Skills in Demand visa replaces Temporary Skill Shortage (Subclass 482) visa
Against all odds, and despite the Australian Government failing to pass the relevant legislation about the new Skills in Demand visa on the last Senate sitting date in 2024, the Skills in Demand visa replaced the Temporary Skill Shortage (Subclass 482) visa on 7 December 2024.
The Temporary Skill Shortage (Subclass 482) visa program is now closed to new applications, and persons wishing to apply for a Subclass 482 visa will now need to meet the requirements of the new Skills in Demand (Subclass 482) visa program to be granted a Subclass 482 visa.
While the Skills in Demand visa will retain the same subclass as its predecessor, a number of major changes have been made to the Subclass 482 visa program, including:
the Short-term and Medium & Long-term stream being replaced by the Specialist Skills stream and the Core Skills stream;
the work experience requirement being reduced from two (2) years to one (1) year of relevant full-time work experience (or equivalent) in the last five (5) years;
the implementation of the Core Skills Occupation List which will apply to the Core Skills stream (which excludes some of the occupations previously available for the TSS visa while also incorporating additional occupations like Child Care Worker, Beauty Therapist and Wushu Martial Arts Coach or Yoga Instructor); and
the same English language requirement applying to all streams of the Subclass 482 visa (except where English language concessions may apply in the Labour Agreement stream), whereas the English language requirements in the previous Short-term and Medium & Long-term stream of the Temporary Skill Shortage (Subclass 482) visa program were different.
What are the requirements of the new Skills in Demand visa?
Broadly, there are three (3) streams to the new Skills in Demand visa, each with its own set of requirements (in addition to common criteria such as the 1-year work experience requirement, English language, annual market salary rate and health insurance requirements), including the:
Specialist Skills stream
can be for any occupation apart from trades workers, machinery operators and drivers; and
must meet the Specialist Skills Income Threshold which is presently AUD135,00 per annum.
Core Skills stream
can be for any occupation on the Core Skills Occupation List, subject to any caveats for the relevant occupation; and
must meet the Core Skills Income Threshold which is presently AUD73,150 per annum.
Labour Agreement stream
can be for any occupation available in the relevant industry, company-specific or Designated Area Migration Agreements (DAMA) Labour Agreement;
be nominated to work in an occupation specified under the terms of the relevant Labour Agreement;
meet any other requirements as specified under the terms of the relevant Labour Agreement, some of which may contain English language and/or skills concessions (i.e. certain Labour Agreements may require lesser work experience, allow for the substitution of formal qualifications with a certain amount of work experience, and/or have more relaxed English language requirements.
The Labour Agreement stream has been carried over from the previous Temporary Skill Shortage (Subclass 482) visa program and will continue to be in effect at least until the proposed Essential Skills stream takes place, the latter being presently subject to further development.
What are the occupations on the Core Skills Occupation List?
There are presently a total of 456 occupations available on the legislative instrument which outlines the Core Skills Occupation List, which can be accessed at the following link: https://www.legislation.gov.au/F2024L01620/latest/text.
Persons whose nominated occupations are subject to caveats (referred to as ‘Applicable circumstances’ in the relevant legislative instrument) should seek professional advice about their sponsoring employer’s ability to meet these caveats, as the nominated occupation is not available in the prescribed applicable circumstances.
With the flurry of legislative instruments that have been passed on 6 December 2024, all applicants are urged to seek professional advice about the occupations which are available, as well as any caveats they may need to be aware of, prior to the lodgement of any application.
Is there an age limit for the Skills in Demand visa?
While there is no age requirement or age limit for the Skills in Demand visa, Skills in Demand (Subclass 482) visa holders are only able to transition to permanent residence through the Temporary Residence Transition stream of the Employer Nomination Scheme (Subclass 186) visa where they are under 45 years of age at the time of applying for the Subclass 186 visa, with limited exceptions.
How do I transition to permanent residence with the Skills in Demand visa?
Skills in Demand (Subclass 482) visas can be granted for a period of up to four (4) years, depending on the period of employment being requested in the sponsoring employer’s nomination application.
