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The new Skills in Demand (SID) (Subclass 482) visa will allow businesses to sponsor certain foreign workers to work in Australia.

The new Skills in Demand (SID) (Subclass 482) visa will soon replace the Temporary Skills Shortage (TSS) (Subclass 482) visa as the temporary component of the employer sponsored visa program.

What we know so far

Skills in Demand (SID) (Subclass 482) visa

On 11 December 2023, the Australian government released its much anticipated and comprehensive Migration Strategy, with a policy roadmap containing 8 key actions and over 25 new policy commitments and areas for future reform. One of the most significant key actions is the creation of a new Skills in Demand visa, with three targeted pathways:

  • Specialist Skills Pathway;
  • Core Skills Pathway; and
  • Labour Agreement Pathway.
The current implementation date for this new visa is late 2024.
What else to expect

This visa is expected to have the following features:

  1. Guaranteed pathways to permanent residence – periods of employment with any approved employer will count towards PR requirements;
  2. 180 days (6 months) to find another sponsor (if employment relationship ceases), including the ability to work during this period;
  3. Trailing employer fees (employers paying fees on a monthly/quarterly basis – yet to be determined) to make the process of hiring a new migrant less financial onerous;
  4. Streamlined visa applications – a set service standard for visa processing to enable employers to fill a vacancy quickly (21 days for SID Subclass 482 visas broadly, and 7 days specifically for those under the Specialist Skills pathway);
  5. Public register of sponsors – to also include the number of migrants sponsored (and occupations) to assist migrants seeking to find a new sponsor;
  6. Indexation of minimum salaries – an indexation of the “Core Skills” and “Specialist Skills” stream minimum salary thresholds;
  7. Streamline labour market testing – the government will consider moving away from LMT requirements towards a more robust/genuine independent verification of labour market need;
  8. Modernising Accredited Sponsor pathways – open up the accredited sponsor program to start-ups who have received venture capital funding from a registered VC fund; and
  9. Strengthening integrity – various legislative reforms to punish unscrupulous employers, and protect workers against exploitation.
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Specialist Skills Pathway

The “Specialist Skills Pathway” involves a new streamlined route for highly skilled specialists to enable Australian businesses to quickly recruit top talents in areas of need. The Specialist Skills Pathway is expected to be available to applicants who meet the general employer sponsored eligibility criteria (for example, be nominated by an approved employer, meet the health and character requirements) and are:

  1. in any occupation (except trades workers, machine operators/drivers, and labourers); and
  2. earning at least $135,000 (the Specialist Skills Threshold) and no less than Australian workers in the same occupation.
Core Skills Pathway

The Core Skills pathway is expected to be the main route for most temporary skilled migrants. This is expected to mirror the existing TSS visa program, in that it will be available to applicants who meet the general eligibility criteria and:

  1. have an occupation on a new “Core Skills Occupation List” (CSOL) – being occupations identified by Jobs and Skills Australia as being in shortage; and
  2. will earn a salary at or above the TSMIT (to be retitled the Core Skills Threshold) and the average market salary.

Unlike the Specialist Skills Pathway, trades workers, machinery operators and drivers, and labourers will be eligible under the Core Skills Pathway subject to being identified on the CSOL, and being paid above the TSMIT (including for roles paid above the Specialist Skills Threshold).

Labour Agreement Pathway

The “Labour Agreement” pathway will be a highly regulated pathway for lower paid workers with essential skills. This is expected to mirror Labour Agreements under the existing TSS visa. These arrangements are expected to be industry specific, capped, and with stronger regulations and minimum standards.

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