Skills in Demand Visa Replaces Temporary Skills Shortage Visa in Migration Overhaul
Australia has launched the Skills in Demand visa to replace the Temporary Skills Shortage (TSS) visa program. This transformation represents the most important change to our skilled migration system in decades.
The Skills in Demand visa creates simplified processes for skilled workers and helps meet Australia’s workforce needs. We have made detailed changes to visa streams, work experience requirements, and permanent residency pathways. The updated system responds to market needs and wants to bring the best global talent to industries of all sizes. These changes work together with Australia’s new rules for international students and permanent residency requirements planned for 2024. This shows a new direction in our immigration approach.
Understanding the New SID Visa Framework
The Australian government is rolling out major changes to the skilled migration framework by introducing the Skills in Demand (SID) visa. This new system comes with important changes to visa requirements and processing methods.
Key differences between TSS and SID visas
The new framework offers several improvements compared to the old TSS visa. Work experience requirements have dropped from two years to one year. Applicants can now use their full-time, part-time, or casual work experience from the last five years. The previously complex occupation lists have united into a single, detailed Core Skills Occupation List (CSOL) that has 456 occupations.
Three-stream structure explained
The SID visa has three distinct pathways:
| Stream | Salary Threshold | Key Features |
|---|---|---|
| Specialist Skills | AUD 135,000 | Any ANZSCO occupation (excluding trades, machinery operators, drivers, laborers) |
| Core Skills | AUD 73,150 | Occupations on CSOL |
| Labor Agreement | Varies | Retains previous TSS settings |
Timeline for implementation
The changes took effect on December 7, 2024. Transition arrangements help existing visa holders – applications submitted before this date follow TSS visa rules. The new framework gives visa holders 180 days to find new sponsors, a substantial increase from the previous 60-day limit.
Impact on Different Visa Streams
The Skills in Demand visa brings the most important changes to salary thresholds and eligibility requirements in three different streams. Let’s get into how each stream meets different workforce needs.
Specialist Skills stream requirements
This stream targets highly skilled professionals who can earn substantial incomes. Professional roles are the focus in the stream, and it does not include trades workers, machinery operators, drivers, and labourers. These applications are processed quickly with a target 7-day median processing time.
Core Skills stream criteria
The Core Skills stream requires a minimum annual salary of AUD 73,150. We now have a new Core Skills Occupation List (CSOL) with 456 occupations. This detailed framework replaces our previous complex occupation lists. The stream focuses on sectors that need skilled workers, such as healthcare, early childhood education, construction, and cybersecurity.
Labor Agreement stream changes
The existing Labor Agreement stream continues while we develop our future Essential Skills pathway. Here are the improved features:
| Feature | Requirement |
|---|---|
| Work Experience | Reduced to one year |
| English Proficiency | IELTS 5 or equivalent |
| Visa Duration | Up to four years |
Employers now have more flexibility under labor agreements. They can customize their criteria for English language proficiency, age, qualifications, and work experience based on their specific workforce needs.
Changes to Experience Requirements
Reduced work experience criteria
The work experience requirement has dropped from two years to one year. You need to get this experience within five years before you submit your application. Our new policy welcomes full-time, part-time, or pro-rated full-time work experience. This makes the program available to skilled professionals at different points in their careers.
New financial capacity requirements
Employers sponsoring skilled workers now face updated financial requirements. The new guidelines require employers to show they can pay the proposed salary throughout the nominated period. To name just one example, an employer nominating a worker for four years must prove they have enough money to cover the salary for the entire period.
Pathways to Permanent Residency
Australia’s new Skills in Demand visa framework has expanded permanent residency pathways by a lot. These changes make the path to permanent settlement in Australia clearer while you retain control over skilled migration standards.
