Guide To Annual Indexation of Skilled Visa Income Thresholds

From 1 July, the skilled visa income threshold will increase, benefiting future nominated applicants. Before you learn more about the increase and how it will impact different visa streams, you must know what annual income Indexation is and why it’s essential for migrants applying for skilled visas.

What Is Annual Income Indexation?

Annual indexation is a yearly adjustment or change to a wage or income amount. 

What Is a Skilled Visa Income Threshold?

A skilled visa income threshold is the minimum salary or wages skilled migrants must earn to live and work in Australia. Employers hiring skilled professionals must ensure they meet or comply with these thresholds.

Why Is Annual Income Adjustment Important for Migrants With Skilled Visas?

Annual Income adjustments ensure migrants with temporary skills visas earn enough to keep up with inflation. Because the cost of food, rent, transport and other essential needs increase yearly, migrants must earn more to meet the higher cost of living. Here are more reasons to adjust skilled migrant salaries: 

Fair Pay 

The primary reason for annual income adjustments is to ensure fair pay for skilled migrants. If the cost of living goes up but minimum wages remain the same, migrant workers may be unable to afford to live in Australia. 

Prevent Government Dependency 

Aligning income thresholds with inflation ensures skilled migrants can financially support themselves and do not require government help. 

Safeguarding Local Workers

Another essential reason for annual indexations is to safeguard local workers and their jobs. If migrant workers earn less or are unequal to Australian citizens, some employers may avoid hiring or undercut locals to pay lower wages. This practice is not only harmful to local workers but also takes advantage of or exploits migrant workers. 

What Is the Indexation of Skilled Visa Income Thresholds in 2025?

As of 1 July 2025, the Skilled Visa Income will increase to 4.6%. This amendment aligns with changes to the Average Weekly Ordinary Time Earnings (AWOTE). These adjustments will apply to nominations logged after 1 July and not to existing visa holders and nominations lodged before that date. 

How Will the 2025 Income Indexation Impact Different Skilled Migrant Visas?

Here’s how the adjustment will impact different skilled visa streams:

1. Core Skills Income Threshold (CSIT)   

The Core Skills Income Threshold will increase from AUD73,150 to AUD76,515. This visa stream covers the Skills in Demand visa (subclass 482) and Employer Nomination Scheme visa (subclass 186). Applicants nominated in these visa fields after 1 July will benefit from the income adjustment.  

2. Specialist Skills Income Threshold (SSIT) 

The Specialist Skills visa stream includes the Skills in Demand visa (subclass 482). This income threshold will increase from AUD135,000 to AUD141,210. 

3. Temporary Skilled Migration Income Threshold (TSMIT)

The temporary Skilled Migration Income Threshold (TSMIT) will increase from AUD73,150 to AUD76,515. This income threshold impacts the Sponsored Regional visa (subclass 494).

Ready to Start Your Visa Application?

Now that you understand the income increase for different skilled visas, you can make a more informed decision. If you’re ready to apply, we’d love to help. 

Australia Migrate is a leading and trusted immigration and visa services company. We understand the requirements of different skilled visa applications and guide you through the process. Our team of experts are transparent and attentive and put your needs and goals first to help you successfully migrate to Australia. 

Contact us online today to get started.