As Australia strives to maintain its position as a global leader in skilled migration, the federal government has announced a series of significant immigration reforms for 2025. These changes are designed to address workforce shortages, promote regional development, and enhance the overall integrity of the immigration system. Here’s a breakdown of the key updates and what they mean for migrants, employers, and students.
The Australian Government announced the release of the Core Skills Occupation List (CSOL).
The new CSOL fulfils the Government’s commitment to replace complex, out of date and inflexible occupation lists in our temporary skilled visa program. The CSOL is a single consolidated list, informed by labour market analysis and stakeholder consultations by Jobs and Skills Australia (JSA) that provides access to temporary skilled migration for 456 occupations.
The CSOL will apply to the Core Skills stream of the new Skills in Demand visa, which will replace the Temporary Skill Shortage (subclass 482) visa on 7 December 2024. The CSOL will also apply to the Direct Entry stream of the permanent Employer Nomination Scheme (subclass 186) visa.
National Innovation visa (SC858)
Skills in Demand (SID visa (Sc 482) Specialist Skills stream |
National Innovation visa (NIV) (Sc 858) |
|
| Applicant profile | Highly skilled, earning at least $135,000, with an employer sponsor | Internationally recognised record of exceptional talent, prominent in their field |
| Visa length | Up to 4 years (with pathway to permanent residency) | Direct to permanent residence |
| Sponsorship requirement | Must have an approved sponsor | Must be nominated via approved form 1000 |
| English | Competent English | Functional English or pay second VAC |
| Age | Any age (PR requirements are separate) | Any age |
| Occupation restrictions | Almost any occupation except trades workers, machinery operators and drivers, and labourers | No occupation restrictions |
| Grants each program year | Demand driven | Planned program and must be invited to apply |
Skills in Demand (SID SC482)
We provide a summary of the latest Australian immigration updates including more details on the introduction of the Skills in Demand (SID) visa, which came into effect on 7 December 2024. The SID visa has replaced the current Temporary Skill Shortage (TSS) (Subclass 482) visa.
The is part of the new Migration Strategy, which is intended to support sustainable immigration levels.
TSS visa applications that were not submitted before 7 December 2024, will need to be reassessed and submitted under the new SID visa requirements, which may extend visa preparation times and ultimately, impact start dates. For employers wishing to bring in foreign national employees expeditiously, this could pose challenges.
It is recommended that employers consult with their immigration advisers to consider their options when planning commencement dates for sponsored visa holders in Australia. Sponsors may also wish to review their subclass 482 visa-holder population to identify TSS visa holders who no longer have their nominated occupation on the CSOL, so they can proactively plan ahead should their visa require renewal.
Under the Employer Nomination Scheme, the changes will mean greater flexibility for members of the family over the age of 23 years of the Subclass 186 visa applicants.
And it is important to note that current TSS visa holders who work in an occupation that is not on the CSOL will still have a pathway to permanent residence subject to meeting relevant eligibility criteria.
Existing TSS 482 visa holders will have the ability to submit a new application with a new employer, if their current occupation is on the CSOL or the nomination meets the income threshold for the Specialist Skills stream. If the relevant occupation is not on the CSOL or does not qualify for the Specialist Skills stream, the applicant will not have a pathway to changing employer. These individuals will be able to utilise the strengthened mobility provisions to find work in a new occupation or for a new employer, apply for another visa, or depart Australia.
On 3 December 2024, the government announced that the SID visa will be introduced on 7 December 2024.2 In the same announcement, the government announced the release of the Core Skills Occupation List (CSOL).
Effective from 7 December 2024, the SID visa includes three streams. The three streams have the following common characteristics:
- The visa can be granted for up to four years.
- The visa subclass will remain as ‘Subclass 482’.
- No change to market salary rate requirements.
- Reduction of work experience requirement: The minimum relevant work experience requirement for the SID visa has been reduced from two years full time at a skilled level to one year full time (or equivalent part time/casual) at a skilled level within the five years preceding the visa application.
- There are 14 occupational caveats that apply. Whilst the caveats are listed in the CSOL, they apply to all streams under the SID visa.
