Subclass 482 – Skills in Demand Visa Regulations and Instruments Released
The Department of Home Affairs has registered numerous regulations and instruments for the new Skills in Demand (SID) visa, just one day before its introduction on December 7, 2024. This new visa significantly alters the framework for Australia’s predominant temporary work visa, requiring employers and applicants to quickly adapt.
No New Subclass Number
The Skills in Demand visa retains the same subclass number as the Temporary Skill Shortage (TSS) visa (Subclass 482). However, it introduces significant changes, making it more than a simple rebranding exercise. Notably, any Subclass 482 visa application lodged before December 7, 2024, will not be affected by these changes.
Streams of the Skills in Demand Visa
The SID visa is divided into three streams:
- Specialist Skills Stream
- Core Skills Stream
- Labour Agreement Stream
The Specialist and Core Skills streams replace the Medium- and Short-Term streams, with a focus on income thresholds rather than long- or short-term occupation shortages. The Labour Agreement Stream remains largely unchanged. The Essential Skills Pathway, initially intended for lower-paid but critical roles, appears to have been abandoned, with such occupations likely accessed through labour agreements.
Key Changes Introduced
Income Thresholds
Two income thresholds have replaced the Temporary Skilled Migration Income Threshold (TSMIT):
- Core Skills Income Threshold: Set at the current TSMIT of $73,150.
- Specialist Skills Income Threshold: Initially set at $135,000.
These thresholds represent minimum annual earnings (excluding non-monetary benefits and superannuation) and will be indexed annually based on Average Weekly Ordinary Time Earnings (AWOTE).
Nomination Requirements
An approved nomination remains mandatory for SID visa applicants.
- Specialist Skills Stream: Occupations must correspond to specific ANZSCO Major Groups (1, 2, 4, 5, or 6), excluding trades, machinery operators, drivers, and labourers. Occupations need not be on the CSOL unless caveats apply.
- Core Skills Stream: Occupations must match those listed in a separate instrument comprising 456 eligible roles, with a significantly reduced caveat list. Certain occupations may also require international trade obligations.
The newer OSCA – Occupation Standard Classification for Australia applies to SID nominations and certain Subclass 186 nominations, while older ANZSCO classifications still govern other visas. Employers do not need to specify the stream unless applying under the Labour Agreement stream.
Other updates include:
- Exemptions to the annual market salary rate (AMSR) for salaries exceeding $250,000 or in specific cases like contractor roles.
- New requirements for the Specialist Skills stream, including evidence of financial capacity to employ the nominee for two years at the AMSR.
- Sponsors can nominate employment durations of up to four years across both streams.
Visa Applicant Amendment
Key changes for visa applicants include:
- Work Experience Requirement: Reduced from two years to one year, provided it is equivalent to full-time work and was undertaken within five years of the application.
- Skills Assessment and English Proficiency: Skills, qualifications, and employment must align with ANZSCO classifications. Mandatory skill assessments remain for certain roles. English requirements are now standardised across streams at IELTS 5.0 in all bands or equivalent.
Subclass 186 Employer Nomination Scheme Visa Updates
The SID visa has been added to the list of temporary skilled visas eligible for nomination under the Temporary Residence Transition (TRT) stream of Subclass 186.
Significant changes include:
- Removal of the requirement to have worked full-time for at least two of the last three years as a nomination condition. This is now part of the visa application criteria.
- Flexibility allowing any full-time sponsored work in Australia to count towards the two-year requirement, excluding periods of unpaid leave.
Sponsor Obligations
Sponsor obligations have been adjusted to reduce employer liability when a sponsored worker ceases employment. Sponsors are no longer required to ensure the worker continues participating in the nominated occupation or activity during the cessation period.
How Point Migration Agency can help:
Our experienced team at Point Migration Agency can help to discuss your unique situation and the right visa pathway for you. We can assist you through the whole application process to help you achieve a successful outcome and avoid any costly mistakes. Contact us today to see how we can help.
