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Australia’s Skills Shortage Solution: Understanding the New SID Visa Pathways

On 3 December 2024, the Australian Department of Home Affairs announced a major reform to the skilled migration landscape—introducing the new Skills in Demand Visa (SID Visa), which will replace the current Temporary Skill Shortage (TSS) Visa from 7 December 2024. This change marks a significant shift in Australia’s approach to addressing its evolving labour market needs and enhancing pathways for skilled workers.

The SID Visa, which will retain the existing “482” subclass number, introduces a streamlined three-tiered system, offering clearer, more accessible pathways to permanent residency for skilled professionals.

Key Highlights of the SID Visa:

  1. Specialist Skills Pathway:
    • Targeted at highly skilled professionals, this pathway offers priority processing with no restrictions on the occupation list.
    • Eligible professionals must earn a salary of AU$135,000 or more.
  1. Core Skills Pathway:
    • Available to occupations listed on the new Core Skills Occupation List (CSOL), this pathway requires a minimum salary of AU$73,150.
    • Designed for occupations with identified skills shortages, such as in hospitality, healthcare, IT, engineering, and more.
  1. Essential Skills Pathway:
    • Designed for essential roles earning below AU$73,150.
    • Further details on this pathway are yet to be released, and we expect additional information on this category to be made available shortly.

Key Reforms:

  • Streamlined Labour Market Testing: Employers will benefit from a simplified process for demonstrating that they have made reasonable efforts to hire Australian workers before seeking skilled migrants.
  • Enhanced Mobility and Security for Visa Holders: New provisions will provide greater mobility for skilled workers, while offering improved security in their employment status.
  • Pathways to Permanent Residency: The SID Visa is designed to facilitate smoother transitions for skilled workers to permanent residency, helping to address Australia’s long-term workforce needs.

Alongside the announcement of the SID Visa, the Australian government has released the new Core Skills Occupation List (CSOL), which will apply to both the SID Visa and the Direct Entry stream of the Employer Nomination Scheme Visa (Subclass 186). This new list is expected to provide further clarity on which occupations are in demand across the country.

While the Department of Home Affairs has provided a high-level overview of the changes, further details are expected to be released, including the full requirements for the Essential Skills Pathway, and the specifics of other proposed reforms, such as the National Innovation Visa, which may also take effect on 7 December 2024.

At Mullins Migration, we are closely monitoring these developments and are here to support individuals and businesses navigating these changes. Whether you are looking to tap into the skilled migration system to address workforce needs or explore new opportunities for permanent residency, our team is available to guide you through the process.

If you would like to discuss how these changes may impact your migration goals or workforce planning, please do not hesitate to contact me directly at cchen@mullinslawyers.com.au for a confidential discussion.

“The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.”
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