Australia’s Skilled Worker Visa Update

At AusNewsLanka, we aim to keep the Australian community informed with timely updates.

Australia has made several substantial changes to its skilled migration / temporary skilled worker visa program, especially changes effective from 1 July 2025, plus some updates later in the year. These changes are part of broader reforms under its Migration Strategy, aiming to align migration with labour market needs, ensure fair wages, and streamline visa pathways.

What has changed

1. New Visa: “Skills in Demand” (SID) replaces Temporary Skill Shortage (TSS) / Subclass 482

   • As of 7 December 2024, the TSS visa (Subclass 482) was replaced by the Skills in Demand (SID) visa.

   • The SID visa has multiple streams: Core Skills, Specialist Skills, and Labour Agreements.

2. Reduced Work Experience Requirement

   • For the SID visa, the required work experience has been lowered from two years full-time to one year (or equivalent part-time/casual), as long as it’s been obtained within the previous five years.

3. Income / Salary Threshold Increases

   • From 1 July 2025, several thresholds increased by ~4.6% in line with AWOTE (Average Weekly Ordinary Time Earnings).

   • Core Skills Income Threshold (CSIT) & Temporary Skilled Migration Income Threshold (TSMIT): new figure ~ AUD 76,515 (from AUD 73,150).

   • Specialist Skills Income Threshold (SSIT): new minimum ~ AUD 141,210 (from AUD 135,000).

4. Permanent Migration Program / Planning Levels Remain Steady

   • The overall permanent migration intake for 2025-2026 is confirmed at 185,000 places, the same as the previous year.

   • Within that, allocations for major skilled visa types (employer-sponsored, state-nominated, regional etc.) mostly stay similar.

5. Visa Fee Increases & Other Changes

   • Some visa application fees are increasing from 1 July 2025.

   • Other procedural changes: more flexibility for visa holders in certain streams, adjustments in English language requirements (for some visa subclasses), etc.

6. Northern Territory – DAMA Program Expanded

   • The NT DAMA (Designated Area Migration Agreement) III program opened on 31 March 2025. It has an expanded occupation list, more nomination places, and streamlined processes until 2030.

   • For example, in NT DAMA, nominations for overseas workers under Skills in Demand or Employer Sponsored Regional visas have increased (from 625 to 1,500 per year) and the occupation list has more occupations.

7. English Language Test Adjustments

   • As of 13 September 2025, English test requirements for the SID (Core Skills stream) have been relaxed in some components.

   • PTE (Pearson Test of English) score requirements for Listening, Reading, Writing, Speaking have new lower minima.

   • More types of English tests are accepted (e.g. LanguageCert Academic, Michigan English Test (MET), CELPIP) for subclass 482/SID.

     
     

What remains or what to watch out for

• Processing delays remain a concern. There are reports that SID/Core stream applications are not being processed as quickly as expected. The government had set targets (e.g., median processing times) but many applications are taking longer.

• Eligibility points and competition for permanent visas (like Skilled-Independent subclass 189, State-nominated subclass 190, Regional subclass 491) remain tight. Many occupations get minimum points, and invitations are limited.

• State nomination / regional visa quotas are still being managed, with some states closing nomination pathways temporarily or adjusting their criteria. Applicants should check state-by-state details.

  
  

Implications for Applicants & Employers

• For Applicants:

  1. Make sure your salary offer meets the new thresholds (CSIT / SSIT / TSMIT), depending on stream. Offers below those new minimums will not qualify.

  2. If your work experience is under two years, the rules are more favorable now (down to one year for many streams). Ensure your documentation of part-time / casual / overseas work is strong.

  3. Choose the correct English tests, and make sure your scores meet the new (sometimes lower) requirements.

  4. Be mindful of state nomination requirements, regional quotas, and plan EOI (Expression of Interest) submissions ahead of invitation rounds.

  5. Watch processing times and factor in delays; apply early if possible.

• For Employers / Sponsors:

  1. Salary offers must comply with updated thresholds. If you are sponsoring someone, ensure you meet these benchmark incomes or exceed market salary (whichever is higher).

  2. Understand the SID visa’s streams, their requirements, and obligations. The employer role, nomination steps, Skilling Australia Fund (SAF) obligations etc. need compliance.

  3. For businesses in regions or under DAMA agreements (like Northern Territory), there may be more opportunities / flexibility. But also more competition.

  4. Monitor the changes in visa fees — these affect costs for both the sponsor and the visa applicant.

The 2025 skilled migration updates in Australia reflect a tightening in income/salary thresholds, along with efforts to ensure the visa system continues to match labor market needs fairly. Replacing TSS with SID, reducing work-experience requirements, adjusting English test standards, and maintaining planning levels all show Government attempting to balance attracting skilled migrants with protecting local labour standards.

If you're planning to apply (or sponsor someone), you’ll want to make sure your profile (salary, skills, work experience, English competency) is aligned with the new rules. The demand remains strong, but so does the competition.

Stay tuned with Aus News Lanka – the leading platform for news for Australians.