face Higher Floor Pay]()
For businesses or individuals navigating the maze of updated Australian visa thresholds, VisaHQ’s online platform can streamline the paperwork and keep applicants up to date with the latest income requirements. Its Australia hub offers step-by-step guidance and live support, helping sponsors lodge compliant nominations faster and avoid costly rework.
The move follows a recommendation from the Parkinson Review to index salary floors annually in line with Average Weekly Ordinary Time Earnings (AWOTE) to prevent “wage undercutting”. For sponsors, the jump roughly equals a 3.8 % cost rise on base salary alone – before superannuation, payroll tax or benefits are added. Small and medium-sized enterprises that hire niche tech talent on the Specialist stream will feel the biggest pinch: an extra AUD 5,300 a year per employee. HR managers must also pass the “Annual Market Salary Rate” test, proving the role pays market-rate or higher – meaning advertised salaries may need to climb even further in hot labour markets such as cyber-security. Firms contemplating regional sponsorships under subclass 494 must also budget for the higher Temporary Skilled Migration Income Threshold (now aligned with the CSIT). Analysts say employers that cannot meet the new floors may pivot to labour-agreement pathways or accelerate automation projects. The Department of Home Affairs insists the thresholds protect local wages and make Australia attractive only to genuinely high-skill migrants. Critics counter that rapid cost escalation, combined with July’s 25 % VAC increase, risks pricing out smaller businesses and driving talent to Canada or the UK, where employer charges are lower. Either way, salary compliance will be a frontline audit focus for 2026-27.
For businesses or individuals navigating the maze of updated Australian visa thresholds, VisaHQ’s online platform can streamline the paperwork and keep applicants up to date with the latest income requirements. Its Australia hub offers step-by-step guidance and live support, helping sponsors lodge compliant nominations faster and avoid costly rework.
The move follows a recommendation from the Parkinson Review to index salary floors annually in line with Average Weekly Ordinary Time Earnings (AWOTE) to prevent “wage undercutting”. For sponsors, the jump roughly equals a 3.8 % cost rise on base salary alone – before superannuation, payroll tax or benefits are added. Small and medium-sized enterprises that hire niche tech talent on the Specialist stream will feel the biggest pinch: an extra AUD 5,300 a year per employee. HR managers must also pass the “Annual Market Salary Rate” test, proving the role pays market-rate or higher – meaning advertised salaries may need to climb even further in hot labour markets such as cyber-security. Firms contemplating regional sponsorships under subclass 494 must also budget for the higher Temporary Skilled Migration Income Threshold (now aligned with the CSIT). Analysts say employers that cannot meet the new floors may pivot to labour-agreement pathways or accelerate automation projects. The Department of Home Affairs insists the thresholds protect local wages and make Australia attractive only to genuinely high-skill migrants. Critics counter that rapid cost escalation, combined with July’s 25 % VAC increase, risks pricing out smaller businesses and driving talent to Canada or the UK, where employer charges are lower. Either way, salary compliance will be a frontline audit focus for 2026-27.
