As 1 July 2026 approaches, several important migration changes are expected to affect employers, skilled visa applicants, and those planning permanent residency pathways in Australia.
Each year, 1 July commonly brings updates to government fees, migration planning settings, income thresholds, occupation lists, program allocations and eligibility requirements. For clients preparing visa applications, skills assessments, nominations or expressions of interest, timing can be critical.
Below is a practical recap of the key areas to monitor ahead of 1 July 2026.
Employer Sponsored Visa Salary Thresholds
From 1 July 2026, changes to the income threshold will be applicable as follows:
The above thresholds are relevant to employer sponsored visa applications, including Subclass 482 and Subclass 186 applications.
An increase to the Temporary Skilled Migration Income Threshold (TSMIT) is also expected, although the final amount has not yet been confirmed. Employers should continue to monitor this closely, particularly where they are preparing nominations or considering permanent residence pathways for sponsored employees.
Employers intending to sponsor workers should review proposed salaries now to ensure that nominations lodged on or after 1 July 2026 will continue to satisfy the relevant income threshold.
Visa Application Charge Increases – Annual Indexation Expected
Visa Application Charges are commonly indexed at the start of the new financial year.
Although the exact amount of the 1 July 2026 increase has not yet been confirmed, annual indexation is expected.
Where an application is complete and decision-ready, there may be a cost benefit in lodging before the fee increase takes effect.
For employers, the expected increase may also impact internal budgeting for sponsorship programs, particularly where multiple nominations and visa applications are planned.
2026-2027 Migration Program Planning Levels
The Australian Government has confirmed that the 2026-2027 permanent Migration Program will remain at 185,000 places, with approximately 70% allocated to the skilled stream.
However, the internal distribution of skilled places has shifted, with a notable increase in employer-sponsored places and a significant reduction in regional visa allocations.
Clear Shift Towards Employer Sponsored Migration
The Employer Sponsored allocation has increased significantly from 44,000 to 58,040. This means 14,040 new spots are added for this financial year.
This confirms the continuing importance of employer led migration, particularly for businesses seeking to retain skilled employees and address workforce shortages through structured sponsorship pathways.
For employers, this is a timely reminder to review temporary visa holders and consider whether they may be eligible for a permanent residence pathway, including the subclass 186 visa.
Reduction in Regional Visa Allocations
The reduction in regional visa allocations is also significant.
Regional visa places are reducing from 33,000 to 14,110, representing a decrease of 18,890 places.
This may lead to:
- increased competition for Subclass 491 invitations;
- fewer opportunities for applicants relying primarily on regional nomination;
- greater reliance on employer-sponsored pathways in regional areas;
- the need for regional employers to reassess recruitment and retention strategies.
Applicants who are pursuing a regional pathway should ensure their Expression of Interest is up to date and should monitor state and territory nomination criteria closely.
Status of State and Territory Nomination Programs
Many state and territory nomination programs are now at, or near, the end of the 2025 to 2026 program year.
Several states have already closed to new registrations of interest or applications, while others are continuing to assess applications already lodged.
- Victoria has closed its 2025 to 2026 skilled visa nomination program to new Registrations of Interest and will continue considering submitted ROIs for remaining places.
- New South Wales (NSW) has invited sufficient EOIs for the subclass 190 visa for the current program year and is not expected to issue further subclass 190 invitations until a new allocation is provided. Subclass 491 Pathways 1 and 3 have also been closed to new applications. NSW has continued to conduct subclass 491 Pathway 2 rounds while places remain available
- Tasmania has announced that ROIs for all pathways will close on 3 June 2026, with the final invitation round scheduled shortly after.
- The Northern Territory has closed its nomination portal to new applications after receiving sufficient applications to use its 2025 to 2026 General Skilled Migration allocation.
- Other jurisdictions should be monitored closely, as program availability can change quickly near the end of the financial year.
Applicants relying on Subclass 190 or Subclass 491 nomination should monitor:
- program opening dates
- occupation list changes
- invitation rounds and
- other eligibility changes
A pathway that is available before 1 July may not necessarily remain available in the same form once the new program year commences. Given the reduction in regional allocations, Subclass 491 applicants in particular should be prepared for more competitive settings.
What Employers Should Do Before 1 July 2026
Employers sponsoring overseas workers should use the coming weeks to review their workforce and identify any urgent sponsorship needs.
This should include:
- checking visa expiry dates
- reviewing salaries against the new thresholds
- confirming whether roles meet the annual market salary rate
- reviewing employment contracts
- preparing supporting business evidence
- considering permanent residence options for eligible employees
Employers with large sponsored worker cohorts should also consider whether any employees are approaching visa expiry, age limits, changes in role, or eligibility windows for permanent residence.
What Skilled Visa Applicants Should Do
Visa applicants should also use the lead-up to 1 July to review their position.
Key action items include:
- checking visa expiry dates;
- confirming skills assessment validity;
- updating Expressions of Interest;
- reviewing points claims;
- checking English test validity;
- monitoring state and territory nomination programs;
- considering whether lodgement before 1 July is possible;
- budgeting for expected fee increases;
- considering employer-sponsored options where available.
For applicants approaching critical age thresholds, timing may be particularly important.
Key Takeaway
The lead-up to 1 July 2026 is more than a routine end-of-financial-year period.
The increase to the CSIT and SSIT, the expected increase to TSMIT, anticipated visa application charge increases, and the new 2026–27 Migration Program planning levels all point to a system that is increasingly focused on employer-sponsored and demand-driven migration.
At the same time, the significant reduction in regional visa allocations means applicants and employers should not assume that regional pathways will remain as accessible as in previous years.
Early planning, complete applications and a clear migration strategy will be critical in the months ahead.
Changes to the migration program can occur without notice. The above information is not intended to be legal advice and is correct as of the date of writing this article.
Contact Migrations Affairs to speak with our immigration experts for tailored advice on the circumstances and eligibility.
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