Australia has rolled out significant updates to its immigration policies as of 1st July 2025, affecting skilled workers, students, and permanent residency aspirants. These changes aim to align Australia’s migration system with its economic needs and labour shortages. Below is a detailed overview of the key updates and what they mean for prospective migrants.
📈 TSMIT Hike: New Income Thresholds for Skilled Visas
The Temporary Skilled Migration Income Threshold (TSMIT) has been increased from AUD 73,150 to AUD 76,515. This 4.6% hike ensures that visa holders are paid in line with average Australian earnings and helps protect both domestic and migrant workers.
Additionally, the Specialist Skills Income Threshold (SSIT) has risen from AUD 135,000 to AUD 141,210. This applies to highly paid roles under new visa categories.
Who is affected?
- Employer-sponsored visas (Subclass 186 ENS, 494 SESR)
- New Skills in Demand (SID) visa applicants
🚧 SID Visa Launch: Replacing the TSS Visa
One of the most transformative changes is the replacement of the Temporary Skill Shortage (TSS) visa with the new Skills in Demand (SID) visa. This change creates three new streams under the SID visa:
- Core Skills Stream
→ For workers earning AUD 76,515 or above - Specialist Skills Stream
→ For highly skilled roles with a salary of AUD 141,210 or more - Labour Agreements Stream
→ For industry-specific or region-specific agreements
These changes provide a clearer and more strategic migration pathway based on Australia’s occupational needs.
💸 Visa Application Charges (VAC) Increased
From July 1, visa application fees have been indexed by approximately 3% in line with the Consumer Price Index (CPI). The most notable increase is in the Student Visa (Subclass 500):
- Previous fee: AUD 1,600
- New fee: AUD 2,000 (25% increase)
Other visa subclasses have seen modest fee hikes, impacting family, visitor, and skilled visa categories.
⏳ Delays & Processing Backlogs
A backlog of approximately 7,000 unprocessed PR applications from the 2024–25 financial year is currently slowing down the new round of invitations for subclasses 189, 190, and 491. Applicants are advised to ensure their documentation and points are in order to improve their chances once processing resumes.
🔗 New Occupation Lists & Migration Planning
Australia has released a revamped Core Skills Occupation List (CSOL) prioritizing roles in healthcare, construction, engineering, and digital technologies. These occupations are aligned with the SID visa framework.
The 2025–26 Migration Planning Levels place a strong emphasis on:
- Skilled migration pathways
- Regional sponsorships
Global Talent Program
🔍 Summary of Key Changes
| Update | Details |
| TSMIT Income Threshold | Raised to AUD 76,515 |
| SID Visa Launched | Replaced TSS Visa |
| Student Visa Fee | Increased to AUD 2,000 |
| SSIT for Specialists | Raised to AUD 141,210 |
| Occupation List | Updated to reflect economic demands |
| PR Processing | Delays due to 2024–25 backlog |
📢 Final Thoughts
The July 2025 updates signify a shift toward a more selective and economically driven immigration system. Whether you’re a skilled worker, a student, or a PR aspirant, staying informed and preparing early is key to maximizing your chances.
For personalized guidance, consult a registered migration agent or subscribe to our newsletter for weekly updates.
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