Skills in Demand Visa

Skilled temporary visas — replacement of TSS 482 visa

A new three tiered system of Skills in Demand Visa pathways to replace the TSS 482 Visa.

• The specialist skills visa pathway has no occupational list and comes with a processing turnaround of 7 days. Trades occupations, machinery operators, drivers and labourers are excluded from this visa class. There will be 3,000 places allocated per year. The ‘specialist skills’ visa is intended for those earning over $135,000 per year.

• The core skills visa pathway is expected to provide the majority of visas issued under this program. Trades workers will be required to apply for this visa based on a revised ‘skills in demand list‘ developed by Jobs and Skills Australia. The ‘core skills’ visa is intended for those with annual earnings of $73,150-135,000. The earnings threshold for this pathway is set at the TSMIT minimum, which is currently set at $73,150, but will be indexed annually.

• The details of the essential skills visa pathway are yet to be finally determined. This visa will involve union oversight, be capped and be restricted to specific sectors.  To date, the aged care and disability sectors have been mentioned as potential target sectors for this pathway. The ‘essential skills’ visa will be for those earning under $73,150. 

Skills in Demand visas issued via these pathways will be granted for up to 4 years, with visa holders able to change employers more easily and benefiting from clear pathways to permanent residency. The ‘TSMIT‘ will be indexed annually, and a public register of employer sponsors will be published to make it easier for skilled workers to move between employers.

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Overview of Subclass 482 Skills in Demand Visa Streams

At launch, the new SID visa comprises three distinct streams:

1. Skills in Demand Visa – Specialist Skills Stream

• Designed for occupations within ANZSCO major groups 1, 2, 4, 5, and 6.
• Minimum salary threshold: $135,000.

2. Skills in Demand Visa – Core Skills Stream

• Applicable for occupations listed on the Core Skills Occupation List (CSOL).
• Minimum salary threshold: $73,150, indexed annually in line with Average Weekly Ordinary Time Earnings (AWOTE).

3. Skills in Demand Visa – Labour Agreement Stream

• Unchanged from the Labour Agreement Stream under the previous subclass 482 (TSS visa) framework.

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Key Eligibility Requirements

The Skills in Demand Visa (SID Visa) allows applicants to stay in Australia for up to 4 years, and offers pathways to permanent residency.

Core Skills Occupation List (CSOL) Updates

• Over 70 new occupations have been added, including Data Analyst, Supply Chain Analyst, Tour Guide and Child Care Worker.
• Some roles, including Café and Restaurant Manager, ICT Support Engineer, and Graphic Designer, have been removed.

Labour Market Testing (LMT)

• Employers must demonstrate genuine efforts to recruit locally before seeking overseas talent.
• The current LMT validity period remains 4 months, with discussions underway to extend it to 6 months.

Australian Market Salary Rate (AMSR)

Employers must pay salaries that meet the minimum income threshold for the relevant Skills in Demand visa stream:

• Specialist Skills Stream: $135,000.
• Core Skills Stream: $73,150 (indexed annually).

Employer Obligations

• Sponsors must prove financial viability and their capacity to meet market salary rates for the entire nomination period.

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Fees and Requirements

Skills in Demand Visa Application Fees

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

Skilling Australians Fund (SAF) Levy

No changes have been announced to SAF levy requirements.

Work Experience

Skills in Demand Visa applicants must have:

• At least 12 months of full-time equivalent work experience within the last 5 years.
• Qualifications, skills, and experience relevant to their nominated occupation (as per ANZSCO).

English Language Proficiency

An IELTS score (or equivalent) of at least 5 in each component is required, consistent with the previous MLTSSL stream.

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Transitional Arrangements

• Applications submitted before 7 December 2024 will be processed under the former TSS visa rules.
• Visa applications submitted after 7 December 2024 will be assessed under the new SID visa requirements.
• Nominations lodged before 7 December 2024 without a visa application can still be linked to a SID visa.

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Pathway to Permanent Residency

1. Employer Nomination Scheme (Subclass 186) – Temporary Residence Transition Stream (186 TRT)

• Applicants must complete 2 years of full-time employment in the same occupation in Australia within the last 3 years under a Subclass 457, 482 (TSS), or 482 (SID) visa.
• Employment may be with multiple sponsors, as long as the total employment duration is continuous (excluding unpaid leave).

2. Direct Entry Stream (186 DE)

• Limited to occupations on the Core Skills Occupation List (CSOL).
• Applicants must have:
  • A positive skills assessment.
  • 3 years of full-time relevant experience.

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The introduction of the Skills in Demand Visa is a significant shift in Australia’s skilled migration strategy, aiming to address workforce shortages while maintaining stringent eligibility and employer obligations. Further updates may follow as the Department of Home Affairs refines its policies.

Skilling Australians Fund

Consideration will be given to collecting the SAF in smaller increments over time in recognition of the greater freedom of visa holders to change employers.  A monthly or quarterly payment model will be explored.

Labour Market Testing

LMT is to be streamlined, although the only announcement so far is that the requirement to advertise on the Workforce Australia site will be abolished. The validity of advertising period will increase from 4 months to 6 months.

LMT will be gradually phased out as Jobs and Skills Australia data on skills shortages improves and a Core Skilled Occupation List is created as an alternative to LMT.