Introduction Of A New Subclass 482 Skills in Demand (SID) Visa On 7 December 2024

The Government released a new Migration Strategy, setting out significant reforms to Australia’s migration system to meet the future needs of the nation. The Migration Strategy provides a policy roadmap to implement the Government’s new vision and objectives for Australia’s migration system.

As set out in the Migration Strategy, the Government stated its intention to implement a new Skills in Demand visa.

The Government has now announced the introduction of a new four-year temporary skilled worker visa, called the Subclass 482 Skills in Demand (SID) visa, to replace the Subclass 482 Temporary Skill Shortage (TSS) visa, as of 7 December 2024. This new visa provides sponsored workers with more opportunities to change employers and a clear pathway to permanent residency.

The new SID visa heralds a significant reform to Australia’s migration system, which is aimed at better aligning the country’s workforce needs with skilled foreign labour.

Some of the key features of the SID visa are:

• four-year visa period
• clear and defined pathways to permanent residency
• annually indexed salary thresholds
• flexibility to move between employers, including a public register of approved sponsors to assist with mobility
• if the employment relationship with a sponsor ceases, visa holders have 180 days to find another sponsor and are permitted to work during this period
• clear, fast service standards for visa processing (between 7 and 21 days for visa approval)
• sponsoring employers to pay trailing charges and fees (i.e. monthly or quarterly) rather than an upfront fee

Here are the key changes compared to the TSS visa:

• In a significant change, the work experience requirement to qualify for a SID visa is being reduced from the current requirement for the TSS visa of two years, to one-year for all visa applicants. This one-year work experience must have been obtained through one year of full-time work, or an equivalent period of part-time or casual work in the period of five years prior to the application date. This provides greater flexibility for various work types such as casual or part time work, and allows for breaks in employment.
  
  Note however that if a qualification is not held, further work experience will be needed in lieu of a qualification. Where work experience in lieu of a qualification is being relied upon, our reading is that this can occur prior to the 5 years, of which at least 12 months must occur within the last 5 years
• The English language requirement applicable to all SID applicants is also being changed to align with the criteria that applies to the current Medium-term stream of the TSS visa, which requires an International English Language Testing System (IELTS) score (or equivalent) of level 5 overall, with a minimum score of 5 in each component
• The SID visa will have a maximum four-year validity period, no matter which occupation is being nominated. Currently, TSS visa holders under the Short-term stream are granted a visa period of up to 2 years

Introduction Of A New Core Skills Occupation List (CSOL)

The Government has announced the introduction of a new targeted Core Skills Occupation List (CSOL).

The CSOL is a single consolidated list that provides access to temporary skilled migration for 456 occupations, including in the construction, agriculture, cyber security, health and education sectors.

The CSOL will apply to the Core Skills stream of the new Skills in Demand visa, which will replace the Subclass 482 Temporary Skill Shortage visa on 7 December 2024.

The CSOL will also apply to the Direct Entry stream of the permanent Subclass 186 Employer Nomination Scheme visa.

Caveats may apply.

What we know currently is that:

1. The occupation list for the Skills In Demand Visa appears to be no more restrictive than the existing 482 visa, and we have seen some additional occupations added to the list such as: hotel service manager, beauty therapist, tour guide, child care worker and dental prosthetist;
2. The salary levels will remain the same; and
3. All occupations on the CSOL will be eligible for the permanent 186 visa.

Essentially, the new SID visa will make it easier for migrants to qualify for the visa, namely with the reduced work experience requirement and the expanded occupation list.

The new CSOL can be accessed here: https://immi.homeaffairs.gov.au/Documents/core-sol.pdf

For a comparison of occupations that have been removed and added to the new CSOL, please see below:

We thank the Migration Institute of Australia (MIA) for providing this analysis of changes to the CSOL.

