Understanding Australia’s Skills in Demand Visa and Core Skills List

On December 7, 2024, significant updates to Australia’s skilled visa program will take effect, introducing a modernised skilled occupation list and a new Skills in Demand (SID) visa. These changes aim to better align the visa program with Australia’s evolving workforce needs.

Core Skills Occupation List (CSOL)

The new Core Skills Occupation List (CSOL) replaces the multiple skilled occupation lists previously used for the Temporary Skill Shortage (TSS) visa. The CSOL features over 450 occupations across various sectors, including construction, cyber security, agriculture, and health. This list is based on thorough labour market analysis and stakeholder consultations conducted by Jobs and Skills Australia. The CSOL will apply to the SID Core Skills stream and the Employer Nomination Scheme (subclass 186) visa (Direct Entry stream).

Skills in Demand (SID) Visa

The Skills in Demand (subclass 482) visa replaces the Temporary Skill Shortage (TSS) visa, allowing most visa holders to stay in Australia for up to four years. This visa offers a streamlined process for both migrants and employers, facilitating the growth of businesses in need of skilled workers. SID visa holders also have a clear pathway to permanent residence, providing certainty for both migrants and employers.

The SID visa includes three streams:

1. Core Skills Stream: Designed to meet targeted workforce needs, this stream will be used by most SID visa holders.
2. Specialist Skills Stream: Aimed at driving innovation and job creation, this stream is for highly skilled migrants.
3. Labour Agreement Stream: This stream will be replaced by an Essential Skills stream, which is currently under development.

Benefits of the SID Visa

With a SID visa, applicants can:

• Access a pathway to permanent residence, with any work done with an approved employer counting towards this goal.
• Benefit from a reduced work experience requirement, needing only one year of work experience in their nominated occupation or related field, compared to the TSS visa.
• Meet the same English language requirements as the TSS medium-term stream.

Specialist Skills Stream

This stream recognises the importance of highly skilled migrants in boosting national productivity. It is available to applicants who meet general eligibility requirements and are:

• In any occupation on the ANZSCO 2022 list, except for ANZSCO Major Group levels 3, 7, and 8 (trades workers, machinery operators, drivers, and labourers).
• Earning at least the Specialist Skills Income Threshold of AUD135,000 and no less than Australian workers in the same occupation.

Core Skills Stream

This stream is for applicants who meet general eligibility requirements and:

• Have an occupation on the CSOL identified as being in shortage, including those covered by international trade agreements.
• Will be paid a salary at or above the new Core Skills Income Threshold of AUD73,150.

Transition for TSS Visa Holders

Applications for the TSS visa closed on December 6, 2024. All outstanding applications lodged before this date will be processed according to existing arrangements. Current TSS visa holders will still have a pathway to permanent residence, subject to meeting all relevant eligibility criteria.

These changes reflect Australia’s commitment to attracting and retaining skilled workers to support the nation’s economic growth and development. For more details, you can read the full CSOL at the New Core Skills Occupation List to target the skills Australia needs.