The Year Resets Today- from the desk of Phoenix Law & Associates
New Financial Year, New Employer Sponsored Visa Salary
Today is the day Australia’s migration system quietly resets itself. Salary thresholds move. Visa charges move. Review fees move. The 2026–27 Migration Programme opens for business with a different shape than the one it replaces. None of this happened with a press conference. All of it happened on schedule, exactly as the Federal Budget foreshadowed in May. For anyone with a visa application in train, a sponsored employee on the books, or a decision to make about when to lodge, 1 July is not a date to notice in hindsight — it is the date that determines which rules apply to you.
If you have a sponsored employee, a pending application, or a strategic decision to make in light of today’s changes, we encourage you to contact our office for tailored advice. CALL +61731800908 | email – info@phoenix-law.com.au | Level 8, 320 Adelaide Street, Brisbane
KEY TAKEAWAY
From today, employer-sponsored visa salary floors rise by roughly 3.9 % most visa application and review charges move up under standard indexation, superannuation must be paid on payday rather than quarterly, and the 2026–27 Migration Programme opens with a markedly different mix of places than the year just closed. Almost none of these changes carry a grace period. The rule that matters is the date of lodgement — not the date you started preparing.
The System’s Annual Reset Button
Every Australian visa programme runs on the same clock as the Commonwealth’s books. On 1 July each year, salary thresholds linked to wage growth re-index, government charges that are reviewed annually move, and a fresh allocation of permanent places becomes available under that year’s Migration Programme. In most years, this is a routine administrative event — a few hundred dollars here, a percentage point there, barely worth a client alert.
This year is different, not because any single change is dramatic, but because of how many land on the same day, against the backdrop of a Federal Budget that was explicit about its direction. The Budget handed down on 12 May 2026 confirmed an unchanged headline of 185,000 permanent places, but with a markedly reweighted internal structure — more places for people already onshore, fewer for offshore applicants, and a substantially expanded allocation for employer-sponsored migration. Today is the day that structure becomes operative.
Salary Thresholds Rise — and the Date You Lodge Decides Which Figure Applies
The most consequential change taking effect today is the annual indexation of the income thresholds that underpin employer-sponsored migration. Under Migration Regulation 5.42A, the Core Skills Income Threshold (CSIT) and Specialist Skills Income Threshold (SSIT) are indexed automatically each year against Average Weekly Ordinary Time Earnings — no fresh legislative instrument is required, which is precisely why this change arrives without fanfare and without exception.
| THRESHOLD | 2025–26 (UNTIL 30 JUNE) | 2026–27 (FROM 1 JULY) | APPLIES TO |
| Core Skills Income Threshold (CSIT) | $76,515 | $79,499 | Subclass 482 Core Skills Stream, Subclass 186 (ENS) |
| Temporary Skilled Migration Income Threshold (TSMIT) | $76,515 | $79,499 | Subclass 494 (Regional), Subclass 187 (RSMS) |
| Specialist Skills Income Threshold (SSIT) | $141,210 | $146,717 | Subclass 482 Specialist Skills Stream |
The increase amounts to approximately 3.9 per cent — broadly consistent with national wage growth, but enough to matter at scale. The governing rule is simple and unforgiving: the threshold that applies is the one in force on the date the nomination application is lodged — not the date negotiations began, not the date Labour Market Testing was completed, and not the date the visa is ultimately decided. A nomination lodged on 30 June is assessed against the old, lower figure even if it is decided weeks later. A nomination lodged today is assessed against the new figure, regardless of when preparation started.
For employers with borderline salaries
If a sponsored role — or a current 482 holder approaching a new nomination — sits between $76,515 and $79,499, that salary is no longer compliant for any nomination lodged from today. Meeting the CSIT or SSIT is also only a floor: the nominated salary must independently meet the Annual Market Salary Rate for the occupation and location, which in markets like Sydney and Melbourne frequently sits well above the statutory minimum.
