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Skills in Demand Visa: Australia

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The Skills in Demand (SID) Visa is a new employer-sponsored Australian visa program that replaced the Temporary Skill Shortage (Subclass 482) visa on December 7, 2024. Designed to fill labour shortages, it offers three pathways—Specialist, Core, and Essential Skills—based on earnings and occupation type. The visa allows a four-year stay, includes a path to permanent residency, and offers greater flexibility for visa holders, such as changing employers within 180 days. It aims to attract global talent to support key industries like healthcare, technology, and construction while addressing exploitation and enhancing economic growth.

The Skills in Demand (SID) Visa is a new Australian program that replaces the Temporary Skill Shortage (TSS) Subclass 482 visa. It aims to address labour market needs by attracting global talent to fill positions in high-demand occupations within Australia. The SID visa is employer-sponsored, requiring applicants to be sponsored by an Australian employer. It was implemented on December 7, 2024.

Key Features of the Skills in Demand Visa:

The Skills in Demand (SID) Visa will replace the Temporary Skill Shortage (TSS) Subclass 482 visa on December 7, 2024. The SID visa program is an employer-sponsored visa designed to attract skilled talent to address labor market needs in Australia.

Key Features of the Skills in Demand Visa:

  • Three-Tiered System The SID Visa consists of three pathways based on annual earnings and occupation.
  • Visa Length The SID visa allows holders to stay and work in Australia for up to four years.
  • Pathways to Permanent Residency. All streams of the SID visa offer a clear pathway to permanent residency in Australia.
  • Employer Sponsorship: Applicants need an eligible employer to sponsor them.
  • Flexibility Visa holders can change sponsors and have 180 days to find a new sponsor. Time spent with any approved employer counts toward permanent residency requirements.
  • Reduced Work Experience The required work experience has been reduced to one year.
  • No Age Limit: There is no age limit for applying for the Skills in Demand Visa.

Three Streams of the Skills in Demand Visa

The Skills in Demand (SID) Visa, set to replace the Temporary Skill Shortage (subclass 482) Visa on December 7, 2024, aims to address labour market needs by attracting skilled migrants to Australia. The SID visa is a four-year temporary skilled visa with three streams targeting applicants at different skill levels. The new visa also introduces a wider range of occupations.

The three streams are:

  • Specialist Skills Pathway: This pathway is designed for highly skilled migrants who benefit Australia’s national productivity. It is available to applicants in any occupation except trades workers, machinery operators, drivers, and labourers. Applicants must have guaranteed annual earnings of at least AUD 135,000. This stream offers a streamlined pathway with a median visa processing time of 7 days.
  • Core Skills Pathway: This pathway is for skilled migrants whose occupations are on the Core Skills Occupation List (CSOL). The applicant’s occupation must be listed on the new Core Skills Occupation List and paid at least $73,150 per annum. This stream targets occupations in high demand within Australia.
  • Essential Skills Pathway: This pathway targets workers in essential industries. It is designed to address shortages in specific sectors with a critical need for skilled workers.

The introduction of the Skills in Demand Visa also involves the Australian government implementing strong measures throughout 2024 to enforce employer compliance and tackle the exploitation of migrant workers.

Eligibility requirements of Skills in Demand (SID) Visa:

The Skills in Demand (SID) Visa, which will replace the Temporary Skill Shortage (subclass 482) Visa starting December 7, 2024, has three streams, each with specific eligibility requirements.

Here’s a breakdown of the requirements for each stream:

  1. Specialist Skills Pathway:
  • Target: Highly skilled professionals crucial to Australia’s economic growth.
  • Salary: Guaranteed annual earnings of at least AUD 135,000, which will be indexed annually. This ensures competitiveness with local workers.
  • Occupation: Open to all occupations except trades workers, machinery operators/drivers, and labourers.
  • Visa Processing: Fast-tracked processing with a median visa processing time of 7 days.
  1. Core Skills Pathway:
  • Target: Skilled workers in occupations facing critical shortages.
  • Occupation: Must be an occupation listed on the new Core Skills Occupation List (CSOL), identified by Jobs and Skills Australia. Over 70 new occupations have been added to the list. Some roles have been removed, including Café and Restaurant Manager, ICT Support Engineer, and Graphic Designer.
  • Salary: Guaranteed annual earnings of at least AUD 73,150, which will be indexed annually.
  • Labour Market Testing (LMT): Employers must demonstrate genuine efforts to recruit locally before seeking overseas talent. The current LMT validity period is 4 months, but discussions are underway to extend it to 6 months.
  1. Essential Skills Pathway:
  • Target: Workers in essential roles earning under AUD 73,150.
  • Occupation: Applicants will likely need to be employed in an occupation that the Australian government identifies as essential. This designated list will prioritize roles critical to the country’s economic and social well-being, particularly in sectors facing significant shortages, such as aged care, disability support, and other essential services.
  • Salary Threshold: Features a lower salary threshold compared to the other pathways.
  • Skills and Qualifications: Applicants may need to demonstrate that they possess the relevant skills and qualifications required for the nominated occupation. Skill assessments may be required to verify the applicant’s competency and ensure they meet industry standards.
  • English Language Proficiency: Proficiency in English is likely a requirement for applicants.
  • Health and Character Requirements: Applicants must meet standard health and character requirements.

