The Department of Home Affairs unveiled significant changes to Australia’s employer sponsored migration framework on 7 December 2024, aiming to address labour shortages and improve processes for skilled workers and employers. These updates include the introduction of the Core Skills Occupation List (CSOL), implementation of the Skills in Demand (SID) visa (subclass 482), revisions to the Temporary Residence Transition (TRT) stream and expanded access to the Direct Entry (DE) stream of the Employer Nomination Scheme (ENS) visa (subclass 186).
Introduction of the Core Skills Occupation List (CSOL)
The CSOL has been revised with the intention to better align with Australia’s current labour market needs. The new CSOL applies to the 482 SID Core Skills stream and the 186 ENS DE stream visas.
The implementation of the new list presents challenges and opportunities for existing and prospective 482 and 186 visa holders and applicants.
Please see our article here for an overview and further analysis of the occupation list changes.
Implementation of the Skills in Demand Visa
The new Skills in Demand (SID) visa has replaced the Temporary Skill Shortage (TSS) visa, offering a more streamlined pathway for employers to recruit skilled workers.
Key Features of the SID Visa:
- Specialist Skills stream: Prioritises applications for sponsored employees paid at least $135,000, with an aspirational processing time of 7 days.
- Core Skills stream: Supports mid-income roles between $73,150 and $135,000 listed on the CSOL, with an aspirational processing time of 21 days.
- Labour Agreement stream: Provides tailored pathways to support sponsorship of off-list occupations and concessions to requirements (unchanged from before)
- Visa Duration: Grants up to 4 years for all occupations (or 5 years for Hong Kong citizens).
- English Proficiency: Same as the previous Medium & Long Term stream, equivalent to IELTS 5.0 or PTE Academic 36 in each band.
- Relaxed Work Experience Criteria: Applicants now need only one year of full-time equivalent experience within the past five years, instead of two years.
- Employer Financial Evidence: Employers must demonstrate their financial ability to pay the nominated salary by submitting documents such as profit and loss statements or contracts for future work (especially for Specialist Skills stream).
- Enhanced Flexibility for Visa Holders (implemented 1 July 2024): Subclass 482 visa holders have a 6-month grace period to find a new sponsor, during which they can work casually for multiple employers without affecting visa status.
- Labour Market Testing (LMT): While unchanged, a proposal to extend the LMT period from four months to six months is pending parliamentary approval.
- Application Fees: Main applicant and secondary adults—$3,115; children—$780.
Changes to the Temporary Residence Transition (TRT) Stream
Revisions to the TRT stream under the 186 ENS visa aim to provide greater flexibility for skilled workers:
- Work Experience Requirements: Applicants can now combine work experience from multiple employers to meet the two-year threshold.
- Timing of Work Experience Assessment: Work experience is now assessed at the visa application stage, instead of the nomination stage.
These changes provide additional flexibility to visa holders to qualify for permanent residency.
Expanded access to the Direct Entry (DE) stream
The new CSOL now applies to the Direct Entry stream of the 186 visa, with access to direct permanent residency available to all 456 occupations on the CSOL, up from 212 occupations previously. We consider this the closest thing to a Christmas gift from the government to sponsored employees and the most impactful change of the reforms, allowing employees to transition to permanent residency sooner, including many who were not previously eligible even for the 482 visa.
If you would like to discuss how these changes impact you, please send us a message here or by email to hello@hammondmigration.com.au. If you are an existing 482 visa holder or an employer wishing to sponsor employees for the 482 or 186 visa, we are happy to provide a free, no obligation assessment and quote.
