Migration changes from 1 July 2026: Higher migration income thresholds and visa fee hikes

From 1 July 2026, employers sponsoring overseas workers will face higher minimum salary requirements, while visa applicants will pay significantly higher government application charges for many visa subclasses.

The annual indexation of migration income thresholds has increased salary requirements by 3.8%, and several visa application charges have risen well above the Consumer Price Index, with some increasing by as much as 200%.  Employers who sponsor, or are considering sponsoring overseas workers should review these changes carefully to understand how these changes may affect their sponsorship obligations and future workforce planning.  Likewise, visa holders and prospective applicants should consider how the increased visa application charges may affect their migration plans.

Migration income thresholds changes from 1 July 2026 

If an employer wishes to sponsor an overseas worker whose salary is under $250,000.00 per annum, there are strict salary requirements that must be met.  Namely, an employer must demonstrate that the overseas worker is being paid Annual Market Salary Rate and that the Annual Market Salary Rate at least meets the minimum income threshold set by migration legislation.

Migration income thresholds are indexed annually on 1 July in line with Average Weekly Ordinary Time Earnings.  For 2026, the thresholds have increased by 3.8%.  The annual indexation is intended to ensure that the wages of sponsored overseas workers keep pace with wage growth in Australia and do not undercut the earnings of Australian workers

Effective from 1 July 2026, the new minimum income thresholds for migration are as follows.

Core Skills Income Threshold (CSIT)

The CSIT is applicable to Skills in Demand (Subclass 482) nominations in the Core Skills stream.

The CSIT is now set at $79,423.00 (up from $76,515.00).

Specialist Skills Income Threshold (SSIT)

The SSIT is applicable to Skills in Demand (Subclass 482) nominations in the Specialist Skills stream.

The SSIT is now set at $146,575 (up from $141,210.00).

Temporary Skilled Migration Income Threshold (TSMIT)

The TSMIT is applicable to Skilled Employer Regional (Subclass 494) nominations.

The TSMIT is now set at $79,423.00 (up from $76,515.00).

The new minimum income thresholds apply to any nomination application lodged on or after 1 July 2026.

Nominations lodged and pending before 1 July 2026 are not impacted.  However, sponsors have an ongoing obligation to ensure that their visa holder employees are paid in line with the Annual Market Salary Rate.

What this means for employers

Employers who sponsor or are considering sponsoring overseas workers should assess how the new income thresholds may affect current and future workforce planning.  In addition to meeting the revised minimum income thresholds, employers must continue to satisfy the Annual Market Salary Rate requirements, making careful planning and early advice particularly important.

Annual Market Salary Rate

While these thresholds establish the minimum salary that can be paid to overseas skilled workers, it is not as simple as nominating a salary to match these amounts.

In addition to the income thresholds, employers wishing to sponsor an overseas worker must be able to demonstrate that they will be paid in accordance with the Annual Market Salary Rate (AMSR) for the relevant occupation.  In other words, the overseas worker cannot be paid less than what an Australian worker would be paid.

Employers must show that the overseas worker will receive the same remuneration as an equivalent Australian worker performing the same role.  An equivalent Australian worker is someone who:

• Works in the same workplace.
• Works at the same location.
• Performs the same job as the visa holder.

Acceptable evidence of the AMSR rate includes:

• Where an equivalent Australian worker is employed in the business: equivalent worker payslip and/or contract of employment, or applicable industrial instruments.
• Where there is no equivalent Australian worker employed in the business: applicable industrial instruments, salary information from Jobs and Skills Australia, job advertisements from national recruiters, reputable remuneration surveys and written advice from unions or employer associations.

If the AMSR is less than the minimum income thresholds, a nomination application cannot be successful.  This can create complexities around skill shortages for lower skilled jobs that are typically paid a lower wage.

Fair Work High Income Threshold increase

Another important annual change is the increase to the Fair Work High Income Threshold.

While the Fair Work High Income Threshold is legislated under the Fair Work Act 2009,  it is applicable to Employer Nominated Scheme (Subclass 186) nominations in the Temporary Resident Transitional stream where an age exemption is sought.

To qualify for the age exemption, the visa holder must have held a Subclass 457 or Subclass 482 visa and worked for an eligible sponsor for at least two years within the three years immediately before applying.  During each of those years, they must have earned at least the Fair Work High Income Threshold.

The new Fair Work High Income threshold as of 1 July 2026 is $190,100.00.

The previous Fair Work High Income threshold (from 1 July 2025 to 30 June 2026) was $183,100.00.

Visa application charges increase sharply from 1 July 2026

In addition to salary changes, the Government has also increased visa application charges.

It is not new news that the visa application charges increase annually on 1 July.  As a minimum, they are generally increased in line with the Consumer Price Index (CPI) and generally increase between 2% to 5% each year.  However, some visas increase beyond CPI and without any warning.

This year’s 1 July 2026 changes have seen the following visas increase above CPI ranging from around a 25% to a 200% increase.

Visa Application Charges from 1 July 2026

What this means for visa applicants

The increased visa application charges make application timing and preparation more important than ever.  A refused application generally does not result in a refund of the visa application charge.

Lavan Comments

The 1 July 2026 changes reinforce the importance of careful planning for both employers and visa applicants.

Employers intending to sponsor overseas workers should ensure proposed salary arrangements comply with both the new migration income thresholds and the Annual Market Salary Rate requirements when considering a nomination application.

For visa applicants, the significant increase in government application charges means there is now an even greater financial risk if an application is refused.  Ensuring applications are accurate, well-prepared and decision-ready before lodgement has never been more important.

As with most migration matters, planning ahead remains the best way to minimise costs, avoid delays and reduce the risk of unexpected complications.

Disclaimer

The information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.