Salary Minimums Are Going Up Again
From 1 July 2026, the minimum salary thresholds for Australia’s main employer-sponsored visas will increase. The Core Skills Income Threshold is rising to $79,499 per year, and the Specialist Skills Income Threshold is increasing to $146,717.
These changes affect both the subclass 482 (Skills in Demand) and subclass 186 (Employer Nomination Scheme) visa applications. If you are an employer planning to sponsor a worker, or a visa holder whose nomination is still in progress, here is what you need to understand.
What Are the New Thresholds?
The government adjusts these thresholds annually to keep pace with wage growth. Here is how the numbers compare:
- Core Skills Income Threshold: $79,499 (up from approximately $73,150)
- Specialist Skills Income Threshold: $146,717 (up from approximately $135,000)
The Core Skills threshold applies to most standard employer-sponsored roles. The Specialist Skills threshold applies to higher-paid positions that access a broader range of occupations and additional benefits like a direct pathway to permanent residency.
Which Visas Are Affected?
Both the 482 and 186 visa subclasses are affected. Specifically:
- 482 (Skills in Demand) visa: All new nominations lodged from 1 July 2026 must meet the higher thresholds
- 186 (Employer Nomination Scheme): Nominations lodged from 1 July 2026 must also meet the new minimums
- 494 (Skilled Employer Sponsored Regional): Likely to follow the same thresholds, though regional DAMA arrangements may offer concessions
If you already have an approved nomination at the current threshold, you are generally not required to top up the salary to the new level. However, if you lodge a new nomination, variation, or the worker changes roles, the new thresholds apply.
Impact on Employers
For many businesses, particularly small and medium enterprises in regional areas, the threshold increase means higher costs per sponsored worker. If you are currently paying a sponsored employee close to the existing minimum, you will need to increase their salary before lodging any new nomination from July.
You also need to ensure you are meeting the Annual Market Salary Rate for the role and location. The threshold is a floor, not a ceiling. If the market rate for the position in your area is higher than $79,499, you must pay the higher amount.
Businesses in sectors like hospitality, aged care, and some trade occupations may find the threshold challenging. This is where DAMA arrangements and industry labour agreements can provide relief, as they sometimes allow salary concessions below the standard threshold.
Impact on Visa Applicants
If you are a sponsored worker or hoping to find sponsorship, the higher thresholds could work in your favour. Employers who are willing to meet the new minimums are demonstrating genuine commitment to the role and to your employment in Australia.
However, if your current salary is below $79,499, you may need to negotiate an increase with your employer before they can nominate you. This is particularly relevant for workers on existing 482 visas who are looking to transition to the 186 permanent visa.
What About the Specialist Skills Pathway?
The Specialist Skills stream, set at $146,717, offers access to a broader occupation list and does not require skills assessment in most cases. Applicants earning above this threshold also have a more straightforward pathway to permanent residency.
For high-earning professionals in technology, finance, engineering, and management roles, this pathway remains attractive. The Skills in Demand visa was specifically designed to attract and retain top talent, and the Specialist Skills stream is the premium track within that framework.
How to Prepare for July 2026
- Review current nominations. If you have workers on approved nominations close to the current threshold, plan for salary increases if you intend to lodge new nominations.
- Budget for higher costs. Factor the increased thresholds into your workforce planning for the next financial year.
- Lodge before July if possible. If you are ready to nominate a worker now, lodging before 1 July 2026 means the current thresholds apply.
- Explore DAMA or labour agreements. If the standard thresholds are too high for your industry or region, check whether a DAMA or industry labour agreement offers concessions.
- Talk to your sponsored workers. Make sure they understand the changes and any salary adjustments you plan to make.
Need Help with Employer Sponsorship?
Navigating salary thresholds, nomination requirements, and compliance obligations can be complex, especially when the rules change every year. Our migration lawyers work with employers across Australia on all aspects of employer sponsorship, from initial sponsorship approval through to permanent residency for your workers.
Book a consultation to discuss your sponsorship strategy ahead of the July changes.
