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Australia's 2026-27 Skilled Visa Income Thresholds: What Employers Sponsoring Workers Must Now Pay

By Global Law Experts

– posted 58 minutes ago

Last updated: August 17, 2026 | Effective: 1 July 2026

Australia’s 2026–27 skilled visa income thresholds took effect on 1 July 2026, lifting the minimum annual salaries that employers must pay nominated overseas workers across all major employer-sponsored visa programmes. The Core Skills Income Threshold (CSIT) has risen from AUD 76,515 to AUD 79,423, while the Specialist Skills Income Threshold (SSIT) has increased from AUD 141,210 to AUD 146,717, an indexation of approximately 3.8 per cent applied across both measures. These changes affect Subclass 482, Subclass 494 and Subclass 186 nominations lodged on or after 1 July 2026, and employers who fail to meet the new thresholds risk nomination refusals, sponsorship sanctions and back-pay liabilities.

What Changed in Australia’s 2026–27 Skilled Visa Income Thresholds and Why

The Australian Government indexes skilled visa income thresholds annually to keep pace with wage growth across the economy. For the 2026–27 programme year, the Department of Home Affairs confirmed increases effective 1 July 2026, lifting the minimum annual base salary that sponsoring employers must pay nominated overseas workers.

Indexation Method and Legal Basis

The indexation is applied each financial year in line with movements in Australian average weekly earnings data published by the Australian Bureau of Statistics. The mechanism was formalised following the 2023 migration system review, which replaced the former Temporary Skilled Migration Income Threshold (TSMIT) with the current two-tier structure of the CSIT and the SSIT. Baker McKenzie has noted that the 2026–27 indexation represents an increase of approximately 3. 8 per cent, a moderation compared with the 4. 6 per cent increase applied in 2025–26, reflecting softer wage growth through the reference period.

Industry observers expect that continued annual indexation will produce cumulative cost pressure for employers sponsoring workers in lower-paid skilled occupations, as each year’s increase compounds on the prior year’s threshold.

The Updated Thresholds at a Glance

Threshold	2025–26 Value	2026–27 Value (from 1 July 2026)	Change
Core Skills Income Threshold (CSIT)	AUD 76,515	AUD 79,423	+AUD 2,908 (~3.8%)
Specialist Skills Income Threshold (SSIT)	AUD 141,210	AUD 146,717	+AUD 5,507 (~3.9%)

The Department of Home Affairs applies these thresholds to nomination applications lodged on or after 1 July 2026. Nominations lodged before that date remain subject to the 2025–26 thresholds, even if the application is still being processed after 1 July.

Which Visa Subclasses Are Affected by Australia’s 2026–27 Skilled Visa Income Thresholds

The indexed thresholds apply across all employer-sponsored visa streams that reference the CSIT or SSIT. The three primary subclasses affected are the Subclass 482 (Skills in Demand), Subclass 494 (Skilled Employer Sponsored Regional) and Subclass 186 (Employer Nomination Scheme).

Subclass 482, Skills in Demand Visa

The 482 visa minimum salary for 2026 is set by either the CSIT or the SSIT, depending on the stream under which the worker is nominated. Under the Core Skills stream, the employer must pay an annual base salary of at least AUD 79,423. Under the Specialist Skills stream, the minimum jumps to AUD 146,717. In both streams, the salary offered must also meet or exceed the Annual Market Salary Rate (AMSR) for the nominated position, meaning the threshold operates as a floor, not a ceiling. If the going market rate exceeds the threshold, the employer must pay the higher figure.

BAL Immigration Law has emphasised that sponsors should review every pending nomination against the new numbers, particularly where salary packages were structured close to the former CSIT of AUD 76,515.

Subclass 494, Skilled Employer Sponsored Regional

Regional employer-sponsored nominations under the Subclass 494 visa are subject to the same CSIT and SSIT thresholds. Baker McKenzie has confirmed that the 2026–27 indexation applies identically to Subclass 494 as it does to Subclass 482 nominations. Employers in regional Australia relying on this visa pathway need to ensure the salary on offer meets or exceeds AUD 79,423 (Core Skills) or AUD 146,717 (Specialist Skills), in addition to the AMSR.

Subclass 186, Employer Nomination Scheme

The Subclass 186 permanent employer-sponsored visa also references the CSIT. Nominations under the Direct Entry and Temporary Residence Transition streams require the employer to demonstrate that the annual base salary meets the applicable threshold and the AMSR. Because this is a permanent residence pathway, compliance at the nomination stage has downstream implications for visa grant, any shortfall discovered after nomination approval can result in visa refusal and potential sponsorship sanctions. LegalVision has noted that employers should treat the threshold increase as a prompt to conduct a full payroll review for all sponsored workers, not just new nominations.

