Yesterday, July 1, 2025, the majority of Australian Visa Application Charges (VACs) saw an increase, generally around 3%. This adjustment aligns with the 2023–2024 Consumer Price Index (CPI), reflecting a standard indexation process.

These adjustments are part of ongoing efforts to align application charges with economic indicators and broader migration policy goals.

A more substantial increase has been applied to the Student Visa (Subclass 500). For primary student visa applicants, the VAC increased by 25%, rising from AUD 1,600 to AUD 2,000. For additional applicants aged 18 years or above, the fee is now AUD 1,225, and for those under 18 years, it is AUD 400. These changes apply to all new applications lodged from yesterday.

Key Visa Categories Impacted by the New Fees

While a general increase of approximately 3% impacts most visa categories, the Student Visa (Subclass 500) stands out with its notable 25% rise for the primary applicant. This change affects students planning to study English with a Student Visa, pursue popular diploma courses, or undertake Bachelor and Masters Degrees.

We encourage all prospective students to review the updated Student Visa (Subclass 500) Information to accurately budget for their application. The fee payable for any visa application is determined by the date the application is received.

Skilled Visa Income Thresholds Also Rise

Beyond the direct visa application charges, new income thresholds for skilled visas also became effective on July 1, 2025. This annual indexation ensures that wages for skilled migrants increase at the same rate as Australian workers’ wages.

These thresholds increased by 4.6% in line with the Average Weekly Ordinary Time Earnings (AWOTE):

• Core Skills Income Threshold (CSIT): Increased from AUD 73,150 to AUD 76,515. This impacts nomination applications for the Core Skills stream of the Skills in Demand (SID) Visa (Subclass 482) Information and the Employer Nomination Scheme Visa (Subclass 186) Requirements.
• Specialist Skills Income Threshold (SSIT): Increased from AUD 135,000 to AUD 141,210. This impacts nomination applications for the Specialist Skills stream of the Skills in Demand (SID) Visa (Subclass 482) Information.
• Temporary Skilled Migration Income Threshold (TSMIT): Increased from AUD 73,150 to AUD 76,515. This applies to nomination applications for the Skilled Employer Sponsored Regional Visa (Subclass 494).

For all new nomination applications submitted from 1 July, the salary must meet the new relevant income threshold or the Annual Market Salary Rate (AMSR), whichever is higher. We work closely with employers to ensure they correctly determine the AMSR, which is critical to avoid visa nomination refusals. These changes do not apply to existing visa holders or nominations lodged before July 1, 2025.

Implications for Specific Visa Streams

While the primary focus is on the VAC and income threshold increases, we also want to remind you of other recent changes that have implications for visa costs and pathways:

• Skilled Independent (Subclass 189) Visa – New Zealand Stream: This stream permanently closed to new applications from primary applicants from July 1, 2023. New Zealand citizens now have a direct pathway to Australian citizenship. The citizenship application fee is lower than the second Visa Application Charge that would have been payable for a New Zealand stream visa.
• Business Innovation and Investment Program (BIIP): This program permanently closed to new applications from July 31, 2024. Eligible applicants who withdrew their applications for a Business Innovation and Investment (Provisional) visa (Subclass 188) or Business Talent (Permanent) visa (Subclass 132) may be eligible for a refund of their Visa Application Charge.

Australian Visa Costs

Staying informed is key to a smooth application process. Whether you are a prospective migrant, an international student, or an Australian employer, understanding these financial requirements is paramount.

Our team at This is Australia is here to provide expert guidance and support through every step of your visa application. We can help you understand how these new fees and thresholds apply to your specific situation and assist you in preparing a decision-ready application.

Do you have questions about the updated Visa Application Charges or skilled visa income thresholds? Contact us today for expert advice or call us on +61 (0)7 5592 0755 for assistance.