General Requirements:

  • The SID visa allows applicants to stay in Australia for up to 4 years, with pathways to permanent residency.
  • Sponsors must prove financial viability and their capacity to meet market salary rates for the entire nomination period.
  • All temporary sponsored workers have pathways to permanent residence.
  • Visa holders have greater mobility to change employers.
  • Employers must meet the Australian Market Salary Rate (AMSR).

Application Process of Skills in Demand (SID) Visa:

The Skills in Demand (SID) Visa is designed to streamline the process for skilled workers seeking to work in Australia, aligning it more closely with the country’s labour market needs. It is expected to replace the current 482 visa.

Here’s an overview of the general application process:

  • Choose the Right Pathway: Determine the appropriate stream (Specialist Skills, Core Skills, or Essential Skills) based on your occupation and eligibility.
  • Pre-Eligibility Assessment: Your eligibility will be assessed based on occupation, salary, and the specific criteria of the chosen pathway. An employer will need to sponsor and nominate you.
  • Document Preparation: Compile all required documents, ensuring the information is accurate. This includes documents from both you and your employer. Documents proving identity, skill assessment results, proof of English language skills, health and character documents, and partner documents may be needed.
  • Register and Apply: Register on the official ImmiAccount website and submit your application.
  • Pay the Fee: Pay the visa application fee via the designated payment platforms. As of December 2024, the application fee for the primary applicant and dependents aged 18+ is $3,115 each, and $780 for dependents under 18.
  • Lodge the Application: Submit the complete application to the Australian immigration authorities.
  • Ongoing Liaison: Pathway to Aus can liaise with immigration authorities throughout the process to ensure a smooth application.

It is recommended to consult with a registered migration agent for personalized advice tailored to your specific circumstances.

Can I switch employers while holding the Skills in Demand Visa

Yes, changing employers while holding a Skills in Demand (SID) Subclass 482 visa is possible. Visa holders have 180 days to find a new sponsor without violating their visa conditions. A new employer must have a new approved nomination before the visa holder can start working.

Here’s what you need to know:

  • Condition 8607: As a primary holder of a 482 visa, your visa is subject to Condition 8607, which requires you to work only in your nominated occupation for your 482 visa and only for your sponsoring employer (or an associated entity).
  • 180-Day Limit: If you resign or your employment is terminated, you have 180 days from your last day with your sponsoring employer to find another approved sponsor, obtain a different visa, or leave Australia.
  • Nomination Transfer: A new employer who wishes to take over the sponsorship of a 482 visa must submit a “nomination transfer”.
  • Sponsorship Requirements: The business must be legally established and currently operating and not have any adverse information against it.
  • Nomination Application: The new position must be genuine, full-time, with a salary no less than the Temporary Skilled Migration Income Threshold (TSMIT) and in line with market rates. It must also be subject to Labour Market Testing and on the relevant occupation list.
  • Changing Occupations: If you need to change occupations, you will need a new SID 482 visa. You cannot start working with your new employer until the visa application has been approved.
  • Working for Previous Employer: If a new nomination is approved, a 482 primary visa holder may continue working for their previous sponsor to fulfill any notice periods.
  • Exempt Occupations: Certain occupations do not require the visa holder to work for their nominating sponsor.
  • Portability: The time you spend working on the 482 Skills in Demand Visa can roll over, meaning you can change employers and still count the time you worked for your previous employer on a 482 Skills in Demand Visa towards your 2 years of experience on a 482 visa that is required for the 186 TRT visa.

Process for progressing to permanent residency from the Skills in Demand Visa

The Skills in Demand (SID) Visa offers a pathway to permanent residency in Australia. It is widely expected that applicants will be able to progress to a Permanent Visa after holding the Skills in Demand Visa for 2 years.

Here’s a breakdown of the process:

  • Eligibility for Permanent Residency:
      • Subclass 186 Employer Nomination Scheme (ENS): SID visa holders can access the Temporary Residence Transition (TRT) stream of the Subclass 186 visa.
      • Qualifying Period: Complete two years of employment in Australia within the three years before applying. This period can include all sponsored employment as a primary TSS or SID visa holder and allows for employment with multiple employers.
  • Meeting Requirements:
      • Applicants must continue to work in the occupation nominated for their 482 TSS visa(s).
      • The employer must be willing to sponsor the candidate for permanent residency under the Temporary Residence Transition stream and must lodge a valid nomination.
      • Have worked for the same employer for 3 years on your TSS 482 visa.
  • Key factors:
      • Time spent with any approved employer will count towards Australia Permanent Residence requirements.
      • Skills in Demand visa holders will have access to self-nominated independent permanent pathways and employer-sponsored pathways.
      • In the interim, the limit on the number of Short Term stream 482 TSS visa applications that can be made onshore has also been removed.
  • Other pathways
    • Direct Entry Stream (186 DE): Limited to occupations on the Core Skills Occupation List (CSOL).
    • Applicants must have a positive skills assessment and 3 years of full-time relevant experience.

