Australia is introducing a major shift in its skilled migration program with the new ‘Skills in Demand’ visa, set to replace the Temporary Skill Shortage (TSS) 482 visa by the end of 2024. Designed to better address labor shortages and streamline migration pathways, this new visa introduces multiple pathways tailored to various skill levels and industry needs.
In this post, we’ll dive into the key differences between the TSS 482 and the Skills in Demand visa, outlining who can benefit from this change and why it matters for anyone looking to work in Australia.
1. Overview of the TSS 482 Visa
The TSS 482 visa was Australia’s go-to solution for employers seeking to fill temporary skill gaps by sponsoring foreign workers. Here’s a quick recap of its features:
- Employer Sponsorship: Applicants need an approved employer sponsor to nominate them for an eligible role.
- Eligibility Requirements: Workers must have relevant skills, qualifications, and experience in occupations listed on the Short-Term or Medium-Term Skilled Occupation Lists.
- Labor Market Testing: Employers are required to advertise roles locally before hiring foreign workers, proving there’s no suitable local talent available.
- Pathway to Permanent Residency: TSS 482 holders in certain occupations may transition to permanent residency after three years, but this varies based on the occupation and employer.
The TSS 482 visa served as a valuable bridge to PR for many skilled workers. However, some applicants faced hurdles due to restrictive occupation lists and lengthy labor market testing requirements, prompting the need for a more flexible alternative.
2. What Is the Skills in Demand Visa?
The Skills in Demand visa is the new answer to Australia’s evolving labor market needs. Aimed at simplifying migration pathways, it has three distinct pathways catering to various skill levels and income brackets:
- Specialist Skills Pathway: For highly skilled professionals earning at least AUD 135,000 per year. Unlike the TSS 482, this pathway does not rely on an occupation list, making it ideal for niche, high-level roles in demand.
- Core Skills Pathway: This pathway is geared towards roles on a new ‘Skills in Demand’ list with a minimum salary threshold of AUD 70,000. It focuses on critical sectors that directly impact Australia’s economy.
- Essential Skills Pathway: Designed for essential, lower-paid roles that are in high demand, such as healthcare support, agriculture, and aged care. Details on this pathway are expected in early 2024.
These pathways offer a more tailored approach to skilled migration, allowing a broader range of skilled professionals to access the Australian job market.
3. Key Differences Between TSS 482 and Skills in Demand Visa
The new Skills in Demand visa introduces several important changes:
- Eligibility Requirements: While the TSS 482 visa required specific skills and experience within designated occupations, the Skills in Demand visa’s Specialist Skills Pathway removes occupation restrictions for high-income earners.
- Occupation List Flexibility: The Specialist Skills Pathway is not limited by occupation lists, and the Core Skills Pathway uses a simplified list of high-demand occupations.
- Salary Thresholds: The Skills in Demand visa imposes minimum salary requirements across each pathway: AUD 135,000 for Specialist Skills and AUD 70,000 for Core Skills. These thresholds aim to align wages with Australian standards.
- Labor Market Testing: Labor market testing requirements are relaxed under the new visa, as employers no longer need to advertise positions on Workforce Australia.
- Employer Flexibility: The new visa allows holders a 180-day grace period to switch employers, a significant increase from the TSS 482’s 60-day period. This added flexibility provides greater security for workers in the event of job changes.
These differences represent a significant shift towards a more adaptable and responsive visa system that meets Australia’s current labor market demands.
4. Pathway to Permanent Residency
One of the biggest attractions of the Skills in Demand visa is the clear, structured pathway to permanent residency offered across all three pathways. While the TSS 482 visa had limited options for transitioning to PR based on occupation, the new visa opens up opportunities for all eligible pathways.
By providing a more predictable route to PR, Australia hopes to attract skilled talent with the potential to contribute long-term. This change is likely to appeal to workers looking for a stable career and permanent settlement options in Australia.
5. Pros and Cons of Each Visa
Here’s a quick summary of the pros and cons of the TSS 482 visa versus the Skills in Demand visa:
TSS 482 Visa Pros
- Widely accessible for a range of occupations.
- Offered some pathways to PR, though limited by occupation.
TSS 482 Visa Cons
- Strict occupation list limitations.
- Lengthy labor market testing requirements.
- Limited flexibility for switching employers (60-day period).
Skills in Demand Visa Pros
- Broader access with no occupation list for high-income roles.
- Streamlined pathways to PR across all streams.
- More flexibility in job changes (180-day period).
Skills in Demand Visa Cons
- Higher minimum salary thresholds may limit access to lower-paid roles (outside the Essential Skills Pathway).
6. Who Should Consider the New Skills in Demand Visa?
The Skills in Demand visa caters to a range of skilled professionals, including:
- Current TSS 482 holders: Those currently on a TSS 482 visa may consider transitioning for added security and more accessible PR options.
- High-income specialists: Professionals in niche, highly skilled fields may benefit from the Specialist Skills Pathway, which bypasses occupation lists.
- Skilled workers in critical roles: Individuals in sectors identified on the Skills in Demand list, especially those meeting the AUD 70,000 salary threshold, have clear PR pathways under the Core Skills Pathway.
- Essential workers: Those in essential roles, including healthcare and aged care, can benefit from the Essential Skills Pathway.
Conclusion
Australia’s new Skills in Demand visa is designed to create a more inclusive and flexible skilled migration system. With streamlined PR pathways and simplified labor market requirements, this visa offers skilled workers worldwide an exciting opportunity to build a career in Australia.
Whether you’re currently on a TSS 482 visa or planning to migrate, the Skills in Demand visa may be your key to a stable, long-term future. With three tailored pathways, it caters to a range of skilled professionals looking to make Australia their home.
Ready to start your journey? Schedule a free consultation with one of our experts today to find the best pathway for you!
