With the long-awaited Skills in Demand (SID) (Subclass 482) visa now in full force and in place for three-months since its rollout, we have compiled a summary of the key changes for employers seeking to hire overseas skilled workers to fill labour shortages.
Background
The SID visa was introduced on 7 December 2024, replacing the Temporary Skill Shortage (TSS) (Subclass 482) visa program.
The SID visa program and several other changes were brought about by the Migration Amendment (2024 Measures No. 1) Regulations 2024 to amend the Migration Regulations 1994.
The rollout of the SID visa program forms part of the Government’s broader Migration Strategy. The new SID visa program is intended to simplify and streamline visa processing, target temporary skilled migration to address skill needs, promote worker mobility and provide clear pathways to permanent residency.
All Subclass 482 nomination and visa applications lodged up until 6 December 2024, continue to be assessed under the old TSS visa criteria. Subclass 482 nominations and visa applications lodged from 7 December 2024 will be assessed under the new SID visa criteria.
Below is a summary of the new SID visa and the key changes.
About the SID visa
The SID visa is a temporary sponsored work visa which can be granted for up to four years.
Generally, the SID visa provides a pathway to permanent residency after two years where the SID visa holder has been sponsored and working in their nominated occupation in that period.
There are three streams that an overseas worker can apply under:
The Specialist Skills stream is available to highly skilled visa applicants where the proposed annual salary for the nominated occupation is at least $135,000. The nominated occupation must be listed on the Australian and New Zealand Standard Classification of Occupations (ANZSCO), however trade workers, machinery operators, drivers and labourers (ANZSCO Major Groups 3, 7 and 8) are excluded.
This stream is intended to help drive innovation and job creation and provide an expediated processing time.
A medium processing time of seven days was announced for the Specialist Skills stream. However, as at the time of writing, the published processing times are between 9 to 39 days.
Developed to meet targeted workforce needs, the Core Skills stream is available to visa applicants where the proposed annual salary for the nominated occupation is at least $73,150.00 and the nominated occupation is listed on the Core Skills Occupation List (CSOL).
A medium processing time between 9 to 21 days was announced for the Core Skills stream. However, as at the time of writing, the published processing times are between 30 to 47 days.
The Labour Agreement stream allows access to occupations not otherwise on the standard occupational lists, including lower skilled and lower paid occupations that are deemed in need in particular industries or regional areas.
The requirements for the Labour Agreement stream remains unchanged from the TSS visa program.
It was originally announced that the Labour Agreement stream would eventually be replaced by the Essential Skills stream. However, at present changes to this stream remain under consideration and a potential area for future reform.
Key Changes under the SID visa program
CSOL
As part of the 7 December 2024 changes, a new single consolidated occupation list called the Core Skills Occupation List (CSOL) was introduced.
In developing the CSOL, several occupations previously available under the TSS program were removed and new occupations were added. The CSOL currently contains access to 456 occupations.
The CSOL applies to the Core Skills Pathway stream of the SID visa. It also applies to the Direct Entry stream of the Employer Nominated Scheme (Subclass 186) visa.
Income thresholds
There are two income thresholds under the SID visa:
The income thresholds will be indexed yearly on 1 July, in line with Average Weekly Ordinary Time Earnings.
While these thresholds establish the minimum salary that can be paid to overseas skilled workers, the Annual Market Salary Rate requirement remains in place. This means that in addition to the income thresholds, the overseas skilled worker must also be paid in accordance with what an Australian citizen or permanent resident would be paid for undertaking the same occupation in the same location.
Visa holder eligibility
Work experience: The work experience requirement for visa holders has been reduced from two years to one year in the nominated occupation. This can include casual and part-time work, however the total work experience must be equivalent to at least 12 months full-time work experience. To ensure currency of a visa holder’s skills, it is now a requirement that the work experience must have been obtained within the last five years before making an application.
English requirement: There is now one single English level requirement applicable to all occupations under the SID program which has been adopted from the TSS visa in the Medium-Stream (unless an English exemption applies). For example, in an IELTS test, visa holders must demonstrate that they have a score of at least 5.0 overall, with a minimum score of 5.0 in each component.
Visa application charges: There is now one set of visa application charges applicable regardless of the occupation. As at the time of writing the applicable visa application charges for a visa holder applying for a SID visa are as follows:
These visa application charges are consistent with what were applied for in the previous TSS visa program in the Medium-Stream.
More flexible visa conditions enabling worker mobility: Changes made on 1 July 2024 to the TSS visa conditions to allow more time and flexibility to TSS visa holders who ceased work with their employer have been carried across to the SID visa. These changes allow visa holders to financially support themselves while they seek a new sponsor or make plans to depart Australia. Accordingly, if a skilled overseas worker ceases work with their sponsored employer they can work for other employers in any occupation for up to:
This grace period only applies where a TSS/SID visa holder has ceased work for their employer. Otherwise, TSS/SID visa holders must work for their sponsor in their nominated occupation, unless the nominated occupation is exempt.
Employer requirements
Financial capacity requirement: Employers must now demonstrate they have the financial capacity to pay the proposed salary for the entire nomination period (ie one to four years). For example if you are sponsoring a Chef on a salary of $85,000.00 per annum and wish to nominate them for three years, the business must show that they have financial capacity of at least $255,000.00.
It is essential that business assess their financial capacity to determine if firstly they are eligible to nominate an overseas skilled worker and secondly to ascertain how many years they can nominate for. In some instances, especially for smaller businesses or new businesses, they may not meet the financial capacity requirement, or the nomination period may be dictated by the financial capacity that can be shown.
Supporting documents such as a Profit & Loss statement, Business Activity Statements, Business Bank statements etc are example of documents we recommend be submitted to prove financial capacity.
Change of sponsorship obligations: As workers can now move more freely between employers after ceasing employment with their sponsor, the sponsorship obligations have been amended to avoid placing an unfair burden on employers. Specifically, the sponsor obligation to ensure that the employee only works within their nominated occupation now ends when their employment ceases, not when they find a new sponsor.
Lavan’s comments:
The new Skills in Demand visa introduces significant changes aimed at improving the efficiency and flexibility of Australia’s skilled migration program. It important that employers stay up-to-date with these changes to effectively navigate the new rules and ensure compliance while tapping into a broader talent pool to fill critical skill gaps.
Note this is a summary of the key changes from the TSS visa program to the SID visa program. It does not encompass all the stages and eligibility requirements involved for the SID 482 visa.
If you would like assistance in this area, please do not hesitate to contact Lavan’s Migration team.
