FY2025–2026 Key Visa and Migration Updates International Employers in Australia Should Know
As we enter the 2025–2026 financial year, important updates to Australia’s skilled migration programme have come into effect, impacting salary thresholds and regional migration pathways for businesses that sponsor overseas workers.
By Ro Elvinia
According to Chris Johnston, Principal Lawyer at Work Visa Lawyers, an immigration law firm in Australia, there are key considerations employers should keep in mind when planning to sponsor skilled workers under the updated Core Skills Income Threshold (CSIT), Specialist Skills Income Threshold (SSIT), Temporary Skilled Migration Income Threshold (TSMIT), or through Designated Area Migration Agreements (DAMAs).
He said, “For 2025–2026, most employer-sponsored visas will require a minimum salary of $76,515. Through DAMA, some occupations may receive a 10% concession, which means a minimum salary of $68,863.50.”
These insights provide important context for international employers planning to sponsor skilled workers and navigating Australia’s evolving migration landscape. While ABN Australia does not offer visa or migration advisory services, we know just how important these updates are for you. Many of you rely on global talent or are navigating complex workforce needs as you grow in Australia. That’s why we remain committed to keeping you informed about relevant policy and regulatory changes that could impact your local operations.
New Skilled Visa Income Thresholds from 1 July 2025
From 1 July, the Australian Government has increased income thresholds for several employer-sponsored visa programs. These changes align with the Average Weekly Ordinary Time Earnings (AWOTE) indexation and aim to safeguard local wage standards.
The updated thresholds are as follows:
- CSIT
Increasing from $73,150 to $76,515. This applies to Subclass 482 (Skills in Demand visa – Core Skills stream) and Subclass 186 (Employer Nomination Scheme).
- SSIT
Increasing from $135,000 to $141,210. This applies to the Specialist Skills stream of Subclass 482.
- TSMIT
Increasing from $73,150 to $76,515. This applies to Subclass 494 (Skilled Employer Sponsored Regional visa) and Subclass 187 (Regional Sponsored Migration Scheme).
Employers submitting nomination applications from 1 July 2025 onwards must ensure that the offered salary meets the new income threshold or the applicable annual market salary rate (whichever is higher). These changes do not affect existing visa holders or applications lodged before 1 July 2025.
Overview of Labour Agreements
For global businesses entering or expanding in Australia, a Labour Agreement may provide more flexibility than standard skilled visa pathways, particularly where roles are hard to fill locally or are not on the skilled occupation list.
Administered by the Department of Home Affairs, Labour Agreements are formal arrangements between approved employers and the Australian Government that allow concessions around job roles, English requirements, age, and salary benchmarks.
This makes Labour Agreements particularly relevant for global businesses navigating:
- Hard-to-fill technical or regional roles
- Workforce shortages in regulated industries
- Long-term expansion plans requiring continuity of expertise
Five Types of Labour Agreement
There are five main types of Labour Agreements that international employers should be aware of:
- Company-Specific Labour Agreements
These are designed for businesses with unique or niche skill requirements that cannot be met through local recruitment. These agreements are tailored specifically to the sponsoring employer.
- Designated Area Migration Agreements (DAMAs)
DAMAs are developed for regional areas facing acute labour shortages. These allow employers to sponsor overseas workers for a wider range of occupations, often with concessions on income, age, and English language skills.
- Industry Labour Agreements
This is available to employers in sectors experiencing persistent skill shortages across Australia such as aged care, dairy, horticulture, and meat processing.
- Global Talent Employer Sponsored (GTES) Agreements
The GTES Agreements are ideal for international companies in the tech or innovation sectors that need access to highly skilled global talent not available in the Australian market.
- Project Agreements
These are used for major infrastructure and resource projects where large-scale labour requirements cannot be met through the local workforce.
Each Labour Agreement comes with strict compliance obligations, including proof of a genuine skills shortage, labour market testing, and demonstration that the position cannot be filled through local recruitment. Employers are also required to meet ongoing sponsorship and reporting responsibilities throughout the life of the agreement.
Continued Growth in Regional Migration Via DAMAs
DAMAs are becoming an increasingly important workforce tool for employers operating in regional Australia. For international businesses setting up in areas outside major metropolitan hubs, DAMAs offer greater flexibility to address labour shortages, particularly in industries like aged care, agriculture, hospitality, transport, and logistics.
Unlike standard skilled migration programmes, DAMAs allow approved regional employers to sponsor overseas workers for a much wider range of occupations, including roles that may not appear on the national skilled occupation list. In addition to expanded occupation access, DAMAs offer concessions on key visa criteria such as:
- English language proficiency
- Age limits (typically extended to applicants up to 55 years old)
- Salary thresholds where market rates differ from urban centres
These concessions make it significantly easier for businesses in regional or remote areas to attract and retain talent that would otherwise not meet standard visa requirements.
At the 2025 MIA Regional Migration Conference in Adelaide, it was reported that DAMA applications in South Australia alone increased from 600 to 1,700 in just one year. This strong uptake reflects a growing reliance on DAMAs by employers facing persistent skill gaps in local labour markets.
Currently, there are 12 active DAMA regions across Australia, including:
- Adelaide City Technology & Innovation Advancement DAMA (SA)
- South Australia Regional Workforce DAMA (SA)
- East Kimberley DAMA (WA)
- Pilbara DAMA (WA)
- Goldfields DAMA (WA)
- South West (Shire of Dardanup) DAMA (WA)
- Western Australia Statewide DAMA (WA)
- Far North Queensland DAMA (Cairns Chamber of Commerce, QLD)
- Townsville DAMA (QLD)
- Orana DAMA (NSW)
- Goulburn Valley DAMA (VIC)
- Great South Coast DAMA (VIC)
For international companies considering regional investment or expansion, DAMAs can form part of a longer-term workforce strategy, particularly when recruiting in specialised or labour shortage roles that are difficult to source locally.
If you are considering employer sponsorship, exploring a Labour Agreement, or assessing eligibility under a DAMA, we recommend speaking with a registered migration agent or immigration lawyer who specialises in Australian migration law.
Published: 25th July 2025 | Last updated: 25th July 2025
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