How Employers Must Calculate What They Pay: AMSR, Base Salary and Superannuation

Understanding which components of an employee’s remuneration package count toward the skilled visa income threshold is one of the most common points of confusion for sponsoring employers. The Department of Home Affairs specifies that the CSIT and SSIT are measured against the annual base salary, not total remuneration.

Does Superannuation Count Toward the Threshold?

Compulsory superannuation guarantee contributions do not count toward the CSIT or SSIT. The threshold must be met by the base salary alone, excluding super. For the 2026–27 year, with the Superannuation Guarantee rate at 12 per cent, this means an employer paying the CSIT-level base salary of AUD 79,423 will face a total minimum employment cost of approximately AUD 88,954 inclusive of super. Employers who have historically structured salary packages as “total cost” figures inclusive of super must break out the base component and ensure it independently meets the threshold.

The Annual Market Salary Rate (AMSR) and How to Evidence It

For any nomination where the proposed annual salary is less than AUD 250,000, the employer must demonstrate that they have correctly determined the AMSR, the salary that an equivalent Australian worker would earn in the same role, location and industry. The AMSR operates alongside the CSIT/SSIT as a dual compliance requirement: the salary must meet both the applicable threshold and the AMSR, whichever is higher.

Evidence accepted by the Department of Home Affairs to substantiate the AMSR includes:

Job advertisements. Comparable advertisements for equivalent positions within the same labour market, showing advertised salary ranges.
Remuneration survey data. Industry or occupational salary surveys from reputable providers (e.g., Hays, Robert Half, or industry associations).
Enterprise agreement or award rates. Where the position is covered by a modern award or enterprise agreement, the applicable pay rate serves as a useful reference point.
Internal payroll records. Salary records for Australian employees performing the same or equivalent role within the business.
Written advice from an industry body. Statements from professional associations or industry groups confirming market rates for the occupation.

The likely practical effect of the 2026 threshold increase will be to push some employers, particularly those in lower-paying skilled occupations, above the point where the AMSR alone would have been sufficient, as the CSIT now exceeds the market rate in certain regional and entry-level roles.

Employer Sponsored Visa Salary Requirements: Nomination Evidence Checklist

Meeting the employer sponsored visa salary requirements for the 2026–27 programme year involves more than offering the right number on a contract. The Department of Home Affairs requires sponsors to provide documentary evidence when nominating a position, and incomplete or inconsistent documentation is a leading cause of nomination delays and refusals.

Documents to Upload with the Nomination

Employers should compile and upload the following at the point of lodging a nomination application:

Signed employment contract. Must state the annual base salary (excluding super), position title, hours of work and employment conditions. The contract salary must meet or exceed both the relevant threshold and the AMSR.
Position description. A detailed description of the role’s duties, required qualifications and reporting structure, consistent with the nominated occupation on the relevant skilled occupation list.
AMSR evidence package. At least two to three pieces of supporting evidence demonstrating that the offered salary reflects the market rate (see list above).
Organisational chart. Showing where the nominated position sits within the business structure.
Payroll records for comparable employees. If the business employs Australians in equivalent roles, provide anonymised pay records or a summary showing those employees’ base salaries.
Business financial statements or BAS. Evidence that the sponsoring business is genuinely operating, actively trading and has the financial capacity to pay the nominated salary for the term of the visa.

Best Practice: Contract Clauses and Payroll Reporting

Industry observers expect that the Department’s compliance monitoring will increasingly cross-reference nominated salary figures with Single Touch Payroll (STP) data reported to the Australian Taxation Office. Employers should ensure that the base salary stated in the employment contract is paid consistently throughout the sponsorship period and that payroll reporting accurately reflects the agreed salary, any discrepancy between the nominated salary and actual pay can trigger a compliance investigation. Contracts should include a clear salary review clause tied to annual threshold indexation, ensuring automatic adjustment when new thresholds take effect each July.

Practical Steps and Worked Examples for Sponsoring Employers

To illustrate how Australia’s 2026–27 skilled visa income thresholds work in practice, the following two examples demonstrate the calculation for a small-to-medium enterprise (SME) and a larger employer.

