Australia’s immigration landscape is undergoing a significant transformation. Announcements regarding the 2024–25 Migration Program, along with the introduction of the new Skills in Demand (SID) visa, represent more than just routine policy updates. They reflect a clear strategic direction: a move toward prioritising employer-sponsored migration and a renewed focus on attracting high-quality talent that can meet the specific and verified needs of Australia’s labour market.
The 2024–25 Migration Program: Focused on Skilled Migration
The planning level for the 2024–25 permanent Migration Program has been set at 185,000 places, but what’s most telling is the composition of this allocation. A substantial 71% of places—132,200—have been allocated to the Skill stream. This represents a deliberate policy shift aimed at boosting Australia’s economic productivity by ensuring that migration directly addresses critical skill shortages in the labour market.
This shift towards employer-driven migration is evident in the significant increase in Employer Sponsored visa places, which have grown from 36,825 in the previous program year to 44,000 for 2024–25. This is not an arbitrary increase; it reflects the government’s commitment to aligning migration outcomes with genuine labour demands. By giving employers a central role in the migration process, the government is encouraging the selection of migrants whose skills are not only in demand but whose employment is already assured. This approach helps reduce underemployment and supports smoother transitions to permanent residency for temporary workers who are already contributing to the economy.
At the same time, there has been a reduction in places for the Skilled Independent visa (Subclass 189), reinforcing the shift away from broad, points-tested visa selection and toward more targeted, demand-driven migration pathways. This marks a fundamental change in how Australia defines “quality” in skilled migration—not by points alone, but by direct employer need and economic contribution.
The New Skills in Demand (SID) Visa: Designed for Flexibility and Impact
The Skills in Demand (SID) visa, which officially replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024, introduces a more streamlined and responsive visa structure. It consists of three distinct streams tailored to meet a diverse range of labour market requirements:
- Specialist Skills Stream: Designed for highly skilled professionals—excluding trades, machinery operators, drivers, and labourers—who are guaranteed to earn at least AUD 141,210 annually (from 1 July 2025). This stream offers a fast-tracked processing timeframe, with a 7-day median turnaround, reflecting the government’s priority to attract top-tier global talent.
- Core Skills Stream: This stream will accommodate the majority of temporary skilled workers and covers a broad range of occupations listed on the new Core Skills Occupation List (CSOL). The minimum annual salary threshold for this stream will be AUD 76,515 (from 1 July 2025). It is designed to fill crucial mid-level skill shortages that form the backbone of many Australian industries.
- Labour Agreement Stream: This stream continues to support occupations and industries with unique needs through customised Labour Agreements between specific employers and the Australian Government.
One of the most significant and welcome features of the SID visa is its improved job mobility. Visa holders are now permitted to move between approved employers and have a grace period of up to 180 days to find new sponsorship. This enhances flexibility and reduces the vulnerability of skilled migrants, while still meeting labour market needs. Importantly, all full-time employment under the SID visa—regardless of employer—counts towards eligibility for permanent residency under the Employer Nomination Scheme (Subclass 186). This change offers a more predictable and stable pathway to PR.
Adjusted Income Thresholds: Reflecting Wage Growth
From 1 July 2025, several skilled visa income thresholds are set to increase by 4.6%, in line with national wage growth benchmarks. These changes include:
- Core Skills Income Threshold (CSIT) – AUD 76,515
- Specialist Skills Income Threshold (SSIT) – AUD 141,210
- Temporary Skilled Migration Income Threshold (TSMIT) – AUD 76,515 (applies to the Skilled Employer Sponsored Regional visa and the Regional Sponsored Migration Scheme)
These income thresholds are not just administrative updates—they represent the government’s commitment to fair and competitive wages for skilled migrants while protecting the integrity of the local labour market. Employers are now required to ensure that the salary offered to sponsored workers meets or exceeds either the new threshold or the Annual Market Salary Rate (AMSR), whichever is higher.
The Ongoing Role of Regional Migration
While employer sponsorship is now at the forefront of migration policy, regional Australia continues to play a vital role in attracting and retaining skilled workers. Both regional and state/territory nominated programs have been allocated 33,000 places each for 2024–25. These pathways are particularly valuable in addressing localised labour shortages and promoting economic growth in areas outside major urban centres.
Regional programs often provide additional incentives and support, making them attractive options for skilled workers who are open to exploring life beyond Australia’s capital cities. For many, regional migration remains an accessible and rewarding route to permanent residency.
Strategic Advice for Skilled Professionals
For individuals looking to build a future in Australia, the current policy landscape presents clear priorities. Securing employer sponsorship should be a top focus. This is now the most reliable and direct pathway to both temporary employment and permanent residency. It’s important to:
- Target roles that are listed on the Core Skills Occupation List (CSOL) or eligible for the Specialist Skills Stream
- Be prepared to meet the increased income thresholds and demonstrate your earning potential
- Consider the wide range of opportunities available in regional Australia, where demand is high and competition may be lower
Ensure that your English language proficiency meets or exceeds required standards, as this remains a key requiremen
Strategic Advice for Employers
For Australian businesses, now is the time to take a proactive approach to workforce planning. Skilled migration is not just a short-term solution—it should be part of your broader talent acquisition strategy. Employers should:
- Understand the eligibility and requirements of the new SID visa streams
- Benchmark salaries carefully to comply with the updated income thresholds and AMSR requirements
- Strengthen Labour Market Testing (LMT) practices to meet sponsorship obligations
- Highlight the availability of a clear permanent residency pathway as part of your recruitment strategy to attract top international candidates
By doing so, businesses can tap into a wider talent pool while fostering loyalty and long-term retention among skilled overseas workers
A More Targeted Migration Model
Australia remains a top destination for skilled professionals worldwide. However, the approach to skilled migration is becoming more targeted, data-driven, and responsive to the real-time needs of the Australian economy. For both migrants and employers, understanding these changes and planning strategically is essential for success.
Have questions about how these changes affect your situation? Get in touch with our team at Amity Lawyers—we’re here to help you navigate this new era in Australian skilled migration.
