Immigration Update: Proposed Changes to the Employer Sponsored Visa Framework

In Short

Australia is introducing changes to employer sponsored visa rules, including higher salary thresholds from 1 July 2026. Visa costs may also increase, and future occupation classifications could affect which roles qualify for sponsorship. Businesses that sponsor overseas workers should review salaries, budgets and upcoming visa applications.

Tips for Businesses

Review salaries of sponsored employees to ensure they will meet the higher income thresholds from 1 July 2026. If you plan to sponsor workers, consider lodging applications before the changes take effect. Factor potential visa cost increases into workforce planning and monitor updates to occupation classifications affecting sponsorship eligibility.

Summary

This article explains upcoming changes to Australia’s employer sponsored visa framework for businesses that employ overseas workers. It is prepared by LegalVision’s business lawyers. LegalVision, a commercial law firm, specialises in advising clients on immigration compliance and employer sponsorship requirements.

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On this page

• Increase to Employer-Sponsored Visa Salary Thresholds (From 1 July 2026)
• Increase in Visa Application Charges
• Updates to Training Visas
• Public Consultation Regarding OSCA
• How Should Employers Prepare for These Changes?
• Key Dates to Remember
• Key Takeaways
• Frequently Asked Questions

The Australian Government continues to reform the employer-sponsored visa framework as part of its 10-Year Migration Strategy. Accordingly. If your business sponsors overseas workers, you should be aware of upcoming changes that will affect salary requirements, visa costs and occupation classifications from 1 July 2026 onwards. Therefore, you should review your salary structures, sponsorship budgets and recruitment plans.

This article outlines the key changes and provides practical guidance on how employers can prepare for these developments.

Increase to Employer-Sponsored Visa Salary Thresholds (From 1 July 2026)

The Australian Government will increase minimum salary thresholds for employer-sponsored visas from 1 July 2026.

These thresholds apply to both: 

• Subclass 482 – Skills in Demand visa; and
• Subclass 186 – Employee Nomination Scheme visa.

Following the release of the November 2025 Average Weekly Ordinary Time Earnings (AWOTE) data by the Australian Bureau of Statistics, the indexed thresholds for the 2026–27 program year will be:

• Core Skills Income Threshold (CSIT): $79,499 (previously $76,515); and
• Specialist Skills Income Threshold: $146,717 (previously $141,210).

These thresholds will apply to all relevant visa applications lodged on or after 1 July 2026.

Increase in Visa Application Charges

Visa application charges (VAC) have increased significantly across various visa categories in recent months. Most notably:

• Subclass 485 (Temporary Graduate) visa: The base application charge increased to $4,600 from 1 March 2026; and
• Subclass 500 (Student) visa: Fees increased to $1,600 from 1 July 2025, with further increases to $2,000 in some contexts.

Although the Government has not announced specific increases to employer-sponsored visas, you should anticipate potential fee adjustments. You should also factor these into your sponsorship budgets.

Updates to Training Visas

The Migration Amendment (Training Visas—Sponsorship Requirements) Regulations 2026 take effect from 11 March 2026 and introduce an important procedural change for Subclass 407 (Training) visa applications.

Why This Change Matters

This amendment addresses concerns about the integrity of the Subclass 407 visa program and aims to prevent misuse of training visas. By requiring nomination approval before visa lodgement, the Department of Home Affairs can:

• Assess the genuineness of training programs upfront: The Department will scrutinise whether the proposed training genuinely enhances skills that are not readily available in the visa applicant’s home country, before the visa application proceeds.
• Prevent ungenuine arrangements: The sequential process creates a stronger safeguard against arrangements where training visas are used as a pathway to work in Australia without legitimate training outcomes, or where the “training” is merely a pretext for filling labour shortages.
• Ensure compliance with training requirements: Nomination approval confirms that the training program meets regulatory requirements, including structured training plans, appropriate supervision, and genuine occupational training objectives.

What This Means for Employers

Employers sponsoring overseas workers for training purposes should be aware that:

• Nomination must be approved first: You cannot lodge a visa application until the Department of Home Affairs approves the nomination;
• Visa application follows nomination approval: The applicant must wait for nomination approval before applying for the visa;
• Processing times may increase: Applications will now be processed sequentially rather than concurrently;
• Plan training earlier: Start the nomination process sooner to avoid delays to training programs; and
• Training must be genuine and structured: Training plans, supervision, and outcomes will face closer scrutiny before a visa application proceeds.

This change aligns the Subclass 407 visa process with other employer-sponsored visas and reinforces the need for genuine, structured training that delivers meaningful skills development.