Direct Entry stream opportunities
The Direct Entry stream now lets you access permanent residency across all 456 occupations on the Core Skills Occupation List (CSOL). This pathway requires you to:
- Get a positive skills assessment
- Have three years of relevant full-time experience
- Meet the Core Skills Income Threshold
Temporary Residence Transition changes
The Temporary Residence Transition stream now comes with major improvements:
| Feature | New Requirement |
|---|---|
| Work Experience | Reduced to 2 years (from 3 years) |
| Qualifying Period | Within last 3 years |
| Employer Flexibility | Multiple approved employers count |
Timeline for permanent residency
The 2024-25 program’s permanent residency processing has better features. The Employer Sponsored planning level now reaches 44,000 visas, giving you more chances for permanent settlement. State nominations have 33,000 visas to help boost regional development.
Your time with any approved employer now counts toward permanent residence requirements. This change lets skilled workers move between jobs more easily while staying on track for permanent residency. The system also has expanded self-nominated independent permanent pathways, giving you multiple ways to become a permanent resident.
Impact on Current Visa Holders
We have complete transition plans ready to help current visa holders move smoothly to our new Skills in Demand framework. Here’s what you should know about your options and rights as a TSS visa holder.
Options for existing TSS visa holders
Your existing visa conditions will stay protected. You have two main paths to choose from:
- Keep your current TSS visa until it expires
- Switch to the SID visa framework with improved mobility rights
Transition arrangements
The transition process has these key steps:
| Timeline | Action |
|---|---|
| Before Dec 7, 2024 | TSS applications continue processing under old rules |
| After Dec 7, 2024 | All new applications under SID framework |
| Existing nominations | Convert automatically to SID nominations if visa not lodged |
New mobility rights
There are new improved job flexibility by a lot for visa holders. The key improvements are:
- Extended job search period of 180 days per instance (365 days total)
- You can work for other employers during transition periods
- You can change employers if your occupation meets CSOL requirements
If your occupation isn’t on the CSOL, you have other paths available. You can find work in new eligible occupations or look into different visa options. These stronger mobility rules help you keep your status while you look for new opportunities.
Conclusion
Australia’s complete update of the skilled migration system is a major leap forward to meet the nation’s workforce needs. The Skills in Demand visa program brings clear benefits over the old system. It has lower experience requirements and efficient pathways in three streams. These updates make Australia more appealing to skilled professionals. Current visa holders are protected through well-laid-out transition plans.
The new framework shows how Australia Immigration is building a responsive immigration system. Workers and employers both benefit from reduced work experience requirements, longer job search periods, and more paths to permanent residency. The combined Core Skills Occupation List and updated salary thresholds extends a program that tackles real skill shortages in sectors of all sizes.
These reforms will shape Australia’s economic future significantly. Australia now welcomes talented professionals who will stimulate our nation’s growth and innovation. Australia now stands as a top choice for global talent. This supports our long-term workforce development goals and keeps the program’s integrity intact.
FAQs
Q1. What are the key changes in the new Skills in Demand visa compared to the previous TSS visa?
The Skills in Demand visa reduces work experience requirements from two years to one year, introduces a single Core Skills Occupation List (CSOL) with 456 occupations, and establishes three visa streams: Specialist Skills, Core Skills, and Labor Agreement. It also extends the job search period for visa holders to 180 days.
Q2. What are the salary thresholds for the different streams of the Skills in Demand visa?
The Specialist Skills stream requires a minimum annual salary of AUD 135,000, while the Core Skills stream has a threshold of AUD 73,150. The Labor Agreement stream’s salary requirements may vary depending on specific agreements.
Q3. How have the English language requirements changed under the new visa system?
The English language requirements remain strict across all streams. Applicants generally need to achieve an IELTS overall score of 5.0 with 5.0 in each component, or equivalent scores in other approved tests. Exemptions apply for citizens of certain English-speaking countries.
Q4. What are the new pathways to permanent residency under the Skills in Demand visa?
The Direct Entry stream now offers permanent residency for all 456 occupations on the CSOL, requiring a positive skills assessment and three years of relevant experience. The Temporary Residence Transition stream has reduced the work experience requirement to two years within the last three years, and time spent with multiple approved employers now counts towards permanent residency.
Q5. How does the new visa system affect current TSS visa holders?
Current TSS visa holders can maintain their existing visa conditions until expiry or choose to transition to the new Skills in Demand framework. They benefit from extended job search periods of up to 180 days per instance (365 days total) and increased flexibility to work for other employers during transition periods.