The Sponsored Parent (Temporary) visa (subclass 870) was introduced on 1 July 2019 to allow parents of Australian citizens, permanent residents, and eligible New Zealand citizens to visit Australia for extended periods of 3 or 5 years, with the option to reapply for a further visa to a maximum cumulative stay of 10 years. Unlike permanent parent visas, the subclass 870 does not require the sponsoring child to meet the balance-of-family test, and it does not confer permanent residence or a pathway to it. From its inception, a critical eligibility gate has been the sponsor’s taxable income. Between July 2019 and 30 June 2023, the legislative instrument set the minimum household income at $83,454.80, a figure derived from the Temporary Skilled Migration Income Threshold (TSMIT) in force at the time. On 1 July 2023, the Department of Home Affairs updated the income requirement to $72,080.44, aligning it with the National Minimum Wage annualised amount rather than the TSMIT, following a policy decision to decouple the 870 sponsorship threshold from employer-sponsored visa benchmarks. This change reduced the qualifying income by $11,374.36 and expanded eligibility for families where the sponsor’s household income previously fell short. The 2024–25 programme year has not seen a further adjustment to the $72,080.44 figure, but the ongoing review of Australia’s parent visa framework, combined with inflationary pressure and the May 2024 Federal Budget’s silence on the 870 threshold, means sponsors preparing applications in 2025 must verify the current rate against the latest legislative instrument.
Legislative Basis and 2025 Income Threshold
The Sponsorship Obligation
Under regulation 870.312 of the Migration Regulations 1994, a person applying for approval as a family sponsor for a subclass 870 visa must demonstrate that their household has a minimum annual taxable income. The obligation applies to the sponsor’s household, not solely to the individual sponsor. The Department assesses the income of the sponsor, the sponsor’s spouse or de facto partner, and any other adult family member residing in the same household who contributes to the combined income. The relevant assessment year is the most recent completed financial year before the date the sponsorship application is lodged.
Current Threshold and Legislative Instrument
The applicable legislative instrument is Migration (Subclass 870 (Sponsored Parent (Temporary)) Visa—Income Threshold) Instrument (LIN 23/035) 2023, which commenced on 1 July 2023. This instrument repealed the earlier IMMI 18/045 and set the minimum annual household taxable income at $72,080.44. The figure is calculated as the National Minimum Wage of $23.23 per hour multiplied by 38 hours per week over 52 weeks, then rounded to two decimal places. The Department of Home Affairs confirmed this amount in its 1 July 2023 update to the subclass 870 eligibility page, which states: “You must have a minimum taxable income of $72,080.44 for the most recent completed financial year before the date you lodge the sponsorship application” (Department of Home Affairs, 1 July 2023).
Evidence Requirements
Sponsors must provide a Notice of Assessment issued by the Australian Taxation Office (ATO) for the relevant financial year. If the most recent assessment is not yet available, the Department may accept the sponsor’s ATO tax return and PAYG payment summaries, but the Notice of Assessment remains the preferred document. Where the household includes a spouse or de facto partner whose income is relied upon, that person’s Notice of Assessment must also be supplied, along with evidence of the relationship and cohabitation. The Department does not accept projected income, employment contracts, or pay slips as primary evidence of meeting the threshold.
Historical Threshold Changes and Policy Rationale
The TSMIT Era (2019–2023)
When the subclass 870 programme launched on 1 July 2019, the sponsorship income threshold was set by IMMI 18/045 at $83,454.80. This amount was the TSMIT as it stood in 2018–19, and the instrument explicitly linked the 870 threshold to the TSMIT. The policy intention was to ensure that sponsoring households had sufficient economic capacity to support a parent during an extended stay without recourse to Australia’s social welfare system. The $83,454.80 figure remained unchanged for four full financial years, even though the TSMIT itself was increased to $70,000 on 1 July 2023 for employer-sponsored visas. The Department chose not to raise the 870 threshold to match the new TSMIT.
Decoupling from TSMIT
The decision to decouple the subclass 870 income threshold from the TSMIT was announced through the 2023–24 Federal Budget and implemented via LIN 23/035. The Explanatory Statement to LIN 23/035 notes that the new threshold “is based on the National Minimum Wage, which provides a more appropriate benchmark for family sponsorship than the Temporary Skilled Migration Income Threshold, which is designed for employer-sponsored skilled workers.” The reduction from $83,454.80 to $72,080.44 represented a 13.6% decrease and was described by the Department as a measure to “improve access to the Sponsored Parent (Temporary) visa for families with more modest incomes” (Department of Home Affairs, Budget Fact Sheet, 9 May 2023).
No Indexation Mechanism
Neither IMMI 18/045 nor LIN 23/035 contains an automatic indexation clause. The threshold is amended only when a new legislative instrument is made. This means the $72,080.44 figure may persist for multiple years without adjustment, as occurred with the $83,454.80 figure between 2019 and 2023. Sponsors should not assume an annual increase and must check the Federal Register of Legislation for any new instrument before lodging.
Interaction with Taxable Income Definition
What Counts as Taxable Income
The Department uses the ATO definition of taxable income: the assessable income reported on a tax return minus allowable deductions. For most sponsors, this is the figure shown on the Notice of Assessment under the heading “Taxable income.” Assessable income includes salary and wages, business income, rental income, dividends, interest, and certain Centrelink payments that are taxable. Deductions such as work-related expenses, investment property deductions, and personal superannuation contributions reduce the taxable income figure.
