17 December 2024
5 min read
Published by:
The Australian Government has announced a significant shift in Australia’s migration framework with the introduction of the Core Skills stream of the new Skills in Demand (SID) visa. As of 7 December 2024, the SID visa has replaced the subclass 482 Temporary Skills Shortage (TSS) visa.
This forms part of the Australia Government’s broader 2023 Migration Strategy, which lists five core objectives – raising living standards, ensuring fairness in the workplace, building stronger Australian communities, strengthening international relationships, and delivering a system that is fast, efficient, and fair.
A key feature of this overhaul is the implementation of the Department of Home Affairs’ new Core Skills Occupation List (CSOL), which will apply to both the Core Skills stream of the new visa and the subclass 186 Employer Nomination Scheme visa in the Direct Entry stream.
These changes are part of the Migration Amendment (2024 Measures No.1) Regulations 2024, which aim to address critical shortages and modernise Australia’s migration framework.
The new SID visa, which replaced the TSS visa while retaining the 482 subclass number, introduces a more streamlined application process designed to address inefficiencies in the current system. The new approach aims to reduce administrative burdens and facilitate faster decision-making, benefiting both employers and applicants.
Existing short and medium-term streams of the TSS visa will be replaced with the following:
The new SID visa can be granted for up to four years with an English language requirement of an IELTS 5 with a score of at least five in each part of the test (or equivalent). There is also the introduction of a financial capacity requirement for employers, who must be able to demonstrate that they can pay the proposed salary for each year nominated. For example, if you nominate a person for four years, you must demonstrate the financial capacity to pay the salary for those four years.
Under the new Core Skills stream, the minimum work experience requirement has been reduced from two years to one, with the experience needing to be obtained within five years prior to the application. This adjustment lowers barriers for skilled workers, making it easier for individuals with in-demand skills to qualify for migration.
By shortening the experience requirement, the program aims to attract a younger, more diverse pool of talent while addressing immediate labour market shortages.
The CSOL consolidates previous, complex occupation lists into a single, comprehensive list covering 456 occupations. This expanded coverage provides greater opportunities for both employers and skilled migrants, offering temporary and permanent migration pathways for a broader range of professions.
Applicants for the subclass 186 Employer Nomination Scheme visa in the Temporary Residence Transition stream are no longer required to have worked for their sponsoring employer for two years. Any employment on a subclass 482 visa will satisfy the requirement.
The CSOL list is also available for the subclass 186 Employer Nomination Scheme visa in the Direct Entry stream, offering a direct path to permanent residence for more occupations.
Because TSS and SID visa holders have more mobility, amendments have been introduced that end a sponsor’s responsibility to ensure a sponsored worker remains in their nominated occupation once employment ends.
In the first half of 2024, The Australian Government introduced several significant changes to the migration system aimed at addressing labour market needs, preventing exploitation, and ensuring compliance with sponsorship obligations.
The Temporary Skilled Migration Income Threshold (TSMIT) was increased from $70,000 to $73,150 for applications lodged on or after 1 July 2024. This threshold did not include superannuation.
Changes to visa conditions for Subclass 457, 482, and 494 visas allowed temporary migrants to cease working with their sponsor for up to 180 consecutive days or 365 days total during the visa period.
Reforms to the Migration Act strengthened protections for migrant workers reporting workplace exploitation. These measures included non-discretionary protections to prevent visa cancellations for exploited workers, penalties for employers or intermediaries exploiting temporary visa holders, and the introduction of the Workplace Justice Visa (WJV). The WJV allowed temporary migrants involved in workplace justice activities to remain in Australia and work.
The Department of Home Affairs also announced an increased compliance monitoring, conducting announced and unannounced inspections of sponsoring businesses. These inspections focus on pay rates, work hours, visa holder occupations, and other sponsorship obligations.
These reforms aim to create a more responsive and inclusive migration program and present opportunities for employers to attract talent across a broader range of occupations with streamlined pathways for skilled workers to secure permanent residency.
Employers and applicants should begin preparing for the new system and updated requirements to ensure compliance with the revised migration framework.
For assistance navigating these changes and understanding how they may impact your business or overseas recruitment plans, please get in touch with our team below.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
Published by:
