Navigating the New Skills in Demand Visa: Important Updates for Employers and Applicants

The Australian government has introduced significant changes to the skilled visa program, effective from 7 December 2024. These updates are aimed to streamline visa processes, align criteria with the latest labour market needs, and enhance pathways to permanent residence in line with the government’s goal to reduce “visa hopping”. Below is an overview of the changes and their implications for visa applicants and sponsors.

Subclass 482 (Skills in Demand) Visa Updates

ANZSCO Update

From 7 December 2024, visa applications will transition from the 2013 ANZSCO framework to the November 2022 release. TSS applications were assessed against the previous framework from over a decade ago and was no longer reflective of current occupational roles.

The 2022 update ensures that occupation data is more relevant, incorporating emerging occupations that are relevant to the current labour market. It also has a stronger focus on the Australian labour market, addressing our specific needs rather than being broadly aligned with New Zealand. This change better supports employers in filling skill shortages with occupations critical to Australia’s economy.

New Application Charges and English Requirements

All applicants must now meet the former TSS medium-term English proficiency standard and pay the updated charges:

Base application charge: $3,115
Additional applicant (18+ years): $3,115
Additional applicant (<18 years): $780

The application charges are consistent with TSS’ medium-term stream, meaning occupations that were formerly on the short-term stream must now pay a higher application charge.

Streams under the Skills in Demand Visa

Core Skills Stream:

1. - For occupations on the Consolidated Skilled Occupation List (CSOL).
  - Minimum base salary: $73,150.

Specialist Skills Stream:

1. - For all occupations in ANZSCO but for those in Major Group levels 3 (Technicians and Trade workers), 7 (Machinery Operators and Drivers), and 8 (Labourers).
  - Minimum base salary: $135,000.

Labour Agreement Stream:

- This will eventually transition to the Essential Skills Stream which is still under development.

Benefits and Impacts

Pathway to permanent residency: Work with any approved employer now counts towards the work experience requirement under the subclass 186 Temporary Residence Transition stream, eliminating the reset previously triggered by a sponsor change.
Reduced experience requirement: Applicants only need 1 year of relevant work experience.
Existing TSS visa holders can transfer to new employers if they meet CSOL under the Core Skills Stream, or income requirements for the Specialist Skills Stream.

Income Threshold Indexation

The Core Skills Income Threshold (CSIT) and Specialist Skills Income Threshold will now be indexed annually on 1 July.

Subclass 186 Visa (Employer Nomination Scheme) Updates

Enhanced Pathway to Residency

All sponsored employment counts toward the 2 year work experience requirement, including promotions and roles in a related field.
The Direct Entry stream is available for occupations meeting the CSIT (currently $73,150).

Age and Evidence Requirements

Age exemptions for regional medical practitioners and high-income earners remain.
The work experience criteria, previously assessed as part of the nomination application, is now evaluated under the visa requirements instead.

Key Changes Affecting Sponsors

Benefits of the Changes

STEM start-ups with venture capital funding from a registered Early Stage Venture Capital Limited Partnership can now apply for accredited sponsorship.
The Skilling Australian Fund (SAF) levy, Standard Business Sponsorship (SBS), and nomination application charges remain unchanged.
Sponsors can now nominate all SID candidates for up to 4 years, choosing the duration that best suits their needs.
Employers no longer need to worry about navigating multiple TSS occupation lists, as the Skills in Demand visa now operates under a single Consolidated Skilled Occupation List (CSOL).
The new program has reduced caveats to just 16.
A new caveat (14) has been added to reflect occupations that have been included in the CSOL due to commitments under International Trade Obligations (ITO).
All occupations on the CSOL have access to the subclass 186 visa under the Direct Entry stream, enabling employers to sponsor candidates directly for permanent residency without requiring interim subclass 482 nomination for occupations formerly on the TSS short-term occupation list.

Sponsorship Obligations

Sponsors are no longer required to ensure that visa holders only work in their nominated occupation after leaving the sponsor’s employment.
Employer-sponsored visa holders now have up to 180 days at a time (and 365 days total across their visa period) to:
- Find a new sponsor;
- Apply for a different visa; or
- Leave Australia.

Nominees who had lodged a Temporary Skill Shortage (TSS) nomination before 7 December 2024 but have not yet submitted the corresponding visa application can link the nomination to the new SID visa until the original 12-month nomination validity expires.

Implications for Employers

Sponsors lose the incentive of nominees staying with their organisation, as changing employers no longer resets the 2-year work experience requirement for permanent residency eligibility.
Sponsors seeking to nominate occupations that were on the TSS short-term stream may face delays as nominees work to meet higher English proficiency requirements under the new program.
Nominations must continue to meet Annual Market Salary Rate (AMSR) requirements, meaning employers cannot simply offer the CSIT or Specialist Skills Income Threshold salary levels if these do not align with AMSR.
Whilst the work experience requirement has now reduced to 1 year, sponsors should carefully assess whether the AMSR is consistent for a candidate with limited work experience, particularly if they are a recent graduate.
The SID visa has reinstated the requirement that any work experience claimed must have taken place in the 5 years before the application is made.
Sponsors can no longer transfer an existing TSS visa holder to work for their business if the occupation is not on the CSOL or does not meet the income criteria for a Specialist Skills stream visa. They must consider nominating the candidate under a new occupation that falls within the new SID framework.

Other Changes

National Innovation Visa (NIV)

The NIV replaced the Global Talent Visa on 7 December 2024, exclusive to exceptionally talented individuals. The NIV will be prioritising applications in the following order:

Recipients of prestigious awards (e.g., Nobel Prizes, Fields Medal recipients, Booker Prize winners or Olympic gold medallists).
Exceptionally skilled individuals endorsed by government agencies.
Experts in critical technologies, renewables and low emission technologies and health industries.
Exceptionally talented people in Agri-tech, resources, defence capabilities and space, education, financial services and FinTech, and infrastructure and transport.

Flexibility

There is no age limit.
The program allows for flexible English requirements.

Frequent Traveller Stream Expansion

The subclass 600 visa under the Frequent Traveller stream now includes travellers from 11 additional countries, granting up to 10-year visas with 3-month stay periods per visit. These countries include Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, The People’s Republic of China, The Philippines, Singapore, Thailand, Timor-Leste, and Vietnam.

Conclusion

These changes to Australia’s skilled visa program represent a significant step in tackling skill shortages, encouraging innovation, and providing clearer pathways to permanent residency. We’ll be back in the new year with an update on how these changes have been implemented in practice and whether they have delivered real improvements compared to the TSS program.

For tailored advice on how these changes affect your visa options or your business, contact our migration team today.