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Everything you need to know about the Skills in Demand Visa

Everything you need to know about the Skills in Demand Visa

The Skills in Demand (SID) visa replaced the Temporary Skill Shortage (TSS) (subclass 482) visa on December 7, 2024. This transformation was caused by the necessity to streamline the skilled visa program, making it more efficient for both migrants and employers. A clearer pathway to permanent residence has been provided, ensuring alignment with Australia’s current labor market needs

SID is a temporary skilled employment visa consisting of three streams that can be used to fill vacancies in a business where Australian workers are unavailable. It is a temporary skilled worker visa with up to four years validity. SID offers a clear pathway to permanent residence and allows for mobility between sponsors. Applicants must earn a minimum salary in line with the Core Skills Income Threshold (CSIT) and the Australian Market Salary Rate (AMSR). There is also a one-year work experience requirement, although the licensing, registration, or skills assessment process may require a different level of work experience to meet Australian standards.

The Temporary Skill Shortage Visa introduced on March 18, 2018, was designed to address labor shortages at that time by allowing employers to recruit skilled workers from overseas when skilled Australian workers were unavailable. It provided a temporary stay of up to four years and required applicants’ occupations to be listed on the Medium and Long-term Strategic Skills List (MLTSSL) or the Regional Occupation List (ROL). Visa holders could live, work, and study in Australia during this period, while eligible dependent family members could also accompany them.  

New SID will utilize the modernized Core Skills Occupation List (CSOL) with over 450 occupations in sectors such as construction, cybersecurity, agriculture, and health. These occupations have been carefully selected based on Australia’s labor market needs, ensuring they align with current demands. It provides a clear pathway to permanent residence, ensuring stability for both migrants and employers. The SID visa streamlines the application process by reducing the work experience requirement and maintaining the same English language standards as the TSS medium-term stream.

Some occupations listed under the TSS visa do not appear on the CSOL, making them ineligible for the Core Skills Stream of the SID visa. However, these occupations might qualify for the Specialist Skills stream if they meet the income criteria, or for the Labour Agreement stream of the SID visa. Additionally, they may be eligible for other visa pathways, including permanent visas.

 

Streams of the Skills in Demand Visa

The Skills in Demand visa is primarily divided into three key sub-streams, each designed to address specific workforce needs in Australia. The first sub-stream, the Core Skills Stream, focuses on filling critical roles in occupations listed on the Core Skills Occupation List (CSOL) to meet the Australia’s  immediate labor market demands. The second sub-stream, the Specialist Skilled Stream, targets highly skilled professionals in specialized sectors, offering a pathway to permanent residency for individuals in occupations under ANZSCO Major Groups 1, 2, 4, 5, and 6. The third sub-stream, the Labour Agreement Stream, caters to skilled workers nominated by employers holding a Labour Agreement with the Australian Government, providing a tailored solution to specific workforce shortages. Each stream is structured to attract skilled professionals and support Australia’s economic growth by addressing essential gaps in the labor market.

Core Skills Stream Specialist Skilled Stream Labour Agreement Stream
Age Requirements No specific age requirement No specific age requirement No specific age requirement
Eligible Occupations Occupations on the Core Skills Occupation List (CSOL) Occupations from ANZSCO Major Groups 1, 2, 4, 5, 6 Occupations covered by a Labour Agreement
Income Threshold Earn at least the CSIT (AUD 73,150) annually aligned with TSMIT and not less than AMSR. Earn at least the SSIT( AUD 135,000) and not less than AMSR. No specific threshold (depends on agreement)
Work Experience At least 1 year relevant work experience At least 1 year relevant work experience At least 12 months relevant work experience
English Proficiency Required, unless exempt Required, unless exempt Required, unless exempt
Visa Duration Up to 4 years, 5 years for Hong Kong passport holders Up to 4 years, 5 years for Hong Kong passport holders Up to 4 years, 5 years for Hong Kong passport holders
Visa Costs Base Fee: $3,115 Additional (18 and over): $3,115 Additional (under 18): $780 Base Fee: $3,115 Additional (18 and over): $3,115 Additional (under 18): $780 Base Fee: $3,115 Additional (18 and over): $3,115 Additional (under 18): $780
Visa Conditions Must work for nominated employer or associated entity Must work for nominated employer or associated entity Must work only for sponsoring employer
PR Pathways Yes, after meeting work and salary requirements Yes, after meeting work and salary requirements Yes, through Employer Nomination Scheme (subclass 186)
Work Restrictions Work only for sponsor or associated entity Work only for sponsor or associated entity. Work only for sponsor, as specified in the Labour Agreement

