Australia’s immigration system underwent substantial reforms in 2025, reflecting the government’s evolving priorities: attracting global talent, tightening compliance, and modernising visa processes. From new income thresholds to revamped skilled visas and stricter English language requirements, these updates significantly impact students, skilled professionals, and permanent residency (PR) applicants, especially from countries like India.
New “Skills in Demand” Visa Replaces Subclass 482
Effective December 7, 2024, the Australian government replaced the Subclass 482 Temporary Skill Shortage (TSS) visa with the more structured Skills in Demand visa. This new visa model is divided into three distinct streams:
- Specialised Skills Pathway: Designed for high-growth sectors like tech, green energy, and advanced manufacturing, with a minimum salary threshold of AUD 135,000.
- Core Skills Pathway: Aligned with the newly introduced Core Skills Occupation List (CSOL), catering to mainstream skilled roles.
- Essential Skills Pathway: Currently under development, this route targets lower-income but essential sectors with workforce shortages.
The new system prioritizes transparency, long-term planning, and labour market alignment, providing more predictable pathways to PR.
TSMIT Raised to AUD 73,150
As of July 1, 2024, the Temporary Skilled Migration Income Threshold (TSMIT) has increased from AUD 70,000 to AUD 73,150. Employers nominating skilled workers must now meet this threshold or offer a salary at market rate—whichever is higher. This move aims to protect local wage standards while ensuring fair pay for migrants.
Stricter English & Financial Requirements for Student Visas
From May 10, 2024, student visa applicants must show financial evidence equal to 75% of Australia’s national minimum wage, an effort to ensure students are self-sufficient.
In addition, English language score requirements have been raised:
- Student visa applicants: From IELTS 5.5 to 6.0
- Graduate visa applicants (Subclass 485): From IELTS 6.0 to 6.5, with a minimum of 5.5 in each band
These changes reflect the government’s push for better academic integration and employability among international students.
Temporary Graduate Visa & Work Experience Relaxations
For Subclass 485 Graduate visa holders, the work experience requirement for the employer-sponsored 482 visa has been reduced from 2 years to 1 year. This makes the pathway more accessible to fresh graduates and young professionals aiming for long-term careers in Australia.
General Skilled Migration Points System Under Review
The points test for Subclass 189, 190, and 491 visas is currently under review to focus on selecting the most highly skilled and employment-ready candidates. While no final changes have been announced yet, applicants can expect tighter competition and a greater emphasis on Australian work experience, qualifications, and employer endorsements.
State and Regional Updates: More PR Opportunities
Australian states have also updated their nomination programs:
- New South Wales and South Australia: Reopened applications for 190 and 491 visas.
- Queensland: Announced a limited allocation of 1,550 state nominations.
- Western Australia Now gives equal preference to offshore and interstate applicants, especially in hthe ealthcare, construction, and education sectors.
End of COVID-19 Visa Concessions
All temporary COVID-era visa concessions officially ended on November 25, 2023. This affects subclasses such as 485, 887, employer-sponsored, family, and business visas. Applicants must now meet the standard post-COVID criteria for all visa types.
India-Australia Agreement Expands Work Rights
Under the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), Indian graduates now benefit from up to 8 years of work rights without needing employer sponsorship, particularly in STEM fields. This is a game-changer for Indian students seeking career and PR pathways in Australia.
Key Takeaways for 2025 Applicants
- Stricter English test scores and financial thresholds for student and graduate visas
- Higher income benchmarks for skilled migration
- New visa model focused on job-aligned skills
- Reopened and more inclusive state nomination programs
- Special advantages for Indian nationals under bilateral agreements
Australia’s immigration reset in 2025 is designed to streamline PR pathways, prioritize skilled talent, and ensure stronger alignment with labour market needs, making it essential for applicants to stay informed, prepared, and strategically positioned.
