Australia’s “Skills Shortage” SID Visa Officially Launched

Recently, the DoHA announced the latest policy update, marking another reform in the skilled migration sector. This update responds to the actual needs of the labor market and provides a clearer pathway to permanent residency for skilled migrants. HECT will provide a detailed analysis of the reasons behind this policy update, its main content, and the key changes under the new policy.

Main Contents of the Policy Update

This policy update primarily focuses on the following aspects:

SID Visa Highlights: Three Categories and More Flexible Application Conditions
The new SID visa will officially replace the current 482 Temporary Skill Shortage (TSS) visa on December 7, 2024. The main features of the new visa include:

  • Three Application Categories:
    • Professional Occupation Category: For applicants with an annual salary above AUD $135,000 (excluding certain technical trades).
    • Core Occupation Category: For applicants with an annual salary above AUD $73,150, who must select an occupation from the “Core Skills Occupation List” (CSOL).
    • Labour Agreement Category: Provides more flexibility for specific industries and regions.
  • Reduced Work Experience Requirement:
    The work experience requirement has been reduced from two years to one year of full-time work experience within the past five years (or an equivalent amount of part-time experience).
  • Visa Duration:
    Typically valid for four years, with flexibility to adjust according to the employer’s nomination period.

Permanent Residency Pathway for Employer-Sponsored Temporary Visa Holders
The new policy clearly states that all holders of the 482 “Skills Shortage” visa can apply for permanent residency through the Temporary Residence Transition (TRT) stream of the 186 Employer Nomination Scheme (ENS) visa. The previous work experience accumulation limitation has been removed, allowing employment time with different employers to count toward the work experience requirement.

Adjustments to Employer Sponsorship Obligations The obligation for employers to sponsor skilled visa holders has been adjusted to end when the employee leaves, rather than when the employee finds a new employer. This change reduces the burden on employers while providing greater employment mobility for visa holders.

New “Core Skills Occupation List” (CSOL) The new list, based on the latest analysis of the Australian labor market, adds 70 occupations, including those in healthcare, education, and cybersecurity. The list will be updated dynamically to better reflect market demand.

Salary Thresholds and Indexation The salary requirements for the professional occupation category are set at AUD $135,000, and for the core occupation category at AUD $73,150. These thresholds will be indexed annually in July to ensure that migrant salaries are not lower than the average Australian wage.

English Language Requirements and Flexibility The English language requirements remain in line with existing medium-to-long-term visa standards (IELTS 5.0 with no band below 5). Additionally, the new policy recognizes part-time and intermittent work experience, which helps more applicants meet the visa conditions.

Highlights of the Updated Policy

More Flexible Work Mobility: New visa holders can more freely change employers and have up to 365 days to find a new employer or apply for another visa.

Clear Path to Permanent Residency: Whether in the “Professional Occupation” or “Core Occupation” category, visa holders can apply for permanent residency via the 186 visa as long as they meet the work experience requirement.

Support for Women and Part-Time Employees: By reducing work experience requirements and recognizing part-time work, the new policy better supports women and flexible employment groups in participating in the Australian labor market.

Protecting Immigrant Rights and Preventing Exploitation: The policy continues to require employers to provide the same salary and working conditions as Australian employees, while strengthening supervision of employer sponsorship.

Background and Reasons for the Policy Update

The Australian government’s “Immigration Strategy” proposed at the end of 2023 identified three main directions for reform:

Filling Labor Market Gaps: Australia faces a skills shortage, particularly in sectors like healthcare, education, construction, and cybersecurity. To attract global talent and meet these sector needs, Australia requires a more efficient and flexible immigration policy.

Enhancing Fairness and Flexibility in the Immigration System: The current 482 Temporary Skill Shortage visa has some limitations, such as high work experience requirements and insufficient mobility. The reform aims to improve visa holders’ job mobility, preventing skilled talent from leaving Australia due to policy constraints.

Promoting Long-term Economic Development: By providing skilled migrants with a stable pathway to permanent residency, the reform encourages them to stay in Australia long-term and contributes to sustainable economic growth.

HECT’s Advice for Applicants

Stay Updated on Occupation List Changes: The occupation list may be adjusted in line with market demand, so it’s important for applicants to keep up with the latest updates to ensure their occupation remains eligible.

Prepare for English Exams and Work Documentation in Advance: English proficiency and work experience are key requirements for applications. It’s advisable to prepare your IELTS or other recognized English test results, along with complete work experience documentation, in advance.

Choose the Right Visa Category: Depending on your situation, choose the professional or core skills category, making full use of the new income thresholds and flexible application conditions.

Conclusion

The 2024 migration policy update demonstrates the Australian government’s commitment to reforming the skilled migration sector. While addressing skills shortages, the new policy also provides applicants with a clearer pathway to permanent residency.

If you are planning to apply for Australian skilled migration, please read the above content carefully, and feel free to contact us if you have any questions.