New Skills in Demand Visa: Clear Pathways to Permanent Residency

Australia aims to improve the Australia’s migration system to provide more job opportunities to all the aspiring migrant skilled worker who wish to build a working career in Australia while meeting the demand of labour market needs. Therefore, there is a new commitment on Migration Strategy – Action Plan that is primarily designed to address skills needs and promote worker mobility.

The ‘New Skills in Demand’ will replace the Temporary Skill Shortage (subclass 482) Visa with a new three-tiered system of visa pathways. The indicative time frame for the implementation of the new Skills in Demand Visa is in late 2024.

New three-tiered system of visa:

1.   Specialist Skills Pathway

2.   Core Skills Pathway

3.   Essential Skills Pathway

New Skills in Demand visa highlights:

• 4 years visa validity.

• Full mobility practice for all migrant skilled workers.

• Provides faster and clear pathways to permanent residency.

• Develop a Specialist Skills Pathway to drive innovation and job creation.

• Develop a Core Skills Pathway to meet targeted workforce needs.

• Allows workers to change employers more easily.

• Explores a new payment model in collecting Skilling Australians Fund in recognition of the greater freedom of visa holders to change employers. 

• Take a coordinated, evidence-based, tripartite approach to identifying skills needs.

Specialist Skills Pathway	Core Skills Pathway	Essential Skills Pathway
Occupations earning over $135,000 per year  Processing turnaround of 7 days There will be 3,000 places allocated per year No occupational list Excluded occupations: Trade occupations Machinery operators Drivers Labourers.	Occupations earning $70,000- $135,000 per year. Trades workers will be required to apply under this visa based on a revised 'skills in demand list' developed by Jobs and Skills Australia.	Occupations earning under $70,000 per year. The details of the essential skills visa pathway are yet to be finally determined. This visa will involve union oversight, be capped and be restricted to specific sectors.  To date the aged care and disability sectors have been mentioned.

In addition, the new visa migration strategy will establish a best practice service level agreement for processing times and a modernized accreditation pathway to better compete for talent. This measure will be implemented by mid to late 2024.

Skilling Australians Fund

The Skilling Australians Fund contributes to improved employment outcomes by supporting Australians to obtain the skills and training they need and increasing the uptake of apprenticeships and traineeships, pre-apprenticeships, pre-traineeships, higher-apprenticeships, and other relevant employment related training.

The Skilling Australians Fund levy is paid by the employers who sponsored migrant skilled workers. The application cost depends on the business turnover, and in some subclasses, the proposed period of stay of the employee. The levy payments are tax deductible. The Department of Home Affairs calculate the required SAF levy amount which is payable in full at the time of lodging a nomination application using information provided in the online nomination application.

As part of the measures in migration strategy, consideration will be given to collecting the SAF in smaller increments over time in recognition of the greater freedom of visa holders to change employers.  A monthly or quarterly payment model will be explored.

Labour Market Testing

From 11 December 2023, it is no longer a requirement to advertise on the Government employment service Workforce Australia. This means employers must now conduct two valid advertisements, instead of three. Evidence of a total of 2 advertisements must be provided at the time the nomination is lodged.

Requirements for on hand nominations and nominations lodged on or after 11 December 2023:

• When sponsors nominate an applicant, they must provide a copy of the advertising material used to advertise the position (that is, copies of all advertisements that meet the advertising requirements).

• For most nominations, the position must have been advertised for at least four weeks within the four-month period immediately prior to lodging the nomination application.

• If an Australian citizen or permanent resident worker has been made redundant or retrenched from the nominated occupation within 4 months before lodging the nomination application, the advertising must have occurred since the date of the redundancy or retrenchment.

Advertising of the nominated position requirements:

• the advertisement was in Australia, in English and included the following information:

  • position title or description; multiple positions in one advertisement is acceptable

  • skills or experience required for the position

  • name of the approved sponsor or the name of the recruitment agency being used by the sponsor

  • the salary for the position - if the annual earnings for the position are lower than AUD96,400; it is acceptable to publish a salary range (for example, AUD80,000 to AUD90,000).

• at least 2 advertisements were published in any of the below:

  • on a prominent or professional recruitment website with national reach that publishes advertisements for positions throughout Australia

    • industry specific recruitment websites relevant to the occupation that are in significant use by the industry are an acceptable method of LMT advertising

    • a general classifieds website or an advertisement solely through social media notification (such as Twitter or Instagram) are not acceptable methods. LinkedIn's online recruitment platform is acceptable for LMT purposes. Job vacancies restricted to LinkedIn profile members only are not acceptable for LMT purposes.

  • in national print media (newspapers or magazines with national reach that are published at least monthly and marketed throughout Australia)

  • on national radio with national reach

  • on the business' website if the sponsor is an accredited sponsor.

  • advertisements, including on websites, are expected to have run for at least 4 weeks

  • applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks.

Moreover, LMT will be gradually phased out as Jobs and Skills Australia data on skills shortages improves and a Core Skilled Occupation List created as an alternative to LMT.

Note: The indicative time frame for the implementation of 4-6 months validity of advertising period will announce in late 2024.

This new migration strategy plan in Skills in Demand Visa introduces several significant changes for temporary skilled migrant workers. The visas will be granted for up to 4 years and visa holders will be able to change employers more easily and provide clear pathways to permanent residency. It also demonstrates that nominating process will be more organised using the three-tiered system pathways which will be evidence-based that will give an equal and fair opportunity to every migrant skilled worker. This over all measures promote a ‘triple-win’ for workers, business, and country to have a better work environment.

---

For more information, contact our team and book a consult via consulting@xmmigration.com.au

Follow us on Instagram and Facebook for more updates.