Australia has a new Skills in Demand (SID) Subclass 482 visa which has replaced the former Temporary Skill Shortage (TSS) Subclass 482 visa from 7 December 2024.

This is a significant step forward by the Australian government to the skilled migration system that previously operated.

The Department of Home Affairs (DoHA) states on its website that this new SID visa, “enables employers to address labour shortages by bringing in skilled workers where employers can’t source an appropriately skilled Australian worker.”

The visa will be granted for a period of up to 4 years with the proviso that Hong Kong passport holders can stay up to 5 years.

The visa has three streams being the core skills stream, the specialist skills stream and the labour agreement stream. 

Additionally, there is subsequent entry stream which allows family members of subclass 457 and subclass 482 visa holders who are applying separately for their SID visa and wish to join the primary subclass 457 or subclass 482 visa holder in Australia.

The basic eligibility requires the applicant to be nominated for a skilled position by an approved sponsor, have the skills to do the job and meet relevant English language requirements.

The English language requirements across both Specialist and Core Skills streams will require an International English Language Testing System (IELTS) score of 5.0 overall with a minimum of 5.0 in each band.

A Core Skills Occupation List (CSOL) has been introduced which also has new income thresholds and reduced work experience requirements.

The work experience have been reduced from two years to one year of full-time or equivalent work experience in last past five years.

Pleasingly for many workers the sponsorship obligations and mobility rules make it easier for them to switch employers and for employers to recruit for high salary roles.

The new legislation relating to the visa has a number of transitional arrangements such as:

• Pre 7 December 2024 nominations and applications for a TSS visa will be processed using the requirements that were applicable at the time of the application.
• An employer that lodged a TSS nomination without a corresponding visa application can link that nomination to a new SID visa application.

The SID visa streams

As indicated above there are three main streams and they are:

The Specialist Skills Stream which is for high salary roles above $135,000 for any Australian and New Zealand Standard Classification of Occupations (ANZSCO) occupation excluding those in ANZSCO Major Groups 3, 7, and 8.

The Core Skills Stream for occupations on the CSOL with a minimum salary of $73,150.

The Labour Agreement Stream which has been carried over from the TSS visa.

Eligibility

All applicants for the SID visa must meet the following key criteria:

• The occupation must be on the CSOL for the Core Skills stream or meet the income threshold for the Specialist Skills stream

• Have one year of full-time or equivalent work experience in the past five years.

• Have an IELTS score of 5.0 overall with minimum 5.0 in each band or equivalent.

• Meet or exceed the relevant income threshold, either the Core Skills Income Threshold or Specialist Skills threshold.

• Have a skills assessment for certain occupations as specified in the relevant legislative instruments.

• Meet standard health and character requirements.

Pathways to Permanent Residence

Holders of the SID can still apply for an be granted permanent residency the current Employer Nomination Scheme visa Subclass 186 either through the Temporary Residence Transition (TRT) stream or the Direct Entry (DE) stream

Under the TRT an applicant will be eligible after two years of holding a 457, 482 TSS, or 482 SID visa in the same occupation and the requirement for two years with the same employer has been removed

The occupation must be the same as the most recently held 457, 482 TSS, or 482 SID visa, based on ANZSCO 2022.

The DE stream maintains the three-year work experience and positive skills assessment requirements but the occupation list for the DE stream is aligned with the new CSOL.

Key Takeaways

The SID visa represents a significant evolution in Australia’s skilled migration landscape. It offers numerous advantages in terms of flexibility, simplification and responsiveness to market needs. The success of the SID visa in addressing Australia’s skills shortages will depend on the ongoing refinement of the scheme. It must effectively balance the needs of businesses, foreign workers and the broader Australian workforce.

Overall, businesses and potential applicants should stay informed about any further updates or clarifications to the SID visa regulations. The full impact will only become clear as it is put into practice and businesses and migrants navigate its opportunities.

How can FC Lawyers help?

Our migration team which has both Accredited Specialists in migration law and Registered Migration Agents, have assisted thousands of skilled workers over the last 30 years.

Contact our team to discuss how we can help you through the skills in demand visa or if you have any other migration options.