Written by Tina NematianPrincipal Lawyer, One Planet Migration Law

Core Skills Income Threshold (CSIT) Australia 2026: Sponsor Salary Rules Explained

If you sponsor a worker on the Skills in Demand visa (Subclass 482) or the Employer Nomination Scheme (Subclass 186), the salary you guarantee is governed by the Core Skills Income Threshold, or CSIT. That number sits at AUD $76,515 for the 2025-26 program year. It rises to AUD $79,499 on 1 July 2026 as part of the Department of Home Affairs annual indexation.

That is the headline. The rules behind it are more involved, and getting them wrong is one of the most common reasons sponsor nominations are refused.

This article explains what CSIT is, what it replaced, how it interacts with the Annual Market Salary Rate, what counts toward the threshold, and what happens to sponsors who pay below it. Figures are current as of 21 May 2026 and sourced to immi.gov.au and legislation.gov.au.

What CSIT is and what it replaced

CSIT stands for Core Skills Income Threshold. It applies to the Core Skills stream of the Skills in Demand visa (Subclass 482) and to nominations under the Subclass 186 ENS Direct Entry and Temporary Residence Transition streams.

Before 7 December 2024, the equivalent floor was the Temporary Skilled Migration Income Threshold (TSMIT) under the older Temporary Skill Shortage (TSS) framework. When the Subclass 482 was restructured into the Skills in Demand visa framework with three streams, the Core Skills stream picked up TSMIT and renamed it CSIT. The amount carried across at $73,150, which was the TSMIT figure set on 1 July 2024.

TSMIT terminology has not vanished entirely. You will still see it in some legacy Department documents, in older labour agreement instruments, and in Designated Area Migration Agreement (DAMA) concession references. In practice, the dollar figures track alongside CSIT. If you are dealing with a regional employer-sponsored arrangement, check the specific instrument that applies to your sponsor or labour agreement.

The Specialist Skills stream of the same Subclass 482 uses a separate, much higher figure called the Specialist Skills Income Threshold (SSIT). The Essential Skills stream is still under development as of May 2026 and is expected to use a sector-specific framework rather than a flat salary threshold. We cover the wider visa structure in our guide to skilled visa pathways for individuals.

The current CSIT amount and the July 2026 increase

Here are the verified figures, drawn from the Department of Home Affairs and the legislative instrument that sets them.

The 1 July 2026 figure was announced in late February 2026 through the Department of Home Affairs annual indexation news article. The increase is driven by regulation 5.42A of the Migration Regulations 1994, which prescribes a formula linked to the Average Weekly Ordinary Time Earnings (AWOTE) data published by the Australian Bureau of Statistics. The increase from $76,515 to $79,499 represents roughly 3.9% growth, broadly tracking national wages.

The change applies to nominations lodged on or after 1 July 2026. A nomination lodged before 1 July 2026 is assessed against the $76,515 figure even if the decision is made after the change. For more detail on how the new figures interact with both visa subclasses, see our post on the salary threshold increases taking effect in July 2026.

How the Specialist Skills threshold compares

CSIT is the floor for skilled but non-specialist roles. The Specialist Skills Income Threshold (SSIT) sits much higher and applies to the Specialist Skills stream of the Subclass 482.

Specialist Skills is designed for senior or technically advanced roles where the guaranteed annual earnings clear the SSIT. It is not the same as having a long CV. It is a salary test. If the package does not meet $141,210 today (or $146,717 from 1 July 2026), the application sits in the Core Skills stream regardless of how qualified the worker is.

CSIT is not the same as the Annual Market Salary Rate

This is the part employers most often get wrong. CSIT is a floor. The Annual Market Salary Rate (AMSR) is a separate test. Both must be satisfied.

