Key Updates to the Skills in Demand visa

The Department of Home Affairs has recently implemented significant updates to Australia’s skilled migration system. These reforms aim to address labour shortages and streamline the process for both skilled workers and employers. Key changes include the introduction of the Skills in Demand (SID) visa, adjustments to the Temporary Residence Transition (TRT) stream under the Employer Nomination Scheme (ENS) visa (subclass 186), and revisions to the Core Skills Occupation List (CSOL).

Below is a summary of the latest updates and clarifications provided by the government.

Introduction of the Skills in Demand Visa

The newly introduced Skills in Demand (SID) visa has officially replaced the Temporary Skill Shortage (TSS) visa. This transition creates a more efficient and streamlined process for employers seeking to hire skilled professionals.

Key Features of the SID Visa:

• Specialist Skills Stream: Accelerated processing (7 days) for highly skilled applicants.
• Core Skills Stream: Designed for mid-income roles listed on the Core Skills Occupation List, with a processing timeframe of 21 days.
• Labour Agreement Stream: Customized pathways for industries with specific workforce requirements.
• Relaxed Work Experience Requirement: Applicants now need only one year of full-time equivalent work experience within the past five years.
• Increased Work Flexibility: Subclass 482 visa holders now have a six-month grace period to secure a new sponsor, during which they can engage in casual work across multiple employers without impacting their visa status.
• Employer Financial Evidence: Employers must now provide financial documentation (e.g., profit and loss statements, contracts) to verify their ability to pay the nominated salary.
• Labour Market Testing (LMT): No immediate changes have been made, but a proposal to extend the LMT period to six months is currently awaiting parliamentary approval.

Updates to the Temporary Residence Transition (TRT) Stream

Revisions to the TRT stream under the Employer Nomination Scheme (ENS) visa (subclass 186) offer increased flexibility for skilled workers:

• Work Experience Flexibility: Applicants can now combine work experience across different employers to meet the two-year requirement.
• Timing of Assessment: Work experience will now be evaluated at the visa application stage instead of the nomination stage.

These changes aim to adapt to evolving employment trends and ensure applicants are not disadvantaged by updates to occupation lists.

Revised Core Skills Occupation List (CSOL)

The Department of Home Affairs has updated the Core Skills Occupation List (CSOL) to better reflect Australia’s labour demands while honoring international agreements.

• Removal of Caveat 14: Previously, Caveat 14 limited certain occupations, like Chefs, to applicants from countries under International Trade Obligations (ITOs). Its removal now allows applicants from all nationalities to apply under the SID and ENS visas, expanding opportunities and addressing critical workforce shortages.
• Occupation-Specific Caveats: Caveat 14 still applies to these three occupations due to skill level and labour market considerations:
  • Other Sports Coach or Instructor (e.g., Wushu Martial Arts, Yoga)
  • Traditional Chinese Medicine Practitioner
  • Private Tutors and Teachers nec
  These roles are typically Skill Level 4, which generally does not meet inclusion criteria, and lacked support from stakeholder feedback and Jobs and Skills Australia’s analysis.
• Clarification for Chefs: There was initial confusion over Chef eligibility due to Caveat 14, but the Department has clarified that Chefs from all nationalities are now eligible to apply.

Despite the broadened eligibility, concerns remain regarding the exclusion of key trades, such as plumbers and bricklayers, from the CSOL—sectors that continue to face significant workforce shortages.

Effective from December 14, 2024, these updates reflect the government’s effort to align skilled migration with labour market needs and international obligations.

Implications for Employers and Skilled Workers

These changes demonstrate the government’s commitment to addressing labour shortages and improving skilled migration pathways:

• For Employers: Greater flexibility in sponsoring skilled workers under the SID visa, with clearer financial proof requirements.
• For Skilled Workers: Expanded eligibility and streamlined pathways, especially for those with diverse employment histories.

Employers and potential applicants are encouraged to familiarize themselves with the updated requirements and pathways under the Skills in Demand visa and the TRT stream. More detailed information on the revised occupation list and visa conditions is available on the Department of Home Affairs website.