Australia’s recent visa reforms mark a significant shift in the migration landscape, with the introduction of the Skills in Demand (SID) visa under the Subclass 482 framework replacing the Temporary Skill Shortage (TSS) visa. These changes aim to better address workforce shortages, streamline pathways to permanent residency, and ensure alignment with evolving economic priorities.
Key updates include revised occupation classifications under the Core Skills Occupation List (CSOL), new income thresholds for Core and Specialist Skills streams, and adjustments to work experience requirements. Employers and applicants alike must adapt to these changes to maximise opportunities while navigating potential challenges such as salary caveats and regulatory adjustments.
This article provides a detailed summary of the key updates, challenges, and actionable insights regarding recent visa changes.
1. Introduction to the Skills in Demand (SID) Visa
- Regarding to the New Visa Changes, the Temporary Skill Shortage (TSS) visa has been replaced by the Skills in Demand (SID) visa under the 482 subclass.
- Key Features:
- Occupation classifications revised under the CSOL (Consolidated Skilled Occupation List).
- New income thresholds:
- Core Skills: $73,150+
- Specialist Skills: $135,000+
- Introduction of indexed income thresholds updated annually in July.
- Pathways to Permanent Residency (PR) simplified for specific occupations.
2. Pathways to Permanent Residency
- Temporary Residence Transition (TRT) Stream:
- Applicants can now count employment across multiple sponsors toward the required two-year period.
- Work during visa transfer periods (up to six months) is now counted.
- Direct Entry (DE) Employer Nomination Scheme:
- Broad inclusion of occupations, reducing restrictions from previous lists.
- Removal of medium/short-term list distinctions simplifies eligibility.
3. Key Occupational Changes
Regarding the new visa changes, some occupations have been added to the CSOL list, and some have been removed.
Winners:
- Added to the List:
- Cybersecurity Analysts
- Data Analysts
- HR Advisers
- Retail Managers
- Childcare Workers (with salary caveats)
- Expanded support for niche occupations under Labour Agreements (e.g., chefs specializing in Chinese or Indian cuisine).
Losers:
- Removed from the List:
- Childcare Managers
- Graphic Designers
- Some Specialist Managers (NEC)
- Occupations with salaries below $135,000 may face challenges under the Specialist Skills category.
4. Impact of Regulatory Changes
- Changes to Regulations:
- Regulation 5.19 revisions allow work from multiple sponsors within a defined period.
- Bridging visa work periods now count toward eligibility if the transition is successful.
- Policy Adjustments:
- Applicants must meet work experience criteria before lodging applications, not during processing.
5. Specific Sector Implication
Regarding the new visa changes, there are some implications for specific sectors.
Hospitality and Retail:
- Chefs restricted to specific national cuisines supported by trade agreements.
- Retail Managers and Store Managers included in the SID Visa for high-demand sectors.
Childcare:
- Salaries must meet thresholds, creating challenges for standard childcare center budgets.
Trade and Technical Roles:
- Some trades excluded under Specialist Skills but included under Core Skills, emphasizing employer sponsorship criteria.
6. Practical Considerations for Employers and Applicants
- Employers:
- Align job descriptions and salaries with the new CSOL requirements.
- Consider Labour Agreements for excluded occupations.
- Monitor annual indexing of income thresholds.
- Applicants:
- Ensure work experience meets the specified duration and scope before lodging applications.
- Explore regional visa options (e.g., subclass 494) for excluded occupations.
7. Key Takeaways from Discussion Forum
- Work Experience Timing:
- Work accumulated during bridging visa periods counts only if subsequent visas are granted.
- Flexibility in Occupations:
- Occupation vs. Position distinction clarified (e.g., working as a chef across different sponsors counts).
- Labour Agreements and Free Trade Agreements:
- Ongoing negotiations influence occupational inclusions (e.g., chefs under Indian and Chinese agreements).
8. Challenges Ahead
- Anticipated delays in skills assessments, especially for occupations handled by VETASSESS, due to increased caseloads.
- Regulatory ambiguities around transition periods and salary caveats may create implementation hurdles.
9. Action Items for Stakeholders
- Employers:
- Review pending hires and reclassify roles to align with SID requirements.
- Update policies to integrate LWOP provisions and new salary thresholds.
- Legal and Migration Advisors:
- Stay updated on trade agreements influencing visa pathways.
- Advise clients proactively on eligibility and compliance.
Conclusion
The recent visa changes, particularly the introduction of the Skills in Demand (SID) visa, represent a significant overhaul of Australia’s migration framework. These updates simplify pathways to permanent residency, refine occupation classifications, and address workforce needs across key industries. While the changes bring opportunities, they also introduce new challenges, such as salary thresholds and regulatory adjustments, which require careful navigation by both employers and applicants.
Employers should take proactive steps to align their hiring practices with the updated CSOL requirements and consider Labour Agreements for excluded occupations. Applicants are encouraged to ensure their work experience and qualifications meet the revised criteria while exploring alternative regional pathways if necessary.
As the Department of Home Affairs continues to refine these policies, staying informed about the latest developments is crucial for successfully navigating Australia’s migration landscape.
For tailored guidance on how these changes might impact your migration goals, Kris Ahn Lawyers is here to assist. With two accredited specialists in immigration law, we provide expert advice and comprehensive support to help you navigate Australia’s evolving migration landscape.
Related Articles
- Skills in Demand Visa Effective 7 December 2024
- Core Skills Occupation List
- New Core Skills Occupation List Updates
Book a consultation with us today to understand how these developments could open new opportunities for you in Australia.
Disclaimer: Not Legal Advice
The information provided in this blog post/article is for general informational purposes only. It does not constitute legal advice or create a representative-client relationship. While we strive to provide accurate and up-to-date information, the content may not reflect the most current legal developments or specific circumstances.
Do not rely solely on the information presented here – but please book in a consultation with us to see how you this information applies to you and may benefit you. Any reliance on the material in this post is at your own risk.
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