Australia has revamped its skilled migration system with the introduction of the Skills in Demand (SID) Visa, which substitutes the Temporary Skills Shortage (TSS) visa starting December 7, 2024. This change comes after the government’s decision to replace outdated visa structures with a more flexible and responsive system. The SID Visa offers three distinct pathways—Specialist Skills Pathway, Core Skills Pathway, and Essential Skills Pathway—each targeting different skill levels and salary brackets. These changes aim to better address Australia’s labour market needs and streamline the process for both skilled workers and employers.
Notably, the Temporary Skills Shortage (TSS) Visa was a skilled migration visa program introduced by the Australian government to address labor shortages in critical sectors by allowing employers to sponsor foreign workers for temporary roles. It replaced the previous 457 visas and was designed to fill positions in occupations that could not be filled by the domestic workforce.
The new SID visa introduces several important features that differentiate it from the TSS visa. Unlike its predecessor, which had more rigid requirements, the SID visa offers increased flexibility in work rights, travel, and permanent residency pathways. Applicants can now work in Australia for up to four years, or five years for Hong Kong passport holders, and travel freely in and out of the country during this period. Another key difference is the reduced work experience requirement: Applicants now need just one year of relevant work experience to be eligible for the visa. In addition, the SID Visa allows for easier access to permanent residency for those who meet employment criteria and meet required skills assessments.
9 key features of the Skills in Demand Visa Professionals Must Know About
Here are some important details about the Skills in Demand visa that every aspiring professional needs to know.
Shorter Work Experience Requirement
One of the most notable changes from the TSS visa to the SID visa is the shortened work experience requirement. While the TSS visa required workers to demonstrate more extensive experience, the SID visa now accepts just one year of relevant work experience to qualify for the visa. Additionally, any work completed with an approved employer can count toward meeting the requirements for permanent residency, streamlining the process for skilled workers to transition to long-term residency.
Post-study Work Rights
The SID Visa also offers extended post-study work rights based on the level of education attained:
- Bachelor’s Degree Holders: Up to two years of work rights.
- Master’s Degree Holders: Up to three years of work rights.
- Doctoral Graduates: Up to four years of work rights.
- STEM and ICT Graduates with First-class Honours: An additional year, extending the stay to three years.
Three Streams of the SID Visa
The SID visa is divided into three key streams that reflect different requirements based on skills and wages:
- Specialist Skills Pathway: This pathway targets workers with specialized expertise and higher salaries, typically exceeding AUD 135,000. It allows for more flexibility in the occupations that can be sponsored.
- Core Skills Pathway: This pathway is expected to accommodate the majority of foreign workers, specifically those earning between AUD 70,000 and AUD 135,000. It includes a broad range of occupations across sectors like technology, healthcare, construction, and education.
- Essential Skills Pathway: Focused on occupations that are critical to Australia’s economy but may not fall into the other two categories, this pathway will help fill essential roles across various industries.
The Core Skills Pathway: A New Focus on Occupation Lists
The Core Skills Pathway is a key feature of the SID Visa. It is designed for foreign workers with salaries ranging from AUD 70,000 to AUD 135,000 and includes a new list of in-demand occupations. This pathway aims to address labour shortages in critical sectors, such as healthcare, technology, agriculture, and construction, by providing a clear and comprehensive guide to eligible occupations.
Core Skills Occupation List (CSOL) for the Core Skills Pathway
To complement the Core Skills Pathway, Australia has introduced a new Core Skills Occupation List (CSOL). The CSOL includes 456 occupations across various industries, from healthcare and education to technology and construction. This list is designed to provide clarity for employers and migrants about the occupations that are most in demand in the Australian labour market.
Addressing Australia’s Labor Market Needs
The CSOL is the result of extensive labor market analysis and stakeholder consultation. Its goal is to address the evolving skills shortages in Australia while ensuring alignment with the country’s current and future workforce requirements. By streamlining the list of eligible occupations, the government aims to attract skilled workers in fields that are critical to the economy.
Occupations Included in the CSOL
The CSOL encompasses a wide range of occupations that are vital to Australia’s economy. Examples include medical professionals, software engineers, electricians, carpenters, and hairdressers. Additionally, the list features occupations in sectors like construction, agriculture, and education. This broad spectrum of occupations reflects the diverse needs of Australia’s labour market, making the CSOL an essential tool for skilled migration.
Impact of the New CSOL on Skilled Migration
The introduction of the CSOL is expected to have a significant impact on skilled migration to Australia. For workers in fields like healthcare, technology, and construction, the new list opens up clear pathways for sponsorship under the Core Skills Pathway. However, some occupations, such as market research analysts, are notably absent from the list, potentially affecting those in specific sectors.
Flexibility for Non-listed Occupations: Specialist Skills Pathway
For skilled workers whose occupations are not included on the CSOL, the Specialist Skills Pathway provides an alternative. This pathway allows for higher-wage earners (above AUD 135,000) to be sponsored for a SID Visa, even if their occupation is not listed in the Core Skills Occupation List. This flexibility ensures that a wide range of skilled professionals can still apply for the SID Visa, expanding the opportunities for skilled migration to Australia.
How will this visa impact Indian migrants?
For Indian nationals, especially those in the technology sector, the new changes are unlikely to pose significant challenges. Professionals such as software engineers, testers, and cyber security experts remain on the core skills list, ensuring continued opportunities for skilled workers. However, one noticeable exclusion is market research analysts. They are not included on the list, making it potentially more difficult for those in this field to migrate under the SID Visa.
