Increase on minimum income thresholds for employer sponsored visas – 482 & 186

From 1 July 2026, the Core Skills Income Threshold (CSIT) and the Specialist Skills Income Threshold (SSIT) will increase as part of the annual indexation process under Australia’s employer sponsored skilled migration framework.

These thresholds are relevant to both the Skills in Demand (subclass 482) visa and the Employer Nomination Scheme (subclass 186) visa and are adjusted automatically each year in line with movements in Australian wages.

How are the CSIT and SSIT indexed?

Unlike many migration changes, a new legislative instrument is not required to update the CSIT and SSIT.

Instead, the annual indexation occurs automatically under regulation 5.42A of the Migration Regulations 1994, which applies a statutory formula based on Average Weekly Ordinary Time Earnings (AWOTE) data published by the Australian Bureau of Statistics (ABS).

The formula compares:

• The AWOTE figure for the relevant reference quarter, and
• The AWOTE figure for the base quarter

to determine the indexed income thresholds for the upcoming program year.

The ABS has now released the November 2025 AWOTE data, which is used to calculate the income thresholds that will apply from 1 July 2026.

New CSIT and SSIT amounts from 1 July 2026

For the 2026–27 program year, commencing on 1 July 2026, the indexed thresholds will be:

• Core Skills Income Threshold (CSIT): $79,499
  (up from $76,515 for 2025–26)
  
  
• Specialist Skills Income Threshold (SSIT): $146,717
  (up from $141,210 for 2025–26)

These figures represent an increase of approximately 3.9%, broadly reflecting wage growth across the Australian economy.

When do the new thresholds apply?

The updated CSIT and SSIT will apply to:

• All relevant subclass 482 and subclass 186 applications lodged on or after 1 July 2026

Importantly, the date of application, not the date of nomination approval or decision, determines which income threshold applies.

Applications lodged before 1 July 2026 will continue to be assessed against the current 2025–26 thresholds, even if they are decided after that date.

Why these increases matter for employers and visa applicants

The CSIT and SSIT operate as minimum salary levels for sponsored skilled migrants. Employers must ensure that:

• The nominated annual earnings meet or exceed the applicable threshold, and
• The salary is also at market rate for the position

A failure to meet the relevant income threshold will result in refusal of the nomination, regardless of the applicant’s skills or experience.

With the thresholds increasing each year, employers should be factoring future indexation into workforce planning, remuneration reviews, and sponsorship strategies particularly for:

• Long‑term subclass 482 holders planning a transition to permanent residence, and
• New sponsorships intended to commence on or after 1 July 2026

Key takeaway

The annual indexation of the CSIT and SSIT is now a scheduled and automatic feature of Australia’s employer‑sponsored migration system.

From 1 July 2026, higher minimum salary requirements will apply to new subclass 482 and 186 applications, making early planning and accurate salary structuring essential.

If you are an employer considering sponsorship, or a visa holder planning your next steps, obtaining advice before lodging can help ensure your application meets the correct income threshold and avoid refusals.

For further information or assistance, please contact our office for tailored immigration assistance.