Australia: New Skills In Demand Visa and Other Changes Introduced

SID visa details.

• The SID, which retains its Subclass 482 designation, can now be granted for up to four years across all streams in 12-month increments.
• New streams. The Short-term and Medium-term streams under the TSS program have been replaced by two new streams under the Skills in Demand visa:
  • Specialist Skills Stream. This is designed for roles with annual earnings of at least AUD 135,000 and applies to occupations listed under ANZSCO Major Groups 1, 2, 4, 5, or 6. Roles in this stream must also meet any occupational caveats outlined in the CSOL. ANZSCO Major Groups 3 (Technicians and Trades Workers), 7 (Machinery Operators and Drivers) and 8 (Labourers) are excluded from this stream.
  • Core Skills Stream. This applies to roles with annual earnings of at least AUD 73,150, and is restricted to occupations listed on the CSOL.
• Key changes. The key changes to the SID visa include the following:
  • Employers must demonstrate financial capacity to employ and pay market salary rates.
  • Labour Market Testing requirements are unchanged, but could be extended from four to six months if the proposed legislation is approved in February 2025.
  • Work experience requirements have been reduced to one year of full-time work within the past five years, with part-time and casual experience also considered.
  • English language requirements now align with an overall
    International English Language Testing System score of 5, with a minimum score of 5 in each component.
  • Sponsorship obligations have been updated, to ensure sponsors are not in breach once a visa holder has ceased employment and the sponsorship arrangement has ended.
• Fees. The government fees for the Skills in Demand visa are set as follows:
  • AUD 3,115 for the main applicant;
  • AUD 3,115 for each additional applicant aged 18 or over; and
  • AUD 780 for each additional applicant under 18.

These fees are the same as the TSS medium-term stream.

• The changes to the SID visa framework may impact applicants by introducing stricter eligibility criteria for a business to nominate a candidate.
• The lack of additional concessions for labour market testing could also limit flexibility, making it harder for some applicants to secure sponsorship.
• For existing sponsored employees, the application of the CSOL without transitional provisions may create uncertainty and necessitate strategic adjustments to maintain eligibility or continue in their roles. These changes highlight the importance of careful planning for employment and sponsorship strategies to meet the updated criteria.

ENS visa details.

• Path to permanent residency. Under the Temporary Residence Transition (TRT) Stream, individuals may now qualify for permanent residence after working for two years (within the last three years) with any employer in Australia under certain visa types (i.e., Temporary Work (Skilled) Subclass 457, TSS, or SID visa). Previously, only employment with the applicant’s sponsor could be counted towards this requirement. This ensures eligibility is not impacted by changes in employers or nominated occupations.
• Age restriction. The age exemption for individuals earning at least the Fair Work Income Threshold (currently AUD 175,000) has been updated to allow work with any employer to qualify for the exemption. No new age exemptions have been introduced.
• Direct Entry stream. The new CSOL, including occupational caveats, applies to the Direct Entry (DE) Stream, which allows eligible applicants to apply for permanent residency if they have at least three years of relevant experience and obtain a positive skills assessment from an industry body. The CSOL features 456 occupations, significantly expanding the number of occupations which can be nominated under this stream.

• Changes to ENS requirements provide a faster pathway to permanent residency under the TRT Stream for sponsored visa holders who change sponsors or occupations, while expanding DE eligibility to the full CSOL allows more skilled workers to apply regardless of time in Australia.
• However, employers may struggle to retain skilled staff pursuing permanent residency, especially in highly competitive industries.