The Australian Government has confirmed the annual indexation of the Core Skills Income Threshold (CSIT) and the Specialist Skills Income Threshold (SSIT) for employer‑sponsored visas. These updated thresholds will apply to all Subclass 482 (Skills in Demand) and Subclass 186 (Employer Nomination Scheme) visa applications lodged on or after July 1, 2026.
The changes reflect Australia’s automatic yearly adjustment mechanism, designed to ensure that salary requirements for overseas workers remain aligned with national earnings trends.
Updated Salary Thresholds for 2026–27
Based on the Australian Bureau of Statistics’ Average Weekly Ordinary Time Earnings (AWOTE) data for November 2025, the thresholds for the 2026–27 program year will be:
- Core Skills Income Threshold (CSIT): AUD 79,499 (up from AUD 76,515 in 2025–26)
- Specialist Skills Income Threshold (SSIT): AUD 146,717 (up from AUD 141,210 in 2025–26)
This represents an increase of approximately 3.9%, consistent with changes to average Australian earnings.
How Indexation Works
Under regulation 5.42A of the Migration Regulations, the CSIT and SSIT are updated annually using a prescribed formula that applies AWOTE data from a defined reference quarter and base quarter. Because this indexation is built into legislation, no new legislative instrument is required each year — the updated thresholds take effect automatically on July 1.
Impact on Employer‑Sponsored Visa Applications
The new CSIT and SSIT levels will apply to:
- Subclass 482 Skills in Demand visa applications lodged on or after July 1, 2026
- Subclass 186 Employer Nomination Scheme visa applications lodged on or after July 1, 2026
Employers sponsoring overseas workers must ensure that offered salaries meet or exceed the updated thresholds, in addition to meeting market‑rate and other sponsorship requirements.
Erickson Insights & Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.