Core Skills Stream

The Core Skills Stream addresses shortages in critical occupations essential to Australia’s labor market. This stream is designed to provide a flexible and accessible pathway for skilled workers while helping Australian employers fill vital roles.

  • Eligible Occupations: Applicants must be nominated to work in an occupation listed on the Core Skills Occupation List (CSOL). 
  • Income Threshold: Applicants must meet the Core Skills Income Threshold of AUD 73,150 annually. This aligns with the Temporary Skilled Migration Income Threshold (TSMIT) used under the previous TSS visa, ensuring that applicants earn a wage reflective of their skills and the demand for their occupation.
  • Work Experience: Applicants are required to have at least one year of full-time relevant work experience (or equivalent part-time/casual work) in the nominated occupation or a related field within the past 5 years. This experience must meet the standards outlined in the Australian and New Zealand Standard Classification of Occupations (ANZSCO).
  • English Language: Applicants must demonstrate minimum standards of English language proficiency unless exempted, typically through standardized tests such as IELTS or PTE.
  • Visa Duration: The visa is granted for up to 4 years, or up to 5 years for Hong Kong passport holders.
  • Visa Costs: The visa application fee starts at AUD 3,115, with additional fees for dependent applicants.
  • Visa Conditions:
    • Applicants must work only for the sponsor or their associated entity unless exempt.
    • A relevant skills assessment may be required based on the applicant’s occupation.
    • Applicants must comply with conditions that may apply to their visa, including English language proficiency and work restrictions.
  • Eligibility for Permanent Residency: After fulfilling work experience and salary requirements, applicants may be eligible to apply for permanent residency under the Permanent Residency Transition Stream, offering a clear pathway to long-term residence in Australia.
  • Skills and Qualifications: Applicants must provide evidence of their qualifications and skills. If required, they must undergo a skills assessment by an approved Australian assessing authority. A positive skills assessment may be needed to demonstrate competency in the nominated occupation.
  • Nomination and Sponsorship:
    • Applicants must be nominated by an approved sponsor, either within Australia or internationally.
    • For Australian business sponsors, you must be employed in the nominated occupation in their business or associated entity.
    • Overseas business sponsors can only nominate applicants to work within their own business and not associated entities, though some exemptions apply.
  • Work Experience Requirements:
    • At least 1 year of work experience in the nominated occupation or a related field is required.
    • Work experience can be gained through full-time, part-time, casual work, or even formal education placements, internships, and apprenticeships relevant to the nominated occupation.
  • Exemptions: Certain applicants may be exempt from specific requirements, such as the mandatory skills assessment, based on their occupation or experience.
  • Stay Duration: Primary visa holders are generally granted a stay of up to 4 years, or 5 years for Hong Kong passport holders.

Specialist Skilled Stream

The Specialist Skilled Stream will address shortages in highly skilled occupations important to Australia’s workforce. This stream allows skilled professionals to work in Australia for specific roles, offering flexibility and clear pathways to permanent residency for qualified candidates.

