Australia Adjusts Minimum Income Threshold for Skilled Visas from 1 July 2025 – 4.6% Increase Based on AWOTE

The Australian government has officially announced a significant change to the Skilled Visa program. Accordingly, from 1 July 2025, the mandatory minimum income threshold (TSMIT – Temporary Skilled Migration Income Threshold) for skilled visa applicants will increase by 4.6%, aligning with the Average Weekly Ordinary Time Earnings (AWOTE) index released by the Australian Bureau of Statistics.

This is part of the government’s ongoing efforts to protect the domestic labor market and ensure that the skilled migration program accurately reflects the qualifications, skills, and real value of international workers in Australia.

TSMIT Increase: What Specifically Changes?

Currently, the TSMIT is set at AUD 70,000 per year (effective from July 2023). With a 4.6% increase, the minimum income threshold is expected to rise to approximately AUD 73,220 per year from 1 July 2025. This adjustment is based on the Average Weekly Ordinary Time Earnings (AWOTE), a measure of the average earnings of Australian employees.

According to the Department of Home Affairs, adjusting the TSMIT based on AWOTE helps maintain its real value over time and prevents the underpayment of skilled workers below market standards.

Why Is the Minimum Income Threshold Important?

The TSMIT is not only a baseline salary for assessing skilled visa applications but also a safeguard for protecting foreign workers’ rights, ensuring they are not exploited or forced to work for wages below market rates.

The increase in TSMIT also aims to:

– Prevent an influx of cheap labor from entering Australia, which could undermine local workers.

– Ensure the quality of applicants for skilled visas.

– Encourage genuinely skilled international workers with practical experience.

Impact on Vietnamese Applicants and Common Occupations

With the new TSMIT, some Vietnamese applicants pursuing skilled visas may need to revise their applications and update their job offers to meet the new income requirement. This is especially relevant for occupations such as:

– Engineers, IT professionals, and technicians

– Chefs and hospitality staff

– Healthcare workers, caregivers, and early childhood educators

– Electricians, construction workers, and mechanics

Meeting the new minimum salary has become a mandatory criterion for visa applications and employer sponsorship in Australia. If the salary offered in the job invitation falls below the new TSMIT, the visa application may be refused or returned for amendments.

Solutions for Applicants Preparing Skilled Visa Applications 2025–2026

With this change, those intending to apply for skilled visas should note the following:

– Carefully review the job offer to ensure the contract salary exceeds AUD 73,220 per year.

– Research the Australian labor market to identify suitable occupations with competitive remuneration.

– Update your documentation as early as possible, especially qualifications, work experience, and English proficiency.

– Engage reputable migration advisors to ensure your visa strategy aligns with the evolving policy timeline.

Conclusion

The 4.6% increase in the minimum income threshold from 1 July 2025 reflects Australia’s trend toward raising the quality standards for skilled migrants. This move signals that the government is tightening the criteria for skilled visa applications while welcoming candidates who genuinely possess the qualifications, skills, and long-term economic contributions.

Vietnamese individuals aspiring to settle in Australia should proactively update their information and adjust their migration plans now to stay ahead of policy changes in the 2025–2026 financial year.