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What changes for employer sponsorship from 1 July 2026?

Migration
Every year on 1 July, the salary thresholds for employer-sponsored visas in Australia are updated. This is not an occasional policy shift. It happens every single year, and 2026 is no different.

From 1 July 2026, the updated thresholds are:

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

These thresholds apply to the Skills in Demand visa (subclass 482) and influence pathways including the 186 and 494 visas.

If your business is planning to sponsor a worker (or is currently sponsoring one) understanding these changes and when they take effect is important.

What are these salary thresholds and why do they exist?

Before explaining what is changing, it helps to understand what these thresholds actually are.

The Core Skills Income Threshold (CSIT) is the minimum annual salary an employer must offer when sponsoring most skilled workers under the 482 visa.

The Specialist Skills Income Threshold (SSIT) applies to a higher-tier category of highly specialised roles, typically in professional and technical fields.

These are not arbitrary numbers. They are calculated based on AWOTE (Average Weekly Ordinary Time Earnings) published by the Australian Bureau of Statistics. As wages across the Australian workforce increase, these thresholds increase with them. The purpose is straightforward: to ensure that overseas workers are paid at a comparable level to Australian employees, and that sponsorship is not used to undercut local wages.

Why does this matter for employers right now?

The timing of your sponsorship application can have a direct effect on which salary threshold applies to it. If a nomination is lodged and assessed before 1 July 2026, it will generally be assessed under the current threshold (CSIT of AUD 76,515). If the application is lodged on or after 1 July, the new threshold (AUD 79,499) applies.

This is particularly relevant for employers who are in the planning stages of a sponsorship. An offer of AUD 77,000 (which would currently meet the CSIT)would fall below the threshold after the new financial year begins.

This is not about rushing applications for the sake of it. It is about understanding how timing interacts with salary planning, and making informed decisions accordingly.

Meeting the threshold is not the whole picture

This is one of the most common misunderstandings in employer sponsorship. Many businesses assume that if the salary meets the threshold, it is compliant. But there are actually two separate salary requirements that must be satisfied simultaneously:

  1. The migration salary threshold (CSIT or SSIT: the government-set minimums)
  2. The market salary rate (What an Australian worker in the same role, in the same location, with similar experience would typically earn).

Even if a salary is above the CSIT, it can still raise issues if it is below the market rate for that role. The Department's concern is not just that the number meets a minimum, but if it is that the salary reflects the genuine value of the position.

For example, if you are sponsoring a registered nurse in Sydney and the market rate for that role is AUD 85,000, offering the CSIT minimum of AUD 79,499 may not be sufficient. This is why salary planning for sponsorship requires looking at two benchmarks, not one.

How these increases affect hiring decisions

For some employers, a $3,000 threshold increase is absorbed easily. For others, particularly small businesses in sectors with tighter margins (regional hospitality, aged care, food production) it is a number that needs to go into workforce planning conversations.

The sectors most likely to feel the impact of this year's increase include:

  • Hospitality and accommodation: where many sponsorable roles sit close to the threshold
  • Aged care and disability support: where award wages are gradually aligning with migration requirements
  • Regional businesses: where local salary benchmarks may be lower than metro areas

If your business operates in one of these sectors, this is not a reason to rule out sponsorship. It is a reason to plan the salary structure carefully before proceeding.

What about existing sponsored workers?

If you already have workers on 482 visas, the annual threshold increase does not automatically affect their current visa. However, if you are lodging a new nomination, extending a visa, or adding a new position, the current thresholds at the time of lodgement will apply.

It is also worth noting that if you are planning to support a sponsored worker's transition to permanent residency (via the 186 visa), the salary requirements at the time of that nomination will also need to be met.

What should employers be doing before 1 July?

If sponsorship is part of your workforce strategy for 2026, the weeks leading up to the new financial year are a good time to:

  • Review the salaries of any roles you are planning to sponsor
  • Confirm whether those salaries meet both the current and incoming threshold
  • Check whether the timing of your planned applications is affected
  • Speak with a migration professional if you are unsure about any of these points

Preparation does not need to be complex. But leaving it until after July 1, when thresholds have already changed, often creates unnecessary complications.

Frequently asked questions

Does the threshold increase affect the 186 permanent visa?

Yes. The CSIT applies to the Temporary Residence Transition stream of the 186. If a nomination is lodged after 1 July, the new threshold applies.

What if my sponsored worker's salary is already above AUD 79,499?

If their current salary already exceeds the new threshold, you are not required to make any changes. The increase only becomes relevant when the salary sits between the old and new levels.

Can I lock in the current threshold by lodging before 1 July?

In some cases, yes, lodging before 1 July means the current threshold may apply. However, this depends on the specific visa and nomination circumstances. It is worth confirming with a migration professional.

Is the SSIT changing too?

Yes. The SSIT increases from AUD 141,210 to AUD 146,717 from 1 July 2026.

Are these the only changes happening in July 2026?

The salary threshold increase is the most broadly applicable change. Other policy updates may also take effect, which is why checking current requirements before lodging is always recommended.

Not sure whether your planned salary will meet the July 2026 threshold? Seven Corp can assess your situation before you lodge, so there are no surprises. Book a free consultation today.

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