The AMSR is the rate paid to an equivalent Australian citizen or permanent resident doing the same work in the same location. The methodology is set in the legislative instruments under the Migration Regulations 1994 that specify both the income threshold amount and the AMSR calculation rules, including the 2025 amending instrument F2025L00731{target=”_blank” rel=”noopener noreferrer”}. Sponsors should refer to the current consolidated instrument on legislation.gov.au at the time of nomination.

In practice, that means:

• If the AMSR for the role in your business is $90,000, you must pay at least $90,000, even though CSIT is $76,515.
• If there is no equivalent Australian worker, the sponsor must establish AMSR using an enterprise agreement, a relevant modern award, market rate evidence, or published wage data.
• If the AMSR sits below CSIT, the CSIT figure governs. You cannot pay less than CSIT just because the market rate happens to be lower.

A nomination that meets CSIT but fails AMSR will be refused. A nomination that meets AMSR but falls below CSIT will also be refused. Sponsors need to evidence both.

What counts toward the threshold

CSIT measures guaranteed annual earnings. The definition matters because employers sometimes assume their full remuneration package gets them across the line when it does not.

What counts:

• Base salary (cash) paid to the worker.
• The agreed value of non-monetary benefits where the value can be determined in advance and the benefit is genuinely guaranteed (for example, employer-paid accommodation written into the contract).

What does not count:

• Compulsory employer superannuation contributions. Super is excluded by the definition of earnings in the migration instrument.
• Overtime that is not guaranteed.
• Bonuses, commissions, or performance pay that are discretionary.
• Reimbursements (for example, travel or relocation reimbursements).
• Allowances that fluctuate or are not guaranteed in advance.

In practice, a salary package quoted as “$80,000 plus super” only counts as $80,000 for CSIT. If the cash salary lands below the threshold, the nomination is refused. The same logic explains why so many nominations fail at the assessment stage: the employer counted the super, the case officer did not.

Part-time and pro-rata roles

CSIT applies to the full-time equivalent (FTE) salary, not the actual amount paid for part-time hours. If a role is genuinely part-time, the worker can be paid pro-rata, but the FTE figure must clear CSIT. A 0.6 FTE role on a $76,515 FTE salary pays the worker $45,909 in cash, and that is acceptable. A 0.6 FTE role on a $60,000 FTE salary fails CSIT because the underlying full-time rate is below the threshold.

Sponsor obligations around salary parity

Salary parity is one of the strongest sponsor obligations under Division 2.19 of the Migration Regulations 1994. The equivalent-terms-and-conditions obligation requires the sponsor to ensure that the terms and conditions of employment for the sponsored worker are no less favourable than those provided to an Australian citizen or permanent resident performing equivalent work in the same workplace and location.

That obligation does not stop at the nomination stage. It continues for the life of the sponsorship and is one of the items the Department checks in monitoring activity. See our post on how Home Affairs audit risk is currently being applied to sponsors for context.

In practical terms, if you give your Australian staff a pay rise mid-year, you should review whether the sponsored worker’s salary still satisfies parity. If you change the role, you should review whether CSIT and AMSR still apply correctly. If the role is reclassified or the location changes, the AMSR analysis may need to be redone.

Penalties for paying below CSIT

Failure to meet CSIT or AMSR is treated seriously. The sanctions framework sits in Part 2 Division 3A of the Migration Act 1958 (sponsor sanctions, including the bar and cancellation powers in sections 140K and 140M) and Division 2.19 of the Migration Regulations 1994.

The Department, through the Australian Border Force{target=”_blank” rel=”noopener noreferrer”}, can take any of the following actions where a sponsor obligation is breached:

1. Issue a formal warning for minor or technical breaches.
2. Issue an infringement notice as an alternative to court proceedings.
3. Apply to a court for a civil penalty order, with higher amounts for corporate sponsors.
4. Bar the sponsor under section 140M from lodging new sponsorship or nomination applications for a set period.
5. Cancel the sponsor’s approval as a Standard Business Sponsor.
6. Publish the sponsor’s details on the public sanctions register maintained under the sponsor sanctions provisions and administered by the Australian Border Force.

