Beginning July 1, 2025, the Australian government will roll out a comprehensive set of labor and migration reforms aimed at improving wage standards, strengthening the visa framework for skilled migrants, and enhancing retirement savings for employees. The new regulations, confirmed through a government-issued announcement, reflect Australia’s ongoing efforts to refine its workforce policies and adjust to economic shifts in a post-pandemic, high-inflation global environment.

These measures will affect thousands of foreign skilled workers, sponsoring employers, and businesses that operate under the federal labor and immigration system. The key components of the reform include updates to income thresholds for visa applicants, an increase in the minimum wage, adjustments to the national superannuation guarantee rate, and revised fees for company registration and annual compliance.

Higher Wage Floors for Migrant Workers: A Shift in Skilled Migration Policy

One of the central aspects of the reforms is the increase in the Temporary Skilled Migration Income Threshold (TSMIT)—the minimum annual salary that must be paid to skilled foreign workers sponsored by Australian employers. As of July 1, 2025, the TSMIT will rise from AUD 73,150 to AUD 76,515, ensuring that migrant workers under sponsorship arrangements receive compensation that aligns more closely with local labor standards.

This update will apply specifically to employer-sponsored visas, including the Subclass 482 (Temporary Skill Shortage) and Subclass 494 (Skilled Employer Sponsored Regional) visa programs. These changes are intended to prevent wage suppression and ensure that foreign workers are not paid significantly less than Australian counterparts for similar roles.

In addition to the core income threshold, the government has also revised criteria for higher-level specialist roles:

• Core Skills Threshold: From AUD 73,150 → AUD 76,515

• Specialist Skills Threshold: From AUD 135,000 → AUD 141,210

It is important to note that these changes will apply only to visa nominations lodged on or after July 1, 2025. Applications submitted prior to this date or visas already granted will remain subject to the previous thresholds.

Boost in National Minimum Wage to Reflect Rising Living Costs

In a parallel development, the Fair Work Commission has approved a 3.5% increase in Australia’s national minimum wage, designed to help low-income workers keep pace with rising living expenses.

From the first full pay period after July 1, 2025:

• Minimum weekly wage will increase to AUD 948

• Minimum hourly rate will rise to AUD 24.95

Although many skilled visa holders earn salaries above the national minimum, this wage adjustment will benefit workers in entry-level, transitioning, or low-wage occupations, particularly in sectors like hospitality, aged care, and cleaning services. It also sets a broader tone for wage fairness across all employment tiers, including those employed under short-term or transitional skilled visas.

Superannuation Guarantee Rises to 12%, Expands to Parental Leave

Another significant policy change involves Australia’s superannuation guarantee—the statutory requirement that employers contribute a percentage of an employee’s earnings into a retirement savings account.

As of July 1, 2025, the superannuation rate will officially increase from 11.5% to 12%, marking the final stage in a multi-year plan to gradually raise employer contributions. This increase applies to all eligible wages paid on or after the effective date, ensuring a more secure retirement future for both domestic and foreign employees working in Australia.

In addition to the general increase, the government has announced a groundbreaking expansion of coverage: superannuation contributions will now be made on Parental Leave Pay. This adjustment aims to reduce the long-term financial penalties associated with career breaks for childbirth or childcare, particularly for women, who are disproportionately affected by retirement income inequality.

By extending retirement contributions to periods of government-paid parental leave, the policy reflects a broader commitment to gender equity and inclusive social protection in Australia’s workforce system.

Cost Increases for Employers: Business Fees and Tax Reform

Employers sponsoring foreign workers or operating within regulated business environments will also experience a series of fee increases effective July 1, 2025. These cost adjustments are part of the government’s revenue reforms and reflect rising administrative costs associated with labor oversight and compliance.

Updated business-related fees include:

• Company registration fee: Increasing from AUD 597 to AUD 611

• Annual company review fee: From AUD 321 to AUD 329

• Business name renewal (1-year): From AUD 44 to AUD 45

Additionally, the government has removed the tax deductibility of interest charges on outstanding tax debts. This change could increase the financial burden on businesses that defer or delay tax payments and is intended to encourage timely compliance with tax obligations.

Tax experts warn that this may particularly affect small and medium-sized enterprises (SMEs) that operate on tight cash flow margins. Therefore, proactive tax planning and financial forecasting will become even more critical in the post-July 2025 environment.

New Digital Tools to Streamline Visa Applications

In line with efforts to modernize Australia’s immigration system, the Department of Home Affairs has launched two new digital platforms aimed at supporting migrants during the visa application process.

1. Visa Finder Tool
   This web-based tool enables applicants to determine the most suitable visa category by answering a series of questions based on their nationality, intended length of stay, and purpose of visit. It acts as a pre-assessment guide and reduces the likelihood of submitting incorrect applications.

2. Document Checklist Tool
   Specifically designed for student visa applicants, this tool generates a personalized list of required documentation based on the applicant’s country of origin and their chosen educational institution. This reduces the chance of incomplete applications, which often lead to processing delays or rejections.

These platforms are part of the 2025 digital transformation initiative led by Home Affairs, aiming to reduce paperwork, minimize processing time, and improve approval rates, especially for first-time applicants unfamiliar with Australian immigration procedures.

A Balanced Policy Approach for Sustainable Growth

The reforms slated for July 1, 2025, signal a comprehensive recalibration of Australia’s labor, social security, and migration policies. By raising wage floors, increasing superannuation contributions, and tightening visa thresholds, the government is attempting to strike a balance between protecting local labor interests and attracting top global talent.

These policy moves come at a time when many developed countries are tightening migration rules, introducing new labor protections, and reforming retirement systems to adjust to demographic changes and fiscal pressures. Australia’s approach stands out for its simultaneous focus on worker welfare, business compliance, and digital innovation.

What Migrants and Businesses Should Do

For skilled visa applicants, it is essential to:

• Check the latest income thresholds before lodging any application after July 1

• Use the Visa Finder Tool to confirm visa suitability

• Review changes to document requirements using the Checklist Tool

For employers, it is advisable to:

• Adjust salary offers to align with the new TSMIT levels

• Prepare for higher superannuation costs and new business fees

• Consult tax professionals regarding the non-deductibility of interest charges

Both groups must remain vigilant and informed as Australia continues to adapt its policies to meet the dual goals of competitiveness and fairness in a globally mobile labor market.