Australia has introduced several notable immigration changes on 1 July 2026, including higher income salary thresholds and increased government lodgement fees. Employers may need to factor these developments into workforce planning, budgets, and compliance reviews.
WHY THIS MATTERS
Collectively, these changes point to a more costly, compliance-focused, and increasingly complex immigration landscape. Employers should anticipate higher sponsorship costs, longer lead times for international hires, and increased scrutiny of training visa arrangements. Proactive workforce planning, budget forecasting, and compliance reviews will be key to minimising disruption and maintaining access to global talent.
Departmental processing times1
Department of Home Affairs (the “Department”) processing times remain extended across key visa categories:
- Skills in Demand (Subclass 482) – Specialist Skills Stream: up to 57 days
- Skills in Demand (Subclass 482) – Core Skills Stream: up to 10 months (processing times for this stream continue to increase)
- Temporary Work (Short Stay Specialist) (Subclass 400): up to four weeks
- Temporary Activity (Research) (Subclass 408): up to three months
- PR under the Employer Nomination Scheme (Subclass 186): up to 14 months
- Bridging Visa B: up to four weeks
Please note these processing times are approximate only and can vary. Employers are required to factor these processing times into workforce planning.
New salary thresholds effective 1 July 2026
As previously reported by KPMG in Australia, from 1 July 2026, skilled visa income thresholds have increased in line with changes to the annual average weekly ordinary time earnings. Income thresholds are indexed annually so wages for skilled migrants increase at the same rate as Australian workers.
From 1 July 2026, indexation changes are as follows:
Relevant salary threshold | Threshold from 1 July 2025 to 30 June 2026 (AUD) | New threshold from 1 July 2026 (AUD) | Impacted visas |
Core Skills Income Threshold (CSIT) | 76,515 | 79,423 | • Core Skills stream of the Skills in Demand (Subclass 482) visa • Employer Nomination Scheme (Subclass 186) visa |
Specialist Skills Income Threshold (SSIT) | 141,210 | 146,576 | • Specialist Skills stream of the Skills in Demand (Subclass 482) visa
|
These changes will only apply to new nomination applications lodged from 1 July 2026. These changes will not apply to existing visa holders and nominations lodged before 1 July 2026 that are still pending.
Fair Work High Income Threshold from 1 July 20262
- The new Fair Work High Income Threshold (FWHIT) effective from 1 July 2026 is AUD 190,100.
- This is relevant to Subclass 482 primary visa holders wishing to access the age exemption for permanent residence under the Employer Nomination Scheme (Subclass 186 visa) - Temporary Residence Transition stream. Among other requirements, 186 visa applicants who are 45 years of age or older are required to receive the FWHIT for two years in the last three years before the application is submitted (while holding a primary subclass 482 visa) to be able access the age exemption.
Increased government fees effective 1 July 2026
On 1 July, there was a significant increase in certain visa lodgement fees – well above the usual CPI related increases of previous years.
Visa type | Government lodgement fee from 1 July 2026 |
Employer Nomination Scheme – Subclass 186 visa | • Main applicant: AUD 6,140 (increase from AUD 4,910) • Per additional applicant 18 or older: AUD 3,070 (increase from AUD 2,455) • Per additional applicant under 18: AUD 1,535 (increase from AUD 1,230) |
Skills in Demand – Subclass 482 visa | • Main applicant charge: AUD 4,015 (increase from AUD 3,210) • Per additional applicant 18 or older: AUD 4,015 (increase from AUD 3,210) • Per additional applicant under 18: AUD 1,005 (increase from AUD 805) |
Temporary Work (Short Stay Specialist) – Subclass 400 visa | • Main applicant: AUD 535 (increase from AUD 430) • Per additional applicant 18 or older: AUD 535 (increase from AUD 430) • Per additional applicant under 18: AUD 135 (increase form AUD 110) |
Training – Subclass 407 visa | • Main applicant: AUD 535 (increase from AUD 430) • Per additional applicant 18 or older: AUD 535 (increase from AUD 430) • Per additional applicant under 18: AUD 135 (increase form AUD 110) |
Temporary Activity (Research stream) – Subclass 408 visa | • Main applicant: AUD 535 (increase from AUD 430) • Per additional applicant 18 or older: AUD 535 (increase from AUD 430) • Per additional applicant under 18: AUD 135 (increase form AUD 110) |
Bridging Visa B – Subclass 020 | • Main applicant: AUD 575 (increase from AUD 190) • Per additional applicant 18 or older: Nil • Per additional applicant under 18: Nil |
- This represents an average increase of approximately 25 percent, with the exception of the Bridging Visa B (which represents an increase of over 200 percent). However, the Department has recently been granting BVB’s for a longer period to reduce the need for multiple applications.
- Nomination lodgement fees and the Skilling Australians Fund (SAF) Levy remain unchanged.
- Employers are required to factor in these additional costs when reviewing budgets and approvals. KPMG in Australia also recommends that employers review cost sharing agreements and policies in this higher cost immigration environment.
- The full list of government fees from 1 July 2026 may be found here: Visa fees and charges
Note: Discounted government fees may be available for Pacific-region passport visa holders. Please contact your KPMG representative in Australia for further details.
Increased monitoring of Training (Subclass 407) visa holders3
The Australian Border Force (ABF) has commenced a four-month national compliance operation targeting the Training (Subclass 407) visa program following changes to the program earlier this year. Led by the Department's Sponsor Monitoring Unit, the operation aims to strengthen oversight of the program and identify employers involved in fraudulent training arrangements or other practices that undermine the integrity of Australia's migration system.
During the first month of the operation, ABF officers conducted more than 100 site visits and identified a number of compliance concerns, including employers lacking genuine training plans and visa holders undertaking duties unrelated to their approved training program. A further 200 workplace visits are scheduled, with a particular focus on regional locations.
Immigration office closures in Seoul
The Department has ceased immigration operations at the overseas post in Seoul, South Korea following the closures in Washington D.C., Dubai, and Singapore earlier this year. Subclass 400 visa applications that would have normally been processed by the Seoul office (based on the applicant’s current location) are now being diverted to other processing centres within the Department’s network. The previous closures did result in an increase in processing times. As such, we may see similar increases in processing times for applications that would have normally been processed in Seoul. Employers will need to factor this possibility into proposed starting dates.
KPMG INSIGHTS
These developments underscore the government's continued focus on reducing reliance on lower-cost migration pathways while strengthening integrity measures across the skilled migration programme.
For employers, the combined impact of higher salary thresholds, increased government charges and longer processing times may require more proactive workforce planning, increased budget allocation, and earlier mobilisation of international talent.
The heightened scrutiny of the Subclass 407 visa programme also signals a broader compliance focus, making it important for organisations to reassess processes, training arrangements, and supporting documentation to ensure they can withstand a compliance review by the Australian Border Force.
If visa holders and/or their employers have any questions or concerns about this update and potential impacts, they should consult with a member of the KPMG Australian immigration team (see the Contacts section).
ENDNOTES:
1 Australian Government, Department of Home Affairs, “Global visa processing times.”
2 Fair Work Commission, “High income threshold | Fair Work Commission.”
3 Australian Border Force, “New national compliance operation targets training visa exploitation,” published on 26 May 2026.
Contacts
Disclaimer
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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