Introduction Of Three Targeted Streams

The SID visa consists of the following streams (two of which are targeted to specified occupations and level of earnings, and a third stream applicable to labour agreements):

• Specialist Skills stream – aimed at highly skilled, high-income earning professionals seeking quick entry to Australia, to drive innovation and job creation
• Core Skills stream – aimed at a broad range of skilled migrants (most SID visa applicants will come through this pathway) who possess the skills to fill occupations identified by Jobs and Skills Australia as being in shortage, to meet targeted workforce needs
• Labour Agreement stream – where an employer sponsor has an executed labour agreement with the Department of Home Affairs. Emerging occupations that do not have a corresponding ANZSCO may be nominated (in accordance with executed labour agreement in place)

In this article, we outline the key features of the new SID visa, including the requirements to qualify for each pathway.

What Are The Key Features Of The Specialist Skills Stream?

The Specialist Skills stream adopts a new streamlined approach for highly skilled specialists, to ensure Australia can quickly and easily recruit top talent in areas of need.

The Specialist Skills stream is available to highly skilled migrants:

• in any occupation (no Skilled Occupation List applies), except trades workers, machinery operators, drivers and labourers (ANZSCO Major Groups 3, 7 and 8); and
• who are earning at least $135,000 (the Specialist Skills Threshold, which will be indexed annually) and no less than Australian workers in the same occupation.

To qualify under this stream, applicants must meet the general eligibility criteria, including:

• be sponsored by an approved employer
• health and character requirements

There is no age restriction to qualify for the temporary SID visa under this stream (permanent residency requirements are separate).

The Specialist Skills stream is demand-driven, with no pre-determined limit on the number of visas that may be granted in this stream each year.

The Government has also committed to a service standard of 7 days median visa processing time for workers in the Specialist Skills stream.

Jobs and Skills Australia has dedicated resources to monitor labour market impacts of this pathway to ensure it supports job creation and the upskilling of local workers.

Additionally, the Department of Home Affairs has established a monitoring mechanism to ensure that sponsored workers under the Specialist Skills stream are not paid less than their nominated salary.

What Are The Key Features Of The Core Skills Stream?

The second stream in the new Skills in Demand visa is the Core Skills stream. Most temporary skilled migrants will come through this pathway.

The Core Skills Pathway will be available to applicants who meet the general eligibility criteria and:

• whose occupation is on a new Core Skills Occupation List, which relates to occupations identified by Jobs and Skills Australia as being in shortage (to be regularly updated), or where Australia has committed to providing access to our labour market in relation to that occupation through international trade agreements; and
• who will be paid a salary of at least $73,150 (for nomination applications lodged until 30 June 2025) – this is the Core Skills Threshold, to be indexed annually), or the relevant average market salary where it is above the threshold.

Unlike the Specialist Skills stream, trades workers, machinery operators, drivers and labourers are eligible under the Core Skills stream, subject to being identified on the Core Skills Occupation List based on advice from Jobs and Skills Australia, and being paid above the Core Skills Threshold (including for roles paid above the Specialist Skills Threshold).

The Government has committed to a service standard of 21 days median visa processing time for workers in the Core Skills stream.

Other Features Of The SID Visa

Guaranteed Pathways To Permanent Residence

Skills in Demand visa holders have a pathway to permanent residency. The changes expand access to the Temporary Residence Transition (TRT) stream of the Subclass 186 visa for SID visa holders in all streams, (i.e. Core Skills, Specialist Skills and Labour Agreement streams).

Alternatively, temporary skilled migrants can apply for permanent residency through self-nominated independent pathways such as General Skilled Migration visas (Subclass 189/190 visas).

The changes also allow all sponsored employment to count towards the Subclass 186 visa TRT stream
work experience requirements. There is now greater flexibility for changes in occupation to be considered, including promotions, working in a related field, or where changes to the classification of the occupation are made through updates to the ANZSCO. Existing flexibility for specified occupations (medical practitioners and certain executives) will continue in recognition of the nature of employment
arrangements in these occupations.

Periods of employment with any approved employer will count towards permanent residence requirements. That is, all sponsored employment counts towards work experience requirements for permanent residence under the changes.

