The Australian Government is implementing a new Subclass 482 Skills in Demand (SID) visa to replace the existing Subclass 482 Temporary Skill Shortage (TSS) visa from 7 December 2024.
The Explanatory Memorandum accompanying the updated regulations states that the changes are based on the government's commitment to reforming the Australian migration system. The implementation of the Skills in Demand visa would ensure that the program would meet Australia's skill needs while reducing the risk of visa holder exploitation and improving access to permanent residency.
Despite the name change and significant ambitions, the changes are better characterised as evolutionary rather than revolutionary. A fact suggested by retaining the same visa subclass and majority of criteria.
Subclass 482 SID Visa Changes
Key changes in the new SID visa include:
- Removal of the Medium & Long Term, Short Term streams
- Implementation of Specialist Skills and Core Skills streams
- Labour Agreement stream to remain in effect
- Knock on changes to the Sc 186 Employer Nomination Scheme permanent visa (see below)
Within this scope, the following will apply:
Common criteria for Specialist & Core Skills streams
- Visa granted for up to 4 years, or 5 years for HK Citizens
- Reduction of work experience from 2 years full time to 1 year full time
- Requirement for work experience to have been within the past 5 years
- English language requirement equivalent to IELTS 5.0 (same as the previous Medium & Long Term stream)
- Indexed annual earnings based on Average Weekly Ordinary Time Earnings
- Retain updated employee "flexibility" allowing up to 12 months without a sponsoring employer over life of the visa, in maximum 6 month periods.
- Visa application charge for both streams at the current Medium & Long Term stream price, $3,115 for the main applicant, $3,115 for secondary adults and $780 for secondary children.
Specialist Skills stream
- Market salary and remuneration above $135,000 + superannuation
- Must specify an ANZSCO occupation however all ANZSCO occupations are eligible with the exception of ANZSCO Major Groups 3, 7 and 8
- Employer must demonstrate financial capacity to employer visa holder for 2 years
Core Skills stream
- Market salary and remuneration above $73,150 + superannuation
- Nominated ANZSCO must appear on new Core Skilled Occupation List
Labour Agreement stream
- No information of any substantive changes has been announced
Updated CSOL
The CSOL replaces multiple occupation lists used under the TSS visa, adding 70 new occupations in sectors such as health, childcare, education, construction, and cyber security. Many of these occupations align with the more recent 2022 edition of the Australia & New Zealand Standard Classification of Occupations (ANZSCO), a much needed update to the existing skills list.
Updating to the 2022 edition has also meant some technical changes in ANZSCO codes, with updated definitions and new codes.
Grandfathering Provisions
The implementation includes grandfathering provisions for existing TSS visa applications and nominations made but undecided before the 7 December implementation date. Employers with approved TSS nominations will be able to apply for Sc 482 SID visas within the original 12-month nomination period.
These changes aim to create a more flexible skilled migration system that better addresses Australia's workforce needs while providing clearer pathways to permanent residence for skilled migrants.
Employer Obligations
The reforms also modify employer the Sponsorship Obligations, ending an employer's obligations to prevent visa holders from working outside their nomination after employment ceases. This aligns with extended provisions allowing visa holders up to 180 days at a time and 365 days total across their visa period to find new sponsorship.
186 ENS Temporary Resident Transition stream
The Sc 186 ENS TRT stream has been amended based on the government's intention to increase access to permanent residency for sponsored visa holders.
- Creation of a pathway to permanent residency through Sc 186 Employer Nomination Scheme Temporary Resident Transition stream after 2 years employment in the same occupation on any combination of Sc 482 SID, Sc 482 TSS, Sc 457 visa.
- Requirement to have worked for minimum 2 years applies to work on the visa relates to the nominated occupation, rather than the employer (as has been the case).
- Employers no longer required to sponsor family members in the Sc 186 Nomination to remove redundancy
- Secondary children can be granted a Sc 186 visa after their 23rd birthday, provided Sc 186 application was lodged prior to their 23rd birthday
186 ENS Direct Entry stream
The Sc 186 ENS DE stream remains effectively the same, subject to an updated CSOL.
Unimplemented Changes
The government previously announced its intention to make additional changes to the migration framework including increasing the validity of Labour Market Testing, implementing a register of employer sponsors with visa holder numbers, adding indexation to the Migration Act 1958 (rather than the Regulations).
As supporting legislation did not pass in November, these changes will be postponed until 2025.
Conclusion
The changes fall short of the government's claim to "most significant reform in a generation".
In many cases the most significant impact will be the change in occupations on the CSOL. Current Sc 482 TSS visa holders whose occupations have been removed will need to identify whether there is another suitable ANZSCO code, identify another visa pathway, or depart the country.
Changes to the Sc 186 to increase access to permanent residency should be welcomed, however the government's changes fail to recognise the main barrier to access is the high cost to employers. The greater flexibility to apply on the basis of time worked in Australia, rather than time with the employer, is negated by the sponsoring employer's need to ensure that the period of work is sufficient to cover additional costs related to sponsorship.
Overall the implementation of the SID visa is not likely to make a significant material change to Australia's skill needs or temporary visa holders' access to permanent residency.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
