Major Visa Changes: Transition from 482 Visa to New Skills in Demand Visa

The Australian Government is preparing to replace the 482 visa with the new Skills in Demand visa by the end of 2024, as outlined in the Migration Strategy released on 11 December 2023. While the precise implementation date and full details remain pending, sponsors and visa applicants should take proactive steps now to avoid potential disruptions.

Key Changes to Expect

As part of this transition, the Government has introduced several updates, with more significant changes coming into effect by mid-November 2024. Here’s what you need to know:

1. Introduction of the New Skills in Demand Visa

  • The 482 visa will be replaced by a three-tier system, differentiating eligibility by occupation and salary bands.
  • The new visa offers a 4-year temporary skilled worker pathway, aligning with Australia’s workforce needs.
  • Further information on the tiers and eligibility can be accessed in our fact sheet [here].

2. Work Experience Requirement Reduced

  • Effective 23 November 2024, the required work experience for applicants will be reduced from 2 years to 1 year in the relevant occupation or a related field, following the Federal Budget announcement on 14 May 2024.

3. Flexibility in Employment Types

  • Casual employment will now count toward meeting the work experience requirement, offering greater flexibility to applicants. Full-time work remains preferred but is no longer mandatory, broadening eligibility.

4. Extended Employment Gap Allowance

  • Visa holders will be allowed up to 180 consecutive days (or 365 cumulative days over the visa period) to secure a new sponsor, apply for another visa, or make departure arrangements.
  • During these gaps, visa holders may work for other employers, including those outside their original sponsorship nomination.

5. Removal of the 5-Year Limit on Work Experience

  • Applicants can now use relevant work experience from any point in their career, not just within the past five years. The Department of Home Affairs has updated its policy to reflect this change, recognizing a broader scope of skills and experience.

How the Transition Will Affect Applications

While the final policy is still being finalized, here’s what we anticipate:

  • 482 Visa Applications Lodged Before the Transition:
    These applications are expected to be processed under the current rules even after the new visa system is implemented.
  • Existing Business Sponsorship Approvals:
    Businesses with approved Standard Business Sponsorship (SBS) status will likely be allowed to nominate workers under the new visa system.
  • Similar Criteria for Core Skills Pathway:
    We expect the Core Skills Pathway within the new visa system to have criteria similar to the current subclass 482 requirements.

What Sponsors and Applicants Should Do Now

1. Lodge Applications Before Mid-November

Submit nomination and visa applications before mid-November to ensure they are assessed under the current 482 visa framework, minimizing disruption from the new visa rollout.

2. Meet Labour Market Testing (LMT) Requirements

If your business plans to sponsor a foreign worker, initiate job advertisements immediately, as the window for meeting the LMT requirements is closing. We can assist with the process, ensuring your advertisements meet the Government’s specific criteria.

3. Renew Visas for High-Risk Occupations

Workers in high-risk occupations (e.g., Café or Restaurant Managers) looking to switch sponsors should renew their visas promptly. This will allow them to accumulate 2 years of experience under their current sponsor, ensuring eligibility for the subclass 186 Temporary Residence Transition stream before potential changes to the skilled occupation list take effect.

Conclusion

The shift to the Skills in Demand visa marks a significant change in Australia’s migration landscape. With the new system offering enhanced flexibility and streamlined pathways, it is essential to act early to avoid disruptions. Sponsors and applicants should take advantage of the current system by submitting applications now and staying informed about the upcoming changes.

For assistance with your visa application or to discuss how these changes may impact your business, feel free to reach out.

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