On 7 December 2024, Australia implemented significant changes to its employer-sponsored visa program. An outline of these changes was anticipated in Migration Strategy, published in late 2023. However, key details of the reform were only announced last Friday, the day before the new legislation came into effect.
The most commonly used employer sponsored visa, the subclass 482 visa, was redesigned and is now known as the Skills in Demand visa. Combined with the introduction of the Core Skills Occupation List (CSOL) and changes to the subclass 186 visa, these reforms will have a profound impact on migrants and businesses in 2025 and beyond. This article takes a closer look at the key changes emanating from the legislation amendments and their implications for visa holders and their employers.
SID visa streams
The subclass 482 visa has been renamed Skills in Demand (SID) visa. The new SID visa has three streams: Specialist Skills stream, Core Skills stream and the Labour Agreement stream. It is expected that most applicants will be applying under the Core Skills stream.
Further reform is expected in the Labour Agreement stream, which will be revamped and renamed the Essential Skills stream. More information about the eligibility requirements of each stream can be found here.
SID visa application charge
The visa application charge for all SID applicants is as follows:
Main applicant: $3,115
Partner/Spouse: $3,115
Child under 18 years old: $780
The new SID visa charges match those of the Medium-term stream of the Temporary Skill Shortage visa.
Reduced work experience requirement
The work experience requirement of all SID visa applicants has been reduced from two years to one year. This experience must have been obtained through full-time work for one year, or an equivalent period of part-time or casual work in the five years prior to the application date.
This change applies to applications lodged from 7 December 2024 onwards. Applications lodged prior to this date will be assessed under the previous TSS work experience criteria.
English score required
SID visa applicants in the Specialist and Core Skills streams must achieve an overall IELTS score of 5, with a minimum of 5 in each test component, or the equivalent score in one of the other approved tests. This requirement is identical to the requirements that previously applied to the Medium-term stream of the Temporary Skill Shortage visa. This effectively increases the required score for occupations in the previous Short-term Skills Occupations List.
This change applies to applications lodged from 7 December 2024 onwards only.
Salary indexation
Annual salary indexation will continue to apply from 1 July each year for SID and subclass 186 visas. Sponsors who lodge new sponsorship or nomination applications on or after this date must meet the relevant income threshold for that year.
Improved access to permanent residency
Any full-time sponsored employment undertaken in Australia whilst holding subclass 457 and 482 visas can count towards the two-year requirement of the permanent Employer Nomination Scheme (subclass 186) visa in the Temporary Transition (TRT) stream. This is a significant shift from the previous requirement that the applicant must have worked for the same sponsor for at least two years. Applicants are now permitted to combine periods of employment with different sponsors.
Furthermore, access to the Direct Entry (DE) stream of the subclass 186 visa has been expanded, with number of occupations now eligible for the DE stream nearly doubling. A significant cohort of skilled migrants now has the possibility of applying directly for permanent residency.
Sponsor obligations
Sponsors are no longer responsible for monitoring migrants who have ceased working with them. The obligation to ensure the sponsored worker is employed in the nominated occupation ends when the worker ceases employment, rather than when they find a new sponsor.
Our Take
It may take some time before the impact of the 7 December changes is fully understood. Migration law reforms often come with pros and cons. Some will benefit from the 7 December changes. Others may be disadvantaged.
For skilled migrants, the main pros are the reduced SID visa work experience requirement and improved access to permanent residency via both streams of the Subclass 186.
The cons include a higher visa application charge for some applicants. Those who planned to apply for subclass 482 visas only to realise their occupation is not on the new CSOL will not be pleased either.
For employers, improved access to permanent sponsored visas means better access to a highly competitive global labour market. It also means reduced costs to retain a sponsored worker in the position. On the other hand, they diminish the retention factor: visa holders are no longer required to work for the same sponsor for two years before being eligible for permanent residency.
Stay tuned for more details on SID visa. Subscribe to the next ImmiUpdate below to stay informed.
For more information please Contact Us or email elan@ryshermigration.com.au
Elan Rysher is a Registered Migration Agent and Qualified Student Counsellor. He is the main Writer for ImmiUpdates and the founder of Rysher Migration. Being a former migrant himself, Elan is passionate about helping others fulfil their Australian dream.
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