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The Core Skills Occupation List (CSOL) and the Skills in Demand (SID) Visa – Core Skills stream are key components of Australia’s new skilled migration framework, introduced on December 7, 2024. The CSOL consolidates and modernizes previous occupation lists, identifying 456 high-demand occupations across key industries such as healthcare, technology, and construction. Aligned with the Core Skills stream of the SID visa, it allows approved employers to sponsor skilled foreign workers, offering greater flexibility, streamlined processing, and a clear pathway to permanent residency. The system is designed to be dynamic, regularly updated to meet Australia’s evolving workforce needs.

The Core Skills Visa refers to a pathway under Australia’s new Skills in Demand visa program, specifically the “Core Skills Pathway.” This visa is designed to attract skilled workers in occupations that are in high demand in Australia.

Key features of the Core Skills Pathway:

• Target occupations are listed on the Core Skills Occupation List (CSOL), which currently includes 456 occupations.
• Applicants must be nominated by an approved employer and receive a minimum annual salary of AU$73,150 (subject to annual review).
• Requires relevant qualifications (such as a Bachelor’s degree or equivalent) and typically 1-5 years of professional experience, depending on the occupation.
• Applicants may need a skills assessment and must meet the English language requirements (e.g., IELTS 5.0 overall, with no band score below 5.0).
• The visa is valid for up to 4 years and offers greater flexibility for changing employers.
• Provides a clear pathway to permanent residency for eligible applicants.

In short, “core skills” are the essential abilities for effective participation in society and work. In contrast, the “core skills visa” is a skilled migration pathway targeting occupations critical to Australia’s labour market needs.

The Core Skills Occupation List (CSOL) and the Skills in Demand (SID) Visa are integral components of Australia’s new immigration framework, designed to address labour shortages and align with the country’s workforce needs. 

The CSOL consolidates previous occupation lists into a single framework, supporting the Core Skills stream of the SID visa. This visa replaces the Temporary Skill Shortage (TSS) visa, effective from December 7, 2024.

Core Skills Occupation List (CSOL)

The Core Skills Occupation List (CSOL) is a newly introduced, consolidated list of occupations by the Australian Government, effective from December 7, 2024. It replaces multiple outdated and complex occupation lists previously used in the skilled migration program. 

The CSOL is designed to reflect better Australia’s current and evolving labour market needs by identifying occupations in high demand across various industries.

• • Scope and Size: The CSOL comprises 456 occupations, significantly expanded from prior lists, covering a broad spectrum of sectors including health, technology, engineering, construction, trades, and education.
  • Purpose: It aims to simplify and streamline the temporary skilled visa program, making it easier for employers to sponsor skilled migrants and for migrants to apply for visas aligned with Australia’s economic priorities.
  • Development: The list was developed based on comprehensive labour market analysis and consultations coordinated by Jobs and Skills Australia (JSA), incorporating inputs from industry stakeholders and government bodies.

• Key Sectors Covered:

• • Health: Doctors, nurses, allied health professionals.
  • Technology and Engineering: Software developers, cybersecurity experts, civil engineers.
  • Construction and Trades: Carpenters, plumbers, electricians.
  • Education: Teachers, especially in STEM subjects.
• Dynamic and Responsive: The CSOL is intended to be regularly updated to reflect real-time labour market demands, providing a more flexible framework for migration.

The Core Skills Occupation List (CSOL) includes 456 occupations across various sectors, such as healthcare, education, technology, agriculture, and construction. 

It is based on the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 2022 catalogue and is designed to be flexible, allowing for the inclusion of new occupations based on labor market demands.

Key Features of CSOL:

• Occupational Flexibility: The list is not prioritized, meaning there are no limits on the number of occupations that can be included. This allows for adjustments based on changing labor market needs.
• Visa Grants: The number of visas issued for any given occupation is unlimited, depending on demand from approved employer sponsors rather than a prioritization by Jobs and Skills Australia (JSA).
• Inclusion Criteria: Occupations are included based on the JSA Skills Priority List and migration suitability, considering factors like retention rates of migrants, the importance of sponsored skilled visa holders, and market salary levels.

Skills in Demand (SID) Visa – Core Skills Stream

The Skills in Demand (SID) Visa, specifically the Core Skills stream under the Temporary Skill Shortage (subclass 482) visa, is a new visa pathway aligned with the CSOL to address critical skill shortages in Australia.

