What Are The Changes To The Employer-Sponsored Migration Program?

17.11.23

Published 17 November 2023  |  Written by Migration Partner Lauren Blud  |  Last reviewed: September 2026

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Australia’s employer-sponsored migration program has changed substantially since 2023. The Temporary Skill Shortage (TSS) visa was abolished and replaced by the Skills in Demand (subclass 482) visa on 7 December 2024, introducing new Core Skills, Specialist Skills and Labour Agreement streams. Holders of any of these streams can now apply for permanent residency through the Employer Nomination Scheme (subclass 186) Temporary Residence Transition stream after just two years with their sponsoring employer, down from three.

Editor’s note: This article was originally published on 17 November 2023 under the title “What Are The Changes To The Employer-Sponsored Migration Program?” It has been substantially rewritten to reflect the abolition of the TSS visa, the introduction of the Skills in Demand visa, and the Department of Home Affairs’ November 2025 clarification of the subclass 186 Temporary Residence Transition rules.

The Department of Home Affairs first flagged changes to the Employer-Sponsored migration program back in 2023, and those changes duly took effect on 25 November 2023. Since then, the program has moved on again in a much bigger way: the entire Temporary Skill Shortage (TSS) visa was retired and replaced by the Skills in Demand (SID) visa on 7 December 2024. This article, prepared by our migration law team, brings the original 2023 update current for 2026, so employers and visa holders are working from the rules that actually apply today.

From TSS to Skills in Demand: What Actually Changed

The 2023 announcement removed the cap on the number of Short-term stream Temporary Skill Shortage (TSS) visa applications a holder could make while onshore, effective for applications made on or after 25 November 2023. That fix addressed a genuine problem at the time, but it has since been overtaken by a much larger reform. From 7 December 2024, the TSS visa was abolished altogether and replaced with the Skills in Demand (subclass 482) visa.

The SID visa restructured the old short-term and medium-term stream model into three new streams:

  • Core Skills stream, for occupations on the new Core Skills Occupation List (CSOL), which replaced the former Short-term (STSOL) and Medium and Long-term (MLTSSL) Skilled Occupation Lists.
  • Specialist Skills stream, for high-earning specialists paid above the Specialist Skills Income Threshold (SSIT), currently $146,717 from 1 July 2026.
  • Labour Agreement stream, for occupations covered by a company-specific or industry labour agreement, such as agriculture and hospitality.

The minimum salary for the Core Skills stream, the Core Skills Income Threshold (CSIT), is currently $79,499 from 1 July 2026. The underlying work experience requirement to qualify for a Skills in Demand visa has also been reduced, to one year of full-time equivalent experience within the past five years, down from the previous two-year requirement. For applicants who fall short on paper, our article on options where work experience is insufficient for the Skills in Demand visa sets out some alternative pathways.

The Subclass 186 Temporary Residence Transition Stream

The other major change flagged in 2023, and the one that has aged well, concerns the Temporary Residence Transition (TRT) stream of the Employer Nomination Scheme (subclass 186). Employers can nominate holders of any Skills in Demand visa stream, Core Skills, Specialist Skills or Labour Agreement, for the TRT stream. The nominated occupation now only needs to align with the same four-digit Australian and New Zealand Standard Classification of Occupations (ANZSCO) unit group as the original nomination, rather than sitting on a specific skilled occupation list, and the worker must continue in that nominated role.

The qualifying employment period for TRT eligibility was reduced from three years to two years for applicants who commenced their nomination process on or after 25 November 2023, and this remains the current rule. In November 2025, the Department of Home Affairs issued a clarification of how regulations 186.227(1) and 186.227(2) are applied, confirming that the clarification did not represent a new policy direction, only a tightening of guidance on when qualifying work experience counts (broadly, the work must have been performed while the sponsoring employer held approved sponsor status).

