The temporary skilled migration income threshold settings for the 2026–27 program year will affect employer-sponsored visa nominations lodged from 1 July 2026.
Following the release of the November 2025 Average Weekly Ordinary Time Earnings (AWOTE) data by the Australian Bureau of Statistics (ABS), the Core Skills Income Threshold (CSIT) and Specialist Skills Income Threshold (SSIT) are indexed under Regulation 5.42A of the Migration Regulations 1994.
For employers, this impacts salary budgeting and nomination timing.
For skilled migrants, it affects job offers, compliance requirements and long-term permanent residency pathways.
This guide provides a legally precise, compliance-focused breakdown of what changes from 1 July 2026 — and what does not.
The temporary skilled migration income threshold (TSMIT) is the minimum base salary an employer must offer when sponsoring a skilled worker under eligible employer sponsored visa programs.
It operates alongside:
The Core Skills Income Threshold (CSIT)
The Specialist Skills Income Threshold (SSIT)
The Annual Market Salary Rate (AMSR)
Employers must meet the higher of the relevant income threshold or the AMSR.
Based on AWOTE indexation under Regulation 5.42A, the thresholds for the 2026–27 program year are:
As at the date of writing, the TSMIT remains $76,515 unless updated by a separate legislative instrument.
Unlike CSIT and SSIT, TSMIT is not automatically indexed under Regulation 5.42A. Any increase requires formal publication through a legislative instrument.
Employers should verify the current TSMIT position immediately prior to lodging nominations.
Many employers confuse these terms. They are related but not identical.
CSIT and SSIT are automatically indexed each year under Regulation 5.42A. TSMIT requires a legislative instrument if increased separately. For 2026–27, CSIT and TSMIT may align numerically if TSMIT is formally updated — but they remain legally distinct.
Regulation 5.42A of the Migration Regulations 1994 applies an indexation formula using:
November quarter AWOTE data
A defined base reference quarter
Comparative wage growth calculations
Once the ABS releases the November AWOTE data, updated CSIT and SSIT figures automatically apply from 1 July of the following financial year. No separate Ministerial announcement is required for CSIT and SSIT indexation.
The updated temporary skilled migration income threshold and related indexed thresholds apply to:
Subclass 494 and 187 streams are not automatically indexed under Regulation 5.42A. They remain tied to TSMIT unless separately amended. This distinction is particularly important for regional employers planning 2026 nominations.
Meeting the temporary skilled migration income threshold alone is not enough.
Employers must pay:
The applicable income threshold, OR
The Annual Market Salary Rate (AMSR)
If salary is under AUD 250,000, employers must demonstrate:
Correct AMSR determination
Overseas worker is not paid less than an equivalent Australian worker
Both AMSR and offered salary exceed the threshold
Failure to provide sufficient evidence may result in nomination refusal. Generic salary surveys without explanation are typically insufficient.
For employers planning sponsorship, timing is critical.
Where multiple nominations are planned, employers may consider reviewing timelines before 1 July to manage financial exposure.
This also affects long-term migration planning.
186 TRT pathway requires a compliant salary.
Salary must remain consistent.
Falling below threshold can affect nomination eligibility.
High-income roles may qualify under the Specialist stream.
Migrants should:
Review employment contracts carefully.
Confirm guaranteed base salary (excluding super).
Ensure compliance is maintained over time.
If sponsoring 5 Core Skills workers:
While moderate individually, aggregate increases can affect workforce planning.
It increases to $79,499 for the 2026–27 program year.
No. Subclass 494 is tied to TSMIT and not automatically indexed.
No. Only guaranteed base salary counts.
You must still meet TSMIT. If the market rate is lower, the position cannot be nominated.
No. Changes apply only to new nominations lodged from 1 July 2026.
Generally, no. Only guaranteed earnings count.
If AWOTE rises, indexation is likely.
For 2026–27, they align numerically, but legally they are distinct mechanisms.
The updated temporary skilled migration income threshold reinforces Australia’s focus on wage integrity and labour market protection.
For employers, proactive planning is essential. For skilled migrants, understanding how TSMIT and Employer-sponsored skilled visa salary thresholds operate can protect your long-term migration strategy.
If you are planning sponsorship or relocation in 2026, reviewing salary compliance before 1 July can help avoid costly surprises.
