Starting 1 July 2025, the income thresholds for skilled visa nominations in Australia will increase by 4.6%. This adjustment aligns with changes to the annual Average Weekly Ordinary Time Earnings (AWOTE) and will impact various skilled visa categories, including:
- Skills in Demand (subclass 482) Visa
- Employer Nomination Scheme (subclass 186) Visa
- Skills Employer Sponsored Regional (subclass 494) Visa
- Regional Sponsored Migration Scheme (subclass 187) Visa
Key Changes to Income Thresholds
The income thresholds that apply to skilled visa applications will see significant increases. The changes are aimed at ensuring that skilled workers are compensated fairly, in line with current wage standards across the country.
- Core Skills Income Threshold
(CSIT)
The CSIT, which currently stands at AUD $73,150, will rise to AUD $76,515. This threshold applies to nominations under the Core Skills stream of the Skills in Demand (subclass 482) Visa and the Employer Nomination Scheme (subclass 186) Visa. This increase will affect employers sponsoring skilled workers in occupations classified under the Core Skills Occupation List. - Specialist Skills Income Threshold
(SSIT)
The SSIT will increase from AUD $135,000 to AUD $141,210. This threshold pertains to nominations under the Specialist Skills stream of the Skills in Demand (subclass 482) Visa. This increase reflects the higher skill levels and expertise required for specialists in specific fields. - Temporary Skilled Migration Income Threshold
(TSMIT)
The TSMIT, which will also rise from AUD $73,150 to AUD $76,515, impacts nominations lodged for the Skilled Employer Sponsored Regional (subclass 494) Visa and the Regional Sponsored Migration Scheme (subclass 187) Visa. This increase will apply in line with the CSIT and is subject to the approval of relevant legislation.
Implications for Nomination Applications
From 1 July 2025, all new nomination applications must meet the new relevant income threshold or the annual market salary rate, whichever is higher. This means that any employer who wishes to nominate a worker under the above-mentioned visa subclasses must ensure that the salary offered meets the increased thresholds.
These changes will not apply to existing visa holders or nominations lodged before 1 July 2025. Those who have already lodged their applications or are current visa holders will not be affected by the new income thresholds.
Why the Increase?
The decision to raise these thresholds is directly tied to changes in Australia's Average Weekly Ordinary Time Earnings (AWOTE). The AWOTE reflects the earnings of Australian workers and is a critical benchmark used to determine fair wages for skilled workers. The increase ensures that skilled visa holders are offered compensation that aligns with the current wage trends in the Australian job market and that Australia's skilled migration program remains fair and competitive.
Next Steps for Employers and Visa Applicants
Employers must adjust their nominations to reflect the new income requirements, while skilled workers will benefit from a wage structure that better reflects the value of their expertise in the Australian labor market.
Employers planning to nominate workers for skilled visas must review their salary offerings to ensure compliance with the new thresholds. Additionally, it is essential to stay informed about the approval of relevant legislation.
For more details, refer to the Department of Home Affairs' website here.
Increased Processing Times
The processing times for the Skills in Demand (subclass 482) Visa have seen a notable increase since its implementation on 7 December 2024. The current processing times for this visa subclass are the following:
- Core Skills stream: 41 to 61 days
- Specialist Skills stream: 13 to 38 days
- Labour Agreement stream: 48 to 61 days
For those Temporary Skills Shortage (subclass 482) Visa applications that were submitted before the Skills in Demand Visa implementation, the processing times are even longer:
- Short-term stream: 3 to 8 months
- Medium-term stream: 3 to 8 months
- Labour Agreement stream: 3 to 6 months
You can consult the processing times published by the Department here
Impact of Increased Processing Times on Employers and Employees
The increased processing times for subclass 482 visas have significant consequences for both employers and employees, particularly when it comes to planning the start of assignments in Australia.
For Employers:
- Workforce Planning Challenges: employers often rely on subclass 482 visa holders to fill critical roles within their organisations. With longer processing times, it becomes more difficult to plan workforce needs and allocate resources accordingly.
- Potential Project Delays: processing times can cause projects to be postponed or extended, creating inefficiencies and possibly jeopardizing client relationships.
For Employees:
- Uncertainty Around Start Dates: this can affect their personal and professional plans, such as relocation arrangements, housing, and family matters
- Financial Impact: workers may have already resigned from their current jobs or made significant financial commitments, and any delay could cause them to face financial stress.
Strategies to Manage the Delays
- Plan Ahead
Employers and employees should start the visa application process well in advance, keeping in mind the potential for longer processing times. It is recommended to allow extra time for potential delays, especially for roles that are essential to project timelines. - Stay Informed
Regularly checking the Department of Home Affairs website for updates on processing times and visa status can help stay informed about their application status. Being proactive can allow for better decision-making when unexpected delays arise. - Seek Expert Advice
Employers and employees may want to engage immigration lawyers who specialise in skilled migration to ensure that their visa applications are as complete and accurate as possible. This can help avoid delays caused by errors or missing information.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