After cumulatively working for one (1) or more sponsoring employers for at least two (2) out of the last three (3) years on their Subclass 482 visa, Skills in Demand (Subclass 482) visa holders can be nominated for permanent residence by the employer who has most recently sponsored them for a Subclass 482 visa through the Temporary Residence Transition stream of the Employer Nomination Scheme (Subclass 186) visa, which is a permanent visa. The ability to use all periods of sponsored employment, with any sponsoring employer to count towards transitioning to permanent residence is a positive development from previous regulatory requirements which required that Temporary Skill Shortage (Subclass 482) visa holders work with the same sponsoring employer on a Subclass 482 visa for at least two (2) out of the last three (3) years, before the same sponsoring employer could then nominate them for a Subclass 186 visa in the Temporary Residence Transition stream.
Further requirements would of course apply at that point, and their eligibility for permanent residence would depend on their ability to demonstrate satisfaction of the relevant regulatory criteria for the Subclass 186 visa, including health and character requirements, as well as being under 45 years of age at the time of application (with limited exceptions).
Note: Different requirements may apply to Skills in Demand visa holders who were granted a Subclass 482 visa in the Labour Agreement stream, in accordance with the terms of the relevant Labour Agreement.
Can I change employers after being sponsored for a Skills in Demand visa?
How will this affect my ability to transition to permanent residence?
From 1 July 2024 onward, all Subclass 482 visa holders (including both Temporary Skill Shortage visa holders and Skills in Demand visa holders) are now able to work in any occupation and for any employer upon the cessation of their employment with their sponsoring employer. They also have up to 180 days at a time (and a maximum of 365 days across their entire Subclass 482 visa period) to find a new sponsoring employer to take over the sponsorship of their Subclass 482 visa.
Notwithstanding this, Skills in Demand (Subclass 482) visa holders now have greater flexibility than Temporary Skill Shortage (Subclass 482) visa holders when it comes to changing employers and transitioning to permanent residence through the Temporary Residence Transition stream of the Subclass 186 visa, since time spent cumulatively working for one (1) or more sponsoring employer (i.e. any sponsoring employer(s)) will count towards the requirement to have worked for a sponsoring employer on your Subclass 482 visa for at least two (2) out of the last three (3) years.
On the other hand, is important to note that only time spent working on a Subclass 482 visa for a sponsoring employer will count towards the requisite period of time for Subclass 186 visa (Temporary Residence Transition stream) purposes. This means that if you change employers as a Subclass 482 visa holder, your new employer must lodge a new nomination application to take over the sponsorship of your Subclass 482 visa, and that only time spent working for a new employer after the approval of the associated nomination application will count towards the requisite period of time for transitioning to permanent residence through the Temporary Residence Transition stream of the Subclass 186 visa.
Additionally, failure to find a new sponsoring employer to take over the sponsorship of your Subclass 482 visa within 180 days of ending your employment with your previous sponsoring employer, or spending more than 365 days across the entire Subclass 482 visa period without a sponsoring employer, would be a breach of Condition 8607 which applies to all Subclass 482 visas. Breach of Condition 8607 may lead to the cancellation of your Subclass 482 visa.
I hold a Temporary Skill Shortage (Subclass 482) visa.
How does the new Skills in Demand visa affect my ability to transition to permanent residency?
Can I change employers on my Temporary Skill Shortage (Subclass 482) visa?
Temporary Skill Shortage (Subclass 482) visa holders will generally still be able to transition to permanent residence through the Temporary Residence Transition stream of the Subclass 186 visa, subject to them working for their sponsoring employer for at least two (2) out of the last three (3) years and being nominated by the same employer for a Subclass 186 visa, amongst other requirements. This applies even where the nominated occupation in which their Temporary Skill Shortage (Subclass 482) visa did not make it to the Core Skills Occupation List.
As outlined above, Temporary Skill Shortage (Subclass 482) visa holders are now able to work in any occupation and for any employer upon the cessation of their employment with their sponsoring employer. They also have up to 180 days at a time (and a maximum of 365 days across their entire Subclass 482 visa period) to find a new sponsoring employer to take over the sponsorship of their Subclass 482 visa. On the other hand, Temporary Skill Shortage (Subclass 482) visa holders whose nominated occupations are not on the Core Skills Occupation List are encouraged to seek professional advice about their options, prior to leaving their sponsoring employer and/or attempting to change employers. This is because existing Subclass 482 visa holders whose occupations are not on the Core Skills Occupation List do not have a pathway to changing sponsoring employers in the Core Skills stream, and risk losing their pathway to permanent residence if they are not otherwise eligible for sponsorship in the Specialist Skills stream or Labour Agreement stream of the Skills in Demand visa.
