July 1, 2025, marks significant changes in Australian immigration policy. These modifications affect salary thresholds, visa categories, and application requirements across multiple streams. Understanding these changes helps applicants make informed decisions before implementation.
Income Threshold Increases
TSMIT (Temporary Skilled Migration Income Threshold)
The TSMIT increases from $73,150 to $76,515, representing a 4.6% rise. This threshold affects multiple visa categories:
- Subclass 494 (Skilled Employer Sponsored Regional)
- Subclass 187 (Regional Sponsored Migration Scheme)
Core Skills Income Threshold (CSIT)
Rising from $73,150 to $76,515, CSIT impacts:
- Subclass 482 Core Skills stream
- Subclass 186 Employer Nomination Scheme
Specialist Skills Income Threshold (SSIT)
Increasing from $135,000 to $141,210, affecting:
- Subclass 482 Specialist Skills stream
- High-income pathway applications
Superannuation Changes
The Superannuation Guarantee rises from 11.5% to 12% on July 1, 2025. Employers must pay this in addition to meeting minimum salary thresholds. A position meeting the minimum $76,515 TSMIT will cost employers $85,697 including superannuation.
Application Timing Critical
These changes do not affect:
- Existing visa holders
- Applications submitted before July 1, 2025
- Approved nominations lodged before the deadline
Applications submitted on or after July 1 must meet new thresholds. This creates a critical window for applications with salaries between old and new requirements.
Skills in Demand Visa Implementation
The Skills in Demand (SID) visa replaced the Temporary Skill Shortage (TSS) 482 visa on December 7, 2024. July 2025 brings full implementation with updated thresholds.
Three-Stream Structure
1. Specialist Skills Stream
- Minimum salary: $141,210 (from July)
- No occupation list restrictions
- 7-day priority processing
- 4-year visa duration
2. Core Skills Stream
- Minimum salary: $76,515 (from July)
- Core Skills Occupation List applies
- Standard processing times
- 4-year visa duration
3. Essential Skills Stream
- Currently under development
- Targeting lower-paid essential workers
- Implementation details pending
Key Improvements from TSS
The Skills in Demand visa introduces several beneficial changes:
- Work experience requirement reduced from 2 years to 1 year
- Job search period extended from 60 to 180 days after employment ends
- Employment with any sponsor counts toward permanent residency
- All streams receive 4-year visas (previously 2 or 4 years)
- Sponsors no longer monitor occupation compliance after employment
Occupation List Changes
The Core Skills Occupation List adds over 70 occupations including:
- Data Analyst
- Supply Chain Analyst
- Tour Guide
- Child Care Worker
Removed occupations include:
- Café and Restaurant Manager
- ICT Support Engineer
- Graphic Designer
Student Visa Restrictions
Confirmation of Enrolment Requirements
Since January 1, 2025, all onshore student visa applications require a Confirmation of Enrolment (CoE). Letters of Offer no longer suffice. A CoE requires:
- Accepting the official offer
- Paying required deposits
- Meeting all enrollment conditions
Visa Hopping Prevention
From July 1, 2024, these visa holders cannot apply for student visas while in Australia:
- Visitor visa (Subclass 600) holders
- Temporary Graduate visa (Subclass 485) holders
- Other specified temporary visa holders
Working Holiday Maker visa holders (417/462) remain eligible for onshore student applications.
Genuine Student Requirements
The new Genuine Student (GS) requirement replaces the Genuine Temporary Entrant (GTE) system. Applicants answer targeted questions about:
- Current circumstances and ties to home country
- Reasons for choosing specific course and institution
- How the course benefits their career
- Previous Australian study history
Updated Requirements
English Proficiency: IELTS 6.0 minimum (increased from 5.5)
Financial Capacity: $29,710 for 12 months living expenses
Age Limits: Temporary Graduate visa maximum age reduced to 35 (from 50)
For those affected by regional visa changes, understanding the full pathway helps planning. [{Link to Blog #2 - Regional Visa 491 to PR: The 3-Year Journey Nobody Talks About}]
Impact by Visa Category
Employer Sponsored Visas (482, 186, 494)
Employers must ensure nominated positions meet new salary thresholds from July 1. Existing approved nominations remain valid. New nominations require:
- Meeting increased TSMIT/CSIT/SSIT levels
- Demonstrating market salary rates
- Including 12% superannuation calculations
Student Visas
Current students face no changes. New applicants must:
- Obtain CoE before applying (onshore)
- Meet increased English requirements
- Consider age restrictions for post-study options
- Apply offshore if holding restricted visas
Regional Sponsored Visas
Regional employers face same threshold increases without regional discounts. The $76,515 TSMIT applies uniformly across all designated regional areas.
Strategic Planning for Applicants
Before July 1, 2025
For Employers:
- Submit all nominations with salaries below new thresholds immediately
- Review pending applications for threshold compliance
- Budget for increased salary and superannuation costs
- Consider Specialist stream for positions near threshold
For Visa Applicants:
- Lodge applications if current salary falls between old and new thresholds
- Negotiate salary increases to meet new requirements
- Explore alternative visa streams if threshold unattainable
- Ensure all documentation is complete for quick submission
For Students:
- Secure CoE before any onshore application
- Apply from offshore if holding visitor or graduate visas
- Prepare for higher English score requirements
- Consider age implications for future visa options
Long-term Implications
Market Adjustments
The threshold increases aim to ensure foreign workers receive wages comparable to Australian workers. This protects local wage standards while addressing skill shortages. Employers may need to restructure compensation packages or reconsider sponsorship strategies.
Student Pathways
Restrictions on visa hopping close pathways previously used to extend Australian stays. Students must plan their visa journey more carefully, considering post-study options from the start.
Regional Considerations
Uniform TSMIT application across regional areas removes cost advantages for regional employers. This may affect regional recruitment strategies and require alternative incentives.
Key Deadlines and Actions
Immediate Actions Required:
- Review current applications against new thresholds
- Submit nominations before July 1 if below new requirements
- Obtain CoE for any onshore student applications
Planning Considerations:
- Budget for increased employment costs
- Assess alternative visa pathways
- Consider timing of future applications
The complexity of these changes makes professional advice valuable. Understanding how multiple changes interact affects strategic decisions. For those navigating threshold requirements, visa stream selection, or timing strategies, registered migration agents provide personalized assessments based on individual circumstances.
July 2025 represents a significant shift in Australian immigration policy. Success requires understanding these changes and acting strategically before implementation. The window for applications under current thresholds closes permanently on June 30, 2025.
