Skills in Demand Visa

The Skills in Demand Visa is set to replace the Temporary Skill Shortage (subclass 482) Visa with a new three-tiered system based on applicants’ annual earnings and occupations. This visa aims to address labor market needs and introduces several significant changes for temporary skilled migrant workers. Key updates include more time to find another sponsor if employment is terminated and a clearer pathway to permanent residency. Skill shortages will now be independently verified, and employers will have greater incentives to attract and retain skilled workers.

Launch Timeline: The Skills in Demand Visa is expected to be available by the end of 2024.

The Three-Tiered System:

  1. Tier 1 – Specialist Skills Pathway
    • No occupation list is applicable, but trades workers, machine operators, drivers, and laborers are excluded.
    • Annual earnings: Must be at least $135,000 (indexed annually).
    • Processing time: Priority processing with a 7-day median visa processing time.
  2. Tier 2 – Core Skills Pathway
    • Occupation list: A simpler and regularly updated Core Skills Occupation List (CSOL) managed by Jobs and Skills Australia.
    • Annual earnings: Must be at least $70,000 (indexed annually).
  3. Tier 3 – Essential Skills Pathway
    • Occupation list: For occupations earning under $70,000 per year, working in essential skill occupations.
    • Details: Further assessment is being conducted on the best way to introduce this pathway. It will likely be sector-specific with a stronger regulatory framework, minimum standards, and ongoing advice from Jobs and Skills Australia.

Replacement of the TSS 482 Visa

The Skills in Demand Visa introduces three new visa pathways, replacing the TSS SC 482 Visa:

  1. Specialist Skills Pathway:
    • No occupational list.
    • Excludes trades, machinery operators, drivers, and laborers.
    • 3,000 places allocated per year.
    • For individuals earning over $135,000 per year.
  2. Core Skills Pathway:
    • Trades workers will apply under this visa, based on the updated ‘Skills in Demand List’ from Jobs and Skills Australia.
    • For individuals earning between $70,000 and $135,000 annually (indexed).
  3. Essential Skills Pathway:
    • Details are still being determined, but this visa will likely involve union oversight, be capped, and restricted to specific sectors such as aged care and disability.
    • For those earning under $70,000 annually.

Visa Benefits:

  • Duration: Visas will be granted for up to 4 years.
  • Flexibility: Visa holders can change employers more easily, with clear pathways to permanent residency.
  • TSMIT Indexing: The Temporary Skilled Migration Income Threshold (TSMIT) will be indexed annually.
  • Public Register: A public register of employer sponsors will be created to facilitate easier movement between employers.

Skilling Australians Fund (SAF)

  • There will be consideration for collecting SAF in smaller increments over time, recognizing the greater freedom visa holders will have to change employers. A monthly or quarterly payment model is being explored.

Labour Market Testing (LMT)

  • LMT is set to be streamlined. The requirement to advertise on the Workforce Australia site will be abolished, and the validity of the advertising period will increase from 4 to 6 months.
  • LMT will gradually phase out as Jobs and Skills Australia’s data on skills shortages improves, with a Core Skilled Occupation List replacing LMT.

Key Elements of the Skills in Demand Visa:

  • Time spent with any approved employer will count toward permanent residence requirements.
  • Skills in Demand visa holders will have access to self-nominated independent permanent pathways, in addition to employer-sponsored pathways.
  • The visa will provide for a 4-year stay across all streams, with a median processing time of 21 days.
  • Visa holders will have 180 days to find a new sponsor if they change employers.
  • Streamlined labour market testing requirements will be introduced, with the removal of the requirement to advertise on Workforce Australia.

The Australian government’s Migration Strategy outlines these reforms, which will be implemented starting in 2024. It includes:

  • The introduction of the Skills in Demand Visa with three pathways based on earnings.
  • Simplified immigration processes across the system.
  • A new agency to identify skills needs.
  • A new points system for permanent skilled migration.