What Skilled Migrants Must Know Before the 2025–2026 Financial Year

With a new financial year fast approaching, major changes to Australia's migration system are taking shape. From income threshold increases and higher visa costs to a revised points test and continued support for employer-sponsored pathways, now is the time to prepare if you're an aspiring migrant or looking to transition to permanent residency (PR) in Australia.

Here’s a breakdown of what migrants, international students, and skilled workers need to know going into FY 2025–26, and what actions you should take now.

Labor’s Election Win Secures Stability for Skilled Migration

In May 2025, the Australian Labor Party secured re-election, with Prime Minister Anthony Albanese remaining in power. The opposition, led by Peter Dutton, campaigned to cut migration numbers, but voters rejected that approach. Dutton even lost his seat, showing strong public support for Labor’s balanced and skills-focused migration strategy.

Labor’s win guarantees continued focus on:

• Sustainable skilled migration that supports Australia's workforce and economic needs

• Employer-sponsored pathways, like the Skills in Demand Visa (Subclass 482)

Key Migration Policy Changes for FY 2025–26

 1. Skilled Visa Income Thresholds Rising from 1 July 2025

As part of the ongoing Migration Strategy, key income thresholds for skilled visas will rise by 4.6%, aligned with national wage growth (AWOTE). These changes affect both migrants and the employers who nominate them.

Updated Thresholds:

• Core Skills Income Threshold (CSIT):
  ➤ From AUD 73,150 → AUD 76,515
  (Affects subclass 482 – Skills in Demand, subclass 186 – Employer Nomination Scheme)

• Specialist Skills Income Threshold (SSIT):
  ➤ From AUD 135,000 → AUD 141,210
  (For the Specialist Skills stream of subclass 482)

• Temporary Skilled Migration Income Threshold (TSMIT):
  ➤ From AUD 73,150 → AUD 76,515
  (Impacts subclass 494 and subclass 187 visas)

Effective Date: Nominations lodged on or after 1 July 2025 must meet these new thresholds

2. Student Visa Changes: Higher Costs and Stricter Rules

Starting mid-2025:

• Student visa fees will increase from AUD 1,600 to AUD 2,000

• New English language requirements and integrity checks will apply

• While no official cap exists, these rules are expected to reduce overall student numbers

Implication: The student visa pathway to PR will become more expensive and selective. If you're considering this route, now is the time to plan strategically.

3. Skilled Migration Points Test Overhaul Coming

The points system is expected to change in FY 2025–26, with possible updates including:

• Adjustments to regional visa eligibility (491)

• Changes to NAATI community language points

• New points for applicants with skilled partners

 4. More Support for Regional Migration and Employers

To attract workers to populated areas:

• Regional employers will benefit from streamlined visa processing and skills assessments

• Concessions on salary thresholds and Skilling Australia Fund (SAF) fees will apply in some industries

How to Prepare: Maximize Your PR Points Now

Building a strong points profile is the key to securing PR as migration becomes more competitive.

Here’s what to focus on:

Educational Achievements: Your education is a cornerstone of your PR application. The more advanced your qualification, the more points you can claim

• Doctorate Degree: 20 points

• Master’s/Bachelor’s Degree: 15 points

• Diploma or Trade Qualification: 10 points

• Study in Regional Australia: +5 bonus points

Also, don’t overlook the Skills Assessment. Completing this assessment proves your qualifications match Australian standards and grants you another 10 points.

English Proficiency: This is one of the few areas where you have complete control, and a strong score not only boosts your points but also makes you more employable in Australia.

• Score 8 or above: 20 points

• Score 7 or above: 10 points

Work Experience

• Even one year of full-time Australian work experience can earn you 5 points.

• More years—either in Australia or combined with overseas experience—can push your total up to 20 points, depending on the type and duration.

Partner Skills Assessment

Migrating with a skilled partner can work in your favour. If your partner is under 45, has competent English, and passes a skills assessment, you could gain 10 PR points.

Age Factor

Your age at the time of application plays a major role. If you're in the 25–32 age bracket, you're in the sweet spot, earning the maximum 30 points. This reflects the government's preference for younger, long-term contributors.

Government Nomination

Securing a state or territory government nomination, such as through Visa Subclass 190, adds 5 points. This shows that your skills are in demand in a specific region and makes your application stronger.

What This Means for You

For Skilled Migrants and PR Applicants

These changes signal that 2025–26 will be more competitive and more regulated. The time to act is now—boost your points, check your eligibility, and get expert guidance.

For Employers

If you’re sponsoring overseas workers, prepare for:

• Higher salary thresholds

• Adjusted rules on regional visas

• Continued access to skilled workers through Subclass 482 and 186 visas

Don’t Navigate These Changes Alone

Being subjected to these complex changes can be overwhelming. Our experienced migration consultants at Think Visa are here to guide you through the latest regulations, ensure compliance, and boost your chances of a successful visa application.