Skills in Demand Visa 2024: Australia’s New Migration Classification and the 2024-25 Skilled Migration Strategy

Australia’s migration landscape is evolving rapidly, with 2024 set to bring some of the most significant changes in recent years. Central to these reforms are two key developments: the transition from the ANZSCO classification system to the new Occupation Standard Classification for Australia (OSCA) and the introduction of the Skills in Demand Visa. Both are part of the government’s renewed focus on ensuring the right skills are brought into the country to address pressing labour shortages. Here’s how these changes will shape the future of skilled migration.

The Shift from ANZSCO to OSCA

Since its introduction, the Australian and New Zealand Standard Classification of Occupations (ANZSCO) has been the backbone of Australia’s skilled migration program, defining which occupations are eligible for various visa pathways. However, as labour market demands have shifted, ANZSCO has struggled to keep pace. In response, the Australian Government has developed the Occupation Standard Classification for Australia (OSCA), which will officially replace ANZSCO from December 2024.

OSCA aims to provide a more dynamic and responsive framework for identifying skill shortages and aligning migration policies with Australia’s evolving economic needs. This new classification system will offer greater flexibility and be more attuned to industry demands, ensuring that the country attracts the skills it needs most urgently.

The introduction of OSCA is expected to bring significant improvements in how occupations are assessed for skilled migration, particularly in fields where new roles have emerged or where existing roles have changed substantially due to technological advancements and evolving work environments.

Skills in Demand Visa: Addressing Australia’s Labour Shortages

Alongside OSCA, Australia is also introducing the Skills in Demand Visa, which will replace the Temporary Skills Shortage (TSS) Visa (subclass 482). This visa forms part of the government’s strategy to better target critical skills shortages, offering a more streamlined and flexible approach to temporary skilled migration.

The Skills in Demand Visa will be divided into three key streams:

1. Specialist Skills Pathway: For highly skilled professionals earning over $135,000 per year. This stream will offer priority processing (within 7 days) and be open to most occupations, excluding trades, machinery operators, and drivers.
2. Core Skills Pathway: Aimed at workers earning over $73,150 per year in critical roles identified through the new Core Skills Occupation List (CSOL). This list, developed and maintained by Jobs and Skills Australia (JSA), will be regularly updated to reflect labour market needs. This stream will have a 21-day processing period.
3. Essential Skills Pathway: Designed for workers in lower-paid, essential roles (earning less than $73,150), this stream is still under consultation but is expected to address persistent shortages in key sectors such as healthcare, aged care, and agriculture.

Each of these pathways provides a route to permanent residency, making the Skills in Demand Visa a highly attractive option for skilled migrants seeking long-term opportunities in Australia.

Addressing Skills Shortages

Australia’s skilled migration program is crucial to addressing the country’s labour market needs, especially in industries facing acute shortages. According to recent analyses, sectors like healthcare, education, and technology are particularly affected. For example, Jobs and Skills Australia has identified persistent shortages in healthcare roles such as nurses, aged care workers, and medical technicians, as well as in education roles like teachers and childcare workers​

The Skills in Demand Visa, coupled with the new OSCA classification, will provide a more agile and efficient way of targeting these shortages. By aligning visa eligibility with real-time labour market data, the government hopes to attract skilled migrants who can make an immediate impact in these critical areas.

What Does This Mean for Employers and Migrants?

For employers, the introduction of OSCA and the Skills in Demand Visa offers a more streamlined process for filling critical roles. The new visa system reduces administrative burdens, provides quicker processing times, and gives employers more flexibility in hiring skilled migrants. For example, the ability to switch jobs more easily within Australia and the extended 180-day period to find new employment will make it easier for businesses to retain skilled workers in dynamic industries.

For migrants, these changes represent a clearer and more direct pathway to permanent residency. The tiered structure of the Skills in Demand Visa ensures that highly skilled professionals, as well as essential workers, have access to visas tailored to their specific skill levels and salary brackets. Additionally, the introduction of OSCA ensures that migration criteria will remain up-to-date and reflective of the latest developments in the Australian economy.

Final Thoughts

The transition from ANZSCO to OSCA and the introduction of the Skills in Demand Visa mark a significant shift in Australia’s approach to skilled migration. These changes reflect the government’s commitment to addressing critical labour shortages, particularly in sectors that are vital to Australia’s long-term economic growth.

At Ten Heads Immigration, we’re here to help you navigate these changes and understand how they may impact your migration journey. Whether you’re an employer looking to sponsor skilled workers or a migrant seeking opportunities in Australia, our team can provide the expert advice you need to make informed decisions. Reach out to us today for tailored assistance as Australia’s migration landscape continues to evolve.