- English-language requirement: The English requirements of the TSS medium-term stream will apply, which is an IELTS score (or equivalent) of level five (5) overall, with a minimum score of five (5) in each component. The approved English-language tests, the period of time in which the required test scores must be obtained, and the applicants that are exempt from the requirement to undertake English-language tests, are identical to the requirements that previously applied to the TSS visa.
- Children born in Australia to a SID visa holder, or current TSS visa holder, are automatically granted a SID visa by operation of law upon birth, if they do not acquire Australian citizenship through the other parent being an Australian citizen or permanent resident. However, the birth of the child will still need to be registered with the Department of Home Affairs.
- The Skilling Australians Fund Levy will continue to apply (fees remain unchanged)
- SID visa lodgement fees will align with the TSS fees under the medium-term stream
Stream# |
Core Skills |
Specialist Skills |
| Salary threshold* | AUD73,150
Core Skills Income Threshold (CSIT) |
AUD135,000
Specialist Skills Income Threshold (SSIT) |
| Market salary rate | Pay at least annual market salary rate which must be at least CSIT | Pay at least annual market salary rate which must be at least SSIT |
| Financial Capacity | Business must have the capacity to employ the nominee for at least the period of the nomination and to pay the person at least the market salary rate for the occupation each year | |
| Labour Market Testing | No change to date | |
| Occupation | CSOL | Does not need to be on CSOL but must be an ANZSCO occupation in Major Group 1, 2, 4, 5 or 6. Trades, machinery operators, drivers, and labourers excluded |
| Caveats | Applicable | Applicable if nominated occupation is listed on CSOL |
| Work experience | At time of application, 12 months equivalent full-time work experience in the last 5 years, casual, part-time, and full-time work included | |
| English | Equivalent to at least IELTS 5 in each test component (same as previous TSS Medium-term stream) | |
| Visa period | Up to 4 years | |
| Visa conditions | No change | No change |
| Processing priority | To be advised | To be advised |
| SAF Levy | No change | |
| Nomination application charge | No change | |
| Visa application charges | (i)AUD3115 Primary and secondary applicant 18 and over
(ii)AUD780 Secondary applicant under 18 |
|
| #Labour Agreement stream carries over existing settings while further development of the Essential Skills stream takes place | ||
| *Annual earnings excluding non-monetary benefits. Salary thresholds to be indexed annually | ||
SID 482 visa compared to the TSS 482 visa
Standard Business Sponsorship 482 SID visa
Nomination 482 SID visa
482 SID visa key changes
- Related
Transitional Arrangements – Subclass 482 Visas
The government has confirmed that the amendments do not operate retrospectively. All nominations and visa applications for a TSS visa made before the commencement of the amendments will be processed using the requirements that were in force at the time that the application was made.
Where there is a lodged position nomination application for a TSS visa that was not accompanied by a corresponding TSS visa application before the amendments commenced, this nomination can be ‘linked’ to a new SID visa application (provided the nomination is still valid).
Transitional Arrangements – 186 Visas
The CSOL will also apply to the Direct Entry stream of the Subclass 186 visa (permanent residence under the Employer Nomination Scheme). The amendments will apply to new Subclass 186 nomination and visa applications lodged on or after the regulations commence.
Employer Sponsorship Obligations
The sponsorship obligation to make sure the primary sponsored person works or participates in the nominated occupation, program, or activity will end when the primary sponsored person ceases employment for the original sponsor, rather than when he or she obtains a new sponsor.
This aligns with provisions implemented on 1 July 2024, to enable visa holders who cease work with their sponsoring employers to have up to 180 days at a time (increased from 60 days) and a maximum of 365 days in total across their entire visa grant period to find a new sponsor, apply for a different visa, or depart Australia.
Pathway to Permanent Residence under the Employer Nomination Scheme
The TSS visa has historically been a pathway to permanent residence under the Employer Nomination Scheme and this will continue under the SID visa:
- All SID visa holders have a pathway to permanent residence through the Temporary Residence Transition stream of the Subclass 186 Employer Nomination Scheme, after two years of employment in Australia in the three years immediately before the application. All periods of sponsored employment as a primary TSS/SID visa holder count towards this qualifying period. The two years can be with any employer (i.e., not just the sponsoring employer).