• • Purpose: To allow Australian employers to sponsor skilled workers in occupations listed on the CSOL when they cannot find suitably skilled Australian workers.

• Eligibility Requirements:

• • • The nominated occupation must be on the CSOL.
    • The visa applicant must be paid a minimum guaranteed annual salary, currently set at approximately AUD 73,150 (the Core Skills Income Threshold), which is indexed annually.
    • Applicants typically need relevant qualifications and work experience for their occupation.
    • English language proficiency is required as per visa criteria.

• Benefits:

• • The Core Skills stream offers more flexibility for employers and employees compared to previous visa arrangements.
  • It covers a wide range of occupations, including trades, machinery operators, drivers, and labourers if listed on the CSOL and meeting salary requirements6.
  • Provides a pathway to permanent residency through other linked visa options.
• Comparison with Other Streams:
  • The Core Skills stream is distinct from the Specialist Skills stream, which targets higher-paid occupations (salary threshold around AUD 135,000) without an occupation list requirement.
  • There is also an Essential Skills stream planned for lower-paid occupations under AUD 70,000, with sector-specific focus and stronger regulatory oversight6.

Skills in Demand (SID) Visa

The Skills in Demand (SID) Visa introduces three streams: Specialist Skills, Core Skills, and Labour Agreement streams. The Core Skills stream is specifically designed for foreign workers earning between AUD 70,000 and AUD 135,000, addressing labor shortages in critical sectors.

Key Features of SID Visa:

• • Replacement of TSS Visa: The SID visa replaces the Temporary Skill Shortage (TSS) visa, offering a more streamlined and responsive immigration pathway.
  • Salary Thresholds: Occupations with a median salary above AUD 135,000 may qualify under the Specialist Skills Stream, while those below AUD 70,000 qualify under the Core Skills Stream.

• Visa Streams:

• • Core Skills Stream: Utilizes the CSOL to fill essential roles across various industries.
  • Specialist Skills Stream: Targets high-skilled workers with salaries above AUD 135,000.
  • Labour Agreement Stream: For employers with specific labor needs not covered by other streams.

Application Process for SID Visa

To apply for the SID visa under the Core Skills stream, applicants must meet specific requirements:

• Employer Nomination: The employer must submit a nomination application and be an approved sponsor or have applied to become a Standard Business Sponsor.
• Skills and Experience: Applicants must demonstrate the necessary skills and experience for the nominated job. Some occupations may require a skills assessment.
• Age and Visa Status: There is no specified age limit, but applicants must hold a valid substantive visa or a Bridging Visa A, B, or C if applying from within Australia.

The introduction of the CSOL and the Skills in Demand Visa Core Skills stream marks a significant modernization of Australia’s skilled migration framework, aiming to better align migration with economic needs and simplify the visa process for both employers and skilled migrants.

Impact and Future Directions

The introduction of the CSOL and SID visa aims to modernize Australia’s skilled migration system, making it more responsive to labor market needs. This framework is expected to streamline the migration process, enhance occupational flexibility, and ensure that the visa system aligns with Australia’s economic and workforce demands.

How does the CSOL differ from previous occupation lists

The Core Skills Occupation List (CSOL) differs from previous occupation lists in several key ways:

• Consolidation: The CSOL consolidates previous skilled occupation lists into a single framework, simplifying the system. This replaces the earlier Skilled Occupation List (SOL) and Consolidated Sponsored Occupation List (CSOL).

• Flexibility: The CSOL is designed to be more flexible and responsive to labor market needs. Unlike previous lists, there are no limits on the number of occupations that can be included, allowing for adjustments based on changing demands.

• Visa alignment: The CSOL supports the new Core Skills stream of the Skills in Demand (SID) visa, which replaces the Temporary Skill Shortage (TSS) visa.

• Inclusion criteria: Occupations are included based on the Jobs and Skills Australia (JSA) Skills Priority List and migration suitability, considering factors such as retention rates of migrants and market salary levels.

• No prioritization: Unlike previous lists, the CSOL does not prioritize occupations. The number of visas issued for any given occupation is unlimited, depending on demand from approved employer sponsors.

• Updated classification: The CSOL is based on the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 2022 catalogue, reflecting more current occupational categories.

• Broader scope: The CSOL includes 456 occupations across various sectors, potentially offering a wider range of opportunities for skilled migrants.

