In response to the Federal Government’s Migration Strategy, Jobs and Skills Australia (‘JSA’) has published its first comprehensive review of the Skills in Demand (‘SID’) visa program since its introduction in December 2024. The report provides an early assessment of how the new framework is operating and offers valuable insights into Australia’s evolving skilled migration landscape. While JSA cautions that it is still too early to draw definitive conclusions, the report suggests that the SID visa program is broadly achieving the objectives set out in the Government’s Migration Strategy.
Higher Salary Thresholds Are Having a Real Impact
One of the report’s most significant findings is the apparent success of the new salary threshold framework. The Core Skills Income Threshold (‘CSIT’) and Specialist Skills Income Threshold (‘SSIT’), together with annual indexation, have contributed to a measurable increase in nominated salaries for employer-sponsored visa holders. By comparison, the Temporary Skilled Migration Income Threshold (‘TSMIT’) remained unchanged for a decade before increasing in 2023. JSA considers regular indexation to have strengthened wage outcomes and helped address concerns that skilled migration could suppress wages in certain sectors, reinforcing the Government’s objective that migration should complement rather than undercut the domestic labour market.
The New Occupation List Has Changed Less Than Many Expected
The transition to the Core Skills Occupations List (‘CSOL’) has resulted in relatively modest changes to the composition of employer-sponsored migration. More than 90% of SID visas have been granted for occupations that were already eligible under previous frameworks. While some new occupations have been added, the changes have been evolutionary rather than revolutionary. JSA nevertheless emphasises the importance of regular reviews to ensure the CSOL continues to reflect Australia’s evolving labour market needs.
Skilled Migration Continues to Target Higher-Skilled Occupations
The vast majority of SID visas continue to be granted to higher-skilled occupations. Approximately 98% of Specialist Skills Stream visas have been granted to Managers and Professionals, while almost 90% of Core Skills Stream visas have been granted to Professionals, Technicians and Trades Workers. These figures indicate that the program is successfully targeting occupations requiring specialised skills and experience, consistent with the Government’s goal of creating a more focused and responsive migration system.
Demand Remains Strong Across Key Occupations
Several occupations continue to dominate employer-sponsored migration, with Chefs recording the highest number of temporary skilled visa grants during 2024-25 and experiencing significant growth compared to the previous year. Other high-demand occupations included health, engineering, trades and technology occupations, consistent with labour market needs. Stay tuned for our follow-up blog post, where we will take a closer look at ongoing labour market shortages and what they mean for Australia’s skilled migration landscape.
Child Care and Aged Care Continue to Receive Attention
Migration pathways supporting the childcare and aged care sectors have expanded significantly. Child Care Workers recorded a substantial increase in visa grants following their inclusion on the CSOL, while aged care occupations continue to benefit from dedicated Labour Agreement arrangements. At the same time, JSA emphasises that migration is only one part of the solution and must be accompanied by continued investment in domestic workforce development.
Labour Agreements Are Playing a Growing Role
Labour Agreements are becoming an increasingly important component of Australia’s migration framework. Both the number of active agreements and visa grants issued through these pathways have grown substantially in recent years. They remain particularly important in sectors where standard visa settings do not adequately address labour market needs, including aged care, meat processing and regional Australia. Their importance is likely to continue, particularly for occupations that sit outside the standard Core Skills pathway.
What Does This Mean Going Forward?
JSA’s overall assessment is that the SID visa program is operating broadly as intended. Higher salary thresholds are influencing wage outcomes, migration remains concentrated in skilled occupations, and the framework appears to be supporting employer needs while maintaining stronger safeguards for Australian workers. The report also serves as a reminder that Australia’s skills needs are constantly evolving. As labour shortages shift and economic conditions change, regular updates to the CSOL and ongoing monitoring of labour market outcomes will remain essential.
For employers, migrants and migration professionals, the message is clear: the SID visa program is becoming an increasingly important mechanism for addressing Australia’s workforce challenges, but it will continue to evolve as Government seeks to balance skilled migration with domestic workforce development. For tailored guidance on navigating the evolving employer-sponsored migration landscape, contact us to arrange a consultation with one of our experts.
*All information is general information only, as at the date of publication, and should not be interpreted as legal advice. For an accurate and current assessment of your circumstances and visa options, please contact us to receive this advice.
