Australia's skilled migration program is undergoing a major rehaul as part of the Federal Government’s new Migration Strategy. A central pillar of the Strategy is the introduction of the Skills in Demand (SID) visa – likely in late 2024 – which will replace the existing Temporary Skill Shortage (Subclass 482) visa. The new visa will be valid for 4 years and promises streamlined visa processing, flexibility for visa holders to change employers, and clearer permanent residency pathways.

Understanding the impact of this new visa is crucial for workforce planning. In this guide, we break down what we currently know about the SID visa streams, eligibility criteria, employer requirements, and the opportunities for businesses to advocate for their skilled labour needs as the final visa settings take shape through 2024.

The SID visa will be a three-tiered system based on salary and occupation:

• The Specialist Skills pathway targets higher-paid professionals to drive innovation and job creation
  
  
• The Core Skills pathway focuses on filling skills gaps across a range of occupations. This will be the main sponsorship option for most employers.
  
  
• The Essential Skills pathway will cater to lower-paid workers in critical sectors.
  
  

Certain elements from the current Temporary Skill Shortage visa are expected to carry over or be adapted, but the Migration Strategy commits to removing elements deemed unnecessary or over-complicated.

Streamlined labour market testing

• The requirement to advertise positions through Workforce Australia was removed in December 2023. This means employers must now conduct two valid advertisements, instead of three.
  
  
• Validity period of advertising will be increased from four to six months, ie. employers must commence and complete advertising within the six months prior to lodging a visa nomination application.
  
  
• The Government may consider moving away from employer advertising altogether, towards independent verification of labour market need by Jobs and Skills Australia (JSA)

More flexible fee model

Under the current model, sponsors are required to pay a range of fees upfront including sponsorship ($420) and nomination ($330) fees and the Skilling Australian Fund (SAF) levy (up to $7200).

With the new Skills in Demand visa, a revised model will be explored where employers pay trailing fees rather than upfront fees. Since it will be easier for workers to move between employers, it’s also fair that the original sponsoring employer will not have to pay a significant fee upfront. This is a positive development for employers.

Along with the new Skills in Demand visa program, the Australian government will implement strong measures throughout 2024 to enforce employer compliance and tackle the exploitation of migrant workers:

• The Migration Amendment (Strengthening Employer Compliance) Act will take effect on 1 July 2024, introducing harsher penalties and new offenses for breaching sponsorship obligations or coercing migrant workers into breaching work visa conditions (see our Newsflash).
  
  
• The integrity of the sponsorship application and approval process will be significantly strengthened. Employers' workplace practices, compliance records, any adverse findings from regulators, and previous bankruptcies will all be scrutinised as part of a more rigorous vetting process.
  
  
• Further measures will be taken to improve post-arrival monitoring and employers’ compliance with pay and conditions for workers, including coordination with the tax system and the use of Tax File Numbers and Single Tough Payroll.
  
  

The JSA has invited business and industry to give feedback and make submissions on the new Core Skills Occupation list. Employers should engage actively with this process to ensure the eventual CSOL aligns with their current and future skills needs. For more details on how to make submissions to the JSA, see:

• Our Newsflash explaining what the CSOL is and why it’s
• The JSA website
  
• Submission guidelines provided by the Migration Institute of Australia
  

We will provide further updates as details about the Skills in Demand visa are released.