Each year on 1 July, the Fair Work High Income Threshold (FWHIT) increases in line with Australia’s workplace relations framework.

For many employers, the annual increase attracts little attention outside employment law. However, for businesses sponsoring overseas workers and for visa holders approaching permanent residence eligibility, the increase can have significant immigration consequences.

In particular, the FWHIT plays an important role in age exemption provisions under the Employer Nomination Scheme (ENS) Subclass 186 visa. As the threshold rises, so too does the earnings level required for certain sponsored workers aged 45 and over to qualify for permanent residence.

With the threshold expected to increase again from 1 July 2026, employers should carefully review workforce planning strategies involving older sponsored employees.

What is the Fair Work High Income Threshold?

The FHIT is a figure set annually under the Fair Work Act and is primarily used within Australia’s workplace relations system.

Based on current projections, the FWHIT is expected to increase from $183,100 to approximately $190,100 for the 2026–27 financial year. However, the final figure remains subject to formal confirmation by the Fair Work Commission.

While the threshold originates in employment law, it has become highly significant in certain areas of Australian migration law.

Why Does the FWHIT Matter for ENS Subclass 186 Applications?

The most important immigration consequence of the FWHIT relates to age exemptions under the Temporary Residence Transition (TRT) stream of the ENS Subclass 186 visa.

Ordinarily, applicants for an ENS Subclass 186 visa must be under 45 years of age at the time of application.

However, the Migration Regulations provide a number of exemptions from the age requirement.

One of the most commonly used exemptions applies to certain high-income earners who have worked for their sponsoring employer while holding a qualifying temporary visa.

To qualify for this exemption, applicants must generally demonstrate earnings above the Fair Work High Income Threshold for the relevant qualifying period.

As the FWHIT increases each year, the earnings required to access this exemption also increase.

In practical terms, a worker who may qualify for an age exemption today could potentially lose eligibility in future years if their remuneration does not keep pace with annual increases to the threshold.

The Hidden Risk for Sponsored Workers Over 45

Many employers focus on visa expiry dates, nomination requirements and permanent residence eligibility periods.

However, age exemption planning is often overlooked until shortly before an employee turns 45 or becomes eligible for permanent residence.

This can create significant problems.

A sponsored employee may:

• be critical to the business;
• have worked in Australia for many years;
• satisfy all skills and employment requirements for ENS nomination; and
• have employer support for permanent residence.

Yet if their earnings do not meet the relevant FWHIT requirements, they may be unable to rely on the high-income age exemption.

For some workers, an annual increase in the threshold can effectively narrow the pathway to permanent residence.

Remuneration Reviews Should Form Part of Immigration Planning

Many businesses conduct annual salary reviews for commercial reasons.

For employers sponsoring overseas workers, immigration considerations should also form part of that process.

Questions employers should consider include:

• Which sponsored employees are currently aged over 45?
• Which employees are likely to require an age exemption for future ENS applications?
• Do current remuneration arrangements satisfy the relevant FWHIT requirements?
• Will planned salary increases keep pace with future indexation?
• Should permanent residence pathways be accelerated?

Early planning often provides greater flexibility than attempting to resolve eligibility issues shortly before application lodgement.

What Should Employers Do Before 1 July 2026?

Before the next increase takes effect, employers should consider:

• identifying sponsored workers aged 45 or approaching 45;
• reviewing whether age exemptions may be required for future ENS applications;
• assessing current earnings against the applicable Fair Work High Income Threshold requirements;
• considering whether remuneration adjustments may be necessary; and
• reviewing the timing of permanent residence applications.

For many employers, these reviews can be completed well before permanent residence eligibility arises, reducing the risk of unexpected complications later.

Conclusion

As the threshold continues to increase each year, employers should ensure that immigration planning keeps pace. Early review of remuneration structures, age exemption requirements and permanent residence timelines can help avoid costly surprises and preserve valuable pathways for key employees.

If your business sponsors overseas workers or employs Subclass 482 visa holders who are approaching eligibility for permanent residence, it is important to understand how increases to the Fair Work High Income Threshold may affect future migration options. Hartman Immigration advises Australian employers and sponsored employees on employer-sponsored visas, permanent residence pathways and age exemption provisions under the ENS Subclass 186 visa. To discuss how the Fair Work High Income Threshold may impact your workforce planning or immigration strategy, contact Hartman Immigration for tailored advice.