As we approach 1 July 2025, key reforms under the Australian Government’s migration strategy are about to take effect, and more are expected to be introduced soon.
CSIT, SSIT and TSMIT increases from 1 July 2025
The income thresholds for visa nominees will increase from 1 July 2025 as follows:
- the Core Skills Income Threshold (CSIT) will increase from $73,150 to $76,515;
- the Specialist Skills Income Threshold (SSIT) will increase from $135,000 to $141,210; and
- the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $73,150 to $76,515.
These increases continue the Government’s efforts to lift wage protections for visa holders and ensure sponsored roles align with genuine skills needs.
What is the CSIT, SSIT and TSMIT and why do they matter?
- employers nominating employees within the Core Skills stream of the Skills in Demand (SID) visa will need to pay a visa nominee at least the higher of the CSIT and an Annual Market Salary Rate (AMSR) (an average salary expected to be paid to an equivalent role having regard to salary guides and industry standards);
- employers nominating employees within the Specialist Skills stream of the SID visa will need to pay a visa nominee at least the higher of the SSIT and an AMSR; and
- employers nominating employees for a Skilled Employer Sponsored Regional visa or within the Regional Sponsored Migration Scheme will need to pay a visa nominee at least the higher of the TSMIT or an AMSR.
These increases are significant and may make some occupations in the Core Skills stream difficult to justify.
We anticipate a rush of nomination applications being lodged before 30 June based on the current income thresholds, so expect a backlog of applications and processing delays.
Be alert but not alarmed: compliance is key
Heading into the second half of 2025, employers must be prepared for the possibility of unannounced inspections or detailed monitoring requests from the Australian Border Force (ABF) and Fair Work Ombudsman (FWO).
As a former Minister for Immigration, Citizenship and Multicultural Affairs warned: “The ABF will be out there enforcing the law. Businesses who do the wrong thing should be ready for a knock at the door.”
Conduct regular internal compliance reviews
Partner with external providers to undertake internal compliance reviews. It is far easier to address non-compliance internally than it is to wait for an inspector to identify it and compel certain actions or impose sanctions. This might include, for example, reviewing your sponsored employees’ files to ensure you have all required documents and that nothing is out of date. Review your payroll records to confirm that all employees, especially visa holders, are receiving correct wages and no unlawful deductions are occurring. If you identify any issues, seek advice, take corrective action immediately and document it.
Internal reviews can be scheduled (quarterly, biannually or annually depending on the size of the workforce, number of visa holders and system maturity) and should be done by someone knowledgeable in the requirements.
Keep records organised and accessible
One of the first things inspectors will ask for is evidence of compliance – such as payslips, time sheets, copies of visa and work rights checks etc.
Ensure your record-keeping is up to date and that you can retrieve records quickly. Ensure files are maintained (even after the employment relationship ends). Missing or chaotic records raise red flags and can prolong an investigation.
Comply with inspectors
It is critical to seek advice and understand the roles and rights of inspectors. More importantly, it is critical to understand your obligations to cooperate with inspectors. Provide training to relevant persons within the organisation on inspection protocols.
Stay informed
Legislative changes are regular and fast paced. It is very important to ensure you have a system in place to stay across the changes and understand your obligations.
Reminder: visa holders still have employment rights
This July will mark two years since s40B was introduced into the Fair Work Act 2009 (Cth) (FW Act). While short, the provision has a significant impact on employers’ dealings with employees who are visa holders. It reads:
For the purposes of this Act, any effect of the Migration Act 1958, or an instrument made under that Act, on the validity of a contract of employment, or the validity of a contract for services, is to be disregarded.
The Explanatory Memorandum released at the time explained the term as making the policy position explicit that “a migrant worker working in Australia would be entitled to the benefit of the FW Act regardless of migration status, including in relation to wages and entitlements conferred by the statute or a fair work instrument”.
Depending on the nature of the engagement, s40B in the FW Act means that, even where a migrant worker has ceased to have the lawful right to work, they may still be entitled to the usual termination rights like the payment in lieu of notice and the payment of accrued but unused entitlements.
The views expressed in this article are general in nature only and do not constitute legal advice. Please contact us if you require specific advice tailored to the needs of your organisation’s circumstances.