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

12.12.24
new skills in demand visa

Published 12 December 2024  |  Written by Migration Partner Lauren Blud  |  Last reviewed: 7 September 2026

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Australia’s Skills in Demand (SID) visa (subclass 482) is the employer-sponsored work visa that replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024. It lets an Australian business sponsor a skilled worker across three streams: Specialist Skills (roles paying above $146,576 a year), Core Skills (roles on the Core Skills Occupation List paying at least $79,423 a year), and Labour Agreement (for industries with tailored government agreements, such as agriculture). Applicants need only 1 year of relevant full-time (or equivalent part-time) experience in the past 5 years, and the visa offers a clearer, more flexible pathway to permanent residency via the Subclass 186 visa. Salary thresholds are indexed every 1 July, so the figures above apply to nominations lodged on or after 1 July 2026.

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 7 December 2024, with the aim of addressing critical skill shortages across the country while offering skilled workers a clearer path to permanent residency. Some important information about these updates, and how they may affect you, is set out by our Migration Division team 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 the employer. These are:

1. Easier Qualification Requirements:

The work experience requirement has been reduced from 2 years to just 1 year of full-time work (or the 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 at least $146,576 annually (effective 1 July 2026) in a highly skilled role.
  • Core Skills Stream: for roles with a minimum salary of $79,423 per year (effective 1 July 2026). The occupation must be listed on the Core Skills Occupation List for an applicant to qualify.
  • Labour Agreement Stream: for industries with unique needs that have a special agreement with the government, such as agriculture and hospitality.

Note: these salary thresholds are indexed every 1 July, so they will rise again from 1 July 2027. A nomination lodged before 1 July 2026 is assessed against the previous thresholds ($76,515 / $141,210), even if it’s approved after that date.

3. Clearer path to residency:

SID Visa holders have an easier transition to permanent residency under the Employer Nomination Scheme (Subclass 186), because time spent working full-time for an approved sponsoring employer under the SID Visa counts toward meeting the residency requirement, even across different sponsoring employers. This is a genuine improvement on the old rules. One point worth flagging: since 29 November 2025, the government has closed a loophole so that only employment with an approved work sponsor counts toward this requirement, rather than any employer, so it’s worth getting advice before relying on a period of unsponsored work.

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 a less stressful process when a change in employer is wanted or required.

What does SID mean for the employers?

The SID visa is designed to benefit Australian businesses looking to fill skill gaps. It simplifies hiring and makes the process faster and more transparent. 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 occupation lists make applications more straightforward.
  3. Greater flexibility: the ability for workers to switch jobs can lead to better matches, reducing hiring and training costs in the long run.

It’s also worth noting that visa application charges increased again from 1 July 2026 (the main applicant charge is now $4,015, up from $3,210), so employers and applicants budgeting for a nomination should factor in the current fee.

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 aiming to grow its economy while giving migrants a fair chance to thrive. For businesses, it means access to the talent needed to stay competitive. For workers, it offers a real opportunity to build a future in Australia.

These changes reflect the government’s ongoing efforts to make 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 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.

FREQUENTLY ASKED QUESTIONS

What is the Skills in Demand (SID) visa?

The Skills in Demand visa (subclass 482) is Australia’s main employer-sponsored temporary work visa. It replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024 and allows an Australian business to sponsor a skilled overseas worker to fill a genuine skill shortage, across three streams: Specialist Skills, Core Skills, and Labour Agreement.

What are the current salary requirements for the SID visa?

As of 1 July 2026, the Specialist Skills Stream requires a salary of at least $146,576 per year, and the Core Skills Stream requires at least $79,423 per year. These thresholds (known as the SSIT and CSIT) are indexed every 1 July, so they typically increase annually, and the applicable threshold is the one in force when the nomination is lodged, not when it’s approved.

Do I need to be on the Core Skills Occupation List to qualify?

If you’re being sponsored under the Core Skills Stream, yes, your occupation must appear on the Core Skills Occupation List (CSOL). The Specialist Skills Stream doesn’t require a listed occupation, but it does require a higher salary and a role at the appropriate skill level. The Labour Agreement Stream instead relies on the occupations set out in the relevant labour agreement.

How much work experience do I need for the SID visa?

You generally need 1 year of full-time work experience (or the equivalent in part-time hours) in your nominated occupation within the past 5 years. This is a reduction from the 2-year requirement under the old TSS visa, and it makes the visa more accessible to younger professionals, part-time workers, and people returning to the workforce after a break.

Can I change employers while on a SID visa?

Yes. The SID visa is designed to give visa holders more flexibility to change sponsoring employers, and more time to secure a new sponsor if their employment ends, without automatically putting their visa status at risk. Each new employer still needs to be an approved sponsor and lodge a new nomination for you.

Does the SID visa lead to permanent residency?

Yes, it can lead to permanent residency through the Employer Nomination Scheme (subclass 186), particularly the Temporary Residence Transition stream. Time spent working full-time for an approved sponsoring employer under the SID visa counts toward the residency requirement, even if you’ve worked for more than one approved sponsor. Since 29 November 2025, this only applies to employment with an approved work sponsor, so it’s worth getting advice on how your specific work history will be assessed.

What does the SID visa mean for sponsoring employers?

For employers, the SID visa simplifies the sponsorship process, gives access to a wider pool of overseas talent, and offers clearer rules through updated occupation lists. It also means factoring in the current government charges, which rose again from 1 July 2026 (the main applicant charge is now $4,015), and meeting ongoing sponsorship obligations for the life of the visa.

How can Ramsden Lawyers help with a Skills in Demand visa application?

Ramsden Lawyers’ Migration Division advises both visa applicants and sponsoring employers on Skills in Demand visa applications, from confirming eligibility and stream selection through to nomination, sponsorship obligations, and pathways to permanent residency. Contact us to arrange a consultation tailored to your situation.