Age exemptions for regional medical practitioners and for high-income earners aged 45 and over (who have earned at or above the Fair Work High Income Threshold for at least two years) continue to apply to the two-year pathway. The temporary COVID-19-related age exemptions referenced in the 2023 announcement, however, were always intended to be transitional, and no longer apply in 2026.

A formal skills assessment is generally not required for a TRT nomination, which continues to make it a more straightforward pathway to permanent residency than the Direct Entry stream for eligible employees. Employers should also be aware of the current income thresholds and, where relevant, the labour market testing exemptions that may apply to a nomination.

How Ramsden Lawyers Can Help With Employer-Sponsored Migration

Whether you are an employer trying to work out which Skills in Demand stream fits a role, or a visa holder wanting to know whether you now qualify for permanent residency under the Temporary Residence Transition stream, our migration law team can assess your circumstances against the current rules and help you plan the right pathway. Visit our visa options page for an overview of employer-sponsored pathways, or get in touch with our team to arrange a consultation.

How Ramsden Lawyers Can Help With The Changes To Employer-Sponsored Migration Program

Though it’s crucial to acknowledge that the implementation date could potentially be altered, the official announcement has been issued. At Ramsden Lawyers, our migration division is ready to assist you in navigating and capitalising on these much-needed changes. If you would like to explore how these changes could positively impact your individual situation, our team is actively arranging consultations to offer guidance and support after the announcement. Please don’t hesitate to reach out to us for further information.

FREQUENTLY ASKED QUESTIONS

What replaced the Temporary Skill Shortage (TSS) visa?

On 7 December 2024, the Australian Government replaced the TSS visa (subclass 482) with the Skills in Demand (SID) visa, also subclass 482. The SID visa has three streams, Core Skills, Specialist Skills and Labour Agreement, replacing the old short-term and medium-term stream structure.

Do I still need to worry about a limit on TSS visa applications?

No. That concern is now historical. Since the TSS visa was abolished in December 2024, the old short-term stream application cap no longer applies, and Skills in Demand visa holders are not subject to the same restriction.

How long do I need to work for my employer before I can apply for a subclass 186 visa under the Temporary Residence Transition stream?

Two years. Applicants must generally have worked full-time for their nominating employer, in the nominated occupation, for at least two of the preceding three years while holding a relevant 482 visa. The Department of Home Affairs clarified how this requirement is applied in November 2025.

Do all Skills in Demand (482) visa streams count towards the 186 TRT pathway?

Yes. Employers can nominate holders of the Core Skills, Specialist Skills or Labour Agreement streams for the Temporary Residence Transition stream, and the nominated occupation only needs to align with the same ANZSCO unit group as the original nomination, rather than a specific skilled occupation list.

What occupation list applies to a Core Skills stream nomination now?

The Core Skills Occupation List (CSOL) replaced the former Short-term (STSOL) and Medium and Long-term (MLTSSL) Skilled Occupation Lists for Core Skills stream nominations. The CSOL is reviewed periodically by Jobs and Skills Australia, so it is worth checking whether a role remains listed before relying on it.

Are there still age exemptions for the 186 TRT stream?

Some remain. Regional medical practitioners and high-income earners aged 45 and over who have earned at or above the Fair Work High Income Threshold for at least two years may still qualify for an age exemption. The temporary COVID-19-related age exemptions referenced in earlier guidance have now lapsed and no longer apply.

Is a skills assessment required for the Temporary Residence Transition stream?

Generally, no. Unlike the Direct Entry stream of the subclass 186 visa, the Temporary Residence Transition stream does not usually require a separate formal skills assessment, provided the applicant meets the work experience and nomination requirements.

How can Ramsden Lawyers help with employer-sponsored visa changes?

Our migration team can review a client’s current visa status, confirm which Skills in Demand stream and occupation classification applies to their role, and advise on eligibility and timing for a subclass 186 Temporary Residence Transition application. Contact us to arrange a consultation.