CSIT- Core Skills Income Threshold

The salary requirements (salary thresholds) represent the minimum salary a sponosoring employer must pay to the sponsored employee to ensure fair compensation. Salary requirements vary depending on the specific visa and visa stream. The salary requirements are set by the Department and include:

1. Temporary Skilled Migration Income Threshold (TSMIT)
2. Core Skills Income Threshold (CSIT)
3. Specialist Skills Income Threshold (SSIT)

The TSMIT is the Temporary Skilled Migration Income Threshold. It is the minimum salary a sponsoring employer has to pay to the employee that they are sponsoring. The TSMIT is there to ensures that the salary of the sponsored employee is fair and not less than the salary of an Australian worker in a similar position. And to ensure that the salary of the sponsoring employee meets the Australian market standard.

The TSMIT was a key requirement for Australian employer sponsored visas; SC 482, SC 494, SC 186. Currently, the TSMIT continues to apply only to the Subclass 494 visa.

The TSMIT was first introduced in 2009 and has undergone review and adjustment by the Department of Home Affairs to reflect the changes in the economy and the Australian labour market. The current TSMIT  for the year 2025-2026 is set at AUD 76,515 per annum.

The CSIT is the Core Skills Income Threshold and is similar to the TSMIT. It sets the minimum salary a sponsoring employer must pay to ensure the sponsored employee's salary is fair, aligns with Australian market standards, and is not less than that of an Austrlian worker in a similar role.

The CSIT was introduced on 7th December 2024 along with the introduction of the Skills in Demand visa (SC 482) which replaced the former Temporary Skills Shortage visa (SC 482). The CSIT applies to the Core Skills Stream of the SC 482 visa and the Employer Nomination Scheme visa (SC 186). The current CSIT for the year 2025-2026  is set at AUD 76,515 per annum, matching the value of the TSMIT.

The SSIT is the Specialist Skills Income Threshold and is similar to the TSMIT and CSIT. It establishes the lowest wage a sponsoring employer must offer to ensure the sponsored worker is paid fairly, in line with Australian market rates, and not less than what an Australian employee in a comparable position would receive.

The SSIT was aslo introduced on 7th December 2024 along with the introduction of the Skills in Demand visa (SC 482). The SSIT specifically applies to the Specialist Skills Stream of the SC 482 visa. Unlike the TSMIT and CSIT, the SSIT is set at a higher level, currently for the year 2025-2026 it is set at AUD 141,210.

The basic salary which meets the CSIT must be exclusive of non monetary benefits such as accommodation, transport and any other employment perks. Also the CSIT does not include other mandatory requirements like the contributions for the superannuation.

There are virtually no exemptions in fulfilling the salary requirements. However, there can be exemptions primarily related to specific Labour Agreement stream. The Labour Agreement stream in both the SC 482 and the SC 186 visa are streams designed for employees where their employers have negotiated with the Australian government. These agreements usually address unique industry requirements and can include concessions.

The salary that is provided by the employer must at least meet the CSIT. Additionally the salary should be equivalent to the salary of an Australian worker with the same experience level and working in the same role and location. This is known as the Annual Market Salary Rate (AMSR)

The AMSR is the Annual Market Salary Rate for the nominated occupation for the relevant employer sponsored visa. This is determined by the employer by assessing the earnings of the Australian workers in the same occupation in the same location as the proposed employee.

The AMSR is a key requirement for employer-sponsored visa applications. Employers must provide a detailed report demonstrating how the AMSR was calculated, ensuring the nominated worker will be paid fairly and in line with local market standards

The AMSR can be determined by two ways:

1. By looking at job advertisements for the same position
2. By doing a salary survey

If there is an equivalent Australian worker in the same position or if there is an agreement or award, the employer need not determine and show proof of AMSR.

The main challenges that the AMSR faces are:

• Fluctuating salary rates

For nominated occupations or the specific locations area where the salary rate fluctuates drastically, the employers can ensure that the salary that is provided to the nominated employee is compliant with the salary CSIT and is competitive with other salary offers in the market.

• Complex salary structures

For nominated occupations where there are complex salary structures such as bonuses and allowances. The sponsoring employer must ensure that the nominated employee will receive a base salary that meets the CSIT.