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Dear Clients and Readers,

The end of 2024 saw the Australian immigration system undergo its most significant transformation in recent years, with sweeping changes implemented in December and more updates anticipated in the coming months. These reforms fundamentally reshape how skilled migrants and employers engage with the immigration system. In this newsletter, we’ll highlight the most important changes and point you to resources for more detailed information.

Our team is committed to being with you every step of the way through this period of change, providing timely updates and working closely with you to determine the most advantageous pathway forward under the new framework.

Abacus Visa will be closed from 23 December 2024 and reopen on 6 January 2025. May your holidays be full of joy, and time to relax. Thank you for your continued partnership – we look forward to working with you in the new year!  

Linda McCreath
Principal Lawyer & Director
Abacus Visa & Migration Services

Major overhaul: From TSS to Skills in Demand visa

Enhanced permanent residency pathways via the 186 visa

Complex landscape for sponsoring employers

National Innovation visa targets global talent

Major overhaul: From TSS to Skills in Demand visa

The introduction of the Skills in Demand (SID) visa on December 7 marked a pivotal shift from the previous Temporary Skill Shortage (TSS) visa. The new framework introduces three distinct streams - Specialist Skills, Core Skills, and Labour Agreement - with revised income thresholds and a simplified Core Skills Occupation List (CSOL). Notably, work experience requirements have been reduced to just one year, and visa holders now enjoy enhanced mobility with up to 180 days to find new employment.

Read our Newsflash for more details.

Enhanced permanent residency pathways via the 186 visa

The Employer Nomination Scheme (Subclass 186) visa has also seen substantial reform, with expanded permanent residency (PR) pathways now available across all SID visa streams. Under the Temporary Resident Transition (TRT) stream, an additional 189 occupations now have a direct pathway to PR.

The changes introduce more flexible occupation matching requirements and allow all sponsored employment to count towards work experience requirements (as opposed to previously, when only time with a specific sponsoring employer in a specific position counted). These modifications significantly benefit both employers and skilled migrants by creating clearer pathways to PR while reducing administrative complexity.

Read our Newsflash for more details.

Complex landscape for sponsoring employers

For sponsoring employers, while some obligations have been streamlined, the overall sponsorship landscape has become more complex. The introduction of the Core Skills Income Threshold and its annual indexation means employers must regularly review and adjust compensation packages.

While employer obligations now end when the sponsored person ceases employment rather than when they obtain a new sponsor, the revised rules prioritising high-value, in-demand skills may particularly impact smaller businesses. For instance, the exclusion of key hospitality positions from the CSOL – including Managers, Bar Attendants, Waiters, and Baristas – has raised significant concerns within the hospitality sector, which has historically relied heavily on skilled migration to fill critical staffing gaps.

Additionally, enhanced worker mobility provisions, while beneficial for skilled migrants, introduce new considerations for employers around workforce planning and retention strategies. Now that skilled workers can more easily switch employers without impacting their PR progression, employers may need to consider offering more generous compensation packages that entice workers to stay.

National Innovation visa targets global talent

The new National Innovation permanent visa replaced the Global Talent visa from December 6. It represents Australia's renewed focus on attracting exceptional global talent, targeting established and emerging leaders across various fields, including researchers, entrepreneurs, and innovative investors. While maintaining high standards for exceptional achievement, the program removes age restrictions and offers a streamlined route to PR for those who can demonstrate significant benefit to Australia.

Read more on the Department of Home Affairs’ website.

Looking forward to 2025

As we close for the Christmas break and look toward 2025, we anticipate further refinements to these new visa frameworks. Our team is here to guide our clients through these changes, ensuring they can navigate the evolving immigration landscape successfully. We wish everyone a joyous holiday season and look forward to supporting your immigration journey in the new year.