Starting from July 1, 2025, Australia will implement a series of regulatory changes affecting foreign workers, skilled visa applicants, and employers. The reforms include higher income thresholds for skilled visas, a boost to the national minimum wage, and adjustments to superannuation and business fees.
For foreign workers planning to move to Australia or those already there on temporary skilled visas, these changes are crucial to understand.
Skilled Visa Income Thresholds to Increase by 4.6%
Foreign workers applying for skilled visas in Australia will face higher salary requirements from July 1, 2025. The Temporary Skilled Migration Income Threshold (TSMIT), which applies to employer-sponsored visa nominations, will rise from AUD 73,150 to AUD 76,515.
Other thresholds are also increasing:
| Visa Type | Old Threshold | New Threshold |
|---|---|---|
| Core Skills Income | AUD 73,150 | AUD 76,515 |
| Specialist Skills Income | AUD 135,000 | AUD 141,210 |
| TSMIT (for 482/494 visas) | AUD 73,150 | AUD 76,515 |
This means all new employer-sponsored visa applications must meet or exceed the updated thresholds. However, those who already hold a temporary skilled visa or have lodged nominations before July 1, 2025, will not be affected by these increases.
Minimum Wage Boost for All Workers
Alongside skilled visa changes, Australia’s national minimum wage will increase by 3.5%.
From July 1, 2025:
- The weekly minimum wage will rise to AUD 948
- The hourly minimum wage will be AUD 24.95
This update will apply from the first full pay period on or after July 1, 2025. While most foreign workers on skilled visas are usually paid above the minimum wage, this change benefits those in entry-level roles or transitioning between positions.
Superannuation Guarantee Rate Increased to 12%
To further support workers’ retirement savings, the superannuation guarantee rate will rise from 11.5% to 12%.
This higher rate will apply to all eligible wages paid on or after July 1, even if the pay period partially falls in June. Foreign workers should check their payslips to ensure employers are complying with the new rate.
Additionally, the Australian government will begin paying superannuation on Parental Leave Pay, a positive development for parents receiving government-funded leave.
New Business and Tax Rules for Employers
For business owners sponsoring foreign workers, there are other financial adjustments to consider:
- Company registration will rise from AUD 597 to AUD 611
- Annual review fees will increase from AUD 321 to AUD 329
- Business name renewal (1 year) will increase from AUD 44 to AUD 45
Moreover, interest charges on tax debts from the Australian Taxation Office (ATO) will no longer be tax-deductible from July 1, 2025. This could lead to higher costs for employers who delay tax payments.
What This Means for Foreign Workers and Employers
These changes reflect Australia’s broader strategy to attract highly skilled migrants while improving worker protections. For foreign workers:
- Plan ahead to meet higher income thresholds.
- Negotiate salaries that comply with updated TSMIT rates.
- Stay informed about superannuation entitlements.
For employers:
- Budget for increased costs in wages, superannuation, and registration fees.
- Review and update job offers for skilled migrants applying post-July 1, 2025.
Final Thoughts
Australia’s upcoming changes on July 1, 2025, mark a significant shift for foreign workers and skilled visa applicants. With increased income thresholds, wage rises, and updated super rules, now is the time to prepare, whether you’re planning to apply for a visa or already working in the country
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