Australia’s employer-sponsored migration program changed significantly from 1 July 2026, with three key developments affecting employers and sponsored workers: increased visa application charges, indexed skilled migration income thresholds, and an increase to the Fair Work High Income Threshold relevant to certain permanent residence applicants.
Employers and sponsored workers should ensure they understand these changes when budgeting and preparing future applications.
Increased Visa Application Charges
The Australian Government has implemented a substantial increase to Visa Application Charges (VACs) for most visa subclasses, including employer-sponsored visas, through the Migration (Visa Application Charges) Amendment (2026 Measures No. 1) Regulations.
For primary applicants, the new government charges are:
- Subclass 482 Skills in Demand Visa – $4,015 (previously $3,210)
- Subclass 186 Employer Nomination Scheme Visa – $6,140 (previously $4,910)
- Bridging Visa B – $575 (previously $190)
These increases represent a rise of approximately 25% and sit alongside annual indexation changes affecting employer-sponsored migration salary requirements. The increase represents a significant departure from previous years, where Visa Application Charges have typically increased only in line with annual indexation.
Employers should review both their planned recruitment activity and their existing sponsored worker population to ensure adequate allowances have been made for increased government fees, particularly where multiple workers may require new sponsored visa applications, visa renewals, or permanent residence applications during the 2026–27 financial year.
Skilled Migration Income Threshold Increases
Annual indexation has also resulted in increases to the income thresholds that underpin the employer-sponsored migration program.
Core Skills Income Threshold (CSIT)
The Core Skills Income Threshold (CSIT) increased from $76,515 to $79,423 from 1 July 2026. The increased CSIT applies to new nomination applications lodged on or after 1 July 2026 for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
Specialist Skills Income Threshold (SSIT)
The Specialist Skills Income Threshold (SSIT) increased from $141,210 to $146,576 from 1 July 2026. This threshold applies to the Specialist Skills stream and is designed to facilitate the migration of highly skilled professionals in higher-paid occupations.
These salary thresholds operate as minimum requirements and employers must also continue to satisfy the Annual Market Salary Rate requirements and ensure sponsored employees are paid no less than equivalent Australian workers.
Employers should note that these threshold increases generally apply to new nominations lodged from 1 July 2026. Existing approved nominations are generally unaffected unless a new nomination is required, such as for a visa renewal or a change of employer.
Temporary Skilled Migration Income Threshold (TSMIT)
The Amendment Regulations also incorporate the annual indexation of the Temporary Skilled Migration Income Threshold (TSMIT) into the Migration Regulations. Previously, the TSMIT was prescribed annually by legislative instrument. From 1 July 2026, the TSMIT increased to $79,423, aligning with the indexed Core Skills Income Threshold.
The TSMIT applies to nominations for the Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa and any remaining Subclass 187 Regional Sponsored Migration Scheme nominations.
Fair Work High Income Threshold Increase
A particularly important change affects certain applicants seeking permanent residence through the Subclass 186 Employer Nomination Scheme visa.
From 1 July 2026, the Fair Work High Income Threshold (FWHIT) increased from $183,100 to $190,100 per annum. The threshold is indexed annually under the Fair Work Act and Fair Work Regulations.
The FWHIT is relevant to certain applicants aged 45 years or over seeking to rely on the age exemption available under the Subclass 186 visa.
To access this exemption, eligible applicants aged 45 years or over must demonstrate earnings above the prescribed FWHIT for the relevant qualifying period. As a result, applicants lodging Subclass 186 applications from 1 July 2026 and relying on this exemption must satisfy the new threshold of $190,100.
What Does This Mean for Employers?
These changes reinforce the Australian Government’s ongoing focus on ensuring employer-sponsored visas are used to fill genuine skills shortages while maintaining competitive salary standards.
Employers should:
- Review current and future sponsorship budgets
- Consider the impact of higher visa application charges on recruitment costs
- Ensure proposed remuneration packages meet the new income thresholds
- Assess whether any current sponsored workers may be affected by threshold increases when transitioning to permanent residence
- Seek advice on nominations or visa applications where salary levels are close to the new thresholds.
Employers should also review their existing sponsored worker cohort to identify upcoming visa expiries, renewal needs, salary threshold risks, and potential permanent residence pathway issues.
Planning Ahead
The 1 July 2026 changes reflect the Australian Government’s continued focus on skilled migration integrity, appropriate salary levels and sustainable workforce planning. While the increased government charges and salary thresholds present additional budgeting considerations, employer-sponsored migration remains one of the most effective pathways for Australian businesses to address ongoing skills shortages and secure long-term talent.
As government application charges and salary thresholds continue to increase, careful planning has never been more important. Ensuring nominations and visa applications are prepared correctly from the outset can help minimise delays, reduce the risk of costly errors or refusals, and provide greater certainty for both employers and sponsored employees.
At Migration Downunder and Migration Downunder Legal, our experienced team of Immigration Lawyers and Registered Migration Agents work closely with employers to develop strategic workforce solutions while ensuring compliance with Australia’s complex migration framework.
Whether you are sponsoring your first overseas worker or managing a large sponsored workforce, we can assist with:
- Sponsor eligibility assessments
- Skills in Demand (Subclass 482) visas
- Employer Nomination Scheme (Subclass 186) visas
- Labour Agreements and DAMA programs
- Sponsorship compliance audits
- Workforce planning and migration strategy
- Permanent residence pathways for sponsored employees
- Complex age exemption and salary threshold matters
In an environment of increasing government costs and evolving legislation, obtaining experienced migration advice before lodging an application can help protect your investment and support informed decision-making. Our team provides practical, strategic advice to help employers navigate Australia’s complex migration framework while ensuring their recruitment and mobility strategies remain compliant and cost-effective. Contact Migration Downunder today to discuss your workforce needs and how the 1 July 2026 changes may affect your business.