GMS Flash Alert 2024-240

Australia – Introduction of Skills in Demand Visa

GMS Flash Alert 2024-240 | December 4, 2024

In this GMS Flash Alert, we report on the latest Australian immigration updates including the introduction of the Skills in Demand (SID) visa (which will replace the current Temporary Skill Shortage (Subclass 482) visa).

On 3 December 2024, the government announced that the new SID visa and associated Core Skills Occupation List (CSOL) will be introduced on 7 December 2024.

WHY THIS MATTERS

Subclass 482 applications currently being prepared and not submitted before the above-noted date will need to be submitted under the new SID visa requirements. 

Employers that sponsor foreign nationals for the visa types noted below will need to take note of the extended processing times and factor in these extended processing times when planning commencement dates for sponsored visa holders in Australia.

Extended Processing Times

KPMG in Australia is continuing to see extended processing times for visa applications lodged with the Department of Home Affairs (“Department”) across all visa categories, particularly Temporary Skill Shortage (Subclass 482) visas and applications for permanent residence lodged under the Employer Nomination Scheme (Subclass 186 visa).

Current published departmental processing times are as follows:

Temporary Skill Shortage (Subclass 482) visas:  Two (2) to five (5) months from the date of lodgement (please note Department data does not differentiate between processing times for Accredited Sponsors and Standard Business Sponsors).

Permanent Residence under the Employer Nomination Scheme (Subclass 186) visas:  Approximately six (6) to sixteen (16) months from the date of lodgement (this is a change from the previously advertised six (6) to seven (7) months).

KPMG INSIGHTS

KPMG is seeing approximate processing times that are generally in line with the updated processing times published by the Department.  Please note processing times are approximate only and can vary based on a range of circumstances.

Based on our experience, processing times will increase further over the Christmas/New Year holiday period.  This is due to a combination of factors including the closure of processing offices during public holidays, government staff holidays/absences, and an increase in visa lodgements which typically occurs in the lead-up to the new year.

Introduction of the Skills in Demand Visa

On 3 December 2024, the government announced that the SID visa and National Innovation Visa will be introduced on 7 December 2024.1  In the same announcement, the government announced the release of the Core Skills Occupation List (CSOL).

KPMG INSIGHTS

KPMG made a submission to government advocating for a range of occupations which were at risk of being excluded from the CSOL.  We note that the final CSOL released by the government includes the occupations identified in the KPMG submission.  

Current Information on Upcoming Changes

The following information has been released by the government to date and is the only available information at this time:

  • The new SID visa will replace the current Temporary Skill Shortage (Subclass 482) visa on 7 December 2024.  The subclass will remain as ‘Subclass 482’.  (For related coverage, see GMS Flash Alert 2024-208, 24 October 2024.)
  • The new National Innovation visa will also come into effect on 7 December 2024.
  • More details on the SID visa and the National Innovation visa will be announced shortly (likely later this week).
  • The new Core Skills Occupation List (CSOL) comprises more than 450 occupations.
  • It will apply to the Core Skills stream of the SID visa and the Direct Entry stream of the Employer Nomination Scheme (Subclass 186).
  • The Specialist Skills stream of the SID visa will not be tied to an occupation list, so if an occupation is not on the CSOL it may still be eligible for a SID visa under the Specialist Skills stream (if it meets the high salary threshold and other requirements).  

KPMG INSIGHTS

  • There is no information on transitional arrangements for lodged visas at this stage or how these will be treated from 7 December 2024.  We would reasonably expect these will continue to be assessed under the subclass 482 visa requirements in effect at the time of lodgement, however, this will need to be confirmed.
  • The short notice provided means that employers will need to review all subclass 482 applications currently in progress and determine if they will be impacted.  If KPMG is managing your subclass 482 visa applications, we will be in touch regarding your current applications.
  • When the government releases additional details on the SID application requirements, KPMG will release a further GMS Flash Alert.

Upcoming Festive Season: Reminder 

The KPMG Australia offices will be closed from 5:00pm Thursday, 19 December 2024 AEDT, and will re-open on Thursday, 9 January 2025 AEDT.  The KPMG Australia immigration team will have skeleton staffing during this time (except for weekends and public holidays) for immigration emergencies. 

Footnote:

1  Joint Media Release, 3 December 2024,The Hon Tony Burke MP, "Visa reform targets the skills Australia needs."

Contacts
Mark Wright

Principal Director

KPMG Australia

Samantha Panchal

Director, Immigration Services

KPMG Australia

Maria Hrambanis

Director

KPMG Australia

More information

Disclaimer

* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

The information contained in this newsletter was submitted by the KPMG International member firm in Australia.

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