Introduction

Australia’s employer-sponsored migration settings changed in December 2023, when the Skills in Demand visa replaced the TSS visa (Subclass 482) for new applications. Many employers continue to reference the TSS visa. This guide sets out the key changes, explains how the Skills in Demand visa operates in 2025, and outlines the preparation required of sponsors and applicants.

What changed from the TSS visa to the skills in demand visa

The TSS visa is no longer available to new entrants. Existing 482 holders remain lawful until expiry. Many can also transition to permanent residence under the post-reform employer-nomination settings. The Skills in Demand visa (SID) is now the sole employer-sponsored temporary route and is built around three pathways tied to salary levels and national priorities. Importantly, access to permanent residence (PR) is clearer: most SID holders can be nominated for PR after 2–4 years if they meet the criteria.

The three skills in demand visa pathways (2025)

Each pathway has a distinct policy purpose. Choosing the correct one at the outset reduces delays and compliance risk.

Specialist Skills Pathway

Designed for high-value roles where advanced expertise is essential.

• Salary floor: AUD $135,000+.
• Typical roles: advanced engineering, cyber security, AI/ML, senior digital architecture.
• Processing: prioritised for decision-ready cases; Labour Market Testing (LMT) is generally not required.
• PR: Employer nomination usually available after 2 years, subject to eligibility.

Core Skills Pathway

Intended for mainstream skilled roles needed across the economy.

• Salary floor: AUD $73,150+ (aligned with the July 2024 TSMIT).
• Occupations: based on the Core Skills Occupation List (periodically updated), spanning health, construction, education, trades, and digital services.
• PR: nomination typically available after 2–4 years, depending on tenure and settings.

Essential Skills Pathway

Targets lower-paid but critical roles, with additional safeguards.

• Salary: below AUD $73,150.
• Focus sectors: aged care, disability support, and selected regional roles.
• Controls: stronger employer oversight, sector caps, and training commitments.
• PR: Pathways are anticipated. Final pilot settings confirm which occupations qualify, the minimum sponsored-employment period, and additional requirements such as training commitments, sector caps, and compliance history, which together determine timing and eligibility. 

Sponsor and applicant eligibility at a glance

A brief overview helps both sides confirm readiness before lodging.

For approved sponsors

Sponsors must be lawfully operating in Australia and demonstrate that the role is genuine and appropriately skilled.

• Meet salary benchmarks and market-rate requirements.
• Conduct LMT unless waived under a trade agreement (e.g., the UK–Australia FTA).
• Keep accurate records and notify the Department of material changes (role cessation, restructuring, pay changes).

For applicants

Candidates must match the skill level of the nominated role.

• Show relevant qualifications and experience; provide skills assessments where required.
• Meet English, health, and character requirements with verifiable evidence.
• Provide detailed employment references describing duties, hours and reporting lines.

Evidence and documentation that strengthen applications

Well-organised evidence speeds up assessment and reduces requests for further information.

Sponsors should prepare:

• ABN/ASIC extracts and recent financial statements.
• A position description that maps duties to the SID pathway.
• Recruitment records (or FTA waiver basis), salary methodology, and organisational charts.

Applicants should provide:

• Certificates, transcripts, and skills assessment outcomes (if mandated).
• Employment letters with dates, hours, duties, and contact details.
• English test results (where required), health examinations, and police clearances for each relevant country.

Application steps from start to finish

The process mirrors the sponsorship model familiar from the TSS visa but uses skills in demand Visa criteria.

1. Sponsorship approval – the business becomes (or remains) an approved sponsor.
2. Nomination – the employer nominates the role, pathway, and salary, and submits supporting evidence.
3. Visa application – the candidate lodges personal documentation and clearances.
4. Decision and conditions – once granted, the visa carries work-condition links to the nominating employer; keep records current.

TSS visa holders: practical transition notes

Holders of a current TSS visa continue on their existing conditions. Where eligibility is met, many can be nominated for PR under the updated employer-sponsored permanent routes after 2–4 years with the same or an eligible new sponsor. Changing employers is possible in defined circumstances, but timing and notice obligations should be checked before moving.

Common pitfalls—and how to avoid them

A short checklist helps prevent avoidable refusals and compliance action.

• Salary set below market rates: benchmark carefully and document the method.
• Inconsistent paperwork: ensure the position description, contract, payroll, and nomination all match.
• Missing LMT detail: retain screenshots, dates, and outcomes; confirm if an FTA waiver applies before advertising.
• Overlooked skills assessments: verify requirements early with the correct assessing authority.
• Late PR planning: Map the permanent pathway at the start so tenure and evidence accumulate correctly.

Why the Skills in Demand visa is more strategic than the TSS visa

The skills in demand visa modernises the employer-sponsored system and provides clearer outcomes than the former TSS visa.

• Transparent pathways: salary thresholds and a curated Core Skills list reduce list-shuffling and uncertainty.
• Quicker hiring for critical roles: the Specialist pathway supports rapid mobilisation when evidence is decision-ready.
• Broader PR access: Nomination options exist across pathways, improving retention and workforce planning.
• Worker protections: The Essential pilot includes stronger oversight, supporting ethical employers and fair conditions.
• Regional support: targeted settings help fill difficult roles outside major cities.

Frequently asked points

Is the TSS visa still available?

No. New employer-sponsored temporary applications use the skills in demand visa. Existing 482 visas remain valid until expiry.

Are occupation lists still used?

Legacy occupation lists (MLTSSL, STSOL, ROL) no longer apply. SID applications now use the core skills occupation list. Eligibility for the Core Skills Pathway is set by the Core Skills Occupation List, which the Department updates periodically to reflect changing labour-market needs.

Is Labour Market Testing always required?

Not always. LMT may be waived where a relevant trade agreement covers the role. Check the treaty settings before advertising.

When can a SID holder apply for PR?

Most SID holders become eligible for employer-nominated PR after 2–4 years, subject to meeting the statutory criteria.

Conclusion

Australia’s shift from the TSS visa to the skills in demand visa gives employers a clearer, PR-inclusive route to address genuine skills shortages while maintaining fair employment standards. Careful pathway selection, accurate salary benchmarking, and decision-ready evidence are now the hallmarks of a strong application.

For businesses or candidates seeking structured support, Ethos Migration Lawyers assists with pathway selection, nomination strategy, documentation review, and permanent-residence planning under the SID framework.

Disclaimer: This article provides general information only and is not legal advice. Migration settings change frequently, and individual circumstances vary. For advice tailored to a specific matter, seek guidance from a registered migration agent or Australian legal practitioner.