An immigration lawyer’s hopes for the upcoming Skills in Demand visa

I am a migration lawyer who has been practising immigration law way back when the current Temporary Skill Shortage (Subclass 482) visa’s predecessor, the old Temporary Work (Skilled) (Subclass 457) visa was in place, and here are some of the employer-sponsored visa changes which have occurred between 2018 and present, from -

• the abolishment of the Subclass 457 visa in March 2018 which had previously allowed Subclass 457 visa holders under 50 years of age to transition to permanent residence through the Employer Nomination Scheme (Subclass 186) visa

• the implementation of the current Temporary Skill Shortage (Subclass 482) visa which now allowed Subclass 482 visa holders under 45 years of age (with limited exceptions) in the medium to long-term stream to transition to permanent residence through the Employer Nomination Scheme (Subclass 186), including key differences to the Subclass 457 visa program such as:

  • the introduction of two (2) separate streams (short-term stream and medium to long-term stream) which their own occupation lists, namely the Short-term Skilled Occupation List (STSOL) and the Medium and Long-term Strategic Skills List (MLTSSL)

  • initially only Subclass 482 visa holders with an occupation on the Medium and Long-term Strategic Skills List (MLTSSL) being eligible to transition to permanent residence through the Temporary Residence Transition stream of the Employer Nomination Scheme (Subclass 186)

  • the inability to link a new nomination application to a previous visa application

  • the requirement for all visa applicants to now provide a police certificate from all countries in which they have spent a cumulative 12 months or more over the last 10 years (or since they turned 16 years of age, whichever more recent

  • Subclass 482 visa applicants in the short-term stream having to satisfy the genuine temporary entrant requirement

  • Subclass 482 visa holders in the short-term stream initially prohibited from lodging more than two (2) 2 consecutive Subclass 482 visa applications onshore (i.e. they would have to travel offshore to lodge a 3rd Subclass 482 visa application)

  • the requirement for business sponsors to now pay a Skilling Australians Fund levy calculated based on their annual turnover and the number of years they are sponsoring a Subclass 482 visa holder for, as opposed to demonstrating compliance with training obligations of their Australian citizen and permanent resident employees

• the Subclass 482 visa program’s various changes throughout the year, including:

  • the expansion of the permanent residence pathway to Subclass 482 visa holders in the short-term stream in 2023 (whereas this was previously only available to Subclass 482 visa holders in the medium to long-term stream)

  • the increase of the Temporary Skilled Migration Income Threshold (TSMIT) from AUD53,900 to AUD70,000 in July 2023 and then again to AUD73,150 in July 2024

  • the concessions that were introduced to Subclass 482 visa holders applying for permanent residence through the Temporary Residence Transition stream of the Employer Nomination Scheme (Subclass 186) visa during the Coronavirus (COVID-19) pandemic

to -

• to the imminent upcoming replacement of the current Subclass 482 visa program with a new Skills in Demand visa by the end of 2024.

Having seen the practical effects of these changes and how they have affected not just sponsored employees, but also the Australian businesses who need to sponsor overseas workers to fill skills and labour shortages within their Australian business operations, these are the positive changes I hope to be seeing when the new Skills in Demand visa comes into effect:

1. The reduction of the work experience requirement from two (2) years to one (1) year, which was first promised by the Australian Government in its 2024-25 Federal Budget papers in relation to the current Subclass 482 visa program, and also confirmed to likely be applying to the new Skills in Demand visa by a representative of the Department of Home Affairs on 1 November 2024;

2. The removal of the genuine temporary entrant criteria which presently applies to the Subclass 482 visa program’s short-term stream;

3. The removal of skills assessment requirements which presently apply to certain occupations such as specified trade occupations;

4. Access to a pathway to permanent residence for all Skills in Demand visa holders (regardless of whether they are applying in the Specialist Skills Pathway, Core Skills Pathway or Essential Skills/ Labour Agreement Pathway) and faster processing times for Skills in Demand visa holders who eventually apply to transition for permanent residence;

5. A visa validity period of four (4) years for all Skills in Demand visa holders (regardless of whether they are applying in the Specialist Skills Pathway, Core Skills Pathway or Essential Skills/ Labour Agreement Pathway) where Subclass 482 visa applicants in the short-term stream are presently only eligible for a 2-year visa (with limited exceptions), which can make it challenging for them to apply for permanent residence within the validity of their first Subclass 482 visa where they cannot immediately commence working upon the grant of their visa (since they can only be nominated for permanent residence after working for their sponsoring employer on a Subclass 482 visa for at least 2 years);

6. The ability to accumulatively accrue work experience for multiple employers on a Skills in Demand Visa to transition to permanent residence (as opposed to Subclass 482 visa holders having to work for one sponsoring employer for at least 2 years before being nominated by the same sponsoring employer for permanent residence, with the clock restarting every time they change sponsoring employers), which was promised when the Australian Government first announced the upcoming Skills in Demand visa in December 2023;

7. All secondary visa applicants being granted a Skills in Demand visa with the same validity period as the primary Skills in Demand visa applicant, whereas accompanying dependent children included in current Subclass 482 visa applications and who turn 23 years of age during the validity of the primary Subclass 482 visa holder’s visa are presently only eligible for the grant of a Subclass 482 visa up until the day before they turn 23 years of age.

8. Business sponsors being able to pay a pro-rata-ed or reduced portion of the Skilling Australians Fund levy where they are taking over the sponsorship of a Subclass 482 visa holder or Skills in Demand holder from a former business sponsor who has already paid the Skilling Australians Fund (SAF) levy for the sponsored visa holder’s current visa validity period, and former business sponsors having more flexibility with recovering the SAF levy (or a portion thereof) which they paid for the sponsored visa holder’s current visa validity period where the sponsored visa holder leaves the business sponsor’s employ. Refunds of the SAF levy are presently only available in limited circumstances, including where the sponsored visa holder leaves the sponsoring employer within the first 12 months of employment where the visa period was for more than 12 months. In this regard, the Department of Home Affairs is reportedly considering a new system which allows for a yearly payment of the SAF levy, which may help resolve these issues and/or reduce the financial burden on business sponsors.

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Should you wish to discuss your eligibility for migration to Australia through employer-sponsored and/or general skilled migration pathways, please email info@inclusivemigration.com.au or submit an enquiry using the contact form on our website.