Preparing for the 1 July 2026 Skilled Visa Salary Threshold Changes

Preparing for the 1 July 2026 Skilled Visa Salary Threshold Changes

This article was written by Jialin Liu Solicitor at W & G Lawyers. For further information about Jialin Liu‘s professional background, legal experience, and areas of practice, please click on her name to view her full profile.

If your business sponsors skilled workers on a Subclass 482 (Skills in Demand) or Subclass 186 visa, there is a deadline you cannot afford to miss.

From 1 July 2026, the minimum salary thresholds for employer-sponsored skilled visas will rise — automatically, and without any grace period. Nominations lodged on or after that date must meet the higher figures. There is no discretion. There are no exceptions.

With four months to go, the window to act under the current thresholds is shorter than many employers realise.

What Is Changing on 1 July 2026?

The confirmed threshold increases, effective 1 July 2026, are:

  • Core Skills Income Threshold (CSIT): increases from AUD 76,515 to AUD 79,499
  • Specialist Skills Income Threshold (SSIT): increases from AUD 141,210 to AUD 146,717

These are not proposed changes. They are confirmed, locked in by formula under the Reg 5.42A) of the Migration Regulations 1994 (and triggered automatically by Average Weekly Ordinary Time Earnings (AWOTE) data published by the Australian Bureau of Statistics. They apply to every nomination lodged on or after 1 July 2026 — whether you are sponsoring a new worker or extending an existing arrangement.

Nominations lodged before 1 July 2026 will continue to be assessed against the current 2025–26 thresholds, even if a decision is made after that date.

Why Four Months Is Less Time Than You Think

This is where many employers come unstuck. To lodge a nomination before 30 June 2026, the following steps must all be completed in sequence:

  • Labour Market Testing (LMT): advertise the nominated position on at least two national recruitment platforms, with each advertisement live for a minimum of 28 consecutive days — this step must be completed before the nomination can be lodged
  • Role confirmation: finalise the ANZSCO occupation code, salary structure, and position description
  • Documentation: prepare sponsorship, nomination, and supporting materials to the required standard
  • Internal approvals: obtain sign-off from relevant decision-makers within your organisation

Each of these steps takes time. When sequenced correctly, ‘four months’ can disappear faster than most employers expect.

Important note on LMT exemptions: LMT is not required where an International Trade Obligation (ITO) applies. This exemption is available where the sponsored worker is a national of certain countries, including China, Japan and South Korea, etc,.

Employers who may be eligible for an ITO exemption should obtain legal advice to confirm this before commencing advertising.

Missing the deadline by even one day means your nomination is assessed against the higher threshold. There is no transitional arrangement.

The Stakes Are Higher Than They Appear

A salary below the new CSIT of AUD 79,499 is not just an inconvenience. For employers, a failed nomination means:

  • The visa application is refused and cannot proceed
  • Your sponsored worker cannot remain in their role
  • The position goes unfilled and recruitment investment is lost

For workers already in Australia on an existing visa, the consequences extend further. Under the Subclass 186 Employer Nomination Scheme Temporary Residence Transition (TRT) stream, a worker generally needs to have worked in Australia for at least two years with an approved sponsor before being eligible to apply for permanent residency. A delayed or refused nomination can disrupt that timeline — setting back plans that may have been years in the making.

It is also important to note that, following the Migration Amendment (Skilled Visa Reform Technical Measures) Regulations 2025 (effective 29 November 2025), the two-year work experience requirement for the 186 TRT stream must be completed with approved sponsors. Periods of employment where a sponsorship has lapsed will not count. Employers should monitor their sponsorship renewal dates carefully to protect their workers’ PR pathways.

These are not hypothetical risks. They are the kinds of situations our lawyers deal with regularly — often because a deadline was underestimated or a salary structure was not reviewed in time.

How W & G Lawyers Can Help

At W & G Lawyers, we work with Queensland employers and skilled workers to navigate exactly these kinds of time-sensitive migration matters. We can assist with:

  • Reviewing whether your current salary arrangements will meet the new CSIT or SSIT from 1 July 2026
  • Assessing whether a LMT exemption applies to your situation
  • Managing the nomination and visa process to meet the 30 June 2026 deadline
  • Advising sponsored workers on protecting their permanent residency pathway under the Subclass 186 TRT stream
  • Assisting with the broader picture — employment contracts, business structure, property transactions, and estate planning — because the questions that arise when skilled workers build their lives in Queensland rarely stop at the visa

If you are sponsoring a skilled worker — or planning to — contact our office now for a consultation. The earlier you act, the more options you have

References

  1. Department of Home Affairs, Skills in Demand visa (subclass 482) — Core Skills stream, https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/skills-in-demand-visa-subclass-482/core-skills-stream
  2. Department of Home Affairs, Employer Nomination Scheme visa (subclass 186), https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/employer-nomination-scheme-186
  3. Department of Home Affairs, Labour market testing, https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/nominating-a-position/labour-market-testing
  4. Federal Register of Legislation, Migration Regulations 1994, reg 5.42A (Indexation of certain amounts), https://www.legislation.gov.au/F1996B03551/latest/text
  5. Federal Register of Legislation, Migration Amendment (Skilled Visa Reform Technical Measures) Regulations 2025, https://www.legislation.gov.au/latest/F2025L01390
  6. Australian Bureau of Statistics, Average Weekly Earnings, Australia (AWOTE), https://www.abs.gov.au/statistics/labour/earnings-and-work-hours/average-weekly-earnings-australia
  7. Department of Home Affairs, Core Skills Occupation List (CSOL), https://immi.homeaffairs.gov.au/visas/working-in-australia/skill-occupation-list

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The article published by W & G Lawyers is intended to provide general information only and does not constitute legal advice on any subject matter. By accessing or reading this article, the reader acknowledges that no solicitor–client relationship is created between the reader and W & G Lawyers.

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