Introduction of Australia’s New Skills in Demand Visa – What this Means for you as a Visa Applicant, or as a Sponsoring Employer

There have been significant changes to one of Australia’s most popular work visa programs, with the introduction of the Skills in Demand (‘SID’) Visa. The SID replaced the Temporary Skill Shortage (TSS) Visa on December 7, 2024, with the aim to address critical skill shortages across the country while offering skilled workers a clearer path to permanent residency. Some important information about these major updates and how they may affect you are set out by our team Migration Division below.

What is the new Skills in Demand Visa?

This temporary visa lets an employer sponsor a suitably skilled worker to fill a position they can’t find a suitably skilled Australian to fill.

The SID visa comes with a range of improvements designed to simplify the process for both the worker and employer. These are:

1. Easier Qualification Requirements:

The work experience requirement has been reduced from 2 years to just 1-year full-time work (or equivalent in part-time hours) within the past 5 years. This makes it easier for younger professionals, part-time workers and those returning to work after a break to qualify.

2. Three Categories/Streams for Workers:

• Specialist Skills Stream: For workers earning over $135,000 annually in a highly skilled role:
• Core Skills Stream: These are for roles with a minimum salary of $73,150 per year (the occupation will need to be listed on The Core Skills Occupation List https://immi.homeaffairs.gov.au/Documents/core-sol.pdf) for an applicant to qualify; and
• Labour Agreement Stream: For industries with unique needs that have special agreement with the government, such as agriculture and hospitality.

3. Clearer path to residency:

SID Visa holders will have an easier transitioning to permanent residency under the Employer Nomination Scheme (Subclass 186) because all the time spent working for any employer under the SID Visa will now count toward meeting the residency requirements, even if a visa holder changes jobs.\

4. Improved Flexibility for Visa Holders:

Visa holders will find it easier to switch employers without risking their visa status. Visa holders will also have more time to find new sponsors if needed, making it less stressful process when a change in employer is wanted or required.

What does SID mean for the employers?

The SID visa is proposed to be beneficial for Australian businesses looking to fill skill gaps. It simplifies hiring and makes the process faster and more transparent. It is proposed that Employers now have access to:

1. Top global talent: Attracting skilled workers from overseas becomes easier, especially for high-demand industries;
2. Simplified processes: Clearer rules and updated job lists make applications more straightforward; and
3. Greater flexibility: The ability for workers to switch jobs can lead to better matches, reducing hiring and training costs in the long run.

Why the change is important

The initiative behind the SID visa isn’t just about filling jobs—it’s about building a stronger, more sustainable migration system. By focusing on areas where workers are genuinely needed, Australia is ensuring its economy grows while giving migrants a fair chance to thrive. For businesses, it means access to the talent needed to stay competitive. For workers, it is hoped that it will offer a real opportunity to start fresh and build a future in Australia.

It is proposed that these changes reflect the government’s commitment to making migration work for everyone. Whether you’re a skilled worker looking for a new opportunity or an employer trying to address staffing shortages, the SID visa is worth exploring.

How We Can Assist with the New Skills in Demand Visa

Take the next step toward understanding how the new Skills in Demand (SID) Visa could benefit you or your business. At Ramsden Lawyers, our experienced Migration Division is here to help you navigate these important changes with confidence. Whether you are a skilled professional eager to explore new opportunities in Australia or an employer looking to fill critical roles, we provide tailored advice to suit your unique situation. Contact us today to schedule a consultation and let us guide you through each step.