Skills In Demand Visa

The Skills in Demand Visa is a pathway designed to attract skilled migrants to fill workforce shortages and drive economic growth in Australia.

This visa program offers targeted streams tailored to specific skill levels and occupations, ensuring Australia remains competitive in the global talent market while addressing immediate and future labor needs.

Skills In Demand will effectively replace the 482 Visa program by the end of 2024. Currently it has not been assigned a subclass identifier.

Background

The Migration Amendment (Strengthening Sponsorship and Nomination Processes) Bill 2024 was introduced in the House of Representatives on July 4, 2024, and the second reading debate commenced on August 13, 2024.

The purpose of the bill was to amend the Migration Act 1958 to make changes for sponsored and skilled visas, namely to:

1. Establish income threshold requirements for certain temporary visas.
2. Introduce indexation for specified income thresholds.
3. Adjust the validity period for labour market testing.
4. Enable the publication of a register listing approved work sponsors for nominated skilled temporary workers.

Since 2018, the visa for temporary skilled workers has been the Temporary Skill Shortage visa (subclass 482), which replaced the 457 visa. 

The program would integrate with existing initiatives, such as the Aged Care Industry Labour Agreement and the Pacific Australia Labour Mobility (PALM) scheme.

In addition, the government has introduced various measures in this critical area through legislation, including the Migration Amendment (Strengthening Employer Compliance) Act 2024, which amended the Migration Act to:

• Establish criminal offences and deterrence measures targeting employers who coerce temporary migrant workers into breaching their visa conditions.
• Implement reforms aimed at reducing disincentives for temporary migrant workers to report exploitation.

Most recently, the government announced a pilot for a Workplace Justice visa (subclass 408), which was developed in collaboration with stakeholder groups, including a coalition led by the Human Rights Law Centre and the Migrant Justice Institute. 

Skills In Demand Streams

The Skills in Demand visa program currently includes three pathways:

1. Specialist Skills Pathway: This stream focuses on attracting highly skilled professionals to drive innovation and create jobs. It is open to individuals earning over $135,000 annually, targeting occupations outside of trades, machinery operation, driving, and general labor roles.
   
2. Core Skills Pathway: This pathway addresses critical workforce shortages by targeting migrants in occupations identified on a new Core Skills Occupation List. Eligible applicants must earn at least the Temporary Skilled Migration Income Threshold (TSMIT) and meet or exceed the market salary rate for their role.
   
3. Essential Skills Pathway: Designed for lower-paid workers with critical skills, this stream emphasizes roles within the care and support sectors, offering a more structured and regulated pathway for essential workers.
   

Specialist Skills Pathway

The Specialist Skills Pathway is designed for highly skilled migrants earning at least $135,000 annually, excluding trades workers, machinery operators, drivers, and laborers. These migrants must meet general visa eligibility criteria and are recognized for their ability to bring significant economic benefits, including enhanced productivity, local job creation, and fiscal returns through taxation. 

This pathway addresses firm-level labor needs by attracting talent with specialized skills, niche technologies, and expertise unavailable domestically. With a service standard of a 7-day median visa processing time, the program aims to position Australia as a competitive destination in the global talent race.

 Although this pathway is expected to remain a modest part of the skilled migration program, it is projected to contribute $3.4 billion to the cash balance over 10 years while maintaining stringent integrity measures to ensure genuine demand for specialized skills.

Core Skills Pathway

The Core Skills Pathway under the Skills in Demand visa program is the primary stream for addressing Australia’s immediate and future workforce needs, targeting occupations identified as in shortage by Jobs and Skills Australia or committed under trade agreements. 

Eligible applicants must meet general visa criteria, hold a position on the new Core Skills Occupation List, and earn a salary at or above the Temporary Skilled Migration Income Threshold (TSMIT) or the relevant market rate if higher. 

Unlike the Specialist Skills Pathway, this stream also includes trades workers, machinery operators, drivers, and laborers, provided they meet the eligibility and salary requirements.

Essential Skills Pathway

The Government is exploring the development of the Essential Skills Pathway, a regulated visa stream for lower-paid workers with essential skills, focusing primarily on the care and support economy. 

This pathway aims to address persistent labor shortages in vital sectors where wage improvements have not been sufficient. Lessons from the Aged Care Industry Labour Agreement and the PALM scheme, which provide for thousands of aged care workers, will inform its design through consultation with unions, businesses, and migrant workers. 

The pathway will feature stronger regulations, sector-specific caps, and minimum standards, with advice from Jobs and Skills Australia shaping its framework. 

The Government will also review and rewrite labor agreement guidelines to enhance worker protections and consider enshrining these in legislation.

Labour Market Testing

Under the Skills in Demand Visa the length of time labour market (LMT) testing for a position remains will have an extended validity period from from 4 months to 6 months. 

Indexation of Income Thresholds

The indexation of income thresholds in the Skills in Demand visa program ensures that income requirements, such as the Temporary Skilled Migration Income Threshold (TSMIT) and the Specialist Skills Threshold, remain aligned with wage growth and inflation over time. Here’s how it works:

1. Annual Adjustments: The income thresholds are updated annually to reflect changes in the Australian labor market, ensuring that they stay consistent with the broader economic environment and avoid becoming outdated.
2. Alignment with Wage Growth: The adjustments are typically based on national wage growth metrics, such as the Wage Price Index (WPI), ensuring the thresholds increase proportionally to overall salary trends in Australia.

Register of approved work sponsors

The Register of Approved Work Sponsors is a public listing maintained as part of the Skills in Demand visa framework to enhance transparency and integrity in the skilled migration program. Here’s how it works:

1. Public Access: The register provides a publicly accessible list of employers approved to sponsor skilled migrants under temporary and permanent visa programs. This ensures visibility into which employers meet the government’s sponsorship requirements.
2. Eligibility and Compliance: Employers must meet strict criteria to be approved as sponsors, including demonstrating a genuine need for skilled workers, adherence to labor laws, and compliance with visa conditions. Employers on the register are regularly monitored to ensure ongoing compliance.
3. Facilitating Connections: The register serves as a resource for prospective visa applicants, allowing them to identify legitimate employers actively seeking skilled workers in their occupation.

According to the Bill’s Explanatory Memorandum, the proposed section aims to “promote transparency, monitoring, and oversight” while assisting temporary workers in finding legitimate sponsors when they wish to change employers.

Skilling Australians Fund (SAF)

The Skilling Australians Fund (SAF) under the Skills in Demand visa framework will function similarly to its role in the existing Temporary Skill Shortage (TSS) 482 visa program, but with key distinctions reflecting the new system’s focus and priorities. 

The possibility of collecting SAF contributions in smaller increments over time is being considered to account for the increased flexibility visa holders have to change employers. A monthly or quarterly payment model is under review.