As of 7 December 2024, significant changes have taken effect in Australia’s skilled visa program, including the introduction of a modernised Skilled Occupation List and a new Skills in Demand (SID) visa.
These updates are designed to address workforce shortages and streamline the immigration process for skilled workers and employers alike. If you’re considering applying for a skilled visa or need to know how the changes affect your business, here’s a breakdown of the key updates.
A New Skilled Occupation List: The Core Skills Occupation List (CSOL)
The Core Skills Occupation List (CSOL) replaces the multiple skilled occupation lists previously used for the Temporary Skill Shortage (TSS) visa. The CSOL now includes over 450 occupations across several vital sectors, including:
- Construction
- Cybersecurity
- Agriculture
- Healthcare
This new list is based on detailed labour market analysis and consultations conducted by Jobs and Skills Australia. Importantly, it will only apply to two visa types: the new Skills in Demand (SID) Core Skills stream and the Employer Nomination Scheme (subclass 186) visa (Direct Entry stream).
If your occupation is listed on the CSOL, it could open up new opportunities for working in Australia. However, this list is dynamic and is regularly updated to reflect shifting market needs, so staying informed is key.
The Skills in Demand (SID) Visa: A Streamlined Process for Skilled Workers
Replacing the TSS visa, the Skills in Demand (SID) visa is set to become a game-changer for skilled migrants and Australian businesses. One of the major benefits of the SID visa is the streamlined process, designed to make it easier for employers to hire the skilled workers they need.
The SID visa also provides a clear pathway to permanent residency, offering long-term security for both workers and employers.
The SID visa is divided into three streams:
- Core Skills Stream: This is for applicants who possess skills in occupations identified as being in shortage. Most applicants will apply under this stream.
- Specialist Skills Stream: Aimed at high-skilled professionals, this stream recognises the value that specialised expertise brings to Australia’s workforce. It’s designed to foster innovation and job creation.
- Labour Agreement Stream: This stream is being replaced by the new Essential Skills Stream, which is still under development.
Core Skills Stream – For the Skills Australia Needs
The Core Skills stream is where most skilled workers will apply. To be eligible, applicants must:
- Have an occupation listed on the CSOL
- Meet the general eligibility requirements
- Be offered a salary that meets or exceeds the new Core Skills Income Threshold of AUD 73,150
The CSOL covers a wide range of occupations, and the new threshold ensures that workers in key sectors are properly compensated.
This stream is ideal for skilled migrants looking to contribute to industries such as healthcare, construction, cybersecurity, and agriculture. By filling critical gaps in the labour market, workers under this stream play an essential role in supporting Australia’s economic growth.
Specialist Skills Stream – For the Best and Brightest
The Specialist Skills stream targets highly skilled migrants who can significantly boost national productivity. This stream is for those in occupations on the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 2022, excluding certain low-skilled sectors like trades, machinery operators, and drivers.
To qualify for this stream, applicants must meet the following criteria:
- Work in an occupation that is not part of ANZSCO Major Groups 3, 7, or 8.
- Earn at least AUD 135,000 per year (or an equivalent amount).
- Be paid the same or more than Australian workers in the same field.
This stream is perfect for those with advanced skills and experience, particularly in high-demand fields such as IT, healthcare, and engineering.
What Does This Mean for Existing TSS Visa Holders?
If you currently hold a TSS visa, don’t worry – you haven’t been left behind. TSS visa holders still have a pathway to permanent residency, provided they meet all the eligibility criteria. The new SID visa system doesn’t affect the applications already in process. However, it’s important to note that applications for the TSS visa closed on 6 December 2024, so no new TSS visa applications will be accepted from this point on.
For those who have already applied, existing arrangements will continue, and your visa will be processed according to the rules that were in place when you lodged your application.
A Clearer Path to Permanent Residency
One of the standout features of the new SID visa is the clear and simplified pathway to permanent residency. If you’re granted a SID visa and work with an approved employer, your work experience counts towards your eligibility for permanent residency. This means you can secure your long-term future in Australia while contributing to the workforce and economy.
Furthermore, the new visa system reduces the required work experience for applicants by one year. So, instead of needing three years of work experience, SID applicants only need two years in their nominated occupation (or a related field) to qualify for permanent residency.
What’s Next for Australian Immigration?
With the launch of the SID visa program, Australia is setting itself up for a more targeted and effective immigration system. By focusing on skills that are in high demand, the government aims to address workforce shortages and ensure that businesses have access to the talent they need to thrive. The new skilled visa system also brings greater certainty and security for skilled migrants looking to settle in Australia.
If you’re interested in applying for a skilled visa under the new system, or if you’re an employer looking to sponsor skilled workers, now is the time to understand these changes and take action. At CIA Lawyers, we specialise in immigration law and can guide you through the entire process. Whether you’re looking to move to Australia or bring talent to your business, we’re here to help you make the best decisions.
Stay tuned for further updates, and don’t hesitate to reach out if you need legal advice on the new skilled visa program.
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