Australia has introduced major updates to its skilled worker visa system, set to take effect from 1 July 2025, as part of the government’s ongoing migration reform plan. The changes aim to attract high-skilled professionals while ensuring fair pay and stronger compliance from sponsoring employers.
🏛️ Key Changes
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Higher Income Thresholds
The minimum salary requirements for skilled migrants have been raised:-
Core Skills Income Threshold (CSIT): AUD 76,515
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Specialist Skills Income Threshold (SSIT): AUD 141,210
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Temporary Skilled Migration Income Threshold (TSMIT): AUD 76,515
These increases are designed to ensure that skilled migrants receive market-aligned wages and to prevent underpayment in key industries.
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New “Skills in Demand” (SID) Visa
The popular Subclass 482 Temporary Skill Shortage Visa will be replaced by the Skills in Demand (SID) Visa, a more flexible and streamlined program focused on long-term skill needs.
The Core Skills Occupation List (CSOL) will also replace older occupation lists, making it easier for employers to identify eligible roles and reducing confusion. -
Stricter Employer Requirements
Employers sponsoring foreign workers must now meet updated salary levels, demonstrate genuine skill shortages, and maintain fair working conditions. Applications that fall below the new salary thresholds will likely be refused. -
Superannuation Increase
The Superannuation Guarantee — employer pension contributions — will rise from 11.5% to 12% starting July 2025, benefiting both local and migrant workers. -
Visa Processing and Timing
These new rules will apply to applications lodged on or after 1 July 2025. Ongoing visa holders or nominations submitted before this date will continue under the previous system.
🌏 Who Will Be Affected
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Skilled professionals applying under employer-sponsored or regional skilled visa programs.
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Australian employers seeking to sponsor workers must comply with new income and occupation requirements.
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High-earning specialists in sectors like IT, engineering, and healthcare, who will fall under the higher SSIT category.
💬 Purpose of the Reform
The government says these reforms are intended to:
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Align visa settings with current labor market shortages.
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Prevent wage exploitation and ensure equal pay for migrant and local workers.
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Streamline the system to make it simpler, faster, and fairer for genuine skilled migration.
📊 Outlook
The updated visa system signals Australia’s focus on attracting high-value talent while maintaining strong labor protections. Migration experts predict that the new Skills in Demand Visa will become the main pathway for skilled professionals seeking to work and settle in Australia in the coming years.