Excluded Income Sources
The following do not count toward the $72,080.44 threshold: tax-free government pensions or benefits (including the Family Tax Benefit), superannuation lump sums that are tax-free, and income earned by family members who are not part of the sponsor’s household. The Department’s policy guidance, published on the subclass 870 webpage, states: “You cannot include income from family members who do not usually live with you, or income that is not declared on a tax return” (Department of Home Affairs, accessed 5 February 2025).
Joint Sponsorship and Household Composition
Multiple adult children in the same household may combine their incomes to meet the threshold, provided each is an Australian citizen, permanent resident, or eligible New Zealand citizen, and each is listed as a sponsor on the application. The household must be a single residential address. Siblings living at separate addresses cannot pool their incomes. The Department may request utility bills, lease agreements, or statutory declarations to verify cohabitation. If a sponsor’s spouse or de facto partner contributes income, their relationship must be evidenced by a marriage certificate or registered relationship certificate, and both parties must be living together.
Application Process and Timing Considerations
Lodgement Sequence
The subclass 870 application is a two-stage process. First, the child applies for approval as a family sponsor. The sponsorship application is lodged online via ImmiAccount, and the income assessment occurs at this stage. The sponsor must upload the relevant Notice of Assessment and any supporting household documentation. The sponsorship application fee is $420 (as at February 2025). Once the sponsorship is approved, the parent can lodge the visa application. The parent does not need to demonstrate income.
Timing the Lodgement with the Financial Year
Because the Department requires the most recent completed financial year’s taxable income, the optimal lodgement window for sponsors whose income has increased is after 1 July, when the new financial year’s Notice of Assessment becomes available. A sponsor who earned $68,000 in 2022–23 but $74,000 in 2023–24 would be ineligible if they lodged in June 2024 but eligible if they waited until July 2024 and used the 2023–24 assessment. The ATO typically issues Notices of Assessment within two weeks of lodging a tax return electronically; paper returns take longer. Sponsors should factor this processing time into their application timeline.
Processing Times
As at January 2025, the Department’s global visa processing time guide indicates that 75% of sponsorship applications are processed within 3 months, and 90% within 5 months. Visa applications for the subclass 870 show a longer tail: 75% processed within 6 months and 90% within 12 months. These figures are published quarterly on the Department’s website and vary by caseload. Sponsors should not book travel for the parent until the visa is granted.
Comparison with Other Parent Visa Income Requirements
Subclass 143 and 864 (Contributory Parent Visas)
Permanent contributory parent visas require an Assurance of Support (AoS) rather than a sponsor income threshold at the application stage. The AoS is assessed by Services Australia after the visa application is queued for decision, and the assurer’s income requirement is based on the Newstart Allowance (now JobSeeker Payment) rate multiplied by a factor depending on the number of assurors and dependants. For the 2024–25 financial year, a single assurer supporting one parent must show a taxable income of approximately $36,000 to $40,000, significantly lower than the subclass 870 threshold. However, the AoS is a 10-year bond backed by a $10,000 (single applicant) or $14,000 (couple) bank guarantee, and the visa application charge for a contributory parent visa is $47,955 (as at 1 July 2024), compared with $5,735 for a 5-year subclass 870 visa.
Subclass 103 and 804 (Non-Contributory Parent Visas)
Non-contributory parent visas have no sponsor income threshold at application but are subject to the balance-of-family test and extremely long processing times. The Department’s Parent Visa Queue Calculator, last updated in December 2024, shows that new applications for the subclass 103 may wait 30 years or more for a decision. The subclass 870 provides a viable interim solution for parents who wish to spend extended time in Australia while a permanent parent visa is queued.
Actionable Guidance for 2025 Applicants
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Verify the current threshold on the day of lodgement. Do not rely on the $72,080.44 figure without checking the Federal Register of Legislation and the Department of Home Affairs subclass 870 webpage for any new legislative instrument that may have commenced after the date of this article.
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Obtain the most recent Notice of Assessment before lodging the sponsorship application. If the 2024–25 Notice of Assessment will show a higher taxable income than 2023–24, wait until after 1 July 2025 to lodge, and file the tax return promptly to receive the assessment.
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Map the household composition carefully. If relying on a spouse or adult child’s income, ensure that person is living at the same address and that documentary evidence of cohabitation is available. A lease showing all names, joint utility bills, and a statutory declaration from each contributing adult will strengthen the application.
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Do not confuse the subclass 870 income threshold with the Assurance of Support income requirement for permanent parent visas. The two are assessed by different agencies (Department of Home Affairs versus Services Australia) using different formulas and documentation.
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Budget for the full cost of the visa pathway, including the sponsorship application fee ($420), the visa application charge ($5,735 for a 5-year visa or $11,470 for a 3-year visa, as at February 2025), health examinations, police certificates, and private health insurance, which is mandatory for the duration of the parent’s stay under condition 8501. The Department’s Policy Advice Manual specifies that the insurance must cover medically necessary treatment, including public hospital care, and must be maintained from the date of arrival.