The Skills In Demand Visa: Six Months On

Six months after its launch to replace the Temporary Skills Shortage (TSS) Visa, the Skills In Demand (SID) Visa under the same Subclass 482, has become a key tool for Australian businesses seeking to address workforce shortages. Designed to streamline skilled migration, the visa has seen some clarifications and on-going refinements as part of the government’s broader immigration strategy overhaul. In this post, we’ll recap the different streams, examine approval times, and outline the pathway to Permanent Residency (PR).

Recap: The Different Streams

The Skills In Demand Visa is structured into two primary streams:

1. Core Skills Stream

   • This stream enables employers to address labour shortages across various industries such as Healthcare, Construction, IT and Education. The occupation must be on the Core Skills Occupation List (CSOL)

   • The Core Skills Income Threshold was increased to $76,515 from 1^st July 2025.

   • Only 1 year of relevant work experience is required in the nominated occupation or related field.

     
     

2. Specialist Skills Stream

   • Designed for highly skilled professionals in niche fields, this stream offers faster processing times and prioritization for occupations deemed critical to Australia’s economic growth.

   • Professionals applying for this stream must have guaranteed annual earnings of at least $141,210 which is indexed.

   • Only 1 year of relevant work experience is required in the nominated occupation or related field.

Both streams allow visa holders to work in Australia for up to four years, with eligibility criteria tailored to the specific needs of each sector. Previously, under the TSS visa those with occupations on the short-term list could only obtain a 2-year visa. This was a hindrance for international recruits looking to settle for longer in Australia. The longer duration of the SID visa gives both workers and businesses greater stability and confidence in workforce planning.

Approval Times: What Has Changed?

The Department of Home Affairs had an unenviable reputation of very slow processing times of the Temporary Skills Shortage (TSS) visa, often taking months, which frustrated employers needing to deploy talent quickly.

Recognising this bottleneck, the Government committed to reducing the blown-out processing times from months to weeks for the new Skills In Demand visa. Their original commitment of 7 days for the Specialist Skills Stream has largely been achieved, with 50% of applications being processed in 8 days. However, 6 months on, the initial median processing time of 21 days for the Core Skills Stream has not been achieved, with 50% of applications being processed in 51 days.

Current estimates indicate;

• Specialist Skills Stream: 50% of applications are processed in 7 days and 90% are processed within 55 days.

• Core Skills Stream: 50% of applications are processed in 57 days and 90% are processed within 4 months.

  
  

It is also important to note that any TSS visas lodged before the 7^th December 2024 transition could still be pending approval.  Anecdotally, employers reported TSS visa applications falling into ‘a black hole’ while the Department of Home Affairs looked to rapidly process the new SID visa applications to meet their commitment of 7 days processing.

Current estimates:

Temporary Skills Shortage both Short & Medium-term Streams: 50% of applications are processed in 7 months and 90% are processed in 11 months!

Pathway to Permanent Residency

One of the most attractive features of the Skills In Demand Visa is its clear pathway to Permanent Residency. All Visa holders are now able to transition to PR through employer-sponsored programs, such as:

• Subclass 186 (Employer Nomination Scheme)

• Subclass 191 (Permanent Residence – Skilled Regional)

• Subclass 494 (Skilled Employer Sponsored Regional – Provisional)

These pathways provide long-term stability for skilled workers and ensure businesses can retain valuable talent. However, meeting PR eligibility criteria—including salary thresholds and employer sponsorship—remains a key consideration for applicants.

Flexibility in Employer Transitions

Another key advantage of the new SID Visa is the flexibility for employees to change employers. Under the new system, a visa holder can switch employer within 180 days without jeopardizing their visa status. This ensures that employees are not locked to their employers for the duration of their visa and it gives employers greater access to skilled talent already in Australia.

If an employee ceases employment with their sponsoring employer, they now have up to 180 days to secure a new sponsorship and no longer have to immediately leave the country. During this period, they can work for other employers in any occupation, giving them time to find a new employer that aligns with their skills and career goals.

This policy ensures that skilled workers who have established themselves and their families in Australia and are actively contributing to society can maintain their residency without disruption, further strengthening the nation’s talent pool.