Big changes for foreigners residing in Australia soon: From pay hikes to visa changes, all you need to know

In a fresh update for all the foreigners residing in Australia, skilled visa income thresholds will be increased by 4.6%. The new changes, under the continent-nation's Migration Strategy, will come into effect on 1 July 2025 and will affect employees, skilled visa applicants, and business owners.

The updates include a higher national minimum wage, increased superannuation contributions, and revised income thresholds for skilled visas.

The National Minimum Wage will rise by 3.5%, taking it to AUD24.95 per hour. The new rates will apply from the first full pay period starting on or after July 1. The same 3.5% increase will also apply to award minimum wages, impacting most employees across industries.

The Fair Work Commission’s ruling, issued earlier this month, is expected to benefit more than 2.6 million workers.

Changes for visa holders

From July 1, the Temporary Skilled Migration Income Threshold (TSMIT) and the Core Skills Income Threshold will increase from AUD73,150 to AUD76,515, while the Specialist Skills Income Threshold will go up to AUD141,210. The changes apply to new employer-sponsored nomination applications submitted after July 1. Existing nominations remain unaffected.

Here is a breakdown of all the categories:

• Core Skills Income Threshold (CSIT): Raised from AUD73,150 to AUD76,515. This change will affect nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).

• Specialist Skills Income Threshold (SSIT): Increased from AUD135,000 to AUD141,210. This update will impact nomination applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482).

• Temporary Skilled Migration Income Threshold (TSMIT): Raised from AUD73,150 to AUD76,515. These apply to the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187).

Business Impacts:

Small businesses will no longer be able to claim tax deductions on ATO interest, including General Interest Charges (GIC) and Shortfall Interest Charges (SIC), incurred on or after July 1, 2025.

Registration costs are also increasing. The ASIC business name renewal fee will rise to $45 for one year and $104 for three years. Registering a company will now cost $611, and the annual review fee for proprietary companies will rise to $329.