Skills in Demand Visa Launch: What Changed in December 2024
The Skills in Demand (SID) visa replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024, fundamentally restructuring Australia's employer-sponsored temporary work visa system. The most significant change is that all SID streams now include a pathway to permanent residency, unlike the old TSS short-term stream which was a dead end. The SID introduced three streams (Specialist Skills, Core Skills, Labour Agreement), a new occupation list (CSOL), and updated salary thresholds.
From TSS to SID: The Key Differences
The TSS (Temporary Skill Shortage) visa was itself a replacement for the old subclass 457 in 2018. Both used the subclass 482 number, and the SID continues this numbering. But the internal structure changed significantly.
Old TSS Structure:
- Short-term stream: 2-year visa, occupations on STSOL, no PR pathway
- Medium-term stream: 4-year visa, occupations on MLTSSL, PR pathway via 186 TRT after 3 years
- Labour Agreement stream: As negotiated
New SID Structure:
- Specialist Skills stream: 4-year visa, no occupation list (salary-based), PR pathway after 2 years
- Core Skills stream: 4-year visa, occupations on CSOL, PR pathway after 2 years
- Labour Agreement stream: As negotiated, PR pathway included
The elimination of the no-PR short-term stream is the headline change. Tens of thousands of workers who previously had no path to permanent residency now do.
The Three SID Streams Explained
Specialist Skills Stream
This stream is designed for high-income workers and represents a genuinely new approach to skilled migration.
Eligibility:
- Annual salary of $135,000 or above (indexed annually)
- No occupation list requirement — any skilled occupation is potentially eligible
- Standard sponsorship and nomination requirements
- English language proficiency (competent level)
Why it matters: By removing the occupation list requirement for high earners, Australia is acknowledging that skills shortages exist across the economy, not just in occupations that bureaucrats have identified. A highly paid marketing director, finance manager, or creative director can now access employer sponsorship even if their specific role isn't on any occupation list.
The $135,000 threshold: This figure is roughly aligned with the Fair Work high-income threshold and is designed to ensure the stream captures genuinely skilled workers commanding premium salaries, not lower-paid positions that could be filled domestically.
Core Skills Stream
This is the mainstream employer-sponsored pathway, broadly equivalent to the old medium-term TSS stream but with a broader occupation list.
Eligibility:
- Occupation on the Core Skills Occupation List (CSOL)
- Annual salary at or above the Temporary Skilled Migration Income Threshold (TSMIT), currently $73,150
- Positive skills assessment (for some occupations)
- English language proficiency (competent level)
- Standard sponsorship and nomination requirements
The CSOL vs MLTSSL: The Core Skills Occupation List contains over 450 occupations, making it significantly broader than the old MLTSSL. Occupations that were previously only available on the STSOL (with no PR pathway) are now on the CSOL with full PR access.
Labour Agreement Stream
Labour agreements are negotiated between the government and specific employers or industry bodies. They allow employers to sponsor workers in occupations or under conditions that don't fit the standard streams.
Common labour agreement industries:
- Meat processing
- Dairy
- Fishing
- Hospitality (regional)
- Aged care
- Horticulture
Labour agreements can include concessions on English language requirements, salary thresholds, and occupation restrictions that don't apply under standard streams.
The CSOL: Australia's New Occupation List
The Core Skills Occupation List was developed by Jobs and Skills Australia (JSA) using labour market analysis, employer surveys, and economic modelling. It's designed to be more responsive to real-time labour market conditions than the old MLTSSL/STSOL system.
Key features of the CSOL:
- Over 450 occupations at launch
- Covers ANZSCO skill levels 1-3 (managers, professionals, and technicians/trades)
- Reviewed more frequently than the legacy lists
- Occupations assessed based on multiple data sources including job vacancies, employer surveys, and skills gaps analysis
Occupations that gained access: Many occupations that were previously limited to the STSOL (short-term only, no PR) are now on the CSOL with a clear PR pathway. This includes various hospitality, retail management, and service industry occupations that were in high demand but locked out of permanent migration.
Occupations that were excluded: The CSOL doesn't include all occupations on the previous combined lists. Some lower-skill or lower-demand occupations were removed.