The Quiet Compliance Change: Superannuation on Payday
Running alongside the salary threshold increase is a separate, equally significant compliance shift for every employer — not just sponsors. From 1 July 2026, employers must pay superannuation guarantee contributions at the same time as wages, generally within a short number of business days, rather than on the previous quarterly cycle. For businesses sponsoring overseas workers, this adds a cash-flow and payroll-system dimension to an already growing compliance load, and it sits alongside the Department’s existing sponsorship obligations around timely and correct remuneration. Non-compliance with superannuation obligations can also be relevant to a sponsor’s standing under the broader sponsorship obligations framework.
Employer-sponsored migration is the standout winner of this reset: the allocation has grown substantially year-on-year, reflecting the Government’s stated preference for channelling permanent places toward people already contributing to the Australian workforce. Regional visa allocations, by contrast, have been reduced significantly for 2026–27, a reallocation that regional employers and Subclass 494 hopefuls should factor directly into planning rather than assuming continuity with last year’s settings.
For skilled independent applicants, today also marks the point at which SkillSelect resets under the new programme year’s allocations, following the final, typically highest-volume invitation round of the outgoing year. Applicants who missed that round, or who are newly entering the points test pool, are now competing for places under a freshly opened — and differently sized — annual cap.
| 185,000 TOTAL PERMANENT PLACES | 129,590 ONSHORE ALLOCATION | 55,110 OFFSHORE ALLOCATION | 58,040 EMPLOYER-SPONSORED PLACES |
WHAT YOU SHOULD BE DOING THIS WEEK– Practical Steps for the New Financial Year
If You Are an Employer Sponsoring Overseas Workers
› Audit current and pipeline nominations against the new CSIT and SSIT immediately. Any role sitting below $79,499 (or $146,717 for specialist roles) is no longer compliant for nominations lodged from today.
› Check payroll systems are ready for payday superannuation. The shift from quarterly to payday contributions is a live compliance obligation, not a future one, and intersects with your standing sponsorship obligations.
› Reassess regional sponsorship strategy in light of the reduced 2026–27 regional allocation, particularly for Subclass 494 pipelines.
If You Have a Skilled or Points-Tested Application in Progress
› Do not assume your current points score will remain competitive. With a Points Test review foreshadowed, lodging an Expression of Interest under the existing rules sooner rather than later removes one layer of uncertainty.
› Check your skills assessment validity before relying on it under the newly opened programme year — many are time-limited and cannot be revived after expiry.
If You Are Preparing a Partner, Parent, or Family Application
› Confirm the current visa application charge before lodging via the Department’s Visa Pricing Estimator — do not rely on figures quoted earlier in the year.
› Treat decision-readiness, not cost-saving, as the priority. A higher charge on a complete, well-evidenced application remains a far better outcome than a lower charge on one that is refused.
DO NOT
Do not assume that because a change is described as “routine annual indexation,” it carries no consequence for you. A salary threshold increase of under 4 per cent can move a sponsored employee from compliant to non-compliant overnight. A visa charge increase of a few hundred dollars can be the difference that matters for a family already stretched by the cost of a multi-year application.
How Phoenix Law & Associates Can Assist
Phoenix Law & Associates advises employers, skilled applicants, and families across the full migration spectrum, and we are actively assisting clients through this year’s particularly dense 1 July reset. For employer sponsors, that means an immediate audit of salary compliance against the new CSIT and SSIT, and a review of payroll readiness for payday superannuation. For skilled applicants, it means strategic advice on EOI timing in light of the foreshadowed Points Test review. For families, it means ensuring that applications lodged under the new financial year’s charges are genuinely decision-ready, not simply lodged in haste.
If you have a sponsored employee, a pending application, or a strategic decision to make in light of today’s changes, we encourage you to contact our office for tailored advice. CALL +61731800908 | email – info@phoenix-law.com.au | Level 8, 320 Adelaide Street, Brisbane. #EmployerSponsors #VisaHolders #phoenixlaw #brisbanelawyers #MultilingualLawyers #MigrationLaw #AustralianVisa







