The Skills in Demand visa is Australia’s main employer-sponsored work visa, and it replaced the long-running Temporary Skill Shortage (TSS) visa on 7 December 2024. If you have been researching Australian work visas, you may still come across references to the TSS visa or the older subclass 457 visa, both of which are now closed to new applicants.
This guide explains how Australia’s skilled migration program reached its current form, what the Skills in Demand visa offers, who can apply, what it costs, and how it can lead to permanent residency. It is intended as general research information and reflects the rules in place as of 2026. For comparisons with other countries, our work visa guide sets the Australian system in a wider context.
From the 457 Visa to TSS to the Skills in Demand Visa
Australia’s employer-sponsored work visa has changed names twice in less than a decade. The subclass 457 visa was the standard temporary work visa for skilled overseas workers for many years. In March 2018 it was abolished and replaced by the Temporary Skill Shortage (TSS) visa, which kept the subclass 482 designation and split applicants into Short-Term, Medium-Term and Labour Agreement streams.
On 7 December 2024 the TSS visa was itself replaced by the Skills in Demand visa, which also operates under subclass 482. The old Short-Term and Medium-Term TSS streams are now closed to new applicants, and the program has been restructured around three new streams. Importantly, the change is more than a rebrand: the Skills in Demand visa lowers the work-experience requirement, lengthens the grace period for changing employers, and consolidates Australia’s tangled occupation lists into a single list.
The reforms sit inside the Australian Government’s broader Migration Strategy, which aims to make skilled migration faster and fairer while protecting local wages. For workers, the practical effect is a simpler set of rules and clearer salary benchmarks. For employers, sponsorship obligations have been eased in several ways, including the removal of the requirement to ensure a worker stays in the nominated occupation after their employment with the sponsor ends. Understanding this history matters because older articles, forums and even some agents still use the 457 and TSS labels for what is now a single program.
What Is the Skills in Demand Visa?
The Skills in Demand visa is a temporary employer-sponsored visa allowing approved Australian businesses to sponsor skilled overseas workers for positions unavailable to local candidates, permitting them to live and work in Australia for up to four years, or five years for Hong Kong and British National (Overseas) passport holders. The visa process involves three steps: employer approval as a sponsor, lodging a nomination for a specific position, and the worker submitting their visa application. Applications and nominations submitted before December 7, 2024, will be assessed under the rules in effect at the time of submission.
Skills in Demand Visa Streams Explained
The Skills in Demand visa has three streams. Which stream applies depends mainly on the salary attached to the role and whether the occupation appears on the Core Skills Occupation List. The table below summarises the differences.
| Stream | Who it is for | Minimum salary (2025-26) | Occupation list | Maximum stay |
|---|---|---|---|---|
| Specialist Skills | High-earning specialist roles | AUD 141,210 (SSIT) | No Core Skills list requirement | Up to 4 years |
| Core Skills | Mainstream skilled occupations | AUD 76,515 (CSIT) | Must be on the CSOL | Up to 4 years |
| Labour Agreement | Roles under a negotiated agreement | Set by the agreement | Defined by the agreement | Up to 4 years |
Specialist Skills stream
The Specialist Skills stream targets highly paid roles where guaranteed annual earnings meet the Specialist Skills Income Threshold. Because it is defined by salary rather than a fixed occupation list, it covers most occupations in the higher ANZSCO skill groups, and the government has set a faster processing target for it. It does not require the nominated occupation to appear on the Core Skills Occupation List.
Core Skills stream
The Core Skills stream is the most common pathway. The nominated occupation must appear on the Core Skills Occupation List, and the salary must meet the Core Skills Income Threshold or the market rate for the role, whichever is higher. Most engineers, IT professionals, healthcare workers, tradespeople and teachers apply through this stream.
Labour Agreement stream
The Labour Agreement stream is for workers nominated by employers who have a labour agreement negotiated directly with the Australian Government. These agreements set their own occupations, salary terms and concessions, and are used where standard arrangements do not fit an industry’s needs.
Salary Thresholds and the Core Skills Occupation List
Two income thresholds sit at the centre of the program. The Core Skills Income Threshold (CSIT) applies to the Core Skills stream, and the Specialist Skills Income Threshold (SSIT) applies to the Specialist Skills stream. Both are indexed every 1 July using Average Weekly Ordinary Time Earnings data, so they rise roughly in line with Australian wages. A sponsored worker’s pay must meet the relevant threshold or the annual market salary rate for the position, whichever is higher.
| Income threshold | 2024-25 (from 7 Dec 2024) | 2025-26 (from 1 Jul 2025) | 2026-27 (from 1 Jul 2026) |
|---|---|---|---|
| Core Skills (CSIT) | AUD 73,150 | AUD 76,515 | AUD 79,499 |
| Specialist Skills (SSIT) | AUD 135,000 | AUD 141,210 | AUD 146,717 |
Eligibility Requirements
To qualify for the Skills in Demand visa, an applicant generally needs a sponsoring employer who is an approved standard business sponsor, a nominated occupation that fits one of the streams, and at least 12 months of relevant full-time work experience gained within the previous five years. That experience requirement was reduced from two years under the old TSS visa, opening the visa to many more mid-career professionals.