Example 1: SME Sponsoring a Full-Time Software Developer (1.0 FTE)

Component	Amount
Nominated occupation	Software Developer (ANZSCO 261312)
Visa stream	Subclass 482, Core Skills
Required CSIT (2026–27)	AUD 79,423
AMSR (based on market evidence)	AUD 85,000
Base salary offered (excl. super)	AUD 85,000
Superannuation (12%)	AUD 10,200
Total employment cost	AUD 95,200
Outcome	Compliant, base salary exceeds both CSIT and AMSR

In this scenario, the AMSR exceeds the CSIT, so the employer must pay the higher AMSR figure. The base salary of AUD 85,000 satisfies both requirements.

Example 2: Regional Employer Sponsoring a Part-Time Accountant (0.8 FTE)

Component	Amount
Nominated occupation	Accountant (ANZSCO 221111)
Visa stream	Subclass 494, Core Skills (Regional)
Required CSIT (2026–27), pro-rata for 0.8 FTE	AUD 63,538 (79,423 × 0.8)
AMSR (full-time equivalent market rate)	AUD 80,000
AMSR, pro-rata for 0.8 FTE	AUD 64,000
Base salary offered (excl. super)	AUD 64,000
Superannuation (12%)	AUD 7,680
Total employment cost	AUD 71,680
Outcome	Compliant, pro-rata base salary exceeds both pro-rata CSIT and pro-rata AMSR

For part-time arrangements, the threshold is applied on a pro-rata basis relative to a full-time equivalent. The employer must retain evidence of the agreed hours and demonstrate that the hourly rate, when annualised to full-time equivalent hours, meets the full CSIT. Early indications suggest that part-time sponsorship arrangements will attract closer scrutiny in the 2026–27 programme year, particularly in regional areas where underpayment risks have historically been higher.

Risks, Penalties and What to Do If You Have Underpaid a Sponsored Worker

Non-compliance with the skilled visa income thresholds carries serious consequences for sponsoring employers. The Department of Home Affairs has broad enforcement powers under the Migration Act 1958 and the Migration Regulations, and penalties for non-compliance with sponsorship obligations can include:

Nomination refusal. A nomination that does not meet the CSIT or SSIT will be refused, preventing the visa application from proceeding.
Sponsorship sanctions. Employers found to have underpaid sponsored workers may have their Standard Business Sponsorship (SBS) cancelled or barred, preventing future sponsorship of any overseas workers.
Civil penalty proceedings. The Department can pursue civil penalties against sponsors who fail to meet their obligations, including paying the guaranteed salary for the full period of sponsorship.
Infringement notices and compliance notices. Administrative enforcement measures requiring the sponsor to rectify the underpayment and provide evidence of compliance within a set timeframe.
Visa cancellation for the worker. In extreme cases, the worker’s visa may be cancelled if the sponsorship is found to be non-genuine.

Employers who discover they have been underpaying a sponsored worker should act immediately: adjust the salary to meet the applicable threshold, issue back-pay for any shortfall period, update the employment contract, and seek legal advice on whether voluntary disclosure to the Department is appropriate.

Comparison Table and Timeline of Key Threshold Changes

The following table summarises the progression of Australia’s skilled visa income thresholds across the three most recent programme years, providing employers with the context to understand the cumulative impact of annual indexation.

Threshold	2024–25	2025–26	2026–27 (Current)
Core Skills Income Threshold (CSIT)	AUD 73,150	AUD 76,515	AUD 79,423
Specialist Skills Income Threshold (SSIT)	AUD 135,000	AUD 141,210	AUD 146,717

Key dates:

1 July 2024: CSIT and SSIT structure introduced, replacing the former TSMIT.
1 July 2025: First annual indexation applied (CSIT to AUD 76,515; SSIT to AUD 141,210).
1 July 2026: Second annual indexation applied (current thresholds above).
1 July 2027 (expected): Next scheduled indexation, figures will be announced in early 2027 based on ABS wage data.

Conclusion: Immediate Steps for Employers Subject to Australia’s 2026–27 Skilled Visa Income Thresholds

Australia’s 2026–27 skilled visa income thresholds are now in force, and every sponsoring employer should treat them as an immediate compliance priority. The practical steps are straightforward: audit current sponsored worker salaries against the new CSIT and SSIT, adjust employment contracts and payroll where base salaries fall below the new minimums, compile fresh AMSR evidence for any upcoming nominations, and ensure payroll reporting through Single Touch Payroll aligns with nominated salary figures. For employers navigating these changes for the first time or managing a large sponsored workforce, specialist immigration legal advice is essential. Find an Australian immigration lawyer through the Global Law Experts directory to ensure your sponsorship arrangements are fully compliant for the year ahead.

Need Legal Advice?

This article was produced by Global Law Experts. For specialist advice on this topic, contact Maggie Taaffe at AHWC Immigration Law, a member of the Global Law Experts network.