Key Points
- Effective Date: The Skills in Demand (SID) visa launched on December 7, 2024, replacing the Temporary Skill Shortage (TSS) visa.
- Visa Duration: Up to four years with a pathway to permanent residency.
- Streams:
- Specialist Skills Stream: Occupations in Australian and New Zealand Standard Classification of Occupations (ANZSCO) major groups 1, 2, 4, 5, or 6 with a minimum salary threshold of AUS $135,000.
- Core Skills Stream: Occupations in the Core Skills Occupation List (CSOL) with a minimum salary threshold of AUS $73,150, indexed annually.
- Labour Agreement Stream: Specific to negotiated roles.
- Work Experience: At least 12 months of full-time equivalent work experience within the past five years, including part-time or casual roles meeting full-time hour requirements.
- English Requirements: IELTS score of 5 in each component or equivalent.
- Transitional Measures: Subclass 482 nominations lodged before December 7, 2024, will be processed under TSS rules, with flexibility for SID conversions if the nomination was approved before the cut-off date.
- ENS (186 TRTS) Eligibility: Requires two years of full-time employment in Australia within the past three years as a Subclass 457, 482 (TSS), or 482 (SID) visa holder.
Overview
Australia’s new Skills in Demand (SID) visa, introduced on December 7, 2024, replaces the Temporary Skill Shortage (TSS) visa as part of a comprehensive reform to enhance skilled migration pathways. This visa offers three distinct streams and is a critical step toward achieving permanent residency for eligible foreign workers.
Visa Streams and Requirements
- Specialist Skills Stream:
- Covers occupations within Australian and New Zealand Standard Classification of Occupations (ANZSCO) major groups 1, 2, 4, 5, or 6 (e.g., managers, professionals, community workers).
- Minimum salary threshold: AUS $135,000.
- Core Skills Stream:
- Applies to roles listed under the Core Skills Occupation List (CSOL).
- Minimum salary threshold: AUS $73,150, adjusted annually based on Average Weekly Ordinary Time Earnings (AWOTE).
- Labour Agreement Stream:
- For positions negotiated under specific labor agreements, subject to the terms of those agreements.
Key Requirements
- Work Experience: Applicants must demonstrate at least 12 months of full-time equivalent work experience within the past five years. Part-time and casual roles count if they meet full-time hour equivalency.
- English Proficiency: Applicants must meet the same International English Language Testing System (IELTS) score of 5 (or equivalent) in each component, consistent with previous Medium and Long-term Strategic Skills List (MLTSSL) requirements.
- Employer Obligations: Sponsors must prove financial viability and commit to paying market salary rates for the entire nomination period.
Transitional Provisions
- Subclass 482 nominations and visa applications submitted before December 7, 2024, will be processed under TSS regulations.
- Approved 482 nominations without associated visa applications can still be linked to a SID visa application post-launch.
- Applications lodged after December 7, 2024, must meet the new SID visa requirements.
Pathways to Permanent Residency
The SID visa includes eligibility pathways for permanent residency under the Employer Nomination Scheme (ENS) 186:
- Temporary Residence Transition Stream (TRTS):
- Requires two years of continuous full-time employment in Australia as a Subclass 457, 482 (TSS), or 482 (SID) visa holder.
- Employment can span multiple sponsors, excluding unpaid leave periods.
- Direct Entry Stream (DES):
- Restricted to occupations listed on the Core Skills Occupation List (CSOL).
- Applicants must still undergo a skills assessment and demonstrate three years of full-time equivalent relevant work experience.
Looking Ahead
The Skills in Demand (SID) visa introduces significant changes to Australia’s skilled migration framework, providing more transparent and structured pathways for high-demand occupations. Employers should familiarize themselves with the financial obligations and requirements for supporting foreign workers to ensure compliance.
Foreign nationals should assess their eligibility under the Specialist Skills or Core Skills streams based on their occupation, salary level, and work experience. Those holding or applying for a Subclass 482 (TSS) visa before the cut-off date may still benefit from transitional provisions.
The SID visa addresses Australia’s labor shortages while maintaining robust worker protections by enhancing flexibility, streamlining processes, and introducing stronger pathways to permanent residency. Businesses and applicants are encouraged to stay informed about the annual updates to salary thresholds and any future revisions to the occupation lists to align with changing market demands.
