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What ECEC centres need to know about Australia’s new Skills in Demand visa
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Feb 24, 2025
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The Australian Government has announced a significant shift in Australia’s migration framework with the introduction of the Core Skills stream of the new Skills in Demand (SID) visa. As of 7 December 2024, the SID visa has replaced the subclass 482 Temporary Skills Shortage (TSS) visa.
The Australian Government has announced a significant shift in Australia’s migration framework with the introduction of the Core Skills stream of the new Skills in Demand (SID) visa. As of 7 December 2024, the SID visa has replaced the subclass 482 Temporary Skills Shortage (TSS) visa.These changes form part of the Australia Government’s broader 2023 Migration Strategy, which lists five core objectives – raising living standards, ensuring fairness in the workplace, building stronger Australian communities, strengthening international relationships, and delivering a system that is fast, efficient, and fair. This strategy has been designed to streamline the process for businesses, including Early Childhood Education and Care (ECEC) centres, to address workforce shortages.
The ECEC sector is experiencing rapid growth with more than 50 per cent of children aged 0-5 years attending approved child care services, the highest proportion in the past ten years, according to the Australian Government’s Report on Government Services 2025. These reforms are poised to help centres struggling to fill critical educator and leadership roles by expanding pathways to attract and retain skilled professionals.
A key feature of this overhaul is the implementation of the Department of Home Affairs’ new Core Skills Occupation List (CSOL), which will apply to both the Core Skills stream of the new visa and the subclass 186 Employer Nomination Scheme visa in the Direct Entry stream.
These changes are part of the Migration Amendment (2024 Measures No.1) Regulations 2024, which aim to address critical shortages and modernise Australia’s migration framework.
New visa requirements and streamlined process
The new SID visa, which replaced the TSS visa while retaining the 482 subclass number, introduces a more streamlined application process designed to address inefficiencies in the current system. The new approach aims to reduce administrative burdens and facilitate faster decision-making, benefiting both employers such as ECEC centres and applicants.
Existing short and medium-term streams of the TSS visa will be replaced with the following:
- Specialist Skills stream for applicants in any ANZSCO occupation earning $135,000 or more (excluding occupations in ANZSCO major groups 3, 7 and 8)
- Core Skills stream for applicants earning more than $73,150 in an occupation on the CSOL
- Labour agreement stream which carries over existing settings from the TSS visa while further development of the proposed Essential Skills stream takes place.
The new SID visa can be granted for up to four years with an English language requirement of an IELTS 5 with a score of at least five in each part of the test (or equivalent). There is also the introduction of a financial capacity requirement for employers, who must be able to demonstrate that they can pay the proposed salary for each year nominated. For example, if you nominate a person for four years, you must demonstrate the financial capacity to pay the salary for those four years.
Reduced work experience requirements
Under the new Core Skills stream, the minimum work experience requirement has been reduced from two years to one, with the experience needing to be obtained within five years prior to the application. This adjustment lowers barriers for skilled workers, making it easier for individuals with in-demand skills to qualify for migration.
By shortening the experience requirement, the program aims to attract a younger, more diverse pool of talent while addressing immediate labour market shortages.
New CSOL consolidation
The CSOL consolidates previous, complex occupation lists into a single, comprehensive list covering 456 occupations, including child care workers, special needs teachers, and teachers for hearing and vision impaired students. This expanded coverage provides greater opportunities for both employers and skilled migrants. Offering temporary and permanent migration pathways, the new consolidation will allow centre managers to explore migration pathways for bilingual educators, particularly in areas where there is demand for culturally diverse staff.
Pathway to permanent residence
Applicants for the subclass 186 Employer Nomination Scheme visa in the Temporary Residence Transition stream are no longer required to have worked for their sponsoring employer for two years. Any employment on a subclass 482 visa will satisfy the requirement.
The CSOL list is also available for the subclass 186 Employer Nomination Scheme visa in the Direct Entry stream, offering a direct path to permanent residence for more occupations.
Changes to sponsorship obligations
Because TSS and SID visa holders have more mobility, amendments have been introduced that end a sponsor’s responsibility to ensure a sponsored worker remains in their nominated occupation once employment ends.
Building on past migration changes
In the first half of 2024, The Australian Government introduced several significant changes to the migration system aimed at addressing critical labour market needs. Australia needs 21,000 more qualified ECEC professionals to meet current demand, according to the Federal Government’s Jobs and Skills Australia Commissioner, Professor Barney Glover AO. “That number only increases when looking at what we’ll need in the future,” he said.
“Current workforce levels are not sustainable. We need growth of 8 per cent to meet sustainable staffing levels, and another 8 per cent growth to meet unmet demand for services.”
The changes also aim to prevent exploitation and ensure compliance with sponsorship obligations.
The Temporary Skilled Migration Income Threshold (TSMIT) was increased from $70,000 to $73,150 for applications lodged on or after 1 July 2024. This threshold did not include superannuation.
Changes to visa conditions for Subclass 457, 482, and 494 visas allowed temporary migrants to cease working with their sponsor for up to 180 consecutive days or 365 days total during the visa period.
Reforms to the Migration Act strengthened protections for migrant workers reporting workplace exploitation. These measures included non-discretionary protections to prevent visa cancellations for exploited workers, penalties for employers or intermediaries exploiting temporary visa holders, and the introduction of the Workplace Justice Visa (WJV). The WJV allowed temporary migrants involved in workplace justice activities to remain in Australia and work.
The Department of Home Affairs also announced an increase in compliance monitoring, and in conducting announced and unannounced inspections of sponsoring businesses. These inspections will focus on pay rates, work hours, visa holder occupations, and other sponsorship obligations.
Implications for ECEC managers
These visa reforms aim to create a more responsive and inclusive migration program. For the ECEC sector, this has the potential to better cater to the demands of employers by increasing the number of bilingual and culturally diverse staff, while also presenting a streamlined pathway for skilled workers to secure permanent residency.
However, the transition of skills assessments from the Australian Institute for Teaching and School Leadership (AITSL) to the Australian Children’s Education & Care Quality Authority (ACECQA) has key migration implications. Migrants seeking skilled visas must now meet ACECQA’s assessment criteria, including qualification equivalency, work experience and English proficiency.
ECEC managers looking to take advantage of these changes should begin preparing for the new system and updated requirements to ensure compliance with the revised migration framework.
If you have any questions, please contact Holding Redlich Practice Director for Migration Rebecca Macmillan here.
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