The recent transition from the Temporary Skills Shortage (TSS) visa to the new Skills in Demand (SID) (Subclass 482) visa from 7 December 2024 was accompanied by significant reforms to the Employer Nomination Scheme (ENS) Subclass 186 visa.

In this Newsflash, we’ll examine those key changes – from updated work experience requirements and occupation lists to new application processes. We’ll also breakdown what these changes mean practically for employers and skilled migrants seeking permanent residency (PR) via sponsored visas.

The Subclass 186 visa consists of a Temporary Residence Transition (TRT) stream, a Direct Entry (DE) stream, and a Labour Agreement stream.

• The TRT stream provides a permanent visa pathway to SID (formerly TSS) visa holders who have worked in Australia for a specified period with a sponsoring employer who wishes to sponsor them for PR.
• The DE stream provides a direct pathway to PR for skilled workers with an occupation on the relevant occupation list and who are nominated by a sponsoring employer.

How are skilled workers and visa applicants impacted?

The changes open more flexible pathways to permanent residency. One of the biggest impacts is the more inclusive approach to work experience and occupation requirements. Workers can now count all sponsored employment towards their application, not just time with a single employer or working in the same occupation with the exact same ANZSCO code. This benefits migrants who change jobs or progress in their careers, making PR more accessible and quicker to achieve.

While some eligible occupations that were previously available under the old TSS 482 visa are now excluded from the new Core Skills Occupation List (CSOL), potentially limiting PR options for certain skilled workers, overall more occupations now have a direct pathway to PR via the new SID 482 visa and 186 TRT stream.

Employers gain a simplified nomination process with reduced administrative requirements. The removal of family member inclusion and more flexible occupation code matching reduces compliance burdens. The expanded pathway to PR for SID visa holders also creates a more predictable talent retention strategy.

On the other hand, the revised rules prioritise high-value, in-demand skills, which may disadvantage smaller businesses. With the introduction of the Core Skills Income Threshold and its provisions for annual indexation, employers might find themselves needing to constantly adjust compensation packages to meet the evolving threshold.

And while more fluid job mobility and occupation matching increases flexibility, they simultaneously introduce a degree of uncertainty for employers. Skilled workers now have more leeway to change employers without impacting their PR progression, potentially leading to higher turnover rates as professionals more easily explore new opportunities

To effectively navigate the new 186 visa landscape, both employers and skilled migrants should prioritise proactive information gathering and strategic planning.

Employers should:

• Consult with qualified registered migration agents or lawyers to understand the full implications of the changes
• Review their current sponsorship strategies, and update their recruitment and retention policies accordingly
• Conduct internal audits of their existing sponsored workforce to identify potential opportunities for PR pathways

Skilled workers should:

• Seek professional advice to understand how these changes might impact their individual migration journey
• Carefully review and assess how their current work experience aligns with the more flexible 186 visa requirements, particularly via the TRT stream
• Maintain comprehensive documentation of their employment history

Continuous monitoring of policy updates, maintaining clear communication with potential sponsors or employees, and seeking expert guidance will be crucial in successfully leveraging the new 186 visa framework.