Skilled visa income thresholds indexation – 1 July 2026

Key data: skilled visa income thresholds from 1 July 2026

From 1 July 2026, all three major skilled visa income thresholds – CSIT, SSIT and TSMIT – will be indexed by 3.8%. The Department of Home Affairs states this aligns with changes to Average Weekly Ordinary Time Earnings (AWOTE) for Australian workers.

What income threshold changes have been announced?

Who is affected by the 2026 indexation changes?

• New nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482)
• New nominations for the Employer Nomination Scheme (subclass 186)
• New nominations for the Specialist Skills stream of the Skills in Demand visa (subclass 482)
• New nominations for the Skilled Employer Sponsored Regional (subclass 494) visa
• New nominations for the Regional Sponsored Migration Scheme (RSMS) (subclass 187)

Existing visa holders and nomination applications lodged before 1 July 2026 are not subject to the higher thresholds. For those monitoring sponsored pathways alongside points-based options such as skilled occupations and state nomination, this sets a new baseline for employer-sponsored salary settings.

Analysis: what the 2026 skilled income indexation means

Policy intent: keeping pace with Australian wages

Income thresholds are indexed annually so wages for skilled migrants increase at the same rate as Australian workers. This ensures that people cannot use skilled migration to undercut Australian workers.

This short statement from the DHA summarises the policy rationale clearly. Indexation by 3.8% in line with AWOTE keeps sponsored worker salaries tracking with the broader labour market, rather than drifting behind as nominal wages rise. Lowest since September 2025. Our analysis of ImmiIQ data for previous years shows similar annual adjustments tied to earnings movements, creating a predictable pattern for agents and employers planning multi-year recruitment strategies.

Visa streams and salary bands now in focus

For the Skills in Demand visa (subclass 482), the update creates two distinct salary bands: one for the Core Skills stream (CSIT) and a higher one for the Specialist Skills stream (SSIT). The Core Skills and TSMIT levels now align at AUD79,423, while the Specialist Skills threshold rises to AUD146,576. This gap underlines the expectation that specialist roles sit in a clearly higher remuneration bracket, which may influence how employers structure occupation choices and nomination strategies across their workforce.

For regional employer sponsorship, the Skilled Employer Sponsored Regional (subclass 494) and legacy RSMS (subclass 187) nominations must also meet the new TSMIT. Agents working across both regional and metropolitan cohorts may wish to consider how this uniform TSMIT/CSIT level interacts with local salary norms, especially in lower-wage regional labour markets where meeting AUD79,423 could affect role design or candidate selection.

Timing of nominations: why the 1 July 2026 date matters

Only one date really matters here: 1 July 2026. The DHA has made it explicit that the higher thresholds apply only to nominations lodged from that date. Existing visa holders are not pulled up to the new levels, and nominations already in the system remain tied to the previous amounts of AUD76,515 (CSIT/TSMIT) and AUD141,210 (SSIT). For any pipeline of sponsorships where salary is close to the threshold, this could affect when employers choose to finalise and lodge nominations, especially for large recruitment rounds or graduate intakes.

Next steps for agents, applicants and employers

How can agents, visa applicants and education providers respond to the 3.8% indexation without guesswork? The DHA has provided clear thresholds and a clear start date, which means the focus now shifts to planning around those numbers and aligning salary offers with the updated policy settings.

1. 01Check whether upcoming 482, 186, 494 or 187 nominations will be lodged before or after 1 July 2026, as this determines which threshold applies.
2. 02Confirm that proposed salaries for new nominations from 1 July 2026 meet or exceed CSIT, SSIT or TSMIT, depending on the visa stream.
3. 03For pipeline candidates comparing employer sponsorship with points-tested visas, use tools like the ImmiIQ points calculator and EOI explorer to understand alternative pathways.
4. 04Education providers tracking demand for courses that lead into employer-sponsored roles may wish to consider how the higher thresholds align with graduate salary expectations in relevant occupations.
5. 05Monitor future DHA updates via the official news archive for subsequent annual indexation announcements.

This article is for informational purposes only and does not constitute migration advice. Always consult a Registered Migration Agent (RMA) for advice specific to your circumstances.

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