- Salary requirements for the Subclass 186 visa under both the Temporary Residence Transition stream and Direct Entry streams will be linked to the SID visa salary requirements. This allows the Subclass 186 visa to use the core skills income threshold (which will be indexed annually).
- Subclass 186 visa secondary applicants (family members) no longer need to be named in the nomination application as employers of Subclass 186 visa holders do not have any sponsorship obligations relating to family members.
- Current TSS visa holders who work in an occupation that is not on the CSOL will still have a pathway to permanent residence, subject to meeting relevant eligibility criteria, through the Temporary Residence Transition stream of the Subclass 186 visa.
- Greater flexibility will apply for a member of the family unit who is aged 23 years old and above to be included in, and granted, the Subclass 186 visa with the primary applicant if at the time of the Subclass 186 visa application:
- the family member is included in the application for the Subclass 186 visa application visa; and
- the person holds a Subclass 482 (Skills in Demand) visa granted on the basis that the person was a member of the family unit of a person holding a visa of the same kind.
| Stream# | Temporary Residence Transition | Direct Entry |
| Occupation | Any occupation in which applicant has held 457/TSS/SID visa | Any CSOL occupation |
| Work experience threshold | Two years full-time work in the nominated occupation in Australia in the last three years while on a 457/TSS/SID visa
Not required to have only worked for nominating employer for that period and greater flexibility to cater for change of position such as promotion |
Favourable skills assessment and three years’ experience in the nominated occupation – no change |
| Salary threshold* | AUD73,150 – CSIT | |
| Market salary rate | Pay at least annual market salary rate – no change | |
| Age | Under 45 unless exempt – no change | |
| SAF levy | AUD5000 – no change | |
| Nomination and
visa application charges |
No change | |
| #Labour Agreement stream carries over existing settings while further development takes place | ||
| *Annual earnings excluding non-monetary benefits. Salary thresholds to be indexed annually | ||
Whilst certain occupations have been removed from the CSOL, the SID visa requirements overall provide greater flexibility to visa holders. However, as a result of the strengthened mobility provisions for visa holders and change to the Temporary Residence Transition stream qualifying period for permanent residence, employers will need to review their employee value proposition to retain sponsored visa holders in a competitive labour market given the investment involved in sponsoring foreign workers.
Migration Strategy: 8 Key Actions
Reform of Skilled Migration – The Points Test
The Skilled Migration Points Test was introduced through ‘Skill Select’ in 2012, and has not been materially altered since then. Consultation is taking place to establish how the Points Test can be amended, to attract the best candidates to Australia. This will apply to Skilled Visas – Subclasses 189, 190 and 491.
Highlights of 2024 – Australia immigration changes
- 482 TSS and 186 ENS visa changes
- The government has already established a direct pathway to Australian citizenship for eligible New Zealanders to reflect the strong ties between the two countries
- 851 RoS visa- Resolution of Status
- 485 visa
Ending onshore visa hopping
The Minister for Home Affairs published a media release that announces further changes to the migration system that were articulated within the Migration Strategy. These changes are to stop what is referred to in the Migration Strategy and the media release as visa hopping where temporary visa holders continue to apply for further temporary visas onshore to extend their stay in Australia with little prospect of becoming permanent residents.
As a measure to restrict visa hopping the media release outlines the following changes to commence from 1 July 2024:
- Visitor visa (sc 600) holders will not be able to apply for Student (Sc 500) visas onshore.
- Temporary Graduate (Sc 485) visa holders will not be able to apply for Student (Sc 500) visas onshore.
If you wish to discuss your migration matter, please do not hesitate to get in touch with our team today.
Related:
Australian Visa Changes from 1 July 2026: Higher Fees, New Income Thresholds and Working Holiday Updates
Federal Budget 2026–27: Key Migration and Visa Changes for Australia
Skilled Partner Points and Changes in Marital Status for Subclass 190 Visa Applicants
Partner Visa Processing Update (April 2026): What Applicants Must Know
Iranian visa holders temporarily barred from travelling to Australia from 26 March