A key feature of this new visa is an alternative approach to mobility, with new visa settings, streamlined applications and consideration of trailing employer fees that remove many onerous conditions that tie a migrant to a single employer.

This new model allows for worker mobility across industries, which better reflects the nature of how skills are used in the labour market.

More Time To Find A New Job

Under visa work condition 8607, holders of a SID visa who stop working for their sponsoring employer have more time to find a new sponsor, apply for a different visa or arrange to depart Australia.

SID visa holders have up to:

• 180 days at a time; or
• a maximum of 365 days in total across the entire visa grant period.

During this time, SID visa holders can work for other employers. This includes work in occupations not listed in their most recently approved nomination. 

Unless exempt, a SID visa holder cannot work for another employer unless they have ceased work with their sponsoring employer. Visa holders must remain in their nominated occupation while working for their existing sponsor.

Sponsors must let the department know if there is any change in situation within 28 days. This includes ceasing sponsorship or if a SID visa holder resigns. 

SID visa holders must not perform any work that is inconsistent with any licence or registration needed for their nominated occupation. This includes any conditions or requirements that they are subject to.

Trailing Employer Fees

The introduction of a new model for employers to pay trailing charges and fees (e.g. monthly or quarterly) rather than upfront fees, to facilitate mobility, to make hiring a new migrant less onerous, and to improve small business access to the migration system.

This new trailing fee model is aimed at helping to facilitate workers’ mobility and provide scope for job switching.

Streamlined Visa Applications

Visa applications will be backed by a service standard of 7 (Specialist Skills stream) or 21 days (Core Skills stream) for visa processing, enabling employers to fill a vacancy quickly.

Public Register Of Sponsors To Assist Mobility

A public register of approved sponsors, including the number of migrants sponsored and their occupations, has been developed to assist migrants wishing to find a new sponsor.

This will help migrant workers find new sponsors and give migrant workers a resource to check that a sponsoring employer is legitimate. The register includes details such as:

• the name of approved sponsors
• how many temporary skilled workers they are employing
• what occupations and/or pathway those workers are employed in

Agreement to the entry of these details on the public register is now part of the process for
approval of sponsors of temporary migrants.

Get More Information

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Contact us to book a no-obligation consultation to find out more, and to assess your eligibility for the Subclass 482 Skills In Demand visa.

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Australia’s migration laws are complex, and each case is different. We recommend that you seek professional advice if you are interested in applying for an Australian visa, as being fully informed will give you the best chance of achieving a successful outcome on your case. A migration professional can help you to do this.

For up-to-date advice on your eligibility for an Australian skilled visa, including a Subclass 482 SID visa, contact PAX Migration Australia, a leading immigration service providing advice on a range of visas. Contact us for a no-obligation discussion on how we may be able to assist you in achieving your migration goals in Australia.

Sources/Links

Australian Government – Department of Home Affairs – Immigration and Citizenship – News and media – Archive – News – Reforms to get migration working for the nation – 11 Dec 2023: https://immi.homeaffairs.gov.au/what-we-do/migration-strategy

Australian Government – Department of Home Affairs – Immigration and Citizenship – What we do – Migration Program planning levels: https://immi.homeaffairs.gov.au/what-we-do/migration-program-planning-levels

Australian Government – Department of Home Affairs – Immigration and Citizenship – News – 3 Dec 2024 – New Core Skills Occupation List to target the skills Australia needs: https://immi.homeaffairs.gov.au/news-media/archive/article?itemId=1269

Minister’s Media Centre – Ministers of the Employment and Workplace Relations Portfolio – Joint Media Release – 3 December 2024 – Visa reform targets the skills Australia needs: https://ministers.dewr.gov.au/burke/visa-reform-targets-skills-australia-needs

Migration Amendment (2024 Measures No. 1) Regulations 2024 and Explanatory Statement – 5 December 2024: https://www.legislation.gov.au/F2024L01585/asmade/downloads