Employer Sponsored Visa Costs Are Going Up: What the July 2026 CSIT/SSIT Increase Means for You

What Is Changing on 1 July 2026?

Australia's employer-sponsored visa salary thresholds are indexed annually using Average Weekly Ordinary Time Earnings (AWOTE) data published by the Australian Bureau of Statistics. The November 2025 AWOTE figures have now triggered the following increases for the 2026-27 financial year:

The CSIT is the modern replacement for the former Temporary Skilled Migration Income Threshold (TSMIT), which many employers and agents still reference. If you see "TSMIT" mentioned in older resources, know that the CSIT performs the same function - setting the minimum guaranteed annual earnings for employer-sponsored visa nominations. The TSMIT of $79,499 continues to apply to certain legacy 482 nominations and the regional Subclass 494 visa.

Which Visas Are Affected?

The CSIT, SSIT, and TSMIT increases affect every employer-sponsored visa pathway in the Skills in Demand (SID) framework:

• Skills in Demand (SID) Visa / Subclass 482
  • Core Skills stream: Must meet the CSIT ($79,499 from 1 July)
  • Specialist Skills stream: Must meet the SSIT ($146,717 from 1 July)
  • Essential Skills stream: Separate concession threshold applies for aged care and similar occupations - not affected by CSIT indexation
• Subclass 186 - Employer Nomination Scheme (ENS)
  • Both the Direct Entry and Temporary Residence Transition (TRT) streams must meet the CSIT or SSIT, depending on the nominated occupation and stream
• Subclass 494 - Skilled Employer Sponsored Regional (SESR)
  • Must meet the TSMIT ($79,499 from 1 July) - this threshold is aligned with the CSIT value but operates under a different legislative instrument

If you need to confirm which stream applies to your occupation, search for your ANZSCO occupation code to see which visa subclasses and skill lists your role falls under.

The Impact on Employers and HR Managers

The Cost Is Real - Budget Now

For employers planning to sponsor or renominate workers after 1 July, these increases have a direct impact on your payroll obligations:

The Lodgement Window - Why It Matters

A nomination lodged before 1 July 2026 is assessed against the current, lower thresholds. The salary threshold is locked in at the time the nomination is lodged, not the time the visa application is decided. This means:

• If you lodge a 482/SID nomination in May 2026 offering $77,000 base salary, it will pass the CSIT test (current threshold: $76,515)
• If you lodge the same nomination in July 2026, it will fail (new threshold: $79,499)

For employers with multiple sponsored workers, bringing forward pending nominations could save thousands across the workforce.

The AMSR - You Cannot Just Pay the Minimum

Meeting the CSIT or SSIT alone is not enough. Employers must also pay at least the Annual Market Salary Rate (AMSR) for the position. The AMSR represents what an Australian worker performing the same role in the same location would earn. You must pay the higher of:

1. The relevant income threshold (CSIT, SSIT, or TSMIT), or
2. The AMSR for the nominated position

For example, if the market rate for a Software Engineer in Sydney is $110,000, you cannot simply offer $79,499 because it meets the CSIT. The $110,000 AMSR applies. AMSR evidence methods - under the recent flexibility reforms effective 25 March 2026 (LIN 26/038) - include equivalent Australian worker salary data, Fair Work instrument rates, and at least two independent sources such as Jobs and Skills Australia profiles and recent job advertisements. Read our guide to AMSR flexibility for employers for details.

What This Means for Sponsored Workers

The Eligibility Threat

If you are currently on a 482 visa or planning a pathway to permanent residency through the 186 visa, the threshold that applies is the one in effect when your employer's nomination is lodged - not when you apply for the visa.

Here is the practical reality: if your current base salary offer is between $76,515 and $79,498, you are eligible for a Core Skills nomination right now - but you will not be eligible after 1 July unless your employer agrees to a pay rise. If your employer refuses, you lose eligibility for sponsorship entirely. Share this article with your boss this week and start the conversation.

