Upcoming Changes to Employer Sponsored Temporary Skill Shortage Visa

In December 2023, the Australian Government unveiled their planned changes to various visa programs. The document in question, titled ‘Migration Strategy’, proposed a wide array of changes to various visas, including the subclass 482 (temporary skill shortage) visa.

Skills in Demand Visa

The current plan is for subclass 482 visa to be replaced by a new ‘Skills in Demand Visa’, which will feature the following changes:

• clearer and guaranteed path to permanent residence;
  There is limited detail as to the form this will take, and whether it will interact with existing permanent residence programs or take the form of a new permanent residence program.

• more time to seek out further employment;
  Under the current subclass 482 visa program, should a visa holder lose their job, they only have 60 days to seek an alternative sponsor. The new program will provide 180 days for visa holders to find another sponsor.

• alternative fees for nominating entities;
  Under the current subclass 482 visa, nominating entities are required to pay, upfront, the Skilling Australia Fund levy of up to $7,200 per application. The strategy does not specify whether this will change but notes the “government will explore” options such as charging a trailing fee.

• faster processing times; and
  The Government will establish a median service standard of between 7 to 21 days for the various pathways.

• public register of nominating entities.

  A public register of approved sponsors will be developed to assist migrants wishing to find a new sponsor.

Three Pathways

The proposed ‘Skills in Demand’ visa has, at this stage, two major pathways outlined in detail and one to be further anounced. These are the following: 

• Specialist Skills Pathway

  Aimed at ‘highly skilled specialists’ – generally this would be non-tradies earning more than $135,000 per annum. Eligible migrants will be more fluid than having been defined by reference to a strict list of occupations, and generally will aim to fill the areas of greatest needs.

• Core Skills Pathway

  Aimed at ‘general skills’ needed in Australia, which are to be defined by reference to a Core Skills Occupation List (CSOL). This can be any profession, and must be earning above TSMIT (which is currently set at $70,000 and to be changed to $73,150 from 1 July 2024).

• Essential Skills Pathway

  Aimed at replacing the existing Labour Agreement stream in the Subclass 482 Visa. There is not much detail provided as to its content, however it has been proposed to suit lower paid workers with essentially skills. The details of this pathway is to be further developed in consultation with industry groups.

Changes to Occupations Available to Nominating Entities

In line with the proposed Skills in Demand Visa program, the Core Skills Pathway will be available to occupations included on the CSOL. The CSOL has not yet been finalised, and is presently being developed by Jobs and Skills Australia, whom have made the most recent draft available here.

The draft list is split into three categories:

• Confident On List;

• Confident Off List; and

• Targeted for Consultation List.

At this stage, the first and second lists are, at time of writing, likely to be near their final forms. The third list is a selection of roles that may fall into either list, depending on submissions from various industry bodies. Notable occupations in this final list which are currently being discussed include:

• Corporate general manager;

• Supply and distribution manager;

• Accountant;

• Auditors;

• Sales Representatives;

• Electronics Engineer;

• Engineering Technologist;

• Baker;

• Chef; and

• Cook.

In general, we note that any items in this third list may fall into either ‘Confidence On’ or ‘Confidence Off’ list which is likely to be implemented by the end of this year. The new visa program together with the new CSOL is likely to have significant impact on many employers and employees. We will keep you updated in relation to any future developments.  

Should you require assistance and practical guidance in relation to your work right attached to your Australian visas or to further understand your potential visa pathway, please feel free to reach out to our team.