CSIT stands for Core Skills Income Threshold and plays a key role in Australia’s employer-sponsored migration system. It ensures that employers pay overseas workers fairly and do not undercut local wages by offering lower salaries to international labour.
From 1 July 2025, the CSIT will rise to $76,515, up from the current $73,150, marking a 4.6% increase in line with average wage growth in Australia. Understanding what this means for your business or visa application is essential to avoid costly delays or refusals.
What Is CSIT?
Employers must offer skilled visa applicants a minimum annual base salary (excluding superannuation) that meets the Core Skills Income Threshold (CSIT) under employer-sponsored programs.It applies to visa subclasses, including:
- Subclass 482 (Skills in Demand Visa)
- Subclass 186 (Employer Nomination Scheme)
- Subclass 494 (Skilled Employer Sponsored Regional Visa)
The goal of CSIT is to:
- Prevent the exploitation of migrant workers
- Maintain the integrity of Australia’s labour market
- Ensure employers hire skilled migrants only when no local workers are available
The government reviews CSIT regularly and indexes it in line with Australia’s Average Weekly Ordinary Time Earnings (AWOTE). This approach helps salary thresholds keep pace with the broader economy. For ENS and SID Core Skills Stream nomination applications lodged between 7 December 2024 and 30 June 2025, the CSIT is set at $73,150.
Why the Increase in CSIT Matters
The 2025 increase is part of the broader reforms to the Australian migration system, and here is why the increase in CSIT Matters:
- For Employers: Employers must ensure they are budgeting for salaries that meet or exceed the new threshold. Failure to do so could result in a rejected nomination and business delays.
- For Skilled Migrants: Applicants must understand that their proposed salary offer must comply with both CSIT and AMSR. Low offers can lead to refusals, even if the employer is approved.
- For the Labour Market: The CSIT safeguards Australian wages and prevents downward pressure on industries that rely heavily on skilled migrant labour, such as health, IT, construction, and engineering.
What Happens If You Don’t Meet CSIT?
Failing to meet the CSIT or AMSR will likely result in your visa nomination being refused. This can delay recruitment, damage your compliance record, and limit future sponsorship privileges. For visa applicants, it can mean losing a job opportunity or facing significant delays.
Looking Ahead
With annual indexation now part of the CSIT framework, both employers and applicants need to stay up to date on salary requirements. As Australia tightens its skilled migration system, understanding income thresholds is not just a legal requirement, it’s a competitive advantage.
Need Help With Your Visa?
At Aurelia Legal, we help businesses and skilled professionals navigate the complexities of Australian migration law. Whether you’re unsure how CSIT applies to your role or need support with a full nomination and visa application, we’re here to assist.
📞 (03) 9125 8820
✉️ info@aurelialegal.com.au
🌐 www.aurelialegal.com.au