Skills in Demand Visa
Overview
The Skills in Demand Visa is set to replace the Temporary Skill Shortage (subclass 482) Visa with a three-tiered system based on applicants’ annual earnings and occupations. It aims to meet labor market demands while providing flexibility for temporary skilled migrant workers and a clearer pathway to permanent residency.
Launch Timeline: The Skills in Demand Visa is expected to be available by the end of 2024.
The Three-Tiered System
Tier 1 – Specialist Skills Pathway
No occupation list is applicable, but trades workers, machine operators, drivers, and laborers are excluded.
- Annual earnings: Minimum $135,000 (indexed annually).
- Processing time: 7-day median visa processing time.
Tier 2 – Core Skills Pathway
Occupation list: A simpler, regularly updated Core Skills Occupation List (CSOL) managed by Jobs and Skills Australia.
- Annual earnings: Minimum $70,000 (indexed annually).
Tier 3 – Essential Skills Pathway
For occupations earning under $70,000 per year, focused on essential skill sectors. Specific sector details and regulatory frameworks are under assessment.
Replacement of the TSS 482 Visa
The Skills in Demand Visa introduces three new pathways, replacing the TSS SC 482 Visa. The new pathways are:
Pathway | Details |
---|---|
Specialist Skills Pathway | For individuals earning over $135,000 per year, with 3,000 places allocated annually. Excludes trades, machinery operators, drivers, and laborers. |
Core Skills Pathway | For trades workers and individuals earning between $70,000 and $135,000 annually, based on the updated ‘Skills in Demand List’. |
Essential Skills Pathway | Sector-specific, with union oversight, caps, and restrictions in sectors like aged care and disability for those earning under $70,000. |
Visa Benefits
- Duration: Visas will be granted for up to 4 years.
- Flexibility: Easier change of employers and clear pathways to permanent residency.
- TSMIT Indexing: Temporary Skilled Migration Income Threshold (TSMIT) will be indexed annually.
- Public Register: A register of employer sponsors will help facilitate easier job movement for visa holders.
Skilling Australians Fund (SAF)
The SAF may be collected in smaller increments over time to reflect the increased freedom of movement for visa holders. A monthly or quarterly payment model is under consideration.
Labour Market Testing (LMT)
LMT will be streamlined, removing the requirement to advertise on Workforce Australia. The advertising validity period will increase from 4 to 6 months, with LMT phasing out gradually as Jobs and Skills Australia’s skills shortage data improves.
Key Elements of the Skills in Demand Visa
- Time spent with any approved employer counts towards permanent residency.
- Access to both self-nominated independent permanent pathways and employer-sponsored pathways.
- 4-year stay across all streams, with a 21-day median processing time.
- Visa holders have 180 days to find a new sponsor if they change employers.
- Streamlined LMT requirements with removal of Workforce Australia advertising.
These reforms are part of the Australian government’s Migration Strategy, expected to launch in 2024, including the new Skills in Demand Visa pathways, streamlined processes, and a simplified immigration system with enhanced identification of skill needs.