These changes aim to create a more streamlined, responsive, and flexible skilled migration system that better aligns with Australia’s evolving workforce needs.

What criteria are used to determine inclusion on the CSOL

The inclusion of occupations on the Core Skills Occupation List (CSOL) is determined by two main criteria:

• JSA Skills Priority List:

1. 1. • This list is developed through extensive analysis of business recruitment activities and economic data.
      • It incorporates input from stakeholders such as businesses, unions, industry associations, and government agencies.

• Migration Suitability:

1. • This criterion assesses whether migration effectively addresses workforce shortages.
   • Factors considered include:
     • Retention rates of migrants in their nominated occupations.
     • The relative importance of sponsored skilled visa holders to the overall workforce.
     • The pipeline of graduates from Australian education and training sectors.
     • Market salary levels for the occupations.

These criteria ensure that the CSOL includes occupations that are essential for addressing labor market needs and aligns with Australia’s workforce demands.

Main Benefits Of The New Core Skills Occupation List (CSOL)

The main benefits of the new Core Skills Occupation List (CSOL) are:

• Simplification and Consolidation: The CSOL replaces multiple outdated and complex occupation lists with a single, comprehensive list of 456 in-demand occupations. This streamlines the temporary skilled visa program, making it easier for employers and skilled workers to navigate the system.
• Alignment with Labour Market Needs: Developed by Jobs and Skills Australia through extensive labour market analysis and stakeholder consultation, the CSOL reflects Australia’s current and future workforce demands across key sectors such as health, technology, engineering, construction, and education.
• Flexibility for Employers and Employees: The list provides greater flexibility for employers to sponsor skilled workers and for visa holders to change employers more easily, supported by a public register of approved sponsors. This responsiveness helps fill critical roles in industries facing labour shortages.
• Pathway to Permanent Residency: The CSOL is linked to the Skills in Demand (SID) visa Core Skills stream, which offers a clear and direct route to permanent residency for eligible skilled workers, providing long-term settlement opportunities in Australia.
• Efficient and Transparent Visa Processing: The new framework aims for faster visa processing times (e.g., standard 21-day processing), reducing red tape and making the skilled migration process more transparent and accessible.
• Broad Coverage of Occupations: The CSOL includes a wide range of occupations from various industries, including skilled trades, machinery operators, healthcare professionals, and technology experts, ensuring diverse labour market needs are met.
• Regular Updates: The list is designed to be dynamic, with regular updates based on real-time labour market evidence, ensuring it remains relevant and responsive to Australia’s evolving economic needs.

The CSOL modernizes Australia’s skilled migration system by simplifying occupation lists, aligning migration with genuine labour shortages, offering visa flexibility, and providing clear pathways to permanent residency, thereby supporting both employers and skilled migrants effectively.

Summary: 

1. The CSOL includes 456 in-demand occupations across multiple industries.
2. It simplifies and replaces older, complex occupation lists.
3. Employers can sponsor skilled workers under the SID visa Core Skills stream.
4. Visa applicants must meet qualification, salary, and English language requirements.
5. The system offers a pathway to permanent residency and adapts to labour market changes.

FAQS

Q1. What is the Core Skills Occupation List (CSOL)?
The CSOL is a list of 456 high-demand occupations used in Australia’s skilled migration program.

Q2. What is the purpose of the CSOL?
It helps identify occupations in demand and supports employer-sponsored skilled migration.

Q3. What visa uses the CSOL?
The Core Skills stream of the Skills in Demand (SID) Visa uses the CSOL to guide skilled worker sponsorship.

Q4. Who can apply for the Core Skills stream?
Skilled workers nominated by an approved Australian employer for a job on the CSOL.

Q5. What is the minimum salary requirement?
Applicants must earn at least AUD 73,150 annually (indexed each year).

Q6. What qualifications are needed?
Typically, a relevant Bachelor’s degree or equivalent and 1–5 years of experience are required.

Q7. Is English proficiency required?
Yes, usually IELTS 5.0 overall with no band below 5.0.

Q8. Does the CSOL offer permanent residency?
Yes, eligible applicants can transition to permanent residency through linked visa pathways.

Q9. How often is the CSOL updated?
It is regularly updated based on labour market analysis and workforce needs.

Q10. When did the new CSOL and SID visa come into effect?
They became effective on December 7, 2024.