Australia Raises Skilled Worker Visa Salary Thresholds and Minimum Wage

Australia has increased several salary thresholds for employer-sponsored skilled visas, while also raising the national minimum wage and award wages.

The Department of Home Affairs confirmed that the new income thresholds apply to nomination applications lodged on or after July 1, 2026.

The Core Skills Income Threshold (CSIT) has increased to AUD 79,423, up from AUD 76,515.

Meanwhile, the Specialist Skills Income Threshold (SSIT) has risen to AUD 146,576, compared with AUD 141,210 previously.

The Temporary Skilled Migration Income Threshold (TSMIT) has also increased to AUD 79,423, up from AUD 76,515. The TSMIT applies to regional sponsored visa programs, including subclass 494 and subclass 187 nominations.

Employers Must Meet Market Salary Requirements

The new thresholds do not allow employers to simply pay sponsored foreign workers the minimum visa salary.

Employers must continue to pay at least the relevant income threshold and the annual market salary rate for the nominated occupation.

For sponsored workers earning less than AUD 250,000 per year, employers must show that they have correctly determined the annual market salary rate.

They must also ensure the foreign worker is not paid less than an Australian worker performing the same job in the same location. Home Affairs says nominations can be refused if the sponsored worker would receive less than an equivalent Australian employee.

Australia Increases Minimum Wage

Australia has also increased its National Minimum Wage from July 1, 2026.

The new rate is AUD 1,004.90 per week, based on a 38-hour working week, or AUD 26.44 per hour.

Previously, the National Minimum Wage stood at AUD 948.10 per week or AUD 24.95 per hour.

The new rates apply from the first full pay period starting on or after July 1, 2026.

In addition, minimum wages under Australian awards have increased by 4.75%.

Most Australian employees are covered by an award, which sets minimum pay rates and employment conditions for specific occupations and industries.

Fair Work High Income Threshold Rises to AUD 190,100

The Fair Work High Income Threshold has increased to AUD 190,100, up from AUD 183,100 for the previous financial year.

The new threshold applies from July 1, 2026, through June 30, 2027.

The threshold remains important for certain employer-sponsored visa exemptions.

For example, some applicants aged 45 or older can qualify for an age exemption under the Employer Nomination Scheme subclass 186 if they meet specific employment conditions and earned at least the Fair Work High Income Threshold during the required period.

A similar exemption applies to some applicants under the Skilled Employer Sponsored Regional subclass 494 visa. Eligible workers may qualify for an age exemption if their earnings reached at least the applicable Fair Work High Income Threshold during the relevant employment period.

The July changes mean employers sponsoring overseas workers in Australia will need to review salaries carefully before submitting new nomination applications.

They must consider both immigration salary thresholds and Australian workplace laws to ensure sponsored workers receive the required pay and employment conditions.