  • Eligible Occupations: Applicants must be nominated to work in an occupation from the Australian and New Zealand Standard Classification of Occupations (ANZSCO), specifically in Major Groups 1, 2, 4, 5, or 6. The nominated salary must meet the Specialist Skills Income Threshold. Excludes ANZSCO major groups 3 (Technicians and Trade Workers), 7 (Machinery Operators and Drivers), and 8 (Labourers).
  • Income Threshold: Applicants need to meet the Specialist Skills Income Threshold (SSIT) of $135,000 and ensure it is not less than the Annual Market Salary Rate (AMSR).
  • Work Experience: A minimum of 1 year of relevant work experience in the nominated occupation or a related field is required. This experience can be part-time or full-time within the last 5 years, and must meet ANZSCO guidelines for the occupation.
  • English Language Proficiency: Applicants must meet the minimum standards for English language proficiency unless exempted.
  • Visa Duration: The visa is valid for up to 4 years, or 5 years for Hong Kong passport holders.
  • Visa Costs: The application fee begins at AUD 3,115, with additional fees for dependents.
  • Visa Conditions:
    • Applicants must work for the sponsoring employer or their associated entity (with some exemptions).
    • A relevant skills assessment may be required based on the applicant’s occupation.
  • Eligibility for Permanent Residency: After meeting work experience and salary requirements, applicants may qualify to apply for permanent residency through other streams.
  • Nomination and Sponsorship:
    • Applicants must be nominated by an approved sponsor (either Australian or overseas business).
    • The employer must nominate a position from the ANZSCO occupation list (excluding occupations in Major Groups 3, 7, or 8).
  • Skills and Qualifications: Applicants must demonstrate their skills and qualifications to meet the demands of the nominated occupation. For some occupations, a skills assessment is mandatory.
  • Medical Practitioners: If the occupation is medical, applicants must have their qualifications recognized by the relevant authority for medical practice in Australia.
  • Work Experience: Work experience can be obtained through internships, clinical placements, or even as part of a Masters/PhD program, as long as it aligns with the skills required for the occupation.
  • Exemptions: Some applicants may be exempt from certain requirements like mandatory skills assessments based on their occupation or experience.

Labour Agreement Stream

The Labour Agreement Stream allows skilled workers to live and work in Australia temporarily if nominated by an employer holding a valid Labour Agreement. These agreements are established between the Australian Government and employers to address specific workforce needs.The Labour Agreement stream of the TSS visa will be retained under the SID and will operate alongside both the Specialist Skills and Core Skills streams.

  • Eligibility Requirements:
    • Applicants must be nominated to work in an occupation that is part of a Labour Agreement between the Australian Government and the employer.
    • A minimum of 12 months of relevant full-time work experience (or equivalent part-time/casual work) is required, unless specified otherwise in the Labour Agreement.
  • Visa Duration:
    • The visa is granted for up to 4 years, depending on the terms outlined in the specific Labour Agreement.
    • Hong Kong passport holders may stay for up to 5 years.
  • Visa Costs:
    • The application fee starts at AUD 3,115.
  • Processing Times:
    • Processing times vary, and applicants can check for general estimates using the visa processing time guide tool.
  • Visa Conditions:
    • Applicants must work only for their sponsoring employer, as specified in the Labour Agreement.
    • Applicants must meet minimum English language proficiency standards unless exempted.
    • A relevant skills assessment may be required based on the occupation.
  • Eligibility for Permanent Residency:
    • If eligible, applicants may transition to permanent residency through the Employer Nomination Scheme (subclass 186) with their employer’s support.
  • Work Restrictions:
    • Applicants are restricted to working under the terms of the Labour Agreement, and they must adhere to the conditions of the agreement.

What Current TSS Holders Need to Know

For those who have already lodged a TSS nomination and have not yet applied for the associated TSS visa before this date, if the nomination is approved, it will automatically be treated as an SID nomination, allowing applicants to apply for a SID visa instead.

For those who currently hold a TSS visa,  their visa will remain valid until the original expiry date. These visa holders can continue to live, work, and study in Australia under the conditions of their current visa. If any family members were not included in the initial visa application, they can apply to join the visa holder while the visa is still valid.

TSS visa holders can switch to a new employer if their occupation is on the CSOL or if their nomination meets the income requirements for the Specialist Skills stream. If the occupation does not meet these criteria, changing employers won’t be an option. However, these individuals can take advantage of enhanced mobility provisions to seek employment in a new field, apply for a different visa, or leave Australia.

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