New Skills in Demand (SID) visa replaces the Temporary Skill Shortage (TSS) visa

We are pleased to bring you an important update on the new Skills in Demand (SID) visa, which officially replaced the Temporary Skill Shortage (TSS) visa as of December 7, 2024.   While this new visa framework was announced in principle many months ago, the implementation has occurred with little notice or fanfare.

These changes present new opportunities and stream-lined processes for employers in Australia needing to sponsor overseas workers. Below, you’ll find key details about the new streams available under the SID visa, application charges, and other essential information to help you navigate this transition successfully.

Further to our update last month it is now confirmed that the SID:

• has a standard four-year validity period available, regardless of stream
• offers a streamlined pathway to permanent residence under the Subclass 186 visa (both streams)
• Provides for greater mobility between sponsors
• Has a reduced work experience requirement of one year full time (or full time equivalent) in the last five years.
• A single new Core Skills Occupation List (CSOL) applies to the new Core Skills Stream (the previous STSOL and MLTSSL lists no longer apply to the 482, however some caveats have been carried over).
• No specific occupation applies to the Specialist Skills Stream at this point, however certain position criteria have to be satisfied as outlined below.
• English language requirements are standardized for the Specialist and Core Skills streams and match the previous requirements of the TSS MLTSSL stream.

It has also now been reconfirmed that there are three streams available under the Skills in Demand visa, as follows:

• Stream 1: Specialist Skills Stream – this is for applicants in any ANZSCO occupation in Major Groups 1, 2, 4, 5 or 6 where the guaranteed earnings meet or are above the Specialist Skills Income Threshold of $135,000 or more (excluding superannuation).   Occupations at ANZSCO skill level 3, 7, and 8, which cover trade workers, machinery operators and drivers and labourers, are excluded from this stream, regardless of salary.
• Stream 2: Core Skills Stream – this stream is designed to meet the need for skilled employees with core skills identified as being in demand now and into the future. The new Core Skills Occupation List (CSOL) has replaced the previous STOL and MLTSSL. This stream is for applicants with an occupation on the new CSOL who will be receiving guaranteed annual earnings between the TSMIT threshold of $73,500 and up to $135,000.
• Stream 3: Labour Agreement Stream (Essential Skills) – this stream will carry over existing settings from the Subclass 482 visa however the DOHA is still to release more details.   This stream is proposed as being for occupations where the market salary rate may be less than TSMIT.

Visa application Charge (VAC) increases

There has been a blanket increase to the base visa lodgement fees for the Skills in Demand visa, removing the previous tiered system.

The base application charge for a primary visa applicant is now $3115, regardless of stream. The same fee of $3115 is charged for any secondary applicant included in the application who is over 18 years, and a fee of $780 is charged for any dependent child under 18.

These figures are the same as the lodgement fees for occupations on the previous MLTSSL occupation list and is reflective of the standardized longer stay period that is now available across all streams.

Skilling Australians Fund (SAF) and SID Visa

The SAF will continue to be charged to business sponsors in line with the previous TSS Subclass 482 visa. No changes to this payment.

Work experience requirement for the SID

From  7 December 2024 the work experience criteria has been reduced and now requires the visa applicant to have at least one year of related experience in the last five years, instead of the previous two.  This needs to be one year full time, or pro-rated full time.

Any higher-level requirements prescribed by the Australia New Zealand Standard Classification of Occupations (ANSZSCO) will still need to be met, where applicable.

English Language Requirements for the SID

The English requirements across both streams of the new SID have been aligned to the previous requirements of the TSS visa under for applications lodged under the Medium-Long Term stream.

This means that anyone applying for the new SID visa must achieve an IELTS test score of 5 overall and 5 in each band (or equivalent). The approved English tests and validity period of test results are unchanged.   Exemptions that were previously available under the TSS for the English language requirement are also unchanged, including for intra corporate transfers where the earnings are at least AU$96,400 per annum.

ANZSCO and OSCA

The Australia New Zealand Standard Classification of Occupations (ANZSCO), as published by the Australian Bureau of Statistics in November 2022 applies to the SID.

While the new OSCA – Occupation Standard Classification for Australia – was released on Friday 6 December, it is not being applied to the SID visa at this stage.

New Consolidated Skills Occupation List

The new CSOL has 456 occupations available for nomination under the Core Skills stream. While there were over 125 occupations removed from this list that were previously on the STSOL or MLTSSL, the restructure has resulted in 189 additional occupations becoming eligible for nomination under the employer nominated permanent visa (Subclass 186), that were previously excluded. We have also seen the introduction of 16 new or changed ANZSCO occupations within construction, cybersecurity, agriculture and health.

Transitional Arrangements

Note that any Subclass 482 nomination and visa applications lodged prior to 7 December will continue to be assessed under the Temporary Skills Shortage (TSS) criteria.   Otherwise the TSS visa is closed to new applications.

Where a TSS nomination has been approved with no corresponding TSS Visa being submitted ahead of these changes, the Department has confirmed that a new SID visa application can be lodged against these nominations during the 12 month validity period of the nomination approval.

Overall these changes are welcome and will ensure a simplified pathway for employers and skills workers.

The introduction of the Skills in Demand (SID) Subclass 482 visa simplifies the pathway to permanent residency, reduces work experience requirements, and offers more flexibility for employers and skilled workers.

This streamlined application process, new occupation list, and reduced experience threshold provides an increased opportunity for businesses to sponsor talent and now may be a good time to reconsider sponsorship, if you have found the previous framework too challenging.

If you have any concerns about potential impacts of these changes on your business or sponsored employees, please get in touch and we can assist.  Whether it be to discuss alternate pathways for existing employees or future benefits for your organisation, we can provide you with tailored guidance to help navigate the transition.

We will also continue to provide updates as further details are announced.

Source: Department of Home Affairs

Migration Institute of Australia.