What is income indexation, and what does it mean for employers?
From 1 July 2025, income thresholds for key skilled visa programs in Australia will increase by 4.6%, in line with the government’s annual indexation policy.
Indexation is a standard adjustment applied annually to wages or income benchmarks to reflect market conditions. This ensures that migrant workers are paid fairly at levels comparable to Australian employees and are not reliant on government support.
Why this matters for your business
These changes will impact the eligibility and compliance of visa applications for both current and prospective staff. Understanding which thresholds apply, and when, is essential for planning your workforce strategy.
Updated income thresholds
| Threshold | New Rate | Previous Rate | Affects Which Visas |
|---|---|---|---|
| Core Skills Income Threshold (CSIT) | $76,515 | $73,150 | Subclass 482 (Skills in Demand), Subclass 186 (Employer Nomination Scheme) |
| Specialist Skills Income Threshold (SSIT) | $141,210 | $135,000 | Specialist Skills stream of Subclass 482 |
| Temporary Skilled Migration Income Threshold (TSMIT) | $76,515 | $73,150 | Subclass 494 (Skilled Employer Sponsored Regional), Subclass 187 (Regional Sponsored Migration Scheme) |
Key takeaway for employers
Only nominations lodged on or after 1 July 2025 will be subject to the new thresholds. If you have already submitted a nomination before this date, the existing income thresholds will still apply.
Need help navigating the changes?
Our team of Registered Migration Agents and Recruitment Specialists can help you understand how these new thresholds affect your current workforce and future nominations. We’ll make sure your applications remain compliant and aligned with the latest migration requirements.
Speak with us today to get ahead of the 1 July 2025 changes.
