Major changes to skilled migration and student visa policies

With the 2024–25 financial year approaching, several important updates to Australia’s visa system will come into effect from 1 July 2025. These changes may significantly impact the eligibility criteria and costs for those planning to apply for skilled migration or student visas, so it’s essential to stay informed and prepare in advance.

Skilled migration: employer-sponsored visa salary thresholds to rise

According to the latest announcement from the Department of Home Affairs, the minimum salary thresholds for key skilled visa categories—namely the Subclass 482, 494, and 186 employer-sponsored visas—will be adjusted upwards by 4.6% from 1 July 2025. This adjustment is designed to ensure wage growth among migrants keeps pace with local workers and to avoid undercutting Australian wages through migration pathways.

The updated minimum annual salary thresholds are as follows:

• General employer-sponsored stream (482 / 494 / 186): increasing from AUD 73,150 to AUD 76,515

• High-income stream (e.g. 482 high-income stream): increasing from AUD 135,000 to AUD 141,210

While the change won’t apply to current visa holders or applications submitted before 1 July, it’s important to note that labour market testing (LMT)—which requires job ads to be posted for at least four weeks—must now reflect the new salary thresholds. Ads posted from now on must meet the updated minimums in order for the nomination to be valid after 1 July.

Student visas: proposed increase to AUD 2,000 application fee

The Federal Labor Government has announced plans to increase the student visa (Subclass 500) application fee from AUD 1,600 to AUD 2,000 starting 1 July 2025, with exemptions only for applicants from Pacific Island nations and Timor-Leste. This measure is part of a broader migration control strategy aimed at easing housing pressure and improving public resource management. Revenue raised will help fund over AUD 760 million in election commitments.

Although official legislation is still pending, prospective student visa applicants are strongly encouraged to apply before 1 July to avoid higher application costs.

Additionally, as is standard practice each financial year, most visa application charges (VACs) may also be subject to incremental annual increases. We will continue to monitor updates closely and provide timely, accurate analysis as official information becomes available.

If you have any questions or would like professional assistance, please feel free to contact us at Riverwood Migration (Email: [email protected]). We are committed to providing transparent, expert migration services to help you achieve your dream of moving to Australia.