Updated income thresholds for skilled visas: What employers need to know
Updated income thresholds for skilled visas: What employers need to know
From 1 July 2026, the Core Skills Income Threshold (CSIT) will increase to $79,499 as part of the Government’s annual indexation of skilled migration salary settings.
This change affects employer-sponsored visa programs, including subclasses 482, 494 and 186, and is a key consideration for organisations planning new nominations. It is important to distinguish between what the CSIT is (and when it applies) and the separate, ongoing salary obligations for sponsored workers.
What is the CSIT?
The CSIT is a minimum salary threshold that must be met at the time of nomination for certain employer-sponsored visas.
It is designed to ensure that sponsored roles are paid at a level consistent with their skill level and to maintain the integrity of the skilled migration program.
Key points:
- It applies at the nomination stage
- It is based on guaranteed annual earnings (not variable or contingent amounts)
- Nominations will not be approved if the offered salary is below the CSIT, regardless of market rate.
With the increase to $79,499, employers should review any upcoming or pipeline nominations to ensure compliance.
Separate requirement: Market salary and ongoing pay obligations
In addition to meeting the CSIT, sponsors must also satisfy market salary requirements at nomination - and importantly, comply with ongoing salary obligations after approval. These are distinct from the CSIT.
Sponsors must ensure that sponsored workers are:
- Paid no less than the salary approved in the nomination, and
- Paid in line with the market salary rate for equivalent Australian workers.
This is an ongoing compliance obligation that applies for the duration of the sponsorship.
It requires employers to maintain appropriate benchmarking of roles and remuneration, ensure salary does not fall below the approved nomination amount, and carefully manage any changes to remuneration structures.
Why the distinction matters
The CSIT is a threshold for accessing the visa program. The market salary and ongoing salary obligations are about maintaining compliance throughout the life of the visa.
Confusing the two can lead to:
- Nomination refusals (if CSIT is not met), or
- Sponsorship breaches (if ongoing salary obligations are not maintained).
How the 2026 Federal Budget may influence employer planning
The 2026 Federal Budget will be delivered on 12 May 2026 and is expected to outline the Government’s ongoing economic priorities, including cost‑of‑living initiatives, tax measures and superannuation changes such as the rollout of Payday Super from July 2026.
While the Budget is not expected to change the CSIT directly, broader measures, such as workforce and training initiatives or business support programs, may influence workforce planning, remuneration decisions and overall labour costs.
Practical steps for employers
In light of the 1 July 2026 increase, employers should:
- Review new nominations against the updated CSIT of $79,499
- Ensure salary offers meet both CSIT and market salary requirements
- Confirm that current sponsored workers are being paid at least their approved nomination salary
- Review payroll and HR processes to ensure ongoing compliance and benchmarking.
These requirements sit at the intersection of migration and employment law and can become complex - particularly in industries with variable remuneration structures.
BDO’s migration team works closely with employment specialists to support organisations in managing both visa eligibility requirements and ongoing compliance obligations.
If you would like to discuss how the CSIT increase impacts your workforce, please reach out.
