News & Insights

A recent push to transform Australia’s migration framework has seen the Australian Government implement its new Skills in Demand Visa (SID) amongst other changes, vowing to ‘get the right skills in the right places’.

On Saturday 7 December, The Government introduced the Migration Amendment (2024 Measures No.1) Regulations 2024 (Amendment Regulations). The amendment gives effect to the Australia Government’s 2023 Migration Strategy and amends the Migration Regulations 1994 (the Regulations). The fundamental change enacted by the legislation is the new Skills in Demand Visa, which replaces the Subclass 482 Temporary Skills Shortage (TSS) Visa.

As experienced Migration lawyers, Principal Lawyer and Accredited Specialist in Immigration law Kian Bone, and Special Counsel Nicole Brown are no strangers to the changing tides of immigration reform and communicating the impact of the change to employers and visa applicants alike. Drawing on their migration law expertise, Kian and Nicole summarise all the key changes, transitional arrangements, and provide a guide to the new SID visa and associated regulatory changes.

Introduction of Subclass 482 (Skills in Demand) Visa

The SID visa has been implemented to assist Australia’s workforce demand by attracting highly skilled professionals. The SID visa introduces three distinct streams that replace the old TSS streams:

1. The Specialist Skills Pathway
   For foreign nationals earning over the new $135,000 threshold (excluding high salary trades workers, machinery operators and labourers). This visa will receive expedited processing.
2. The Core Skills Pathway:
   For applicants earning over the $73,150 threshold in an occupation identified as critical by Jobs and Skills Australia. Occupations must be listed in the new Core Skills Occupations List. The core skills income threshold remains aligned with the former temporary skilled migration income thresholds from the previous TSS visa.
3. Labour Agreement Stream
   For specialised agreements with employers, which carries over existing settings from TSS.

The Australian Government, consistent with the commitments made in its migration strategy realised in late 2023 is developing The Essential Skills Pathway. This pathway will be for foreign workers in critical industries earning less than AUD 70,000, with a higher focus on regulation and compliance focused on combatting worker exploitation.

Indexation

The Amendment Regulations enables the above thresholds to be indexed annually on 1 July. The indexation will be in line with Average Weekly Ordinary Time Earnings (AWOTE) to ensure migrant’s wages keep pace with wages of Australian workers, and that the SID visa is not used by employers to undercut wages of Australian workers.

This methodology is slightly different in that the income threshold increases were adjusted according to the consumer price index (or inflation). The income threshold increase is now part of the Migration Act which means that the increase must occur each year until this legislation is repealed.

Work experience requirement for Skills in Demand Visa reduced

The work experience requirement of the SID visa is being reduced from the current requirement for the TSS visa of two years, to one year for all visa applicants.

The one year of work experience must have been obtained through one year of full-time work, or an equivalent period of part-time or casual work in the five years prior to the application date.

English language requirement

The scores required for the SID visa are consistent with the medium-term stream of the previous TSS visa. The International English Language Testing System (IELTS) required score is 5.0, with no band lower than 5.0, or an equivalent score in other approved tests. This new measure takes away the slightly lower English language requirements of the short-term stream.

Changes to Subclass 186 Employer Nomination Scheme (ENS)

To support the introduction of the SID visa, significant changes have been made to the Subclass 186 ENS.

• Pathways to permanent residency
  Access to the Temporary Residence Transition (TRT) stream of the Subclass 186 ENS for SID visa holders in all streams (Core Skills, Specialist Skills and Labour Agreement streams) has been expanded.

• Salary requirements
  Enable salary requirements for the Subclass 186 ENS TRT and Direct Entry streams to continue to be linked to the SID visa salary requirements.

• Flexible work experience requirements
  Allow sponsored employment to count towards the Subclass 186 ENS TRT stream work experience requirements, even if the nominee changes employee.

The amendments will apply to new Subclass 186 nomination and visa applications lodged on or after the regulations commence.

Changes to Skills in Demand Visa sponsorship obligations

The Amendment Regulations change sponsorship obligations to align with the SID visa framework provisions. Employer’s obligations now end when the primary sponsored person’s employment ends, rather than when they obtain a new sponsor. This aligns with the provisions introduced on 1 July 2024, that enable visa holders who cease work with their sponsoring employer to have up to 180 days at a time (and a maximum of 365 days in total across their entire visa grant period) to find a new sponsor, apply for a different visa, or depart Australia.

Transitional arrangements

Nominations and applications submitted before 7 December 2024 will be assessed under the former TSS visa requirements. Approved TSS nominations can be linked to the SID visa, provided the 12-month nomination validity period is still active.

Impact of immigration changes and how our Migration lawyers can help

The Amendment Regulations have significantly altered Australia’s migration landscape. Employers now benefit from a streamlined occupation list to address labour shortages and visa holders gain increased mobility by allowing them to change employers more easily. Visa holders also gain more pathways to permanent residency, whilst sponsored workers receive increased protection by adjusting the obligations of sponsors and enhancing existing monitoring capabilities.

Migration lawyers can help identify the best visa pathway for your particular needs and can advise employers on how they might be able to take advantage of the recent changes and bolster their skilled workforce. Migration experts Kian Bone and Nicole Brown are well across the recent changes, so if you would like to discuss the Amendment Regulations and their impact on your visa application or business, please contact our Employment, Safety and Migration team.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.