Australia Overhauls Skilled Visa Program with New Changes

Australia’s skilled visa program was completely revamped starting December 7, 2024. The most salient changes include a new list of skilled occupations and the introduction of a new Skills in Demand visa.

Key Skills Occupation List

All the previous lists have been replaced so that it will be easier for employers and migrants alike to deal with. Core Skills Occupation List (CSOL) encompasses over 450 occupations across sectors like:

• construction
• cyber security
• agriculture
• health

It is based on labour market analysis and stakeholder input. It will only apply to the SID Core Skills stream and the Employer Nomination Scheme (subclass 186) visa (Direct Entry stream).

​Refer to ​​the CSOL list of New Core Skills Occupation List to target the skills Australia needs​.​​

Skills in Demand (SID) visa

The Skills in Demand (subclass 482) visa will supplant the Temporary Skill Shortage visa, making it more seamless for employers and skilled migrants. Most visa holders can now remain in Australia for up to four years. It aims to offer a streamlined process for both employers and migrants needing a more skilled workforce to uphold their businesses.

Key features of the SID visa

The important features of the Australian Skills in Demand visa are to be elaborated as follows:

1. Clear Pathway to Permanent Residence

The Skills in Demand visa is a pathway to permanent residency in Australia.

Work experience with an approved employer is important for the permanent residency requirement under the SID visa. Hence, it helps the migrant develop skills and contributes to the Australian economy.

Such an obvious avenue leaves room for greater clarity and gives impetus to longer-term relationships between skilled migrants and employers.

2. Work Experience is Less

The SID visa greatly reduces the work experience requirement compared to its predecessor, the Temporary Skill Shortage (TSS) visa. Presently, only one year of relevant work experience in the nominated occupation or a closely related field is required for applicants.

Lessening the requirement of working experience increases the migrant’s visa qualifications and helps him integrate early into the Australian working culture.

3. Easy Procedure

The SID Visa aims to minimize the application procedure for both employers and migrants. This results in the core skills that should be used from a single, consolidated Core Skills Occupation List (CSOL), which eases the selection of eligible occupations.

A more streamlined system and less paperwork for administration will be nominally cumbersome for both parties due to the new reforms. By incorporating these key features, the Australian government aims to attract and retain highly skilled workers, fill critical labour shortages, and foster economic growth.

SID visa stream

The Australian Skills in Demand visa is targeted to meet the specific needs of the labor market and to attract skilled migrants from various sectors. Thus, to achieve this, it is divided into three distinct streams.

1. Core Skills Stream

This stream mainly focuses on filling up critical skill shortages identified by the Australian government. This applies where the government has committed to giving access to the labour market through international trade agreements.

Applicants for this stream must be nominated for an occupation listed in the CSOL. It comprises more than 450 occupations in industries such as construction, health care, and technology.

Applicants for this stream must earn a salary at or above the Core Skills Income Threshold, which currently stands at AUD 73,150.

2. Specialist Skills Stream

This section targets highly skilled and high-earning migrants who can significantly contribute to the Australian economy and lift national productivity.

Applicants in this stream must meet the general eligibility requirements and:

• Be nominated for an occupation within ANZSCO Major Groups 1, 2, 4, 5, or 6 (excluding trades, machinery operators, drivers, and labourers).
• Be paid at least AUD 135,000 per year to ensure that their remuneration is at par with the Australian workers in the same occupation.

3. Skills Stream

This division is currently under development and will replace the existing Labour Agreement stream.

The Essential Skills Stream is supposed to serve industries’ specific needs and might be negotiated between employers and the Australian government on a case-by-case basis.

In a nutshell

These changes aim to attract and retain skilled workers, bolster Australia’s economy and address critical labour shortages.

Applications for the TSS visa have been closed on 6 December 2024.