Caveat 14 Explained: What countries are actually covered by the International Trade Obligations?

When the Skills in Demand (Subclass 482) visa replaced the Temporary Skill Shortage (Subclass 482) on 7 December 2024, it was noted that an additional inapplicability provision, Caveat 14, applied to a number of occupations, including the Chef occupation. This appeared to limit these occupations to only persons from a country covered by international trade obligations, in not only the Core Skills stream of the Skills in Demand visa, but also the Direct Entry stream of the Employer Nomination Scheme (Subclass 186) visa.

On 10 December 2024, the Department released clarification that caveat 14 was initially intended to highlight occupations included on the Core Skills Occupation List due to Australia’s commitments under international trade obligations, and it was not intended to restrict the nationality of skilled overseas workers for the purposes of the Chef occupation. The Department also indicated that the legislative instrument will be amended to ensure clarity “as a matter of priority”.

On 14 December 2024, Caveat 14 was removed from the Chef occupation, but continues to apply to a number of occupations when it comes to the Core Skills stream of the Subclass 482 visa and the Direct Entry stream of the Subclass 186 visa.

What does Caveat 14 say and who does it apply to?

Caveat 14 previously briefly applied to the following occupations by operation of law, but were removed from these occupations on 14 December 2024:

• Chief Executive or Managing Director

• Corporate General Manager

• Sales and Marketing Manager

• Advertising Manager

• Corporate Services Manager

• Finance Manager

• Human Resource Manager

• Supply and Distribution Manager

• Chief Information Officer

• Chef

Caveat 14 presently applies to the following occupations in accordance with the Migration (Specification of Occupations—Subclass 482 Visa) Instrument 2024 (“LIN 24/089”):

1. ANZSCO 249299 Private Tutors and Teachers nec

2. ANZSCO 252214 Traditional Chinese Medicine Practitioner

3. ANZSCO 452317 Other Sports Coach or Instructor (Wushu Martial Arts Coach or Yoga Instructor Only)

LIN 24/089 applies to the Core Skills stream of the Skills in Demand (Subclass 482) visa and the Direct Entry stream of the Employer Nomination Scheme (Subclass 186) visa.

This means that when it comes to these three (3) occupations, in order for an Australian business to sponsor an overseas worker for a Skills in Demand (Subclass 482) visa in the Core Skills stream or nominate an overseas worker for a Subclass 186 visa in the Direct Entry stream, the overseas worker must be from a country which has entered into an international trade agreement with Australia, where that occupation is accounted for.

When would an International Trade Obligation apply to a position?

Australia’s international trade obligations are prescribed under the following agreements which they have entered into with another country:

• Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA);

• Australia-Chile Free Trade Agreement (ACl-FTA);

• Australia-United Kingdom Free Trade Agreement (AUKFTA);

• China-Australia Free Trade Agreement (ChAFTA);

• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);

• Free Trade Agreement between Australia and Hong Kong, China (A‑HKFTA);

• General Agreement on Trade in Services at Annex 1B to the Marrakesh Agreement Establishing the World Trade Organization (GATS);

• India-Australia Economic Cooperation and Trade Agreement (IAECTA);

• Indonesia-Australia Comprehensive Economic Partnership Agreement (IA‑CEPA);

• Japan-Australia Economic Partnership Agreement (JAEPA);

• Korea-Australia Free Trade Agreement (KAFTA);

• Malaysia-Australia Free Trade Agreement (MAFTA);

• Pacific Agreement on Closer Economic Relations Plus (PACER Plus);

• Peru-Australia Free Trade Agreement (PAFTA);

• Protocol on Trade in Services to the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA);

• Regional Comprehensive Economic Partnership Agreement (RCEP);

• Singapore-Australia Free Trade Agreement (SAFTA); and

• Thailand-Australia Free Trade Agreement (TAFTA).

There are of course other requirements that affect an overseas worker’s eligibility to be sponsored for a Subclass 482 visa or nominated for a Subclass 186 visa.

Our immigration lawyers at Inclusive Migration have extensive experience in advising prospective migrants to Australia about their employer-sponsored, skilled migration and family migration options in Australia. In particular, we have assisted business sponsors and prospective migrants with navigating employer-sponsored visa changes over the past few years, including the replacement of the previous Temporary Work (Subclass 457) visa with the Temporary Skill Shortage (Subclass 482) visa, which has now been replaced by the Skills in Demand (Subclass 482) visa.

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.