Applicants must also demonstrate English language ability, usually an IELTS score of at least 5 in each component or an accepted equivalent, and meet Australia’s standard health and character requirements. The nominated position must be genuine and the salary must meet both the relevant income threshold and the market rate for the role.
Conditions, Work Rights and Family Members
While the visa is in effect, the holder can work for the sponsoring employer in the nominated occupation, travel in and out of Australia, and enrol in study. The visa is tied to the sponsoring employer, but if that employment ends the holder now has up to 180 days to find a new approved sponsor or to make other arrangements, rather than the 60 days that applied under the TSS visa. This longer window gives skilled workers more security if a job does not work out.
Family members can be included in the application. A partner and dependent children can usually be added either at the time of lodging or later as subsequent entrants. Included partners generally have full work rights in Australia and dependent children can attend school, although school fees vary by state and by the type of institution. Because family charges add to the overall cost, it is worth budgeting for dependants from the outset rather than treating them as an afterthought.
Skills in Demand Visa Costs and Fees
The cost of the Skills in Demand visa is shared between the employer and the applicant. The employer pays for sponsorship, nomination and the Skilling Australians Fund levy, while the applicant pays the visa application charge for themselves and any family members. The figures below are indicative for the 2025–26 year; government charges are reviewed regularly.
| Item | Who pays | Indicative amount (2025-26) |
|---|---|---|
| Visa application charge – primary applicant | Applicant | AUD 3,210 |
| Visa application charge – dependant aged 18+ | Applicant | AUD 3,210 |
| Visa application charge – dependant under 18 | Applicant | AUD 805 |
| Standard Business Sponsorship application | Employer | AUD 420 |
| Nomination fee | Employer | AUD 330 |
| Skilling Australians Fund levy – turnover under AUD 10m | Employer | AUD 1,200 per year |
| Skilling Australians Fund levy – turnover AUD 10m+ | Employer | AUD 1,800 per year |
On top of these charges, applicants usually pay for a skills assessment where required, an English language test, health examinations and police certificates. These can add several hundred to a few thousand dollars depending on the occupation and family size.
How to Apply for the Skills in Demand Visa
The application runs in three connected stages. First, the employer applies to become a standard business sponsor. Second, the employer lodges a nomination that identifies the specific position, salary and stream. Third, the worker lodges the visa application, attaching evidence of skills, experience, English and identity. The nomination and visa application can often be lodged together to save time. If you are new to the process, our general visa application guide walks through document preparation and common mistakes that apply to most visa categories, not only the Skills in Demand visa.
Pathway to Permanent Residency
One of the main attractions of the Skills in Demand visa is its route to permanent residency through the Employer Nomination Scheme (subclass 186). Eligible holders can generally apply for permanent residence after two years of full-time work in Australia, and time spent on a subclass 457, TSS or Skills in Demand visa can count toward that requirement. Permanent residency, in turn, is a step toward citizenship and a strong Australian passport; you can see where it sits in our latest passport rankings. Individual circumstances vary, so it is sensible to confirm eligibility before relying on this pathway.
What 457 and TSS Visa Holders Should Know
Existing 457 and TSS visa holders are not disadvantaged by the change. Current visas remain valid until their original expiry date, and conditions of stay and work continue unchanged. Applications and nominations lodged before 7 December 2024 are processed under the old rules. When existing holders next renew, they move into the Skills in Demand framework. A practical improvement applies to everyone on a subclass 482 visa: if your employment ends, you now have up to 180 days to find a new sponsor, far longer than the 60-day window that applied under the TSS visa.
Weighing Up Your Options
Whether this pathway suits you depends on your occupation, your salary, and your long-term plans. The Specialist Skills stream rewards high earners with faster processing, while the Core Skills stream covers the bulk of mainstream occupations on the official list. For many applicants the deciding factor is the clear route to permanent residency after two years. Others may find that a different visa, such as a points-tested independent skilled visa, fits their situation better. Researching several options side by side, and checking the current rules before applying, is the most reliable way to decide.
Frequently Asked Questions
Is the TSS visa still available?
No. The Temporary Skill Shortage (TSS) visa was replaced by the Skills in Demand visa on 7 December 2024, and the old Short-Term and Medium-Term streams are closed to new applicants. Existing TSS visas remain valid until they expire.
What is the difference between the TSS and Skills in Demand visa?
Both use subclass 482, but the Skills in Demand visa reduces the required work experience from two years to one, gives workers up to 180 days to find a new sponsor instead of 60, and replaces the old occupation lists with a single Core Skills Occupation List.
How long can I stay on the Skills in Demand visa?
The visa allows you to live and work in Australia for up to four years. Hong Kong and British National (Overseas) passport holders can be granted up to five years.
Can the Skills in Demand visa lead to permanent residency?
Yes. Eligible holders can generally apply for permanent residence through the Employer Nomination Scheme (subclass 186) after two years of full-time work, and earlier time on a 457 or TSS visa can count toward that period.
How much does the Skills in Demand visa cost?
For 2025–26 the visa application charge is about AUD 3,210 for the primary applicant, with lower charges for child dependants. Employers separately pay sponsorship, nomination and Skilling Australians Fund levy fees.
Do I need a job offer to apply for the Skills in Demand visa?
Yes. The Skills in Demand visa is employer-sponsored, so you need an approved sponsoring employer and a nominated position before you can lodge a visa application.