Skills in Demand (SID) Visa and Associated Updates

Major Changes in Australian Migration: The Introduction of the Skills in Demand (SID) Visa and Associated Updates

The Australian Government has introduced significant legislative changes to the Migration Regulations 1994 with the launch of the Skills in Demand (SID) visa. These updates mark a pivotal shift in how skilled migrants are assessed and admitted to Australia. Below, I outline the key updates and implications of these changes, which come into effect on 7 December 2024.

The New Skills in Demand (SID) Visa

The SID visa replaces the Temporary Skills Shortage (TSS) visa (subclass 482). Designed to address evolving workforce needs, the SID visa introduces a streamlined structure with three distinct streams:

1. Specialist Skills Stream For occupations earning $135,000+ per year (excluding trades, machinery operators, and laborers). This stream emphasizes attracting highly skilled professionals, allowing employers to expedite access to critical expertise.
2. Core Skills Stream For occupations listed on the Core Skills Occupation List (CSOL) with an annual income threshold of $73,150. Notably, some roles previously eligible under the TSS visa are now excluded from the CSOL. Existing TSS visa holders must ensure their occupations align with the new CSOL or meet income thresholds under the Specialist Skills stream.
3. Labour Agreement Stream This stream carries forward existing settings from the TSS visa but anticipates further refinement under the forthcoming Essential Skills Stream.

Key Changes for SID Visa Applicants:

• Reduced work experience requirement: Applicants now need 1 year of full-time experience within the last 5 years (down from 2 years).
• Updated Visa Application Charges (VAC): Base charge of $3,115, with additional fees for dependents.
• Indexed income thresholds: Updated annually to reflect market conditions.

Changes to the Employer Nomination Scheme (Subclass 186)

The SID visa aligns closely with pathways to permanent residency under the Employer Nomination Scheme (ENS):

• All full-time sponsored employment in Australia now counts toward ENS work experience requirements, regardless of employer changes. Previously, only employment with the nominating employer was eligible.
• Greater flexibility in ANZSCO classification: Applicants are no longer restricted by rigid occupation codes, ensuring smoother transitions following ANZSCO updates.

Core Skills Occupation List (CSOL) Updates

The CSOL consolidates three previous occupation lists under the TSS visa into a single, streamlined list of 456 occupations, including 16 new roles. While some occupations have been removed, there is a notable increase in roles offering direct pathways to permanent residency under the ENS.

English Language Requirements

English proficiency requirements remain consistent with those under the TSS visa, including an overall IELTS score of 5.0 with no component below 5.0. Approved English language tests and exemptions remain unchanged.

Skilling Australians Fund (SAF) Contributions

Employers nominating SID visa applicants must comply with the Skilling Australians Fund (SAF) contribution charges, ensuring training commitments align with the SID visa framework.

Sponsorship Obligations

Employers sponsoring SID visa holders are now relieved of their obligations once the employee ceases employment, a shift from previous requirements. This aligns with new provisions allowing visa holders up to 180 days at a time (and a total of 365 days across the visa period) to secure new employment or apply for alternative visas.

Commencement and Transitional Arrangements

• The SID visa regulations are effective 7 December 2024.
• Applications lodged under the TSS visa before this date will be processed under the old requirements. Employers and applicants should review whether existing TSS nominations can transition to SID visa applications.

Impact on Employers and Migrants

These updates reflect Australia’s commitment to a dynamic and competitive skilled migration system. Employers now have clearer pathways to attract high-caliber talent, while migrants benefit from more flexible regulations and reduced barriers to entry. However, it is critical for both employers and applicants to navigate these changes carefully, ensuring compliance with new requirements.

For personalized advice on how these changes might impact your circumstances, contact Solve Migration at +61 2 9252 0449 or visit solvemigration.com.

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