Public Consultation Regarding OSCA

The Australian Bureau of Statistics (ABS) is undertaking an occupation-level update of the Occupation Standard Classification for Australia (OSCA). The revised classification is scheduled for release in March 2027.

Consultation Timeline

The ABS will run a public consultation from Wednesday, 11 March to Friday, 24 April 2026. During this period, the ABS will seek feedback on whether existing occupation classifications accurately reflect current roles across Australian industries. 

In particular, the consultation aims to identify:

• occupations currently listed in OSCA that are not accurately described; and
• occupations that should be separately identified with their own unique OSCA code.

Scope of the OSCA 2027 Update

The March 2027 update will focus on the six-digit occupation level and will include:

• separately identifying new and emerging occupations;
• retiring occupations that no longer meet the minimum threshold for statistical balance;
• modifying skill levels; and
• updating occupation elements, including specialisations, titles, lead statements, main tasks, licensing and registration requirements.

These changes aim to ensure that the classification system reflects how work is performed across the Australian economy. 

Why This Matters for Employers

The Department of Home Affairs currently relies on the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 2022 to determine appropriate occupations for employer-sponsored visa programs, including Subclass 482 and Subclass 186 visas.

If the Government later updates the skilled occupation list or the ANZSCO framework, these changes could affect employer sponsorship in several ways. 

In practical terms, future changes could lead to:

• changes to which occupations are eligible for employer sponsorship;
• modifications to occupation descriptions that affect how roles are nominated;
• updates to skill level classifications that influence salary requirements; and
• the introduction of new occupation codes for emerging roles in your industry.

The ABS has published a provisional set of proposed OSCA 2027 changes as an Excel dataset on their website. If your business sponsors overseas employees or plans to do so, reviewing these provisional changes can help you understand potential future directions.

How Should Employers Prepare for These Changes?

1. Lodge Pending Applications Before 1 July

If your business is preparing for employer-sponsored visa applications, you should consider lodging them before 1 July 2026. 

2. Review Current Salaries of Sponsored Employees

You should review the salaries of all employees sponsored under the Subclass 482 visa or preparing to transition to Subclass 186 permanent residency. Employees earning close to the current CSIT may require salary adjustments to meet the new $79,499 threshold.

Remember that these are minimum thresholds. The actual salary must also align with the Annual Market Salary Rate (AMSR) for the occupation

3. Budget for Increased Costs

When planning your 2026–27 workforce budget, you should account for higher minimum salaries for sponsored employees, potential increases to visa application charges and any administrative costs associated with adjusting employment contracts or remuneration structures.

4. Participate in OSCA Consultation

If your business regularly sponsors employees in specific occupations, you should consider participating in the OSCA consultation process. This is an opportunity to:

• Provide feedback on occupation descriptions that don’t accurately reflect your industry;
• Advocate for separate classification of emerging roles in your sector; and
• Ensure the classification remains relevant to your workforce needs.

5. Monitor Occupation Classifications

Although OSCA is not currently used for employer-sponsored visas, reviewing the provisional OSCA 2027 changes may provide insight into how occupation classifications are evolving. This may help you anticipate potential future changes to ANZSCO or employer-sponsored occupation lists.

Understanding these trends can assist you with:

• long-term workforce planning for sponsored employees;
• identifying emerging occupations that may become relevant to your business; and
• staying informed about how your industry’s occupations are being classified and described.

6. Plan Ahead for March 2027

The ABS will release the final OSCA 2027 classification in March 2027. While the update will not immediately affect visa applications, you should monitor whether the Government later incorporates changes into the migration frameworks.

If future updates to employer-sponsored occupation lists occur, you may need to:

• review whether your commonly sponsored occupations remain on the relevant skilled occupation lists;
• assess whether occupation code changes affect your nomination applications;
• update position descriptions to align with any revised occupation definitions; and
• reassess skill levels and associated salary requirements if classifications change.

Key Dates to Remember

What Are Labour Agreements?

Labour agreements allow employers to sponsor overseas workers for approved roles, under terms negotiated with the DOHA. This factsheet outlines five different types of labour agreements and when they might apply to your business.

Download Now

Key Takeaways

The employer-sponsored visa framework continues to evolve, and staying ahead of these changes is essential for maintaining compliance and managing your sponsored workforce effectively. Changes to visa requirements can affect your recruitment plans, sponsorship obligations and workforce budgets. Seeking legal advice can help you understand your responsibilities and ensure your sponsorship arrangements remain compliant.

LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced immigration lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 1300 544 755 or visit our membership page.

Frequently Asked Questions