The Australian federal government is implementing significant changes to its visa program this week, recalibrating migration settings with increased income thresholds, tighter student visa regulations, and stricter eligibility for skilled migration.

The Department of Home Affairs has confirmed a 4.6% increase to key salary thresholds for employer-sponsored skilled visas. Effective from the next financial year (commencing July 1), the Core Skills Income Threshold (CSIT) and the Temporary Skilled Migration Income Threshold (TSMIT) will rise from $73,150 to $76,515. For specialized, high-earning positions, the Specialist Skills Income Threshold (SSIT) will increase from $135,000 to $141,210.

These new thresholds apply to newly lodged applications for common pathways such as the 482 temporary visa, 186 Employer Nomination Scheme, and 494 regional visa. Existing applications and current visa holders will not be impacted, but all new sponsor offers must now adhere to the updated salary requirements, excluding superannuation.

The government states these adjustments, based on Average Weekly Ordinary Time Earnings (AWOTE), aim to ensure fair remuneration for migrant workers in line with Australian wages. 

However, businesses may face challenges with increased hiring costs and potential delays, particularly in sectors where salaries are currently just above the previous thresholds. Businesses are advised to submit applications promptly and finalize current pay rates to mitigate these impacts.