Changes to Visa Pricing and LMT Income Threshold - Elixir Immigration

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Significant updates effective from 1 July 2026 have been announced regarding visa pricing and the Labour Market Testing (1 July 2026 Update: New Skilled Visa Salary Thresholds and Visa Application Fee Changes

From 1 July 2026, two major changes have taken effect that affect anyone sponsoring, applying for, or planning to lodge an Australian visa: higher minimum salary thresholds for employer-sponsored skilled visas, and a significant increase in visa application charges across most subclasses. Here’s what’s changed, who it affects, and what you need to check before you lodge.

Skilled Visa Salary Thresholds: What’s Increased

Each year, the government indexes the minimum salary thresholds for employer-sponsored skilled visas using Average Weekly Ordinary Time Earnings (AWOTE) data from the Australian Bureau of Statistics. These updates happen automatically under the Migration Regulations, so no separate legislative announcement is required, but the impact on sponsorship costs and eligibility is real.

Why This Matters for Labour Market Testing (LMT)

The threshold that applies to a nomination is determined by the date the nomination is lodged, not the date it’s decided or the date the visa is granted. This creates a critical timing issue for employers currently running Labour Market Testing:

• LMT must generally be completed, meaning the role is advertised for a minimum of 28 consecutive days across at least two national platforms before a nomination can be lodged.
• If a role was advertised in June at the old salary rate but the nomination isn’t lodged until July, the advertised salary will no longer meet the new threshold, and the Department may treat the LMT as invalid.
• Nominations lodged before 1 July 2026 are assessed against the old, lower thresholds even if the decision is made later. Nominations lodged on or after 1 July 2026 must meet the new, higher figures. There is no transitional arrangement or grace period.

Employers should:

• Review any in-progress recruitment and confirm whether the offered salary meets the new CSIT, SSIT, or TSMIT.
• Check whether LMT advertising already underway reflects the correct (new) salary before lodging.
• Remember that CSIT/TSMIT/SSIT are floors only employers must also meet the Annual Market Salary Rate (AMSR), meaning if an equivalent Australian worker earns more than the threshold, that higher market rate applies instead.
• Note that LMT is not required where an International Trade Obligation (ITO) exemption applies, based on the sponsored worker’s nationality. This should be confirmed with a migration adviser before assuming an exemption applies.

Visa Application Charges: What’s Increased by Subclass

Visa Application Charges (VACs) are usually indexed annually in line with CPI, typically a 2–5% adjustment. This year is different: most subclasses have risen by approximately 25%, a substantially larger increase than usual, introduced under the Home Affairs Legislation Amendment (2026 Measures No. 1) Regulations 2026.

Key subclass changes (standard base application charge, primary applicant)

Some categories were spared the full increase or introduced new concessions:

• ELICOS and non-award course student visa charges rose only modestly, from $2,000 to $2,050, well below the 25% jump applied to the standard Student visa charge.
• eVisitor (651) remains free, and the ETA (601) remains around $20; neither has changed.
• The Subclass 771 Transit visa remains free.
• Most bridging visas other than Bridging Visa B (i.e., Bridging A, C, D, and E) remain free.

New: Pacific-regional concession rate

For the first time, a lower concessional base application charge now applies to applicants holding a passport from one of 13 Pacific-regional countries, across a wide range of visa categories including partner, family, employer-sponsored, business/investor, and skilled visas. Examples:

Other Related Increases

• Administrative Review Tribunal (ART) fees have increased for applications made on or after 1 July 2026, rising from $3,580 to $3,727.
• Federal Circuit and Family Court filing fees for judicial review have risen, with the standard filing fee now $4,180 (reduced fees remain available for eligible applicants).
• Citizenship application fees rose only modestly, broadly tracking CPI (for example, the standard adult conferral fee moved from $370 to $380, and the child fee from $150 to $160).
• ImmiAccount now caps the number of times a visa application can be imported at three attempts, after which the Department must manually reset the limit.

What You Should Do Now

Anyone mid-application: Don’t rush to lodge before an application is genuinely complete just to beat a fee increase an incomplete or poorly prepared application is a costlier mistake than a higher fee.

Employers: Confirm any nomination you’re preparing meets the new CSIT, SSIT, or TSMIT before lodging, and check that Labour Market Testing was advertised at the correct (new) salary if lodging on or after 1 July 2026.

Applicants: Confirm the exact current charge for your specific visa subclass and circumstances (including family members and Pacific-regional eligibility) using the Department’s official Visa Pricing Estimator before lodging fees are locked in based on the date the application is received, not the date documents were prepared.

For personalized advice on how these 1 July 2026 changes affect your specific circumstances, please contact our migration experts.