From 1 July 2025, the Australian Government will introduce key changes to visa salary thresholds and employer superannuation obligations. These adjustments are part of the broader strategy to ensure skilled migration programs remain fair, competitive, and aligned with Australian labour market standards.

 

What Is the TSMIT and Why Does It Matter?

 

The Temporary Skilled Migration Income Threshold (TSMIT) is a benchmark salary level used by the Department of Home Affairs to ensure that temporary skilled migrants are not underpaid or exploited. It acts as a floor salary to determine eligibility for employer-sponsored visa programs such as the Skills in Demand (SID) Subclass 482 visa and the Employer Nomination Scheme (ENS) Subclass 186. TSMIT is currently AUD 73,150 for nomination applications lodged between July 1, 2024, and June 30, 2025. TSMIT is periodically reviewed to keep pace with economic changes, wage growth, and to discourage misuse of the migration system to fill low-wage positions.

 

From 1 July 2025, indexation changes will be as follows:

 

  • The Specialist Skills Income Threshold (SSIT) will increase from AUD135,000 to AUD141,210. This will impact nomination applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482).
  • The Temporary Skilled Migration Income Threshold (TSMIT) used for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187) will increase from AUD73,150 to AUD76,515. This is in line with the Core Skills Income Threshold (CSIT) and subject to approval of relevant legislation.

 

The CSIT applies to general skilled positions, while the SSIT is used for highly skilled or senior roles that require advanced qualifications or experience. According to the Australian Bureau of Statistics (ABS) Wage Price Index (March 2024), the national annual wage growth stood at 4.1%, supporting the Government’s rationale for the 4.6% increase to these thresholds.

 

What Employers Must Do

 

From 1 July 2025, new nomination applications must meet:

 

  • The new relevant income threshold (CSIT or SSIT), or
  • The Annual Market Salary Rate (AMSR), whichever is higher.

 

For example, if an employer is nominating a software engineer and the AMSR is AUD80,000, they must offer that rate even though the CSIT will be AUD76,515. Conversely, if the market rate is AUD70,000, the employer must meet the higher CSIT of AUD76,515 to be eligible to sponsor the visa holder.

 

These changes will not apply to:

 

  • Existing visa holders
  • Nominations lodged before 1 July 2025

 

This offers a limited window for employers to lodge nominations under the current salary thresholds.

 

Superannuation Guarantee Increasing to 12%

 

In parallel with the changes to salary thresholds, the Superannuation Guarantee (SG) will rise from 11.5% to 12% from 1 July 2025. This means that if a business includes superannuation in their total salary package offer, the base wage component will reduce unless the package is adjusted accordingly.

 

Sponsoring employers must ensure that the base salary (excluding super) still meets the TSMIT, CSIT, or SSIT, and AMSR requirements. For example, a package of AUD76,515, including 12% super, equals a base salary of only AUD68,315, which would fall below the CSIT.

 

Conclusion

 

The upcoming adjustments to salary thresholds and superannuation highlight the need for careful workforce planning and compliance. Employers seeking to sponsor overseas workers from 1 July 2025 must review their remuneration structures to meet the new legal requirements. Failure to comply may result in refused nominations and breach of sponsorship obligations.

 

Staying ahead of these changes ensures not only continued access to global talent but also the protection of foreign workers and the integrity of Australia’s skilled migration system.