The New Skills In Demand (SID) Visa: A Guide For Visa Applicants and Employers

Hiring skilled and qualified staff is essential to any business’s success. Yet, the current skills shortage in Australia is making this problematic for employers nationwide. Nearly a third of all Australian sectors are currently experiencing worker shortages, with industries such as health, education, and software engineering particularly affected.

If an employer cannot find suitable Australian workers, sponsoring a skilled worker from overseas can be an effective solution. To improve this process, the Australian government is set to introduce a new skills in demand visa by the end of 2024. This visa will replace the current temporary skill shortage visa (subclass 482) with a three-tiered system.

In this blog, we explore the features and requirements of the new skills in demand visa and the impact it will have on skilled migrants and employers.

Overview 

The new skills in demand visa is a four-year temporary skilled worker visa that aims to better address labour market needs, promote a more productive workforce, and boost Australia’s economy. The visa will introduce several changes for temporary skilled migrant workers, including more time to find another sponsor if their employment is terminated, and a clearer pathway to apply for permanent residency. Skill shortages will now be independently verified, and employers will have more incentive to attract and retain overseas workers.

Under the skills in demand visa, a new three-tiered system of visa pathways will be introduced:

1. Specialist Skills Pathway: The specialist skills visa pathway is for highly skilled migrants who earn a minimum of $135,000 annually*. There is no occupation list applicable, however trade workers, machine operators, and labourers are excluded. Due to the high demand for these workers, applications will be processed within 7 days, which will further incentivise skilled migrants to apply through this visa pathway. There will be 3,000 places allocated for this visa pathway each year.
2. Core Skills Pathway: The core skills visa pathway is for the majority of skilled migrants who earn between $70,000 and $135,000 annually*. A list of eligible occupations will be supplied under a simpler core skills occupation list (CSOL). These occupations will be determined by current demand and international trade agreements. Jobs and Skills Australia will frequently update and manage the list.
3. Essential Skills Pathway: The essential skills visa pathway is for skilled migrants earning below $70,000 annually*. Applicants must be in an occupation where there has been a persistent shortage in Australia, including aged care and disability. Importantly, this visa pathway provides enhanced protection for temporary migrant workers, which the current temporary skill shortage visa does not properly address.

* Temporary skilled migration income thresholds (TSMIT) are subject to change and are indexed annually.

Key Changes

• Finding Another Sponsor: The new skills in demand visa will give visa holders more time to find another sponsor if their employment ceases. Rather than having only 60 days, visa holders will have 180 days to find a new sponsor. To make this process easier, a public register will be made available of all approved sponsors in Australia. This information will assist visa holders with their search. They are also allowed to work during their employment transition period.
• Labour Market Testing: Labour market testing will be streamlined by removing the need to advertise positions on Workforce Australia. Additionally, occupations in demand will be independently verified rather than determined by employer-conducted labour market testing. 
• Permanent Residency Pathway: The new skills in demand visa will provide a more secure pathway for skilled workers to gain permanent residency. Under the temporary skill shortage visa, only periods of employment with a nominated sponsor are counted towards permanent residency. Now, any period of employment contributes to the requirements for permanent residency. 
• Skilling Australians Fund: The Australian government is considering implementing a payment model. This will aim to lessen the financial burden of the Skilling Australians Fund for employers. Instead of paying the levy upfront, monthly or quarterly charges will be explored. This will enable more employers to offer sponsorship without high upfront costs. These costs would otherwise deter them from sponsoring workers. There will also be quicker processing times, minimising any stress and uncertainty for both employers and visa applicants.
• The Core Skills Occupations List (CSOL): A list of core skills occupations will be created as an alternative to labour market testing. Managed by Jobs and Skills Australia, the list will be developed using an in-depth analysis of business recruitment activity, economic data, and submissions. Three lists will be published, including a CSOL confident on list, confident off list, and targeted for consultation. These lists will determine the occupations that skilled migrants can apply for under the core skills visa pathway.

What Does This Mean For Skilled Migrants?

If you are a skilled migrant, the skills in demand visa provides three new pathways to live and work in Australia. It also addresses the key challenges and drawbacks of the current temporary skill shortage visa. Its improvements should provide you with more secure employment opportunities, and support you in meeting your permanent residency requirements in new ways.

What Does This Mean For Employers?

If you are an employer in need of skilled workers, the skills in demand visa may be an effective solution. This visa minimises any financial burdens, stress, or uncertainty of becoming a sponsor. With three visa pathways, the occupations and specific skills you require for your business will be easier to find and apply for. Additionally, visa processing times have been made more efficient, meaning you can access skilled workers quicker than ever before.

If you are a skilled migrant or Australian employer and need any advice or assistance in relation to the new skills in demand visa, contact us at AustraliaMigrate today.