Australia Replaced Skills in Demand Visa With Temporary Skill Shortage Visa

The Temporary Skill Shortage (subclass 482) Visa will be replaced by the Skills in Demand Visa on December 7, 2024. The Skills in Demand Visa has three eligibility levels for applicants based on their annual income and job. The new “Skills in Demand visa” is designed to address the demands of the job market. It brings about a lot of changes for temporary skilled migrant workers, such as giving them more time to find another sponsor if their job ends and making it easier to apply for permanent status. Now, a third party will check skill shortages, and companies will have more reason to hire and keep skilled workers.

Note: You will be able to apply for the Skills in Demand Visa by the end of 2024.

The suggested three-level system is set up like this:

Tier 1: Pathway for Specialist Skills

1. There isn’t an exact list of jobs that are included, but trades workers, machine operators, drivers, and laborers aren’t.
2. Needs a fixed yearly salary of at least $135,000, with inflation added in every year.
3. prioritization, and the average time to process is seven days.

Tier 2: Core Skills Pathway

1. The Core Skills Occupation List (CSOL), managed by Jobs and Skills Australia, is regularly updated and streamlined.
2. Needs a fixed salary of at least $73,150 per year, which is also raised every year.

Tier 3: Pathway for Essential Skills

1. Aims at people who work in jobs that require basic skills and make less than $73,150 a year.
2. The government is doing more research to find the best way to put the plan into action.
3. Most likely to focus on certain industries with stricter rules, basic standards, and ongoing help from Jobs and Skills Australia.

Skilled Temporary Visas to Replace the Temporary Skill Shortage TSS Subclass 482 Visa

The Temporary Skill Shortage (TSS) subclass 482 visa will be replaced by a new three-tier visa system that will give skilled workers more options.

1. Specialist Skills Pathway

1. This pathway will not have an occupation list but will exclude trades workers, machinery operators, drivers, and laborers.
2. A processing time of just seven days is promised.
3. Only 3,000 places will be available annually.
4. It targets individuals earning over $135,000 per year, with earnings indexed annually.

2. Core Skills Pathway

1. Designed to provide most of the visas under this program.
2. Under this method, tradespeople must apply using a new “Skills in Demand List” that is overseen by Jobs and Skills Australia.
3. Earnings must fall between $73,150 and $135,000 annually, with the minimum threshold (currently $73,150) adjusted each year.

3. Essential Skills Pathway

1. Details are still being finalized, but the focus will be on specific sectors such as aged care and disability services.
2. This pathway will involve union oversight, capped visa numbers, and strict sector-specific requirements.
3. Targets workers earning less than $73,150 annually.

Visa Duration and Flexibility

1. Visas will be granted for up to four years.
2. The ability to change jobs will be more flexible for visa holders.
3. Clear pathways to permanent residency will be available.
4. The minimum salary threshold, known as the Temporary Skilled Migration Income Threshold (TSMIT), will be indexed annually.
5. A public register of employer sponsors will simplify the process of changing employers.

Launch of the Skills in Demand (SID) Visa

The Department of Home Affairs has submitted the legal framework for the new Skills in Demand (SID) Visa, which will officially replace the Temporary Skill Shortage Visa (TSS visa). This new system, which goes into effect on December 7, 2024, intends to modernize and strengthen Australia’s skilled migration policy.

Overview of the Subclass 482 Skills in Demand Visa Streams

The Skills in Demand (SID) visa introduces three unique pathways to address Australia’s labor needs effectively:

1. Specialist Skills Stream

1. Targets occupations classified under ANZSCO major groups 1, 2, 4, 5, and 6.
2. Requires a minimum annual salary of $135,000.

2. Core Skills Stream

1. Applicable to roles listed on the Core Skills Occupation List (CSOL).
2. Minimum salary threshold set at $73,150, adjusted annually based on Average Weekly Ordinary Time Earnings (AWOTE).

3. Labour Agreement Stream

1. This stream remains unchanged under the SID visa framework.

Key Eligibility Requirements

1. Applicants can stay in Australia for up to 4 years.
2. Pathways to permanent residency are available for eligible candidates.

Updates to the Core Skills Occupation List (CSOL)

1. Over 70 new occupations have been added to the list.
2. Some roles, such as Café and Restaurant Manager, ICT Support Engineer, and Graphic Designer, have been removed.

