Pathway to Sponsorship and the Rising Income Threshold

Australia’s international student program is more than a temporary migration pathway, it is a talent incubator. Many international students who complete their studies in Australia transition to the Temporary Graduate visa (subclass 485), which provides 2 to 4 years of post-study work rights (depending on qualification level and location). This period is a critical stepping stone, allowing graduates to gain Australian work experience and build relationships with potential sponsors.

One of the most common pathways for these graduates is moving into employer-sponsored visas, particularly the Temporary Skill Shortage visa (subclass 482) or the Employer Nomination Scheme visa (subclass 186). These pathways allow skilled migrants to remain in Australia long-term or permanently, filling essential roles in sectors experiencing genuine skill shortages.

However, not all 485 visa holders can access these pathways. A key requirement for employer sponsorship is that the nominee must be paid at or above the Temporary Skilled Migration Income Threshold (TSMIT), the government-set minimum salary benchmark designed to ensure that employer-sponsored workers are not underpaid or used to undercut local labour.

Starting 1 July 2025, the TSMIT will increase from $73,150 to $76,515 per annum, as announced by the Department of Home Affairs (Home Affairs Update, 2024). This change reflects adjustments for inflation and wage growth and aims to maintain integrity in the employer-sponsored program.

While the TSMIT increase supports wage protection and labour market fairness, it may also create additional barriers for international graduates in lower-paid sectors such as early childhood education, aged care, or hospitality, where entry-level wages may fall below this threshold, even for highly qualified applicants.

For graduates in engineering, IT, health, finance, and construction, however, the TSMIT benchmark is often well within reach. According to the QILT Graduate Outcomes Survey, starting salaries for ICT and engineering graduates in Australia regularly exceed $80,000–$90,000 AUD, especially for those with local qualifications and experience gained during their 485 visa period.

To qualify for a 482 visa, a graduate must:

• Be nominated for a role on the Skilled Occupation List,
  
• Have a relevant qualification and/or work experience,
  
• Be paid at or above the TSMIT of $76,515 (unless a higher market rate applies),
  
• Meet English language, health, and character requirements.
  

Some graduates may also directly progress to permanent residency via the 186 Employer Nomination Scheme, the TSMIT acts as a baseline indicator of the salary that reflects genuine skill level and demand.

Why This Matters

The increase in TSMIT may limit employer sponsorship in some industries, but it also reinforces the value of high-skilled talent, particularly those who complete their studies in Australia. Students and 485 visa holders who strategically position themselves by selecting in-demand occupations, gaining local experience, and pursuing further upskilling to remain highly competitive candidates for permanent migration.

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