From 1 July 2026, several important Australian immigration settings are changing, including salary thresholds, migration planning levels and department policy.
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Quick answer: From 1 July 2026, Skills in Demand visa salary thresholds rose to $79,499 (Core Skills) and $146,717 (Specialist Skills), the Fair Work High Income Threshold moved to roughly $190,100, employer-sponsored places in the 2026–27 Migration Program increased from 44,000 to 58,040, and Australia expanded the Working Holiday (Subclass 417) visa age limit from 30 to 35 for passport holders from Cyprus, Finland, Germany and the Republic of Korea (South Korea). The Department is also applying stronger scrutiny to genuine-position and labour-market-testing evidence. |
Employer-sponsored migration gets a bigger share of the program
The total 2026–27 Migration Program stays flat at 185,000 places, the same headline number as 2025–26. Within that total, however, the government made a clear allocation choice: employer-sponsored places grew from 44,000 to 58,040, a jump of over 14,000 places, while the regional category (491/494) was cut from 33,000 to 14,110 to help fund the shift.
For employers, this is the strongest signal in several years that the government sees employer sponsorship – rather than points-tested or regional migration – as the primary lever for closing skills gaps. If your business relies on sponsored talent, this is a favourable structural shift.
Skills in Demand salary thresholds increase
As happens each year, the salary thresholds for the Skills in Demand visa (Subclass 482) increased from 1 July 2026. These apply to new nominations lodged from that date – existing nominations and visa holders are not retrospectively affected.
| Stream | Previous threshold | From 1 July 2026 |
| Core Skills | $76,515 | $79,499 plus superannuation |
| Specialist Skills | $141,210 | $146,717 plus superannuation |
The Fair Work High Income Threshold is also increasing, moving from $183,000 to $190,100 plus superannuation.
Employers should review salaries for any role they’re planning to nominate against the new thresholds before lodging, since a nomination pitched against the old figures will fall short from 1 July 2026 onward.
Working Holiday visa updates
Another change from 1 July 2026 affects the Working Holiday (Subclass 417) visa.
Australia has increased the maximum application age from 30 to 35 years for passport holders from:
- Cyprus
- Finland
- Germany
- Republic of Korea (South Korea)
These changes implement new bilateral agreements between Australia and each of these countries, bringing them into line with several other participating countries that already benefit from the higher age limit, including Canada, France, Ireland and the United Kingdom.
For employers, this modestly expands the pool of Working Holiday Makers available to fill short-term workforce needs. For eligible applicants, it provides an additional five years of eligibility to access Australia’s Working Holiday program.
More scrutiny on occupation and role alignment
Independent of the 1 July changes, the Department has signalled a clear shift toward closer scrutiny of sponsored roles. Employers should expect nominations to be tested more rigorously against:
- Whether the role is genuine and ongoing
- Whether the nominated occupation aligns with the actual duties being performed
- Whether the business has a demonstrable, genuine need for the position
- Whether local labour market testing was properly and recently conducted
- Whether the sponsored role fits coherently within the company’s broader workforce plan
None of these are new criteria, but the bar for evidence appears to be rising. Employers who treat genuine-position and labour-market-testing documentation as a formality – rather than building a clear evidentiary case – are more likely to face requests for further information or refusals.
What employers should do now
- Re-check the salary for any role you’re planning to nominate from 1 July 2026 against the new Core Skills ($79,499) and Specialist Skills ($146,717) thresholds.
- If your business plan relies on employer sponsorship, factor in the larger 2026–27 place allocation – but don’t assume more places means less scrutiny per application.
- Tighten genuine-position and labour-market-testing evidence before lodging, rather than treating it as boilerplate.
- If you’re looking to hire a Working Holiday Maker, applicants from Cyprus, Finland, Germany and South Korea can now apply for Working Holiday visas until the age of 35, increasing the available labour pool.
- If you’re also considering points-tested pathways for candidates, note the sharp cut to regional (491/494) places this year when weighing options.
What is the new Skills in Demand salary threshold from 1 July 2026?
$79,499 plus superannuation for the Core Skills stream, and $146,717 plus superannuation for the Specialist Skills stream. Both apply to nominations lodged from 1 July 2026 onward.
How many employer-sponsored places are available in 2026–27?
58,040 places, up from 44,000 in 2025–26 – the largest single increase in this year’s Migration Program.
Did regional visa places increase or decrease for 2026–27?
They decreased sharply, from 33,000 to 14,110 combined for the 491 and 494 categories, as the government reallocated places toward employer sponsorship.
Do the new salary thresholds apply to visa holders I’ve already sponsored?
No. The updated thresholds apply only to new nomination applications lodged from 1 July 2026. Existing nominations and visa holders sponsored before that date are not affected.
Which countries now have a Working Holiday visa age limit of 35?
From 1 July 2026, Australia increased the maximum application age for the Subclass 417 Working Holiday visa from 30 to 35 years for passport holders from Cyprus, Finland, Germany and the Republic of Korea (South Korea). The change reflects new bilateral agreements and brings these countries into line with others, including Canada, France, Ireland and the United Kingdom.
VIDEO UPDATE:
GET IN TOUCH with the team at Techvisa if you have questions about how the 1 July 2026 updates may impact your business or talent planning.
