On Saturday, 7 December 2024, the Temporary Skill Shortage visa (subclass 482) was replaced by the new Skills in Demand (SID) visa. This change aligns with updates to the Core Skills Occupation List (CSOL) to address current economic demands and is part of the Australian government’s broader effort to reform the nation’s skilled migration framework. The CSOL is a consolidated list of 456 occupations in high demand across Australia, identified through labour market analysis and stakeholder consultations by Jobs and Skills Australia (JSA).ย ย
The SID visa provides Australian employers access to sponsor necessary skilled migrants when suitable Australian candidates cannot be found. Most SID visa holders are entitled to stay in Australia for up to four years, and the visa offers a clear pathway to permanent residency, giving peace of mind to both employers and migrants.ย
The rebranding of the TSS visa to the SID visa stems from the Australian Governmentโs 2023 Migration Strategy, which includes five core objectives: raising living standards for Australians, ensuring fairness in the workplace, building stronger communities, strengthening international relationships, and making the system work effectively for migrants and employers.ย
Key Features and Changes to the Skills in Demand (SID) Visaย
The SID visa introduces several changes to eligibility criteria. The length of stay for the TSS visa was previously limited to two years (Short-term stream), whereas SID visa holders can stay in Australia for up to four years. SID visa holders are also provided with a clearer pathway to permanent residency, a benefit not available to all TSS visa holders.ย ย
The TSS visaโs short- and medium-term streams have been replaced by the following:ย
- Specialist Skills Stream: For applicants working in any Australian and New Zealand Standard Classification of Occupations (ANZSCO) with a salary of $135,000 or more, excluding roles in ANZSCO major groups 3 (Technicians), 7 (Machinery Operators), and 8 (Labourers).ย
- Core Skills Stream: For applicants earning over $73,150 in a listed occupation on the CSOL.ย
- Labour Agreement Stream: Maintains the existing provisions of the TSS visa while the Essential Skills stream is still under development.ย
Additionally, a financial capacity requirement has been introduced for employers. Employers must demonstrate they can pay the proposed salary for each year specified. For example, if an employee is nominated for a two-year period, the employer must prove their financial capacity to cover the salary for those two years.ย
Enhanced Pathways to Permanent Residency (PR)ย
The SID Visa offers improved pathways for skilled workers to transition to permanent residency (PR) in Australia. Two key visa streams under the Employer Nomination Scheme (subclass 186) have been updated:ย
- Temporary Residence Transition (TRT) Stream: In a significant change, applicants for the TRT stream of the Subclass 186 visa are no longer required to have worked with their sponsoring employer for two years. Instead, employment on a Subclass 482 visa fulfils this requirement, allowing workers to transition to permanent residency more quickly.ย
- Direct Entry (DE) Stream: The Direct Entry stream of the Subclass 186 visa now offers a direct path to permanent residency for workers in occupations listed on the updated CSOL. This list replaces the previous Medium and Long-Term Strategic Skills List (MLTSSL), expanding the range of eligible occupations for permanent residency.ย
The CSOL provides a more targeted list of occupations in high demand across Australia, including key sectors such as healthcare, IT, engineering, and construction. Workers in these occupations now have an expedited path to permanent residency through the Subclass 186 Employer Nomination Scheme visa.ย
Subclass 186 Visa Pathway to Permanent Residenceย
The new Skills in Demand (SID) visa continues to provide a pathway to permanent residence under the Employer Nomination Scheme (Subclass 186), as previously offered by the Temporary Skill Shortage (TSS) visa. SID visa holders can access the Temporary Residence Transition (TRT) stream of the Subclass 186 visa after completing two years of employment in Australia within the three years preceding their application. This qualifying period includes all sponsored employment as a primary TSS or SID visa holder and allows for employment with multiple employers, not just the initial sponsor.ย
Salary requirements for the Subclass 186 visa are now aligned with the SID visa’s core skills income threshold, which will be adjusted annually. Additionally, secondary applicants (family members) no longer need to be named in the nomination application, as employers of Subclass 186 visa holders do not have sponsorship obligations for family members.ย ย
Current TSS 482 visa holders working in roles outside the CSOL also retain eligibility for permanent residence through the TRT stream, provided they meet the necessary criteria. Greater flexibility is now extended to family members aged 23 and above, allowing them to be included in the Subclass 186 visa application if they were previously granted a SID visa as part of the primary applicant’s family unit.ย
Key Changes from TSS Visa to the SID Visaย
Here is a summary of the key changes introduced with the Skills in Demand (SID) Visa:ย
- Increased Flexibility for Visa Holders: The updated visa allows workers to switch employers without losing their visa status, making it easier for skilled professionals to pursue opportunities that align with their skills and career goals.ย
- No More 2-Year Work Requirement for Subclass 186 TRT Stream: The previous requirement for workers to stay with their sponsoring employer for two years before applying for permanent residency has been removed. Workers on a Subclass 482 visa can now apply for the Subclass 186 visa in the Temporary Residence Transition stream after completing their temporary work period.ย
- Expanded Occupation List for Direct Entry Stream: The CSOL now applies to the Direct Entry stream of the Subclass 186 visa, giving more skilled workers a direct pathway to permanent residency.ย
- Employer Financial Responsibility: Employers are now required to prove they have the financial capacity to pay the nominated salary for each year of employment. This ensures that only employers with a stable financial standing can sponsor skilled workers.ย
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What is Next?ย
If you are looking to sponsor workers or have employees in the impacted occupations, it is essential to consult with experts who can guide you through the changes effectively. Whether you are an employer seeking to sponsor international talent or an employee affected by the new regulations, our experienced team is here to offer tailored advice and explore the best visa options for your unique situation, ensuring a seamless transition.ย
Get in touch with us at aisupport@absoluteimmigration.comย for personalised assistance and to find the most suitable solutions for your needs.ย