The PR Transition Risk

Workers on 482 visas who are transitioning to permanent residency via the 186 Employer Nomination Scheme need to be especially alert. If your employer waits until after 1 July 2026 to lodge the 186 nomination, the new higher threshold will apply - even though you have been working and paying taxes in Australia for years. Acting before 1 July could be the difference between a $76,515 threshold and a $79,499 one.

Real-World Scenarios

Use our Visa Condition Lookup tool to check your current work rights and obligations while on your employer-sponsored visa.

Your April-June Action Plan

We are currently in April 2026. Here is a month-by-month breakdown to maximise your position before the 1 July deadline:

April: Audit and Assess

• Employers: Review your entire sponsored workforce. Identify every worker whose current salary falls between $76,515 and $79,499 - these are the workers at risk after 1 July
• Workers: Check your employment contract. Is your base salary (excluding super, overtime, bonuses, and non-monetary benefits) above $79,499? If not, start discussing a salary increase with your employer
• Both: Begin or complete any pending skills assessments and English language tests (PTE, IELTS, OET). These expire, so check validity dates
• HR Managers: Download our employer sponsorship guide and audit your Standard Business Sponsorship (SBS) approval expiry date

May: Prepare Documentation

• Employers: Draft new employment contracts reflecting at least the new CSIT/SSIT if lodging after 1 July. Prepare AMSR evidence using the new flexibility provisions (LIN 26/038)
• Workers: Gather supporting documents - payslips, employment contract, skills assessment outcome letter, English test results, and passport copies
• Both: If Labour Market Testing (LMT) is required for your occupation, start advertising now - LMT advertisements typically need to run for at least 4 weeks
• Regional employers (494): Confirm your regional postcode eligibility and prepare your regional certifying body application if applicable

June: Lodge Before the Deadline

• Target lodgement: Aim for early-to-mid June at the absolute latest. Do not wait until 30 June - the Department of Home Affairs portal is notorious for crashing in the final days of the financial year due to EOFY volumes
• Budget reminder: Nomination fee ($330) + SAF levy ($1,200-$1,800 per year for temporary, $3,000-$5,000 one-off for permanent) + visa application charge ($3,210 per person)
• Critical check: Ensure your sponsor approval has not lapsed. If your SBS has expired, you must renew it before lodging nominations

Quick Comparison: Skills in Demand Visa Streams

Not sure which stream applies? Here is a side-by-side comparison:

If you need a refresher on how the three-tier SID framework operates, read our comprehensive guide on the Skills in Demand Visa 2026.

The SAF Levy: Don't Forget This Cost

On top of the salary thresholds, employers must pay the Skilling Australians Fund (SAF) levy when nominating overseas workers. This levy funds Australian training programmes and is non-refundable:

Combined with the nomination fee ($330), visa application charge ($3,210 per person), and the salary obligations, the total cost of sponsoring one Core Skills worker for 4 years can exceed $14,000 in government fees alone - before you even consider the salary.

Salary thresholds, visa application fees, and SAF levy amounts are current as of April 2026 and are subject to change. The next threshold adjustment is expected on 1 July 2027.

How First Migration Can Help

Whether you are an employer racing the clock to lodge nominations or a sponsored worker navigating the pathway to permanent residency, our registered migration agents can help you:

• Audit your payroll against the new CSIT/SSIT thresholds across your entire sponsored workforce
• Lodge time-sensitive nominations before the 1 July 2026 deadline
• Prepare AMSR evidence using the new flexibility reforms (LIN 26/038)
• Plan your 482 → 186 PR transition to maximise your chances of permanent residency
• Assess Subclass 494 regional opportunities for employers outside metropolitan areas

For employers: Book a corporate strategy call to audit your sponsorship arrangements before July.

For workers: Check your eligibility with a free visa assessment so we can review your salary, occupation, and pathway options.