As we announced early last year the Department has confirmed that the current TSS program will be replaced with a three tier Skills in Demand Visa in 2024.

Three Tiered System

The Skills in Demand Visa consists of three distinct pathways based on annual earnings and occupation:

Tier 1 – Specialist Skills Pathway:

•    Aimed at high-income earners, with a minimum annual earning threshold of $135,000.
•    This tier does not have a specific occupation list but excludes trades workers, machine operators, drivers, and laborers.
•    Offers visa processing times of approximately 7 days.

Tier 2 – Core Skills Pathway:

•    Designed for individuals earning at least $70,000 annually.
•    Focuses on occupations listed on a regularly updated Core Skills Occupation list managed by Jobs and Skills Australia.
•    Processing of application to be completed within 21 days.

Tier 3 – Essential Skills Pathway:

•    Targets occupations earning under $70,000 per year, focusing on essential skill sectors.
•    This pathway is currently under assessment by the government and is expected to be more regulated and sector-specific.  This pathway will involve union consultation by employers prior to applying.

Notable Features Across All Pathways

•    Visa Duration: All three pathways offer up to a 4-year visa stay.
•    Employer Flexibility: Visa holders can change employers more easily with visa holders given 180 days to find a new employer should their sponsorship end.
•    Pathways to Permanent Residency: Clear routes to permanent residency with PR being independent of employers similar to the 191 visa program.  Employees are able to use time worked across employers to eventually apply for permanent resident.
•    Indexation of Earnings Threshold: The salary thresholds for the Specialist and Core Skills Pathways will be indexed annually.
•    Labour Market Testing (LMT): LMT will streamlined, with gradual phasing out.

Specialist Skills Pathway

This pathway is top-tier professionals. It is designed to rapid intergration in to the Australian workforce. With no specific occupation list, it caters to a diverse range of professionals.

Core Skills Pathway

The Core Skills Pathway is expected to accommodate the majority of skilled migrants. It will continue to focus on a skilled occupation list.

Essential Skills Pathway

The Essential Skills Pathway will cater to lower paid but crucial occupations in sectors like aged care and disability.  It is expected the employers will be required to consult with union and stakeholders prior to applying for this visa.

Further Reforms

Skilling Australians Fund (SAF): modifications allowing for smaller and more frequent payments.

Conclusion

Whilst the Core Skills Pathway continues to focus on a defined skills list the program with fail to meet the requirements of many employers struggling in the current labour market.  

With visa holders given 180 days to find a new sponsor any employer initially sponsoring visa applicants could find themselves at a loss financially if the applicant decides to move to another position.  Whilst I understand the reasoning, in that greater mobility for applicants means less exploitation, employers who meet their obligations may nevertheless find themselves with a considerable financial loss.  

The program is the be slowly phased in over 2024 with the specialist pathway occurring first and so on down the three tiers.  Core and Essential pathway applications are not expected to be available until late 2024.

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