Labour Market Testing (LMT)

1. Employers must prove they have made genuine efforts to hire local workers before seeking overseas candidates.
2. The current validity period for LMT is 4 months, with discussions ongoing to extend it to 6 months.

Australian Market Salary Rate (AMSR)

Employers must pay salaries that meet the income threshold for each stream:

1. Specialist Skills Stream: $135,000.
2. Core Skills Stream: $73,150 (indexed annually).

Employer Obligations

Sponsors must demonstrate their financial ability to sustain the nominated position and meet market salary rates throughout the nomination period.

Fees and Requirements for the SID 482 Visa

The following table outlines the application fees and requirements for the Skills in Demand (SID) 482 Visa:

Category	Fees
Primary Applicant	$3,115
Dependents aged 18 and above	$3,115 each
Dependents under 18	$780 each
Skilling Australians Fund (SAF) Levy	No modifications have been announced.

Eligibility Criteria for Skills In Demand Visa (Subclass 482 Visa)

Work Experience

Applicants must meet the following requirements:

1. At least 12 months of full-time work experience within the past five years.
2. Qualifications, skills, and experience relevant to their nominated occupation, as specified by ANZSCO.

English Language Proficiency

• Applicants must demonstrate English proficiency with an IELTS score of at least 5 in each component or an equivalent test score, in line with previous MLTSSL stream standards.

Transitional Arrangements

1. Applications will be processed in accordance with TSS visa guidelines if they are filed before December 7, 2024.
2. Applications submitted on or after 7 December 2024 will be assessed under the new SID visa rules.
3. Nominations lodged before 7 December 2024, even without an accompanying visa application, can still be linked to a SID visa.

Pathway to Permanent Residency

Pathway to Permanent Residency	Details
1. Employer Nomination Scheme (Subclass 186) – Temporary Residence Transition Stream (186 TRT)	– Requires 2 years of full-time employment in the same occupation in Australia within the last 3 years. – Employment must be under Subclass 457, 482 (TSS), or 482 (SID) visas. – Employment can involve multiple sponsors, provided the total duration is continuous (excluding unpaid leave).
2. Direct Entry Stream (186 DE)	– Occupations listed on the Core Skills Occupation List (CSOL) are eligible. – Applicants must meet the following criteria: • A positive skills assessment. • 3 years of full-time relevant experience.

Australia’s strategy for skilled migration has undergone a significant shift with the introduction of the Skills in Demand (SID) visa. This program aims to address labor shortages while adhering to stringent qualifying requirements and company commitments. As the Department of Home Affairs works to improve the program, more policy changes might be forthcoming.

Skilling Australians Fund (SAF)

There are plans to allow the SAF levy to be paid over time in smaller installments. This change acknowledges the increased freedom granted to visa holders to change jobs. Options for payment, such quarterly or monthly installments, are being examined.

Labour Market Testing (LMT)

Labour Market Testing requirements are being simplified. The most notable change so far is the removal of the mandatory advertisement on Workforce Australia. Additionally, the validity period for job advertisements will increase from 4 to 6 months. Over time, LMT will be gradually replaced with a Core Skills Occupation List as Jobs and Skills Australia enhances its skills shortage data.

Key Elements of the Skills in Demand Visa

• Pathway to Permanent Residency: Time spent working with any approved employer will count toward permanent residency eligibility. Additionally, visa holders can access independent permanent residency pathways alongside employer-sponsored options.
• Visa Duration: All streams under the SID visa allow a 4-year stay.
• Processing Times: Median processing time for applications is 21 days.
• Employer Flexibility: Visa holders will have up to 180 days to find a new sponsor if their employment ends.
• Streamlined Labour Market Testing: LMT requirements have been relaxed, including the removal of the Workforce Australia advertising requirement.

Long-Term Reforms under Australia’s Migration Strategy

The Australian government has unveiled a comprehensive Migration Strategy aimed at implementing significant reforms starting in 2024. Key highlights include:

• The introduction of the Skills in Demand visa, featuring three pathways based on proposed earnings.
• Simplified immigration processes across the board.
• Streamlined Labour Market Testing requirements.
• Creation of a specialized agency to assess and address skill shortages.
• Development of a new points-based system for permanent skilled migration.