Benefits of the Skill in Demand Visa

The Skill in Demand Visa offers significant advantages for both workers and employers, making it a cornerstone of Australia’s skilled migration strategy.

For Workers

  • Career Opportunities: Access to high-demand roles in a stable and prosperous economy.
  • Flexibility: Ability to change employers without reapplying for a visa, enhancing job mobility.
  • Permanent Residency Pathway: A clear route to permanent residency, offering long-term security.
  • Family Inclusion: Visa holders can include immediate family members, who may also have work and study rights.
  • High Quality of Life: Australia’s world-class healthcare, education, and lifestyle attract professionals seeking a balanced life.

For Employers

  • Access to Global Talent: Employers can recruit from a global pool to fill critical skill gaps.
  • Streamlined Process: Simplified nomination and no labour market testing reduce administrative burdens.
  • Flexibility: The four-year visa duration allows for long-term workforce planning.
  • Support for Innovation: Attracting specialists in AI, renewable energy, and biotechnology drives business growth.

For the Australian Economy

  • Addressing Skill Shortages: The visa ensures industries have the talent to remain competitive.
  • Economic Growth: Skilled workers contribute to productivity, innovation, and tax revenue.
  • Training Local Workers: The SAF levy funds apprenticeships and training programs, building a stronger local workforce.

Challenges and Criticisms

While the Skill in Demand Visa has been widely praised, it is not without challenges and criticisms:

  • Complexity for Small Businesses: Smaller employers may struggle with the costs of the SAF levy and navigating the nomination process.
  • Wage Threshold Concerns: The high-income threshold for the Specialist Skills Stream may exclude some highly skilled professionals in lower-paid fields.
  • Regional Disparities: Critics argue that the visa does not sufficiently incentivize workers to relocate to regional areas, where skill shortages are often acute.
  • Exploitation Risks: The Essential Skills Stream, targeting lower-paid workers, raises concerns about potential exploitation, despite safeguards like minimum salary requirements.
  • Processing Delays: While streamlined, processing times can still be lengthy for certain occupations due to high demand or complex skills assessments.

The Australian government has committed to addressing these issues through ongoing reviews and stakeholder consultations to ensure the visa program remains effective and equitable.

Impact on Key Industries

The Skill in Demand Visa is expected to have a transformative impact on several industries facing chronic skill shortages:

  • Healthcare: With an aging population, Australia needs more doctors, nurses, and allied health professionals. The visa prioritizes these roles, particularly in rural and regional areas.
  • Technology: The demand for software developers, data scientists, and cybersecurity experts is soaring. The Specialist Skills Stream targets high-earning tech professionals to drive digital innovation.
  • Renewable Energy: As Australia transitions to net-zero emissions, engineers and technicians in solar, wind, and hydrogen technologies are in high demand.
  • Construction: Infrastructure projects, such as roads, railways, and housing, require skilled tradespeople, including carpenters, electricians, and plumbers.
  • Aged Care and Disability Services: The Essential Skills Stream supports recruiting care workers to meet growing demand in these critical sectors.

By aligning immigration with these priorities, the visa ensures Australia’s workforce is equipped to meet future challenges.

Summary Points:

  1. The SID Visa replaced the Subclass 482 visa on December 7, 2024.
  2. It features three streams: Specialist, Core, and Essential Skills.
  3. Visa holders can stay in Australia for up to 4 years.
  4. All streams provide a clear pathway to permanent residency.
  5. It offers job mobility with 180 days to find a new sponsor if needed.

Frequently Asked Questions (FAQS):

Q1. What is the SID Visa?
The Skills in Demand Visa is an employer-sponsored visa replacing the 482 visa to address labour shortages in Australia.

Q2. When did the SID Visa come into effect?
It was implemented on December 7, 2024.

Q3. How long can I stay in Australia on the SID Visa?
The visa allows a stay of up to 4 years.

Q4. Can I apply for permanent residency through the SID Visa?
Yes, all streams offer a pathway to permanent residency after two years of eligible work.

Q5. What are the three streams under the SID Visa?
Specialist Skills, Core Skills, and Essential Skills Pathways.

Q6. Is there an age limit for applying for the SID Visa?
No, there is no age limit for applicants.

Q7. Can I change employers while on a SID Visa?
Yes, you have 180 days to find a new sponsor if you leave your current job.

Q8. Do I need to be sponsored by an employer?
Yes, employer sponsorship is a requirement for the SID Visa.

Q9. What is the salary threshold for the Core Skills Pathway?
A minimum of AUD 73,150 per year is required.

Q10. Do family members have work and study rights under the SID Visa?
Yes, dependents can live, work, and study in Australia.

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