For a complete breakdown of the occupation lists, see our skilled occupation list database.
Salary Thresholds Explained
The SID visa uses two salary thresholds that serve as gatekeepers:
TSMIT (Temporary Skilled Migration Income Threshold): $73,150
- Applies to the Core Skills stream
- This is the minimum salary an employer must pay a sponsored worker
- Increased from $53,900 in 2023 to $70,000 in 2023, then further adjusted
- The increase was designed to prevent exploitation and ensure sponsored workers are genuinely skilled
Specialist Skills Threshold: $135,000
- Applies to the Specialist Skills stream
- Opens access regardless of occupation list
- Indexed to the Fair Work high-income threshold
Annual Market Salary Rate (AMSR): In addition to the TSMIT, employers must pay the higher of the TSMIT or the annual market salary rate for the position. This prevents employers from using sponsorship to pay below-market rates.
The PR Pathway: From 3 Years to 2
Under the old TSS medium-term stream, workers needed 3 years of employment with their sponsoring employer before accessing the Temporary Residence Transition (TRT) pathway to the subclass 186 (Employer Nomination Scheme) permanent visa.
The SID reduced this to 2 years. Combined with the visa processing time, this means:
- Old pathway: Apply for TSS (1-4 months processing) → work for 3 years → apply for 186 (6-12 months processing) = approximately 4-5 years to PR
- New pathway: Apply for SID (1-4 months processing) → work for 2 years → apply for 186 (6-12 months processing) = approximately 3-4 years to PR
That's roughly a year faster to permanent residency, a meaningful improvement for workers and their families.
Transitional Arrangements
If you held a TSS visa when the SID launched, transitional provisions applied:
- Existing TSS medium-term holders: Your visa remains valid until it expires. The 2-year TRT qualifying period applies to your 186 application (backdated).
- Existing TSS short-term holders: Your visa remains valid. You may now be able to access the TRT pathway if you meet the new criteria, even though you were originally on the short-term stream.
- Pending TSS applications: Applications lodged before the changeover date were assessed under the old rules, but any visa granted after the changeover operates under the new SID framework.
Impact on Employers
The SID reforms changed the sponsorship equation for employers:
Positives:
- Broader occupation list means more positions can be sponsored
- The Specialist Skills stream removes occupation list barriers entirely for high earners
- The reduced TRT period (2 years) makes sponsorship more attractive to candidates
- The universal PR pathway helps employers attract and retain talent
Challenges:
- The $73,150 TSMIT is higher than the old threshold, increasing labour costs for some positions
- Sponsorship obligations remain significant: employers must pay market rates, provide equivalent working conditions, and cooperate with monitoring
- The Skilling Australians Fund levy ($1,200-$1,800 per year) still applies
What This Means for Applicants
If you're considering employer sponsorship in Australia, the SID reforms are broadly positive:
- More occupations are eligible than under the old system, particularly through the CSOL expansion and the Specialist Skills stream
- Every SID stream leads to PR, eliminating the old dead-end short-term pathway
- The road to PR is shorter at 2 years instead of 3
- Salary thresholds are higher, which protects against exploitation but means you need to command a higher salary
The key requirement remains finding an Australian employer willing to sponsor you. The employer must be an approved sponsor (or become one) and must genuinely need your skills for a position they can't fill locally.
FAQ
Can I switch from the old TSS to the SID? You don't need to switch. If you hold a valid TSS visa, it continues until it expires. When you apply for your next visa, it will be under the SID framework.
Does the SID visa still require labour market testing? Yes. Employers must demonstrate they've made genuine efforts to recruit Australian workers before sponsoring an overseas worker. This typically involves advertising the position on specified platforms for at least 4 weeks.
Can I change employers on the SID visa? You can change employers, but your new employer must apply for a new nomination and you must apply for a new visa. The 2-year TRT qualifying period restarts with the new employer.
What happens if my salary drops below the threshold? Both the employer and the visa holder have obligations. If the salary drops below the TSMIT or AMSR, the sponsorship conditions may be breached, potentially affecting both the employer's sponsorship status and your visa.
