New Skills In Demand Visa And Other Changes Introduced
As of December 7, 2024, the Australian government has officially launched the Skills in Demand (SID) visa, which has now formally replaced the Temporary Skills Shortage (TSS) visa.
Australia
Immigration
At a Glance
- As of December 7, 2024, the Australian government has
officially launched the Skills in Demand (SID) visa, which has now
formally replaced the Temporary Skills Shortage (TSS) visa.
- The government has also implemented changes to the Employer
Nomination Scheme visa under the Temporary Residence Transition
Stream, allowing individuals to qualify for permanent residence
after working for two years with any employer in Australia under
certain visa types (i.e., Temporary Work (Skilled) Subclass 457,
TSS, or SID visa).
The situation
As previously announced, the Temporary Skills
Shortage (TSS) visa has been replaced with the new Skills in Demand
(SID) visa, which incorporates the updated Core Skills Occupation List (CSOL) for the Core
Skills stream and introduces a Specialist Skills stream for
high-earning applicants. Additionally, changes to the Employer
Nomination Scheme (ENS) visa now allow individuals to apply for
permanent residence after working for two years with any employer
in Australia under specific visa types.
A closer look
DETAILS |
ANALYSIS AND IMPACT |
SID visa details.
- The SID, which retains its Subclass 482 designation, can now be
granted for up to four years across all streams in 12-month
increments.
- New streams. The Short-term and Medium-term
streams under the TSS program have been replaced by two new streams
under the Skills in Demand visa:
- Specialist Skills Stream. This is designed for
roles with annual earnings of at least AUD 135,000 and applies to
occupations listed under ANZSCO Major Groups 1, 2, 4, 5, or 6.
Roles in this stream must also meet any occupational caveats
outlined in the CSOL. ANZSCO Major Groups 3 (Technicians and Trades
Workers), 7 (Machinery Operators and Drivers) and 8 (Labourers) are
excluded from this stream.
- Core Skills Stream. This applies to roles with
annual earnings of at least AUD 73,150, and is restricted to
occupations listed on the CSOL.
- Key changes. The key changes to the SID visa
include the following:
- Employers must demonstrate financial capacity to employ and pay
market salary rates.
- Labour Market Testing requirements are unchanged, but could be
extended from four to six months if the proposed legislation is
approved in February 2025.
- Work experience requirements have been reduced to one year of
full-time work within the past five years, with part-time and
casual experience also considered.
- English language requirements now align with an overall
International English Language Testing System score of 5, with a
minimum score of 5 in each component.
- Sponsorship obligations have been updated, to ensure sponsors
are not in breach once a visa holder has ceased employment and the
sponsorship arrangement has ended.
- Fees. The government fees for the Skills in
Demand visa are set as follows:
- AUD 3,115 for the main applicant;
- AUD 3,115 for each additional applicant aged 18 or over;
and
- AUD 780 for each additional applicant under 18.
These fees are the same as the TSS medium-term stream.
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- The changes to the SID visa framework may impact applicants by
introducing stricter eligibility criteria for a business to
nominate a candidate.
- The lack of additional concessions for labour market testing
could also limit flexibility, making it harder for some applicants
to secure sponsorship.
- For existing sponsored employees, the application of the CSOL
without transitional provisions may create uncertainty and
necessitate strategic adjustments to maintain eligibility or
continue in their roles. These changes highlight the importance of
careful planning for employment and sponsorship strategies to meet
the updated criteria.
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ENS visa details.
- Path to permanent residency. Under the
Temporary Residence Transition (TRT) Stream, individuals may now
qualify for permanent residence after working for two years (within
the last three years) with any employer in Australia under certain
visa types (i.e., Temporary Work (Skilled) Subclass 457, TSS, or
SID visa). Previously, only employment with the applicant's
sponsor could be counted towards this requirement. This ensures
eligibility is not impacted by changes in employers or nominated
occupations.
- Age restriction. The age exemption for
individuals earning at least the Fair Work Income Threshold
(currently AUD 175,000) has been updated to allow work with any
employer to qualify for the exemption. No new age exemptions have
been introduced.
- Direct Entry stream. The new CSOL, including
occupational caveats, applies to the Direct Entry (DE) Stream,
which allows eligible applicants to apply for permanent residency
if they have at least three years of relevant experience and obtain
a positive skills assessment from an industry body. The CSOL
features 456 occupations, significantly expanding the number of
occupations which can be nominated under this stream.
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- Changes to ENS requirements provide a faster pathway to
permanent residency under the TRT Stream for sponsored visa holders
who change sponsors or occupations, while expanding DE eligibility
to the full CSOL allows more skilled workers to apply regardless of
time in Australia.
- However, employers may struggle to retain skilled staff
pursuing permanent residency, especially in highly competitive
industries.
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Background
These reforms aim to address skill shortages, enhance worker
mobility, reshape permanent skilled migration to foster long-term
economic growth, and streamline the migration system.
Looking ahead
Fragomen anticipates further policy guidance from the Department
in the coming weeks and will report on related developments.
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.