Australia’s immigration system underwent a major transformation with the introduction of the Skills in Demand (SID) 482 Visa. Replacing the Temporary Skill Shortage (TSS subclass 482) visa on 7 December 2024, this revamped program aims to streamline skilled migration, address labour shortages, and provide clearer pathways to permanent residency for temporary skilled workers.

The Skills in Demand Visa brings a three-tiered structure for applicants, focusing on annual earnings and occupation type. This change introduces flexibility for employers and skilled workers while addressing Australia’s workforce needs. Below is a detailed breakdown of the Skills in Demand Visa or SID visa and what it means for skilled migrants and employers.

Key Changes Under the Skills in Demand Visa

The Skills in Demand SID visa introduces several significant changes:

• Extended grace period: Workers will have more time to secure a new sponsor if their employment is terminated (up to 180 days).
• Pathways to permanent residency: Visa holders will have clearer opportunities to transition to permanent residency.
• Independent skill verification: Skill shortages will now be independently assessed, ensuring employers hire genuinely needed workers.
• Incentives for employers: Businesses will benefit from simplified processes to attract and retain skilled workers.

The New Three-Tiered Skills in Demand (SID) Visa Structure

The SID visa introduces a three-tiered system, with eligibility requirements tied to annual earnings and occupation type. Here’s how the tiers are structured:

Tier 1: Specialist Skills Pathway

• Focus: Highly skilled, high-earning professionals.
• Salary threshold: Minimum $135,000 annually, indexed each year.
• Exclusions: Trades workers, machinery operators, drivers, and labourers are not eligible for this pathway.
• Processing time: Priority processing with a commitment to a 7-day median turnaround.
• Cap: 3,000 places per year.

Tier 2: Core Skills Pathway

• Focus: Occupations on the Core Skills Occupation List (CSOL), which will be regularly updated by Jobs and Skills Australia.
• Salary threshold: Minimum $73,150 annually, indexed each year in line with wage growth.
• Eligibility: Designed for trades workers and mid-level professionals.

Tier 3: Essential Skills Pathway

• Focus: Workers in critical sectors such as aged care and disability support.
• Salary threshold: Under $73,150 annually.
• Additional oversight: This pathway is expected to include union involvement and stricter regulatory frameworks.

NB – this Pathway is yet to be introduced, so full details are not yet available.

What Employers and Applicants Should Know

The Skills in Demand Visa, or SID, introduces several new requirements and changes for both employers and workers:

Employer Obligations

• Employers must prove financial viability and demonstrate they are offering market-competitive salaries.
• A public register of employer sponsors will be introduced to facilitate easier movement between sponsors.
• Labour Market Testing (LMT): While still required, the process is being simplified, and the mandatory advertising on the Workforce Australia website has been removed. LMT validity will increase from 4 months to 6 months, and it may eventually be replaced by skills data from Jobs and Skills Australia.

Eligibility Criteria for Applicants of Skills in Demand Visa (SID)

• A minimum of 12 months full-time work experience within the past 5 years in a relevant occupation.
• Qualifications and skills must align with the requirements of the nominated role, as outlined by the ANZSCO guidelines.
• English proficiency: An IELTS score of 5 or equivalent across all components is mandatory.
• The visa is valid for up to 4 years, with pathways to permanent residency.

Core Skills Occupation List (CSOL) Updates

• Over 70 new occupations have been added to the CSOL, ensuring more opportunities for skilled workers.
• Some occupations, such as Café and Restaurant Managers, ICT Support Engineers, and Graphic Designers, have been removed.

Transition to Permanent Residency

The SID visa provides clear pathways to permanent residency through the Employer Nomination Scheme (Subclass 186):

1. Temporary Residence Transition (TRT) Stream:
   • Applicants must complete 2 years of continuous full-time employment in Australia under a TSS or SID visa.
2. Direct Entry Stream (DE):
   • Limited to occupations on the CSOL.
   • Requires a positive skills assessment and 3 years of relevant full-time work experience.

Costs and Fees

Here’s a breakdown of the application costs:

• Primary applicant: $3,115.
• Dependents aged 18 or over: $3,115 each.
• Dependents under 18: $780 each.

No changes have been announced to the Skilling Australians Fund (SAF) levy, though the government is considering a monthly or quarterly payment model to reflect the increased flexibility for workers to change employers.

A Shift in Skilled Migration Strategy

The introduction of the SID or Skills in Demand Visa is part of a broader overhaul of Australia’s skilled migration framework. The government has outlined a roadmap for long-term reforms, including:

• A new points-based system for permanent skilled migration.
• Simplified visa processing and system-wide improvements.
• Establishment of a new agency to better assess skill shortages.

How Does the Skills in Demand Visa Compare to Other Skilled Visas?

Key elements that distinguish the SID visa include:

• Flexibility: Workers can move between employers with a grace period of 180 days to find a new sponsor.
• Short processing times: Median processing times are expected to be around 21 days.

Final Thoughts

The Skills in Demand Visa marks a major shift in Australia’s migration policies, offering greater flexibility and a clearer pathway to permanent residency for skilled workers. As the transition into the new Skills in Demand Visa or SID occurs, it’s crucial for both employers and applicants to stay informed about updates and refine their strategies to align with the new framework.

If you’re considering applying under the new Skills in Demand Visa / SID or need assistance navigating Australia’s migration system, we are here to help. What we are observing currently is that not seeking professional advice and support often led to refusal, which will become a barrier for any subsequent visa applications. Do not hesitate to contact us today for a consultation tailored to your needs!