If you’re a small business owner, you know that hiring great staff is essential to your success. Unfortunately, the skills shortage in Australia is making this harder and harder to do. Nearly a third of all Australian sectors are currently facing worker shortages, with industries like nursing/health/medical, software engineering, and manufacturing being particularly affected.

Sponsoring a skilled worker from overseas can be a highly effective way to solve capacity constraints or recruit a specialised expert in a tight labour market. There are numerous employer-sponsored work visas in Australia and in this article we explore the new Skills in Demand Visa.

Overview of the New 3-tiered System

The Skills in Demand Visa (SID) will be replacing the Temporary Skill Shortage 482 visa by the end of 2024, with a 3-tiered system, which is divided by occupations and annual earnings. The new visa is a 4-year temporary skilled worker visa which will involve new and improved visa settings to promote a more productive workforce and boost Australia’s economy.

Specialist Skills Pathway

This pathway is for highly skilled migrants who are deemed beneficial to Australia through bringing significant economic growth and enhancing productivity within our workforce. Due to the high demand of these workers across the world, there will be a service standard of 7 processing days, which will further incentivise skilled migrants to choose this visa over others.

In order to qualify for this pathway, you must meet the following requirements:

• Annually earning a minimum of $135,000 and no less than Australian workers in the same occupation
• Be in any occupation except trades workers, machinery operators and drivers, and labourers.

Core Skills Pathway

The majority of temporary skilled migrants will be eligible for this pathway. It’s crafted to attract skilled workers who will help Australia become better equipped to provide effective goods and services to support our ways of life, now and in the years to come.

This pathway is available to those who meet the following requirements:

• Annually earning a salary at or above the Temporary Skilled Migration Income Threshold
•  (TSMIT) or at the average market salary rate if it’s above the TSMIT. As of 1st of July 2024, the TSMIT will be $73,150. TSMIT will be renamed the Core Skills Threshold. In an occupation which is on the new Core Skills Occupation List. These are occupations that have been identified as being in shortage, or an occupation which falls in accordance with international trade agreements Australia has committed to. There is currently a Draft Core Skills Occupations List for consultation.

Trades workers, machinery operators and drivers, and labourers are eligible for this pathway (unlike Specialist Skills), subject to being identified on the Core Skills Occupation List and being paid above TSMIT in any range.

Essential Skills Pathway

This will be a more regulated pathway for skilled workers at a lower annual salary. The Essential Skills Pathway will attract workers vital to supporting the living standards of Australians where there are shortages in particular occupations. Importantly, this pathway will be looking to protect lower-paid skilled migrants to minimise risk of exploitation which the current 482 visa does not properly address.

This pathway is available to those who meet the following requirements:

• Annually earning below the TSMIT ($73,150 as of 1st of July 2024).
• In an occupation involving essential skills where there has been a persistent shortage in Australia and provides care and support to the economy.

The government will continue their work to look at current labour agreements and amend and introduce more to effectively and ethically implement this pathway.

Key Differences Between the 482 Visa and New Skills in Demand Visa

The new Skills in Demand Visa will provide skilled workers with a more secure pathway to gain Permanent Residency.

There will be more freedom given to these workers who will no longer be bound to just their nominated employer. Now skilled workers have the choice to find employment with other approved sponsors, if their employment ceases with their nominated sponsor, with any period of employment counting towards the requirements for Permanent Residency.

Under the 482 Visa, only periods of employment with a nominated sponsor counted towards Permanent Residency. This is a significant change which ensures a more sustainable and productive workforce, and accounts for the needs of both employees and employers.

There will also be more time to find another sponsor if your employment ceases. Rather than having only 60 days to either find another sponsor or face a risk of removal, Skills in Demand visa holders will now have 180 days to find a new sponsor and can also work during the transition. To make this process easier, there will be a public register made available of all approved sponsors. This offers visa holders more support and increases accessibility in looking for other work.

Help for Employers to Sponsor Employees

The government is also looking to implement a payment model to lessen the burden on employers to pay the full fee of the Skilling Australians Fund (SAF) Levy upfront. It will look at monthly or quarterly charges, enabling more employers to offer sponsorship without such a huge financial burden that would otherwise deter them from doing so.

There will also be quicker processing times with streamlined visa applications rather than taking months to review each application, relieving stress and uncertainty for both employees and employers.

Ask Our Migration Lawyers About the Skills in Demand Visa

Overall, the new Skills in Demand Visa addresses the many challenges we faced with the Temporary Skill Shortage 482 Visa. An increased sense of mobility will be at the forefront of this new visa, while its many improvements should provide skilled workers with a more secure and less onerous time whilst working in Australia. Get in touch with our migration law experts if you require any assistance.

Source: Australian Government Migration Strategy, December 2023, https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy.pdf