As the end of the financial year approaches, many businesses and prospective visa applicants are reviewing their employer‑sponsored visa plans. For the 2026–27 financial year, timing is particularly important.

From 1 July 2026, the minimum salary thresholds for Australia’s key employer‑sponsored visas will increase as part of automatic annual indexation. This is a legislated process that applies each year and does not involve a policy decision or announcement.

If your business sponsors—or is considering sponsoring—skilled workers under the Subclass 482 Skills in Demand (SID) visa or the Subclass 186 Employer Nomination Scheme (ENS) visa, when you lodge the nomination may have a direct impact on eligibility and cost.

 

Updated Salary Thresholds from 1 July 2026

 

The following income thresholds apply to all nominations lodged on or after 1 July 2026.

Core Skills Income Threshold (CSIT)

  • Current: AUD 76,515
  • From 1 July 2026: AUD 79,499

Specialist Skills Income Threshold (SSIT)

  • Current: AUD 141,210
  • From 1 July 2026: AUD 146,717

These figures apply automatically and must be met regardless of when sponsorship discussions began.

 

Visas Affected by the Increase

 

The indexed thresholds apply to the following visa streams:

CSIT – AUD 79,499

  • Subclass 482 SID – Core Skills stream
  • Subclass 186 Employer Nomination Scheme
    • Temporary Residence Transition (TRT)
    • Direct Entry (DE)
  • Labour Agreement streams under subclasses 482 and 186
    (unless a different salary is specified in the agreement)

SSIT – AUD 146,717

  • Subclass 482 SID – Specialist Skills stream

 

Does This Affect Existing Visa Holders?

 

No. The increase does not apply retrospectively.

The higher thresholds do not affect:

  • current 482 or 186 visa holders
  • nominations lodged before 1 July 2026
  • applications where the nomination has already been approved

Only new nominations lodged on or after 1 July 2026 must meet the higher salary requirement.

 

Salary Compliance: What Employers Need to Get Right

 

Meeting the threshold alone is not enough. Applications are assessed closely for compliance.

Guaranteed Base Salary Only
Only guaranteed annual earnings can be counted. Employers cannot include:

  • superannuation
  • allowances (car, housing, meals, etc.)
  • bonuses or commissions
  • non‑cash benefits

Errors in salary composition are a common cause of nomination refusals.

 

Market Salary Rate Still Applies

 

The salary must also meet the Annual Market Salary Rate (AMSR). Even if the minimum threshold is met, a nomination may be questioned if the salary appears below industry standards for the role.

 

Why Some Nominations Are More Time‑Sensitive: Labour Market Testing

 

Timing becomes especially critical where Labour Market Testing (LMT) is required.

LMT involves advertising the position to demonstrate that suitably qualified Australians are not available. The process must meet strict requirements around:

  • advertising platforms and duration
  • content of advertisements
  • timing of advertising relative to lodgement

Importantly, LMT cannot be completed quickly at the last minute.

If advertising has not already started, employers may find there is insufficient time to complete compliant LMT and lodge a nomination before 1 July. In those cases, the nomination will automatically be assessed against the higher indexed salary threshold.

This is particularly relevant for:

  • Subclass 482 SID – Core Skills stream
  • Subclass 186 ENS – Direct Entry stream

Early confirmation of whether LMT applies is essential to avoid unnecessary delays and cost increases.

 

Why Acting Early Can Make a Difference

 

A nomination lodged before 1 July 2026 is assessed under the current threshold.
A nomination lodged on or after 1 July 2026 must meet the higher indexed threshold.

For roles with salaries close to the current minimum, even a short delay can require:

  • a salary increase
  • renegotiation of employment terms
  • or postponement of sponsorship plans

Given the preparation involved—especially where LMT applies—early planning is key.

 

Final Thoughts

 

Although the increase in salary thresholds is the result of automatic indexation, it has real operational and financial consequences for both employers and sponsored workers.

If your business is considering sponsorship, or if discussions are already underway, now is the right time to:

  • review salary levels
  • confirm whether Labour Market Testing applies
  • assess how close you are to the 1 July deadline

Careful planning now can help reduce compliance risk and preserve access to employer‑sponsored visa pathways.