Simply put, if you are a Subclass 482 visa holder who would not be eligible for sponsorship in the Specialist Skills stream, Core Skills stream or Labour Agreement stream of the new Skills in Demand visa, your only pathway to permanent residence through your Subclass 482 visa would be to remain with your sponsoring employer for at least two (2) years and then be nominated by the same employer for an Employer Nomination Scheme (Subclass 186) visa in the Temporary Residence Transition stream. This is a deliberate and intended consequence of the Australian Government’s commitment ensuring that the temporary skilled migration system is best targeted at occupations in current demand, which we find to be a step backwards when it comes to preventing the exploitation of overseas workers in Australia.
Persons whose nominated occupations are otherwise available for the Skilled Independent (Subclass 189) visa and the Skilled Nominated (Subclass 190) visa may otherwise also have direct access to permanent residence through Australia’s General Skilled Migration programs, subject to them having at least 65 points as per Schedule 6D of the Migration Regulations 1994 (Cth) and being under 45 years of age at the time of invitation, amongst other requirements.
Instead of having to transition to permanent residence through the Skills in Demand visa, do I have a direct pathway to permanent residency?
From 7 December 2024 onward, the Core Skills Occupation List now not only applies to the Core Skills stream of the Skills in Demand visa, but will also apply to the Direct Entry stream of the Employer Nomination Scheme (Subclass 186) visa. In this regard, the Direct Entry stream of the Subclass 186 visa was previously only available to persons whose occupations were on the Medium and Long-term Strategic Skills list, and not the Short-term Skilled Occupation List. Many occupations which were previously on the Short-term Skilled Occupation List are now on the Core Skills Occupation List.
This means that instead of having to first apply for a Skills in Demand visa and then work on a Subclass 482 visa for a sponsoring employer for at least two (2) years before being able to apply for permanent residence, persons whose nominated occupations are available on the Core Skills Occupation List may be actually have direct access to permanent residence through the Direct Entry stream of the Employer Nomination Scheme (Subclass 186) visa, subject to their satisfaction of regulatory requirements such as:
having at least three (3) years of full-time work experience;
having a positive skills assessment in the nominated occupation;
having at least competent English with limited exceptions;
being under 45 years of age at the time of application (with limited exceptions).
Further requirements such as health and character requirements would of course also apply.
We consider this a positive change which now provides more persons with direct access to permanent residence through both the Temporary Residence Transition stream and the Direct Entry stream of the Subclass 186 visa.
Persons whose nominated occupations are otherwise available for the Skilled Independent (Subclass 189) visa and the Skilled Nominated (Subclass 190) visa may otherwise also have a direct pathway to permanent residence through Australia’s General Skilled Migration programs, subject to them having at least 65 points as per Schedule 6D of the Migration Regulations 1994 (Cth) and being under 45 years of age at the time of invitation, amongst other requirements.
My occupation is not on the Core Skills Occupation List - what are my options?
A number of occupations which were previously available for the Temporary Skill Shortage (Subclass 482) visa have unfortunately not made their way into the new Core Skills Occupation List. Persons whose occupations are not on the Core Skills Occupation List would not be eligible for a Skills in Demand visa in the Core Skills stream, but may still be eligible to be sponsored for a Skills in Demand visa in the Specialist Skills stream or the Labour Agreement stream.
Persons whose nominated occupations are otherwise available for the Skilled Independent (Subclass 189) visa, the Skilled Nominated (Subclass 190) visa or the Skilled Work (Provisional) (Subclass 491) visa may otherwise also have either direct access or a pathway to permanent residence through Australia’s General Skilled Migration programs, subject to them having at least 65 points as per Schedule 6D of the Migration Regulations 1994 (Cth) and being under 45 years of age at the time of invitation, amongst other requirements.
Where do I find help with getting a Skills in Demand (Subclass 482) 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.
