Significant increases to visa charges and sponsorship thresholds from 1 July 2026
The commencement of the 2026–27 financial year has brought a number of important changes affecting Australian employers, sponsored workers and visa applicants.
From 1 July 2026, the Department of Home Affairs has implemented substantial increases to visa application charges across a number of commonly used visa categories. Unlike previous years where increases have usually been in line with relevant CPI figures, this year an unprecedented 25% increase has been applied across almost all subclasses.
At the same time, the annual indexation of employer-sponsored visa income thresholds has taken effect, increasing the minimum salary requirements for certain employer-sponsored visas. The Fair Work High Income Threshold (FWHIT), which is relevant to the age exemption available under the Subclass 186 permanent employer nominated visa, has also increased.
The nomination charges associated with employer sponsored visa, and the Skilling Australians Fund Levy amounts remain unchanged.
Visa application charge increases
The following increases apply from 1 July 2026 (primary applicant fees only – note spouse and dependent child charges have also increased):
For employers supporting sponsored workers through temporary and permanent residence pathways, and for families lodging combined applications, these increases may have a significant impact on the overall cost of migration. Note however that the Department has introduced concessional fee arrangements across several visa subclasses for individuals from “Pacific Region” countries including Fiji, PNG, Samoa, Timor-Leste, Tonga, Solomon Islands, Tuvalu, Vanuatu, the Federated States of Micronesia and the Republic of Marshall Islands. Some concessions may also be available to student visa applicants from ASEAN countries.
New employer-sponsored salary thresholds
The annual indexation of employer-sponsored salary thresholds has also taken effect.
Core Skills Income Threshold (CSIT)
The CSIT applies to:
- Subclass 482 Skills in Demand visa (Core Skills stream)
- Subclass 186 nominations lodged on or after 7 December 2024
Specialist Skills Income Threshold (SSIT)
The SSIT applies to the Specialist Skills stream of the Subclass 482 visa.
Temporary Skilled Migration Income Threshold (TSMIT)
The TSMIT applies to Subclass 494 nominations.
Employers must continue to ensure that sponsored workers are paid at least the higher of the applicable threshold and the Annual Market Salary Rate (AMSR).
Fair Work High Income Threshold and Subclass 186 age exemptions
The Fair Work High Income Threshold (FWHIT) has increased from:
$183,100 to $190,100 from 1 July 2026.
This threshold is particularly relevant for certain applicants seeking to access an exemption from the standard age limit of 45 years under the Temporary Residence Transition (TRT) stream of the Subclass 186 Employer Nomination Scheme visa.
For employers with long-term sponsored workers approaching age 45, this serves as an important reminder to review remuneration arrangements and permanent residence planning well in advance as failure to meet the applicable FWHIT requirements in the two years immediately prior to application lodgement may impact eligibility for an age exemption.
Key takeaway for employers
These changes provide a timely opportunity for organisations to review their migration policies, budgeting assumptions and sponsorship practices.
Employers should ensure they understand:
- which sponsorship and nomination costs must legally be paid by the sponsoring employer;
- which costs cannot be recovered from employees;
- which visa-related costs may lawfully be paid by the visa applicant;
- how permanent residence support is managed across the organisation; and
- the likely impact of rising visa charges and salary thresholds on workforce planning and recruitment budgets.
With costs continuing to increase, a clear and compliant migration policy can help minimise risk, manage expectations and ensure consistency across the organisation.
Connect with us
If you would like assistance reviewing your migration program, sponsorship arrangements or permanent residence pathways for existing sponsored workers, please contact the Mapien Migration team below.