
The Department of Home Affairs has released its annual indexation update confirming that, from 1 July 2026, the Core Skills Income Threshold (CSIT) for Australia’s main employer-sponsored visas will rise from A$76,515 to A$79,499, while the Specialist Skills Income Threshold (SSIT) will increase from A$141,210 to A$146,717. The changes apply to all new nominations lodged under the Temporary Skill Shortage (subclass 482) and Employer Nomination Scheme (subclass 186) visa programmes after that date.
Because the salary floors are written directly into the Migration Regulations, they move automatically each year in line with private-sector wage growth data. That leaves employers with just four months to audit payroll budgets, employment contracts and posted-worker packages to ensure offers made after June comply. Failure to meet the new threshold can result in nomination refusal, delayed start dates for key talent and, in serious cases, sanctions on sponsorship licences.
Mobility teams should also review existing sponsored employees. Although current visa holders are not required to receive an automatic pay rise, the Market Salary Rate test—used by immigration inspectors to check that foreign workers are paid at least as much as comparable Australians—will be benchmarked against the higher CSIT. Some businesses, particularly in regional Australia and in lower-margin sectors such as hospitality, may therefore opt to adjust remuneration proactively to avoid compliance risks.
For employers seeking practical assistance with navigating these new salary thresholds, VisaHQ offers end-to-end support—from confirming whether proposed remuneration meets the updated CSIT or SSIT to preparing and lodging 482 or 186 nomination paperwork. Their local team (https://www.visahq.com/australia/) can streamline document reviews and liaise directly with Home Affairs, saving HR departments valuable time and reducing the risk of costly delays.
For multinationals with July intakes the advice is to fast-track any nominations that can be lodged before 30 June to lock in the lower thresholds, or to build the 3.9 per cent increase into cost-of-living allowances and shadow payroll models. Where third-party vendors provide fixed-price relocation packages, contract amendments may be needed. The indexation also has downstream effects on permanent-residence pathways, because many employer-sponsored migrants transition from a 482 to a 186 visa after two years.
Looking ahead, Home Affairs officials have hinted at a broader review of sponsorship costs, including a possible hike in application charges at the start of the 2026-27 financial year. Mobility managers should therefore prepare for a double hit of higher salary commitments and steeper government fees.
Because the salary floors are written directly into the Migration Regulations, they move automatically each year in line with private-sector wage growth data. That leaves employers with just four months to audit payroll budgets, employment contracts and posted-worker packages to ensure offers made after June comply. Failure to meet the new threshold can result in nomination refusal, delayed start dates for key talent and, in serious cases, sanctions on sponsorship licences.
Mobility teams should also review existing sponsored employees. Although current visa holders are not required to receive an automatic pay rise, the Market Salary Rate test—used by immigration inspectors to check that foreign workers are paid at least as much as comparable Australians—will be benchmarked against the higher CSIT. Some businesses, particularly in regional Australia and in lower-margin sectors such as hospitality, may therefore opt to adjust remuneration proactively to avoid compliance risks.
For employers seeking practical assistance with navigating these new salary thresholds, VisaHQ offers end-to-end support—from confirming whether proposed remuneration meets the updated CSIT or SSIT to preparing and lodging 482 or 186 nomination paperwork. Their local team (https://www.visahq.com/australia/) can streamline document reviews and liaise directly with Home Affairs, saving HR departments valuable time and reducing the risk of costly delays.
For multinationals with July intakes the advice is to fast-track any nominations that can be lodged before 30 June to lock in the lower thresholds, or to build the 3.9 per cent increase into cost-of-living allowances and shadow payroll models. Where third-party vendors provide fixed-price relocation packages, contract amendments may be needed. The indexation also has downstream effects on permanent-residence pathways, because many employer-sponsored migrants transition from a 482 to a 186 visa after two years.
Looking ahead, Home Affairs officials have hinted at a broader review of sponsorship costs, including a possible hike in application charges at the start of the 2026-27 financial year. Mobility managers should therefore prepare for a double hit of higher salary commitments and steeper government fees.