Skills in Demand Visa

Skilled temporary visas- Replacement of TSS 482 visa

A new three tiered system of visa pathways to replace the TSS SC 482.

• The specialist skills visa pathway will not have an occupational list and a processing turnaround of 7 days.  Trades occupations, machinery operators, drivers and labourers will be excluded from this visa class. There will be 3,000 places allocated per year. The ‘specialist skills’ visa for those earning over $135,000 per year.

• The core skills visas pathway are expected to provide the majority of visa for the program.  trades workers will be required to apply under this visa based on a revised ‘skills in demand list‘ developed by Jobs and Skills Australia. The ‘core skills’ visa for the $73,150-135,000 cohort. Earnings to be at least TSMIT, currently set at $73,150, but to 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. The ‘essential skills’ visa is for those earning under $73,150. 

The visas will be granted for up to 4 years and visa holders will be able to change employers more easily and provide clear pathways to permanent residency.  The ‘TSMIT‘ will be indexed annually and a public register of employer sponsors to allow more ease with moving between employers.

Department of Home Affairs Announces New Skills in Demand (SID) Visa

The Department of Home Affairs has unveiled the legislative framework for the new Skills in Demand (SID) visa, which will officially replace the Temporary Skills Shortage (TSS) visa. This rebranding comes with significant updates and amendments to streamline skilled migration.

The SID visa will take effect starting 7 December 2024.

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Overview of the Subclass 482 Skills in Demand Streams

The SID visa introduces three distinct streams:

1. Specialist Skills Stream

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

2. 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. Labour Agreement Stream

• Remains unchanged under the SID visa framework.

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Key Eligibility Requirements

The SID visa allows applicants to stay in Australia for up to 4 years, with pathways to permanent residency.

Core Skills Occupation List (CSOL) Updates

• Over 70 new occupations have been added.
• 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 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

SID 482 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

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 SID 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 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 created as an alternative to LMT.