Australia`s new Skills in Demand Visa (SID)

The Skills in Demand (SID) visa replaces the existing Temporary Skill Shortage (TSS) visa (subclass 482) with updated regulations aimed at enhancing Australia’s skilled migration program. Here’s a detailed breakdown of the changes:

Key Features of the Skills in Demand (SID) Visa

The SID visa will consist of three streams:

1. Specialist Skills Stream This stream is for applicants whose occupation falls under any ANZSCO category, but who earn a salary of $135,000 or more (excluding trades, machinery operators, and labourers in lower ANZSCO occupation groups).
2. Core Skills Stream Applicants in this stream must meet an income threshold of $73,150 (aligned with the current TSS visa salary threshold) and must be employed in an occupation listed on the Core Skills Occupation List (CSOL). While some occupations eligible under the TSS visa are not included in the CSOL, they may still qualify for other visa pathways, such as the Specialist Skills stream or Labour Agreement stream if they meet the relevant requirements.
3. Labour Agreement Stream This stream carries over the settings from the previous TSS visa but remains in place until the Essential Skills stream is fully developed.

Changes to Work Experience Requirements

The SID visa reduces the minimum required work experience from two years (under the TSS visa) to one year of full-time (or equivalent part-time/casual) employment within the five years before the visa application. This applies across all streams.

Visa Application Charges (VAC)

• Base Application Charge: $3,115
• Additional Application Charge (for applicants aged 18 and over): $3,115
• Additional Application Charge (for applicants under 18): $780

These charges align with those for the Medium-term stream of the old TSS visa.

Pathway to Permanent Residency

One significant change introduced by the SID visa is its clear pathway to permanent residency via the Employer Nomination Scheme (subclass 186). Applicants in all SID streams (Core Skills, Specialist Skills, and Labour Agreement) now have a clear route to permanent residency through the Temporary Residence Transition (TRT) stream of the subclass 186 visa, provided they meet the updated work experience requirements.

Impact on the Employer Nomination Scheme (Sc 186)

Amendments to the Sc 186 visa include:

• The ability for SID visa holders in all streams to count their full-time employment toward the TRT work experience requirements for the subclass 186 visa.
• Work experience flexibility: Changes ensure that time spent working with a previous employer can count toward the work experience requirement, even if the applicant changes employers during the application process.

Additionally, the requirement that the nominated occupation for the Sc 186 visa match the occupation associated with the most recent visa (such as subclass 457 or 482) remains in place.

Amendments to Sponsorship Obligations

Sponsorship obligations for employers have been adjusted, specifically:

• The requirement that the employer ensure the primary sponsored person works in the nominated occupation will now cease when the individual leaves the employer.
• Visa holders now have up to 180 days to find a new sponsor or apply for a different visa, up from 60 days, and can remain in Australia for up to 365 days throughout their visa grant period.

Transitional Arrangements

• The new regulations began on 7 December 2024.
• Nomination and visa applications for the TSS visa submitted before this date will be processed under the previous regulations.
• Employers with approved TSS nominations can link their applications to the new SID visa until the nomination expires (within 12 months).

English Language and CSOL Updates

• The English language requirements for applicants under the Specialist Skills and Core Skills streams remain the same as those for the previous TSS visa.

For applicants under the Specialist Skills stream and the Core Skills stream, the English language proficiency must meet the following criteria:

• IELTS (International English Language Testing System): Overall score: 5.0 Minimum score in each component: 5.0 (Listening, Reading, Writing, and Speaking)

Alternatively, applicants can provide results from other approved English language tests that meet the same equivalency as IELTS. The exact test scores and tests accepted (e.g., TOEFL, PTE) will follow the same guidelines that previously applied to the TSS visa.

• The Core Skills Occupation List (CSOL) now includes 456 occupations and replaces the previous three occupation lists. While this represents a reduction of 125 occupations from the TSS lists, it also adds 189 occupations that can now directly lead to permanent residency under the Sc 186 TRT stream.

The changes made by the Skills in Demand visa introduce much-needed flexibility and clearer pathways for skilled workers, making it easier for both employers and employees to navigate Australia’s immigration system. These updates not only enhance the skills of the workforce but also contribute to the country’s economic growth by streamlining skilled migration.