482 and 186 Visa Salary Thresholds Increasing from 1 July 2026: What Employers and Skilled Workers Need to Know
Employers who wish to nominate skilled workers under Australia’s employer-sponsored migration framework must meet certain salary and sponsorship requirements. From 1 July 2026, there are expected to be increases to the income thresholds applying to Subclass 482 and Subclass 186 employer-sponsored visa nominations.
These changes are important for:
Australian businesses sponsoring overseas workers
HR teams and recruitment managers
current and prospective visa holders
employers planning Labour Market Testing (LMT)
businesses preparing sponsorship applications for the 2026–27 financial year
At Zest Legal, we are already advising employers and skilled workers on how these changes may affect sponsorship eligibility, recruitment timelines, salary structures, and nomination strategy.
What Is Changing from 1 July 2026?
The Department of Home Affairs automatically indexes the:
Core Skills Income Threshold (CSIT), and
Specialist Skills Income Threshold (SSIT)
each year under regulation 5.42A of the Migration Regulations using Average Weekly Ordinary Time Earnings (AWOTE) data published by the Australian Bureau of Statistics.
From 1 July 2026, the updated thresholds are expected to increase as follows:
CSIT: $79,499 (current 2025–26 value: $76,515)
SSIT: $146,717 (current 2025–26 value: $141,210)
This represents an approximate 3.9% increase to the current thresholds.
The updated thresholds are expected to apply to:
Subclass 482 Skills in Demand (SID) visa nominations, and
Subclass 186 Employer Nomination Scheme (ENS) nominations
lodged on or after 1 July 2026.
Why the 1 July 2026 Changes Are Important
For many businesses, these changes are not simply an immigration issue. They may directly affect sponsorship eligibility, recruitment timelines, salary structures, and broader workforce planning decisions.
Employers may need to review:
recruitment budgets,
workforce planning,
employment contracts,
remuneration packages,
internal salary approvals,
sponsorship timelines, and
long-term permanent residency pathways for employees.
One of the most important practical issues for employers is that these requirements do not operate independently.
Employers generally need to ensure that:
Labour Market Testing advertisements,
employment contracts,
proposed salary packages,
Annual Market Salary Rate (AMSR) calculations, and
nomination applications
all align with the correct threshold requirements applying at the time of lodgement.
This is particularly important because Labour Market Testing must generally be completed before a Subclass 482 nomination can be lodged.
Where advertising has not commenced early enough to allow the required 28-day advertising period to conclude before 1 July 2026, employers may need to:
reassess remuneration structures,
revise recruitment strategies, and
ensure nomination documentation reflects the updated CSIT or SSIT thresholds.
This is especially important where proposed salaries are close to the applicable income threshold.
What Is Labour Market Testing (LMT)?
Labour Market Testing (LMT) generally requires employers to advertise a position before sponsoring an overseas worker under the Subclass 482 visa program.
In most cases, employers must:
advertise the role in accordance with Department requirements,
ensure advertisements run for at least 28 days, and
complete LMT before the nomination application can be lodged.
LMT is a critical component of many Subclass 482 nominations and must align with the position, salary, and nomination details ultimately lodged with the Department.
What Is AMSR?
The Annual Market Salary Rate (AMSR) refers to what an equivalent Australian worker earns, or would earn, for performing equivalent work in the same workplace and location.
Importantly, employers generally need to demonstrate that:
the overseas worker will not be paid less than an equivalent Australian worker,
the proposed salary aligns with Australian labour market conditions, and
the nominated salary satisfies both the AMSR and the relevant income threshold (CSIT or SSIT).
This means meeting the CSIT or SSIT alone is not enough. For example, a salary may technically exceed the relevant income threshold but still fail immigration requirements if it is below the true market salary rate for that occupation.
Does This Affect Existing Visa Holders or Already Lodged Applications?
No. The updated thresholds are not expected to apply retrospectively.
Subclass 482 and Subclass 186 nomination applications lodged before 1 July 2026 will generally continue to be assessed against the current thresholds.
However, employers should continue monitoring ongoing sponsorship compliance obligations, particularly where:
salaries are close to the applicable threshold,
remuneration structures change over time, or
employees transition toward permanent residency pathways.
CSIT and SSIT Are Not the Only Requirements
It is important to understand that meeting the CSIT or SSIT alone is generally not sufficient for nomination approval.
Sponsored positions may also need to satisfy:
Annual Market Salary Rate (AMSR) requirements,
market salary obligations,
applicable awards or enterprise agreements,
genuine position requirements,
Labour Market Testing obligations, and
broader sponsorship compliance requirements under Australian migration law.
In some industries, market salary expectations may increase at a faster rate than the annual CSIT increase. Businesses should therefore assess both immigration compliance and broader employment law obligations together.
Should Employers Lodge Before 1 July 2026?
In some cases, lodging before 1 July 2026 may provide strategic advantages, particularly where:
the proposed salary is close to the current threshold,
Labour Market Testing has already commenced,
recruitment budgets are fixed, or
the business wants certainty before the new financial year.
However, timing considerations should always be assessed carefully, particularly where:
sponsorship approval is still pending,
occupation strategy requires review,
AMSR evidence needs to be strengthened, or
permanent residency pathways are being considered.
Strategic Sponsorship Planning Is More Important Than Ever
Australia’s employer-sponsored migration framework continues to evolve, and salary threshold increases are becoming an increasingly important compliance and workforce planning issue for Australian businesses.
At Zest Legal, we assist Australian employers, HR teams, overseas skilled workers, and businesses sponsoring international talent with strategic immigration law advice across:
Subclass 482 visas,
Subclass 494 visas,
Subclass 186 visas,
Subclass 407 visas,
sponsorship compliance,
Labour Market Testing,
AMSR and salary planning,
employer-sponsored migration strategy, and
long-term permanent residency pathways.
Need Advice on Employer-Sponsored Visas?
With the 1 July 2026 changes approaching, early planning may provide significant strategic advantages for both employers and skilled workers.
Whether you are preparing a new sponsorship application, reviewing salary structures, or planning future permanent residency pathways for employees, obtaining early legal advice can help minimise delays and reduce compliance risks.
If your business is planning to sponsor overseas workers, contact Zest Legal to discuss your employer-sponsored migration strategy with our experienced corporate immigration lawyers before 1 July 2026.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal or immigration advice, nor should it be relied upon as such. Information is current at the time of publication and subject to change. Please consult an Australian MARA registered agent or Australian lawyer before making any immigration or legal decision.
