New Skills in Demand Visa Set to Replace the Temporary Skill Shortage Visa

The Migration Strategy unveiled in December 2023 introduced the Skills in Demand Visa, comprising three new temporary work visa categories.

This visa is expected to replace the Temporary Skills Shortage (Subclass 482) visa from late 2024, and is designed to offer greater flexibility for both workers and employers, along with a clear pathway to permanent residency.

Key features across all three visa pathways include:

• A four-year work visa
• Three streams: Specialist Skills, Core Skills, and Essential Skills, depending on occupation and annual salary.
• Each stream provides a pathway to permanent residency, with an option independent of employer sponsorship.
• Visa holders can switch between sponsors and have 180 days to secure a new sponsor and will be allowed to work during that period.
• Time spent with any approved employer contributes to permanent residency eligibility, without resetting the clock when changing employers.
• A public register of sponsors is available to help visa holders find new sponsors.
• Employers may not need to pay all sponsorship fees upfront.
• Applications are expected to be processed quickly.

Specialist Skills Pathway

This pathway acknowledges the significant contribution highly skilled migrants make to Australia's national productivity, particularly in supporting critical sovereign capabilities and enhancing the skills and expertise of the Australian workforce.

This pathway should apply to most Medical Practitioners, including GPs and Specialists.

Eligibility Criteria Include:

• Open to all occupations except trades workers
• Applicants must earn at least AU$135,000 annually

Processing Time:

The Specialist Skills Visa is expected to be processed within 7 days.

Core Skills Pathway

This visa aims to attract skilled workers to meet current and future labour demands, ensuring the Australian economy has the workforce needed to deliver essential goods and services.

The Core Skills pathway is expected to cater to most Allied Health practitioners, including Registered Midwives and Nurses.

Eligibility Criteria Include:

• Applicants must be in occupations listed on the new Core Skills Occupation List. The Core Skills Occupation List (not yet available)
• Minimum salary requirement of AU$73,150, in line with the TSMIT
• The Core Skills Visa will likely have similar requirements to the current 482 visa.

Processing Times:

The Core Skills Visa is expected to have a processing time of approximately 21 days.

Essential Skills Pathway

The government is developing the Essential Skills pathway with a focus on the care and support sectors, which are crucial to maintaining the quality of life in Australia.

Presumably, roles such as Aged and Disability Carers would fall under the Essential Skills pathway.

Eligibility Criteria Include:

• Designed for lower-paid workers with essential skills
• This may include individuals earning below the TSMIT, currently set at AU$73,150 per year
• This pathway is expected to share similarities with the current Labour Agreement visas

Employer Requirements for Skills in Demand Visas

Labour Market Testing:

It has been announced that the requirements for Labour Market Testing will be reduced. The testing period will now be valid for six months, instead of the current four months. The number of required job advertisements is expected to remain at two adverts.

Skilling Australia Fund (SAF levy):

The Skilling Australia Fund is a fee employers must pay to the government to participate in the visa program, which helps fund training for Australian workers. It is expected that instead of a lump sum, employers will make payments in instalments over the duration of the visa holder's employment in Australia, likely encouraging more businesses to sponsor workers.

When Will the Skills in Demand Visas Be Implemented?

The Migration Strategy Action Plan suggests a tentative implementation timeframe of late 2024.

Professional Assistance

Until the Migration Regulations 1994 are amended to incorporate this new Skills in Demand Visa, and the associated policy criteria are developed, the specifics are unknown.

Until such times, the Temporary Skills Shortage program remains the standard entry pathway for most skilled workers. If you need assistance in relation to this visa, or any other migration issues, our registered migration agents are here to help.