Home Law Income requirements for skilled visas set to increase

Income requirements for skilled visas set to increase

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Australia is tweaking its migration settings once more, with the Department of Home Affairs confirming updates that will take effect from July 2025. While some changes are routine adjustments based on earnings benchmarks, others reflect deeper shifts in how the government wants to manage intake, particularly around skilled workers, students, and humanitarian entrants.

Between July and December last year, Home Affairs reported receiving more than 4.85 million temporary and migration visa applications, a slight increase on the 4.78 million lodged during the same period in 2023.

For skilled workers, one of the more technical, yet potentially far-reaching changes is to income thresholds. From 1 July, the Core Skills Income Threshold (CSIT) and the Temporary Skilled Migration Income Threshold (TSMIT) will rise from $73,150 to $76,515. The Specialist Skills Income Threshold will also increase, from $135,000 to $141,210.

These new benchmarks apply to applications lodged on or after 1 July across several subclasses, including 482, 186, 494, and 187. The changes won’t impact those already in Australia or people with pending applications lodged before the cut-off.

This move is pegged to the annual indexation of wages data (AWOTE), and signals an intent to ensure skilled migrants are being paid wages in line with current Australian norms. It’s also part of a wider effort to shift the migration program’s focus from temporary work to permanent pathways, though many applicants still face long waits and processing lags.

Meanwhile, international students may need to dig deeper. The government plans to increase the visa application fee for primary student visa applicants from $1,600 to $2,000. While the rationale is tied to managing migration volumes and ensuring sustainability, the bump hasn’t yet been formally confirmed in any updated Home Affairs documentation. Last year, fees more than doubled—from $710 to $1,600—so another increase won’t come as a surprise, but it has sparked concern among education providers and students.

Student visa reforms are already tightening. From January 2025, applicants can no longer rely on Letters of Offer—they must show a confirmed enrolment before applying. That’s meant to prevent non-genuine applications and reduce churn in the system, but it adds to the paperwork and upfront commitment required.

On the humanitarian side, process remains king. Applicants under the Special Humanitarian Program (SHP), or those applying via the split family provisions of the Refugee visa stream, must submit their applications online via ImmiAccount. That’s not new, but the Department has clarified the need for both Form 681 (proposal) and Form 842 (application) to be lodged together.

Ballot-based visa allocations are still a novelty in the Australian system but have been pitched as a fairer way to manage demand, particularly in regional and development-linked migration programs.

Labor promised a “smarter” migration policy at the last election. What’s playing out now is their attempt to balance that promise with real-world pressures: ageing demographics, a tight housing market, a stretched education sector, and rising political scrutiny.

Anyone planning to apply for a visa should keep an eye on official Home Affairs updates and speak to a registered migration adviser


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