Key Updates to the Skills in Demand visa

The Department of Home Affairs has introduced key changes to Australia’s skilled migration framework, aimed at addressing labour shortages and improving processes for skilled workers and employers. These changes include the introduction of the Skills in Demand (SID) visa, modifications to the Temporary Residence Transition (TRT) stream under the Employer Nomination Scheme (ENS) visa (subclass 186), and updates to the Core Skills Occupation List (CSOL). 

Since implementing these changes, the government has announced key updates, clarified details, and provided additional information, which we have summarised below. 

The Skills in Demand visa replaces TSS visa 

The Skills in Demand (SID) visa has replaced the Temporary Skill Shortage (TSS) visa, creating a more streamlined and efficient pathway for employers to recruit skilled workers. 

• Key features of the SID visa: 

• Specialist Skills Stream: fast-tracks applications for highly skilled workers (processing time: 7 days). 

• Core Skills Stream: supports mid-income roles aligned with the Core Skills Occupation List (processing time: 21 days). 

• Labour Agreement Stream: tailors pathways for industries with unique workforce needs. 

• Relaxed work experience criteria: applicants now require one year of full-time equivalent work experience within the past five years. 

• Work flexibility for visa holders: subclass 482 visa holders benefit from a 6-month grace period to find a new sponsor. During this period, they can undertake casual employment with multiple employers without affecting their visa status. 

• Employer financial requirements: employers must provide financial evidence, such as profit and loss statements or contracts, to confirm their capacity to pay the nominated salary. 

• Labour Market Testing (LMT): while there are currently no changes, a proposed extension to six months is pending parliamentary approval. 

Changes to the Temporary Residence Transition (TRT) stream 

The TRT stream under the Employer Nomination Scheme (ENS) visa (subclass 186) has been revised to offer more flexibility for skilled workers: 

• Work experience requirements: applicants can now combine work experience gained across multiple employers to meet the two-year threshold. 

• Application stage adjustment: work experience requirements are now assessed at the visa application stage rather than the nomination stage. 

These updates aim to accommodate changes in employment patterns and ensure that workers are not disadvantaged by administrative updates to occupation lists. 

Revisions to the Core Skills Occupation List (CSOL) 

The Department of Home Affairs has updated the Core Skills Occupation List (CSOL) to better reflect Australia’s labour market needs while balancing international obligations and workforce demand. 

• Removal of Caveat 14: Previously, Caveat 14 restricted certain occupations to applicants covered under International Trade Obligations (ITOs). Its removal now allows applicants of all nationalities, including Chefs, to apply under the Skills in Demand (SID) visa and Employer Nomination Scheme (ENS) visa. This change broadens eligibility and helps address critical workforce shortages in Australia. 

now ensures that applicants of all nationalities can apply for these roles under the Skills in Demand (SID) visa and the Employer Nomination Scheme (ENS) visa. This change significantly broadens eligibility, addressing critical gaps in Australia’s workforce.  

• Occupation-specific caveats retained: Caveat 14 remains in place for three occupations due to labour market considerations and skill level assessments: 

• Other Sports Coach or Instructor (e.g., Wushu Martial Arts and Yoga) 

• Traditional Chinese Medicine Practitioner 

• Private Tutors and Teachers nec 

The Department clarified that these occupations are either Skill Level 4 roles (which typically do not meet inclusion criteria) or were not supported by stakeholder feedback and Jobs and Skills Australia’s labour market analysis.  

• Clarification for Chefs: Concerns arose regarding the interpretation of Caveat 14 for Chefs, where it initially appeared restricted to applicants from specific ITO-covered countries. The Department has confirmed that Chef applications are not limited by nationality, and the removal of Caveat 14 clarifies this position.  

While these updates broaden opportunities for skilled migrants, industry stakeholders have raised concerns about the continued exclusion of critical trades—including plumbers and bricklayers—from the CSOL. These roles remain underrepresented despite persistent workforce shortages in key sectors, such as construction and infrastructure.  

The updated CSOL, effective from 14 December 2024, highlights the government’s effort to balance international obligations with local labour market priorities while ensuring a responsive skilled migration system.  

Impact on employers and skilled workers 

The updates reflect the government’s commitment to addressing Australia’s workforce shortages and streamlining skilled migration pathways: 

• Employers: enhanced flexibility to sponsor workers under the Skills in Demand visa, with clear requirements for demonstrating financial capacity. 

• Skilled workers: improved eligibility for workers with varied employment histories, as well as streamlined occupation pathways. 

Employers and applicants are encouraged to review the updated eligibility criteria and pathways under the Skills in Demand visa and TRT stream to ensure compliance. Further details on the revised occupation list and visa requirements can be accessed on the Department of Home Affairs website.