At the recent Migration Institute of Australia (MIA) National Conference in Brisbane, the Department of Home Affairs shared upcoming changes to Australia’s skilled migration program, focusing on a replacement for the Temporary Skill Shortage (TSS) visa. Although retaining its subclass 482 status, the visa will see a name change from Temporary Skill Shortage (TSS) to Skills in Demand (SID).
SID promises to streamline hiring for employers looking to sponsor an employee to Australia while providing clearer residency pathways for skilled workers. Here’s what businesses need to know about the SID visa and how it could impact your talent acquisition strategy.
The Skills in Demand (SID) Visa:
The new Skills in Demand (SID) visa is an employee sponsorship visa . It aims to make it easier for employers to attract and retain talented workers. The SID visa will have three tailored streams to help meet various business needs:
- Specialist Skills Stream
- Designed for highly skilled roles with a minimum income of $135,000, except for trades, machinery operators, drivers, and general labour.
- Geared towards businesses needing professionals with advanced expertise in high-demand areas, such as engineering, IT, healthcare, and more.
- This stream provides employer sponsors a streamlined way to recruit highly skilled candidates for challenging roles, especially in industries with critical skill shortages.
- Core Skills Stream
- This stream targets a broad range of skilled occupations based on a new Core Skills Occupation List and an Income Threshold.
- This is designed for businesses looking to hire skilled employees in various fields essential to business operations.
- This stream provides more flexibility for sponsors by widening the range of eligible occupations, making it easier to hire workers who meet core skill needs without navigating restrictive lists.
- Labour Agreement Stream
- The existing TSS Labour Agreement stream will be renamed the Skills in Demand Labour Agreement stream.
- This option allows businesses to negotiate customized agreements with the government for roles that might not fall under standard categories.
- With this tailored agreement, businesses can better manage labour shortages in specialized areas where unique skills are needed.
Key Changes for Employers looking to Sponsor an Employee to Australia
- One-Year Work Experience Requirement
The Skills In Demand visa will require only one year of work experience, lowering barriers for promising candidates who may not have extensive backgrounds but possess the necessary skills. This is a significant benefit for employers, as it widens the pool of applicants, allowing companies to hire fresh talent with essential skills in high-demand areas. - Closing of TSS Visa Streams
Once the Skills In Demand visa is launched, the current TSS short-term and medium-term streams will close. For employers, this should mean a simpler, more unified pathway for bringing skilled workers to Australia.
What the Skills In Demand Visa Means for Skilled Workers
For skilled professionals considering a move to Australia, the SID visa offers greater clarity and more accessible pathways to permanent residency. Here’s what potential visa applicants can look forward to:
- Pathway to Permanent Residency: Unlike the current TSS visa, which has had different rules for short- and medium-term streams, the SID visa will offer a clear pathway to permanent residency across all streams.
- Increased Occupation Flexibility: With three different streams—Specialist Skills, Core Skills, and Labour Agreement—the SID visa allows more flexibility in eligible occupations, particularly in the Core Skills Stream, which will have a new occupation list.
- Reduced Experience Requirement: Only one year of work experience is required for eligibility, making it easier for early-career professionals with critical skills to apply.
Final Thoughts
These changes are expected to go live before the end of 2024. We are yet to learn what, if any, changes there will be to the Skilling Australia Fund Levy, minimum income threshold, the occupation list and other business sponsorship requirements. Nevertheless our role as registered migration agents will be helping clients adapt to these changes so that employers and skilled workers alike can make the most of Australia’s evolving skilled migration program.
Sources: Migration Institute of Australia, Department of Home Affairs
Author: Greg Nicolson is a registered migration agent who has been practicing for over 15 years. He is Managing Director of Australian Business Migration Group.