For workers, paying below CSIT is also a reason for the visa itself to be at risk. A sponsor cancellation or nomination cessation can trigger visa cancellation considerations for the worker. The exposure runs in both directions.

What sponsors should do before 1 July 2026

If you are sponsoring or planning to sponsor under the Subclass 482 Core Skills stream, the Subclass 186, or the Subclass 494 regional visa, the indexation date matters.

A practical checklist for the lead-up to 1 July 2026:

1. Audit current sponsored salaries. Confirm that every active sponsored worker is on at least $76,515 in cash (not including super), and that the AMSR analysis is still defensible.
2. Decide whether to lodge any planned nominations before 1 July 2026. If you can lodge before the change, the $76,515 figure applies. If you lodge from 1 July 2026, you must meet $79,499.
3. Check pending nominations. Anything sitting in the system that has not yet been decided is assessed against the threshold that applied when it was lodged. You do not need to re-lodge.
4. Update your employment contracts. If you are budgeting for a new hire to start later in 2026, make sure the offer letter clears $79,499 in cash salary.
5. Review the AMSR documentation. If the position has changed in scope, location, or seniority since the last nomination, refresh the market salary evidence.
6. Diary the next indexation. The CSIT and SSIT are reviewed annually. Plan budget cycles around an annual increase rather than treating it as a one-off.

For a wider look at the rules that apply across employer-sponsored visas, our existing summary on employer sponsored visa salary thresholds is a useful companion read.

Frequently asked questions

Does superannuation count toward CSIT?

No. Compulsory employer superannuation contributions are excluded from the definition of guaranteed annual earnings. A salary package described as “$80,000 plus super” counts as $80,000 for CSIT.

What is the CSIT for 2026?

The CSIT is $76,515 for the 2025-26 program year and rises to $79,499 from 1 July 2026. The figure that applies is fixed by the date the nomination is lodged.

Does CSIT apply to part-time roles?

Yes, but the test is applied to the full-time equivalent salary. The actual pay can be pro-rated, but the FTE figure must clear CSIT.

Can I pay below AMSR if I meet CSIT?

No. Sponsors must satisfy both CSIT and the Annual Market Salary Rate. Whichever figure is higher in your case is the effective floor.

What happens if I pay below CSIT?

The nomination can be refused at lodgement. After approval, paying below CSIT or AMSR is a breach of sponsor obligations that can lead to warnings, infringement notices, civil penalty applications, sponsor bars, and public listing under the Migration Act 1958.

Does TSMIT still exist in 2026?

The TSMIT terminology has been replaced by CSIT for the Skills in Demand and 186 visa programs. Some legacy regional and DAMA documents still reference TSMIT figures, and in practice the amounts track CSIT. Check the specific instrument or labour agreement that governs your nomination.

When to get advice

CSIT and AMSR sound straightforward on paper. The errors we see in practice are almost never on the top-line number. They are in what was counted as earnings, how AMSR was evidenced, and whether parity was maintained after the visa was granted.

If you are budgeting a new sponsorship, structuring a salary package, or trying to remediate a nomination that has already been refused for failing CSIT or AMSR, book a consultation with our migration lawyers before lodging or re-lodging.

—

About the author: Tina Nematian is the Principal Lawyer at One Planet Migration Law. She is admitted as an Australian Legal Practitioner, and has guided clients through partner, skilled, employer-sponsored, student, and humanitarian visa applications across Australia.

Disclaimer: This article is general information only and does not constitute legal or migration advice. Visa rules change frequently and outcomes depend on individual circumstances. CSIT, SSIT, and AMSR figures cited in this article were current as of 21 May 2026 and are sourced to immi.homeaffairs.gov.au and legislation.gov.au. Always check the current immi.gov.au page before lodging. Speak with a registered migration lawyer or agent before making any application.