New Skills in Demand Visa.
As of December 7, 2024, the Australian government has officially introduced the Skills in Demand (SID) visa, which has replaced the Temporary Skills Shortage (TSS) visa. Furthermore, modifications have been made to the Employer Nomination Scheme (ENS) visa within the Temporary Residence Transition Stream, enabling individuals to attain permanent residency after two years of employment with any employer in Australia, provided they hold certain visa types, including the Temporary Work (Skilled) Subclass 457, TSS, or SID visa.
The context:
As previously communicated, the Temporary Skills Shortage (TSS) visa has been succeeded by the new Skills in Demand (SID) visa, which features an updated Core Skills Occupation List (CSOL) for the Core Skills stream and introduces a Specialist Skills stream aimed at high-earning applicants. Additionally, the revisions to the Employer Nomination Scheme (ENS) visa now permit individuals to seek permanent residency after two years of employment with any employer in Australia under designated visa categories.
SID visa:
The SID, maintaining its Subclass 482 classification, is now eligible for grants of up to four years, issued in increments of 12 months across all streams.
New streams: The Short-term and Medium-term streams previously under the TSS program have been replaced by two new streams within the Skills in Demand visa framework:
Specialist Skills Stream: This stream targets positions with annual salaries of no less than AUD 135,000 and pertains to occupations categorized under ANZSCO Major Groups 1, 2, 4, 5, or 6. Positions within this stream must also comply with any occupational restrictions specified in the CSOL. Occupations classified under ANZSCO Major Groups 3 (Technicians and Trades Workers), 7 (Machinery Operators and Drivers), and 8 (Labourers) are not eligible for this stream.
Key changes the significant modifications to the SID visa are as follows:
- Employers are required to demonstrate their financial capability to hire and compensate employees at market salary rates.
- Labour Market Testing requirements remain unchanged, although there is a possibility of extending the duration from four to six months, pending approval of the proposed legislation in February 2025.
- The work experience prerequisite has been reduced to one year of full-time employment within the last five years, with part-time and casual work also being taken into account.
- English language proficiency requirements have been standardized to an overall score of 5 on the International English Language Testing System, with a minimum score of 5 in each individual component.
- Sponsorship obligations have been revised to ensure that sponsors remain compliant even after a visa holder has terminated their employment and the sponsorship agreement has concluded.
ENS visa:
Pathway to permanent residency: Through the Temporary Residence Transition (TRT) Stream, individuals may now be eligible for permanent residency after two years of employment (within the last three years) with any employer in Australia under specific visa categories (such as Temporary Work (Skilled) Subclass 457, TSS, or SID visa). Previously, only employment with the applicant’s designated sponsor was considered for this requirement. This change ensures that eligibility remains unaffected by shifts in employment or nominated job roles.
Age limitation: The age exemption for individuals earning at least the Fair Work Income Threshold (currently AUD 175,000) has been revised to permit employment with any employer for the exemption to apply. No new age exemptions have been established.
Direct Entry stream: The updated Consolidated Sponsored Occupation List (CSOL), which includes occupational caveats, is applicable to the Direct Entry (DE) Stream. This stream allows qualified applicants to seek permanent residency if they possess a minimum of three years of relevant experience and receive a favorable skills assessment from an industry authority. The CSOL now includes 456 occupations, greatly increasing the range of occupations eligible for nomination under this stream.
