There is no denying that skills shortages continue to exist across Australia, with employers still reeling from the after-effects of the Covid-19 pandemic.
With a tightened economy and Government focus on specific industry sectors, however, migration has again come under the spotlight, giving rise to changes within the skilled employer sponsored sector.
Background to the 482 programme
Introduced in March 2018 to replace the subclass 475 visa, the subclass 482 Temporary Skills Shortage visa allowed employers to bring skilled workers from overseas to Australia to address labour shortages.
The 482 programme introduced new concepts and continued others, including:
- The concept of occupational streams: Short term Skilled Occupation List (STSOL) and Medium and Long Term Skills Shortage List (MLTSSL). Occupations on the STSOL gave rise to a two-year visa and the MLTSSL to a four-year visa.
- MLTSSL occupations had a pathway to permanent residence after the visa holder had worked for three years on the 482 visa for the same employer in the same position
- National labour market testing was required to show that no Australians were available for the position before an employer submitted a nomination
- The Annual Market Salary Rate (AMSR) and Temporary Skilled Migration Income Threshold (TSMIT) ensured that sponsored workers were not being paid less than Australians and that the salary would be indicative of the skill level of the role.
Previous updates to the 482 programme
In November 2023, two exciting changes were introduced to the 482 programme, opening up a more straightforward pathway for sponsored 482 visa holders to move to permanent residence:
- Regardless of whether a person was sponsored for a 482 visa for an occupation on the MLTSSL or STSOL, all 482 visa holders had the opportunity to transition to permanent residence through the Employer Nomination Transitional pathway and gain a sub-class 186 visa;
- The entry requirement to make that transition was reduced from three to two years.
Over the past year, therefore, thousands of 482 visa holders with previously ineligible occupations such as Marketing Specialist, Cook, Fashion Designer, and Restaurant Manager have been able to complete two years’ employment for their sponsor and be nominated for the permanent Employer Nomination visa.
In 2024, additional changes were made to improve circumstances for sponsored workers who cease working for their employer. Prior to the change, visa holders had 60 days from cessation of employment with their sponsor to be nominated by a new employer, obtain a new visa, or depart Australia.
Under the change, 482 visa holders may now cease working for their employer for up to 180 days at a stretch or up to 365 days over the totality of their visa. During that period, they may work for any employer.
These changes paved the way for introducing the promised ‘Skills in Demand’ visa.
Skills in Demand changes from 7 December 2024
On 11 December 2023, the Australian Government released its Migration Strategy, which outlined a policy roadmap for reforming Australia’s migration system. One prominent feature of the Migration Strategy was the Government’s commitment to implementing a new “Skills in Demand” visa that would address the nation’s skills needs and provide skilled migrant workers with increased worker mobility and clear pathways to permanent residence.
As of 7 December 2024, the new subclass 482 (Skills in Demand) visa has taken effect.
Significant changes include:
- Introduction of two visa streams: Core Skills and Specialist Skills
- Nominations in the Core Skills stream must meet the TSMIT – currently $73 150 – and the occupation must be on the Core Skills Occupation List (CSOL).
- Nominations in the Specialist Skills stream must have a minimum salary of $135 000, and the occupation can be any occupation within Major Groups 1, 2, 4, 5, and 6 of the ANZSCO.
- Nominated positions must have a significant majority of the tasks listed in the ANZSCO.
- Nominees must have the qualifications and/or experience commensurate with those listed in ANZSCO.
- Changed employment is required for entry to the visa. Applicants must have had at least 12 months’ full-time equivalent employment in the nominated occupation or a related field within the 5 years preceding the visa application.
- Parallel English requirements across all streams, including test scores of:
- IELTS overall 5 and at least 5 on each test factor
- PTE overall 36 and at least 36 on each test factor
- CAE overall 154 and at least 154 on each test factor
- TOEFL listening and reading minimum 45, speaking and writing minimum 145
- 482 visa holders may count employment with more than one employer towards the two years required to be nominated for the Employer Nomination Transitional stream visa by their most recent 482 sponsor.
- Sponsorship obligations end once a nominee has ceased employment with the sponsor.
The changes apply to all nomination and visa applications submitted from 7 December 2024 onwards.
Losers
Whilst most of the above changes appear positive, there are some ‘losers’.
Existing 482 visa holders whose current occupation does not appear on the CSOL or is not available for the Specialist Skills visa and who will not have completed 104 weeks of paid employment before their 482 visa expiring will be unable to be nominated for the subclass 186 visa via the Transitional stream.
If they meet the skills and employment criteria for the 482 Skills in Demand visa, these sponsored workers will need to change to a new and available occupation via a new nomination by the same employer or a new employer.
For example, a 482 visa holder sponsored as a Café or Restaurant Manager who can only complete 18 months’ employment before their current visa expires may be eligible to be sponsored by the same business as a Cook if s/he has the appropriate qualifications and experience. Or, if they hold relevant qualifications and employment, they may be nominated by a new employer as a Hotel / Motel Manager or other Hospitality Manager.
Each instance will turn on its own circumstances, and 482 visa holders in this situation should seek professional advice from a Registered Migration Agent as soon as possible.
A common pathway for the 482 Temporary Skills Shortage visa holders has been via the Student then the Graduate Work (subclass 485) visa. Many of those candidates could claim relevant experience from their home country before coming to Australia, in many cases, more than five years earlier.
Under the Skills in Demand programme, such work experience can no longer be considered to meet the ‘employment’ criterion. This will significantly reduce the breadth and depth of skills that many Australian employers have been able to take advantage of to date.
Winners
For Australian employers, the temporary residence sponsorship programme has always filled a need, enabling them to retain workers who were already onshore and bring in international workers as the need arose.
The new 482 Skills in Demand programme extends Australian employers’ ability to do so.
For visa holders, the flexibility arrangements allowing accumulation of employment towards permanent residence and longer periods permitted between employers mean less likelihood of exploitation.
These positive outcomes for employers and employees will ensure that the 482 Skills in Demand programme remains a viable opportunity for Australian businesses.
Ready to talk more about the impact this change will have on you or your business? Book a call with your Migration SuperHero, Sarah, today!
