The new Skills in Demand Visa

Australia's migration landscape has undergone a significant transformation with the introduction of the Skills in Demand (SID) visa (subclass 482), replacing the previous Temporary Skills Shortage (TSS) visa. This change, effective from 7 December 2024, aims to streamline the process for employers to address labour shortages by bringing in skilled workers where appropriately skilled Australians cannot be sourced.

Understanding the Skills in Demand (SID) Visa

The SID visa is a temporary visa that allows employers to sponsor skilled workers to fill positions they cannot otherwise fill with local workforce. Visa holders can work in Australia in their nominated occupation for their approved sponsor under one of three streams:

1. Specialist Skills Stream: This stream is designed for highly skilled workers with guaranteed annual earnings of at least $135,000. Notably, there is no occupation list applicable; however, trades workers, machine operators, drivers, and labourers are excluded. This stream offers priority processing with a commitment to a 7-day median visa processing time.

2. Core Skills Stream: Targeting occupations listed on the Core Skills Occupation List (CSOL), applicants must have income above the Core Skills Income Threshold (CSIT) of $73,150 (correct for 24/25 financial year). This stream requires demonstrated efforts to recruit employees in Australia (subject to exceptions) and at least 12 months of relevant work experience.

3. Labour Agreement Stream: This stream provides a pathway for different occupations, including many which are not covered under the standard CSOL and also offers additional concessions, making it easier for employers in need to sponsor international employees. This stream includes Industry Labour agreements, Designated Area Migration Agreements and company specific labour agreements.

Key Differences Between SID and TSS Visas

The transition from the TSS visa to the SID visa introduces several notable changes:

• Income Thresholds: The SID visa introduces specific income thresholds for different streams, such as the $135,000 minimum for the Specialist Skills Stream and $73,150 for the Core Skills Stream, ensuring that visa holders meet certain earning criteria.

• Work Experience Requirements: The required work experience for applicants has been reduced from two years under the TSS visa to one year under the SID visa, making it more accessible to skilled workers.

• Pathways to Permanent Residency: The SID visa provides clearer pathways to permanent residency for all applicants, offering more certainty for skilled workers considering long-term relocation to Australia.

What can you do with this visa?

You may engage in full-time employment with your sponsoring employer and pursue educational opportunities if you are motivated to do so. Your family members are also permitted to accompany you. Your partner is eligible to work full-time in Australia, and your children may attend school or university. However, please note that you are not eligible for government subsidies. While holding this visa, you are also allowed to travel in and out Australia multiple times.

Occupations in the construction industry are particularly in demand now in Australia

Watch out for pitfalls!

For employers and prospective visa applicants, understanding the criteria for sponsorship, nomination and visa applications, is crucial to navigating Australia's evolving migration system effectively.

Here are some potential pitfalls that employers and applicants should be aware of when starting the process for the Skills in Demand (SID) visa:

For Employers

1. Labour Market Testing (LMT) Complexity

   While some exemptions apply, most employers must conduct labour market testing (LMT) before sponsoring a worker. This involves strict advertising requirements, and failure to meet them can lead to a visa refusal.

2. Salary Compliance

   Employers must ensure that the salary offered meets the relevant income threshold for the chosen stream ($73,150 for Core Skills, $135,000 for Specialist Skills). Underpayment or incorrect classification of the role can result in penalties or visa cancellation.

3. Occupation List Limitations

   The Core Skills Stream relies on the new Core Skills Occupation List (CSOL), which is updated periodically. Some of the occupations are also subject to caveats, which means that not every business can sponsor every occupation on the list. Employers must verify that the intended role is eligible, and that they meet any associated caveat.

4. Visa Processing Time Risks

   Although priority processing is promised for some streams, delays may still occur due to high demand, incomplete applications, or changes in policy. Employers should plan workforce needs accordingly.

For Applicants

1. Work Experience Requirement

   Unlike previous visas that required two years of work experience, the SID visa requires only one year. However, this experience must be completed prior to application lodgement. The experience needs to be closely related to the nominated occupation and properly documented, which can be a challenge for some applicants.

2. Visa Conditions & Work Limitations

   Applicants must comply with all visa conditions, including only working for their sponsoring employer in their approved occupation. Breaching conditions can lead to visa cancellation.

3. Changing employment

   Visa holders are tied to their sponsoring employer. If the employer’s business closes or they withdraw sponsorship, the visa holder must find a new sponsor within 6 months or leave Australia.

4. Skills Assessment Challenges

   While not mandatory for all occupations, some applicants may need to undergo a skills assessment. The process can be time-consuming and costly, and must be completed before the application is lodged.

By being aware of these potential challenges, both employers and applicants can better prepare and improve their chances of a smooth and successful visa process.

Contact us for peace of mind!