The 2026–27 migration program year began on 1 July 2026, and the most immediately practical change for employers and sponsored workers was the annual indexation of skilled visa salary thresholds. I set out here exactly what changed, what the new figures are, and what it meant for employers and sponsored workers.
I have been practising immigration law for 27 years. What I am setting out here is limited to confirmed legislative and regulatory changes — not speculation.
Salary Thresholds from 1 July 2026
From 1 July 2026, the indexed salary thresholds for employer-sponsored visas increased by 3.8%, in line with the annual growth rate of the Average Weekly Ordinary Time Earnings (AWOTE) published by the Australian Bureau of Statistics. No legislative instrument sets these thresholds. They are indexed automatically each 1 July by reg 5.42A of the Migration Regulations 1994 (Cth), which provides that the dollar amounts "are, on that day, replaced" by the indexed amounts. The Department publishes the replacement amounts under reg 5.42A(5).
| Threshold | Current (1 July 2025 – 30 June 2026) | New (from 1 July 2026) | Visas affected |
|---|---|---|---|
| Core Skills Income Threshold (CSIT) | AUD 76,515 | AUD 79,423 | 482 Core Skills stream, 186 ENS |
| Specialist Skills Income Threshold (SSIT) | AUD 141,210 | AUD 146,576 | 482 Specialist Skills stream |
| Temporary Skilled Migration Income Threshold (TSMIT) | AUD 76,515 | AUD 79,423 | 494 Skilled Employer Sponsored Regional, 187 RSMS |
These thresholds apply to nomination applications lodged on or after 1 July 2026. Nominations lodged before that date were assessed against the 2025-26 thresholds.
The threshold is a floor, not a ceiling. The nominated salary must also meet the Annual Market Salary Rate (AMSR) for the occupation — that is, what an equivalent Australian worker would be paid for the same role in the same location.
What This Means in Practice
If you are an employer sponsoring workers under the 482 (Skills in Demand) or 494 visa:
Employers needed to review the salaries of all sponsored employees against the new thresholds. A worker earning $77,000 then, comfortably above the 2025-26 CSIT of $76,515, fell below the new threshold of $79,423 from 1 July 2026. A nomination lodged for that worker on or after 1 July 2026 without a salary adjustment was refused.
The practical options were:
- Adjusting the salary to at least $79,423 before lodging the nomination from 1 July 2026; or
- Lodging the nomination before 1 July 2026, so that it was assessed against the 2025-26 threshold of $76,515.
If you are a sponsored worker approaching your Subclass 186 transition:
The CSIT also applies to Employer Nomination Scheme (ENS) Subclass 186 nominations lodged on or after 7 December 2024. If your current salary is between $76,515 and $79,423, lodging your 186 nomination before 1 July 2026 would have been advantageous, provided all other eligibility criteria were met.
If you are in the Specialist Skills stream of the 482 visa:
The SSIT rose from $141,210 to $146,576. Workers in this stream are typically well above the threshold, but it was worth confirming that the nominated salary would still meet the new figure.
The Skills in Demand Visa: A Brief Note
The Subclass 482 (Temporary Skill Shortage) visa was replaced by the Skills in Demand (SID) visa on 18 April 2026. If you are lodging a new application, you will be lodging under the SID framework. The salary thresholds above apply to the SID visa in the same way they applied to the 482.
The three streams of the SID visa are:
- Specialist Skills stream — for workers earning at least the SSIT ($141,210, which rose to $146,576 from 1 July 2026). Broader occupation access, no occupation list requirement.
- Core Skills stream — for workers in occupations on the Core Skills Occupation List (CSOL), earning at least the CSIT. Broadly equivalent to the old Medium-Term stream of the 482.
- Essential Skills stream — for lower-paid workers in sectors with demonstrated shortages. Not yet fully operational; regulations are still being developed.
The Subclass 407 Training Visa: Sequential Lodgement
This change took effect on 11 March 2026 under the Migration Amendment (Training Visas — Sponsorship Requirements) Regulations 2026. A Subclass 407 nomination must now be approved before the visa application can be lodged. Previously, the nomination and visa application could be lodged concurrently.
This means the overall processing timeline for 407 visas is now longer. Employers who sponsor overseas workers for training purposes need to start the nomination process earlier.
What Employers and Workers Needed to Do Before 1 July 2026
If you are an employer sponsoring workers:
- Reviewing the salaries of all sponsored employees against the new thresholds (CSIT/TSMIT: $79,423; SSIT: $146,576).
- Where a sponsored worker earned between the 2025-26 and the new threshold, adjusting their salary before 1 July 2026 or lodging the nomination before that date.
- Where a Subclass 407 training visa was planned, starting the nomination process early, because sequential lodgement means longer lead times.
If you are a sponsored worker:
- Checking whether the nominated salary would still meet the new threshold from 1 July 2026.
- Where a Subclass 186 transition was approaching, considering whether lodging the nomination before 1 July 2026 was advantageous.
- Understanding portability rights under the SID framework, the 180-day grace period to find a new sponsor if employment ends.
How I Can Help
These threshold changes affect nomination timing, salary negotiations, and transition planning. Getting the timing wrong — lodging a nomination after 1 July with a salary that no longer meets the threshold — results in a refusal that could have been avoided.
If you are an employer with sponsored workers approaching the threshold, or a sponsored worker planning a 186 transition, I encourage you to book a consultation with me.
Book a $97 Consultation to review your situation.
Have questions about your situation?
Nilesh Nandan has 27 years of experience in Australian immigration law. A $97 consultation gives you a clear picture of your options.
Book a 10-minute chat · $97This article provides general information only and does not constitute legal advice.