As featured in the February edition of Club Insight Magazine
The hospitality industry is a cornerstone of Australia’s economy, employing over 900,000 people as of 2023 and contributing 7% of the nation’s total employment. With continued growth in 2024, regional Queensland faces mounting challenges in addressing a growing skills shortage. Businesses must contend with limited local labour availability and rising demand for skilled workers, particularly in roles like chefs and hotel managers. Migration solutions have become a critical strategy for overcoming these challenges and securing the workforce needed for future growth.
On 3 December 2024, the Australian Department of Home Affairs announced the Skills in Demand Visa (SID Visa), a major reform designed to address Australia’s evolving labour market needs. Replacing the Temporary Skill Shortage Visa (TSS Visa) on 7 December 2024, the SID Visa retains the “482” subclass number and introduces a three-tiered system that offers clearer pathways to permanent residency for skilled workers. This article was written on 4 December 2024, ahead of the changes coming into effect, and reflects the information available at the time.
The SID Visa includes three distinct pathways. The Specialist Skills Pathway targets highly skilled professionals, offering priority processing and no occupation list restrictions for roles with salaries of AU$135,000 or more. The Core Skills Pathway applies to occupations listed on the new Core Skills Occupation List (CSOL) and requires a salary threshold of AU$73,150 or more. The Essential Skills Pathway focuses on roles with salaries below AU$73,150, though further details on this pathway are pending. These changes streamline Labour Market Testing and provide enhanced mobility and security for visa holders, with a significant focus on pathways to permanent residency.
For shorter-term staffing solutions, the Working Holiday Visa (Subclass 417) remains a valuable resource. Known as the “backpacker visa,” it enables young travellers to work while exploring Australia. This visa is particularly effective in regional areas where businesses face seasonal staffing challenges. Recent changes allow UK passport holders to extend their stay without undertaking specified work, offering employers greater flexibility to retain staff.
Employers seeking long-term solutions may turn to the Skilled Work Regional Visa (Subclass 491), supported by state or territory governments. Unlike other visas, this option doesn’t require direct employer sponsorship and provides a five-year stay with a pathway to permanent residency. Similarly, the Skilled Employer Sponsored Visa (Subclass 494) allows employers to sponsor workers for up to five years in regional areas, with a pathway to permanent residency via the Subclass 191 visa. These options enable businesses to build a stable and committed workforce.
Employers should also consider how employment structures impact visa eligibility. While casual work is common in hospitality, it often doesn’t count toward the “work experience” requirement for many visas. Offering part-time or full-time contracts empowers visa holders to progress their immigration pathways and safeguards the business’s long-term staffing needs.
Migration solutions not only address immediate staffing challenges but also foster loyalty among workers and secure a sustainable workforce for the future. For regional Queensland, integrating these strategies into recruitment plans is key to overcoming labour shortages and ensuring continued growth in the hospitality sector.
To discuss how migration solutions can support your business, please contact me at cchen@mullinslawyers.com.
