Minimum Wage and Skilled Visa Income Limits Set to Increase in Australia from July 2025

Australia’s Department of Home Affairs has confirmed that from 1st July 2025, the skilled visa threshold has been increased by 4.6%. Income thresholds are calculated on annual earnings for both migrant and Australian workers. This transparency ensures that people cannot use skilled migration to undercut the Australian workforce.

From 1st July 2025, the main indexation changes made are as follows:

Core Skills Income Threshold: This threshold has increased from A$73,150 to A$76,515. This change will specifically impact the nomination applications for the core skills streams. Such streams are classified as Skills in Demand Visa (Subclass 482) and the Employer Nomination Scheme Visa (Subclass 186).

Specialist Skills Income Threshold: This limit has increased from A$135,000 to A$141,210. The impact of such a jump in the special skill threshold will reflect on nomination applications for the Special Skills stream of the Skills in Demand visa (Subclass 482).

Temporary Skilled Migration Income Threshold: The Skilled migration income limit is extended from A$73,150 to A$76,515, and the increase is subject to approval of relevant legislation.  This threshold is applicable for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187). 

These updated thresholds reflect annual indexations and support from the Australian government for fairer and more targeted migration systems.

Rise of Minimum Wages

Subsequent to the skilled visa income limits, the national minimum wage has also been increased. The Fair Work Commission has announced a 3.75% increase based on current economic conditions, cost of living, and wage growth. More specifically, the national minimum wage has increased by about A$915.90 per week or A$24.10 per hour.

The Fair Work Commission allows you to use their pay and conditions tool to calculate your new pay rate, including allowance. To access this feature:

• Step 1: Go to the Fair Work Commission website
• Step 2: Click on the menu button on the top left side of the screen
• Step 3: Click on pay and wages
• Step 4: Lastly, click on “check or calculate pay” to calculate your new pay rate.

This pay rise will affect more than 2.6 million Australian workers, specifically in hospitals, retail, aged care, and cleaning services. 

Need for Increasing These Thresholds

The Australian government is increasing these thresholds based on the Wage Price Index (WPI). WPI in Australia measures the change in wages and salaries for employees. Raising thresholds will update salaries as per the Australian job market, ensuring the migrant workforce is not paid less for their work. This process will also protect local jobs by reducing the use of underpaid foreign labour.

These reforms are closely connected to the 2023 Australian Migration Strategy, which aims to promote a more skilled and targeted intake of migrants.

Expectations from Employers

The new thresholds will also require higher remunerations by employers who want to sponsor workers under the skilled migration system. This may increase pressure on smaller businesses, particularly in the regional or low-wage sectors.

On the part of overseas employees, it could be hard to exceed the higher income limit, specifically in entry-level positions. But those professionals who already work in high-demand occupations like engineering, information technology, healthcare, or trades may not be much affected because their salaries normally get above the cut-offs.

These changes also bring consistency across different visa programs. For example:

• Employers in metropolitan areas are required to meet the same income criteria as regional employers.
• The increase in the temporary skilled migration income threshold aligns with the core skills threshold, which increases transparency in workers’ payments.

New Limits for Each Visa

Here is a breakdown of the key visa subclasses impacted by the 1st July changes:

Applicants for all of these visas must meet the salary requirements at the time of nomination.

Policy and Economic Context

These changes are highly focused on rebuilding Australia’s migration system. To achieve this outcome, in the 2025–26 Federal Budget, the government has reiterated its commitment to a smaller but smarter migration program. These thresholds are increased while focusing on long-term economic needs and reducing pressure on the infrastructure and housing sector.

At the same time, Australia is facing labour shortages in multiple sectors. Raising income thresholds can ensure that migration will address these gaps strategically.

How Different Sectors Will Be Affected?

The impact of these changes varies across industries, with some sectors feeling more pressure while others can find it a feasible solution.

In the hospital and tourism industry, the increase in income thresholds can make it difficult to sponsor workers unless their wage is increased. On the other hand, in healthcare and aged care, providers may benefit because their skilled roles often meet or exceed the new income limits.

What’s Next?

Skilled migration thresholds are based on annual indexation charts to reflect the growth in wages and inflation. It will bring about greater predictability to the business and migrants, and avoid a stagnation level of revenue.

It is recommended that employers start early planning and make sure that their nominated salaries match the new thresholds. Migrants are advised to look at eligibility regularly and consult a professional prior to the application.