The Australian Government is introducing the Skills in Demand Visa on 7 December 2024, replacing the Temporary Skill Shortage (subclass 482) Visa.
This new system introduces a three-tiered visa designed to address labour shortages and streamline pathways to permanent residency. The new visa brings key benefits, such as more flexibility for skilled workers whose employment ends and a clearer process for converting to permanent residency. Skill shortages will now undergo independent verification, while employers will be encouraged to retain talent under this updated system.
Launch Timeline
The Skills in Demand Visa has started from 7th December 2024.
The Three-Tiered Visa System
1. Tier 1: Specialist Skills Pathway
No occupation list applies (excluding tradespeople, machine operators, drivers, and labourers).
Requires an annual guaranteed salary of $135,000 or more (indexed annually).
Fast-tracked processing with a median turnaround of 7 days.
Capped at 3,000 places per year.
2. Tier 2: Core Skills Pathway
Designed for occupations on the Core Skills Occupation List (CSOL), managed by Jobs and Skills Australia.
Requires a minimum guaranteed salary of $73,150 or more (indexed annually).
Expected to provide the majority of visas within the program.
3. Tier 3: Essential Skills Pathway
Tailored for roles earning below $73,150 per year in critical sectors like aged care and disability services.
Details are still being finalized, with input from unions and Jobs and Skills Australia.
Key Features of the Skills in Demand Visa
Greater Flexibility for Visa Holders: Skills in demand visa holders will have 180 days to discover a new sponsor if their employment is terminated.
Pathways to Permanent Residency: All streams offer clearer opportunities to transition to permanent residency, including independent and employer-sponsored options.
Visa Duration: All streams provide a four-year stay.
Simplified Labour Market Testing (LMT): The requirement to advertise on Workforce Australia has been removed, and the advertising validity period has been extended from 4 to 6 months. LMT will eventually phase out as data on skill shortages improves and a CSOL is created as an alternative to LMT.
Public Register of Sponsors: This measure enhances transparency and makes it easier for visa holders to find new employers.
Skilling Australians Fund (SAF)
To accommodate increased flexibility for workers, SAF contributions may shift to a monthly or quarterly payment structure instead of upfront lump sums.
Broader Migration Strategy
The Australian Government’s Migration Strategy outlines a roadmap for implementing substantial long-term reforms starting in 2024. Key highlights include:
Introducing the Skills in Demand Visa with three distinct pathways based on the earnings of foreign workers.
Streamlined labour market testing requirements to reduce administrative complexity.
A system-wide simplification of immigration processes for greater efficiency.
The establishment of a dedicated agency to assess and address skills shortages.
A points-based system to enhance pathways for permanent skilled migration.
Disclaimer: The above information is not tailored to personal circumstances.
For information relevant to personal circumstances, please book an
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Australia.
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