The following article is an extract from our publication, the Kingston Reid Review: Your Guide to 2025. The full link to this publication can be found here.

Employer-sponsored migration continues to be Australia’s Achilles’ heel; it solves skill shortages, it boosts the economy and it occasionally weaponises political debate. However, as 2024 draws to a close, so too does the workhorse of the employer-sponsored visa program – the Temporary Skill Shortage (TSS) visa.

From 7 December 2024, the Skills in Demand visa replaced the TSS visa and we had a return to the CSOL; once the Consolidated Skilled Occupations List, but now the Core Skilled Occupation List.

While some skills shortages have eased up, various sectors continue to struggle with little end in sight. Healthcare, aged care, education and childcare, information technology, engineering, and the trades are all in need.

For employers in these fields, the new Skills in Demand visa may very well be the answer with its three new streams: Core Skills, Specialist Skills and Essential Skills.

Increased salary thresholds
One of the most significant changes over the last 12 months was the rise in the Temporary Skilled Migration Income Threshold (TSMIT). The TSMIT is the entry level salary threshold used in the temporary employer-sponsored program.

• since 2013, it had been frozen at $53,900;
• then, on 1 July 2023 it shot up by around 30% to $70,000;
• then, again, on 1 July 2024, it was indexed to $73,150.

This adjustment aimed to ensure that sponsored roles reflect genuine skill needs and attract a highly skilled workforce. However, it has posed significant challenges for small businesses and sectors reliant on lower-wage roles, such as hospitality and agriculture, sparking calls for a more nuanced approach.

Pathways to permanent residency
The Government’s commitment to providing clearer pathways to permanent residency for skilled migrants under the employer-sponsored program remained a focus over 2024. The increased flexibility in transitioning from the TSS visa to permanent residency under the Employer Nomination Scheme (ENS) was welcomed by employers and migrants alike, fostering retention of talent in Australia.

With 2024 wrapped up, it’s time to brace ourselves for the inevitable chaos of 2025 and reflect on what was and predict what might be.

Compliance crackdowns
2024 also saw heightened scrutiny on compliance with sponsorship obligations. Employers faced increased inquiries to ensure compliance with the terms of sponsorship, including appropriate remuneration, job duties, and working conditions. Non-compliance attracts significant penalties, highlighting the importance of robust HR processes for sponsoring employers.

2024 Reflections: chaos… and opportunity?

Further occupation list revisions
With workforce demands evolving rapidly, the CSOL is poised to be the answer. The Government says that the new CSOL fulfils the Government’s commitment to replace complex, out of date and inflexible occupation lists in the temporary skilled visa program.

The CSOL is a single consolidated list, informed by labour market analysis and stakeholder consultations by Jobs and Skills Australia that provides access to temporary skilled migration for 456 occupations.

So, whether you need a Yoga Instructor or a Managing Director, there is bound to be something on the CSOL for you

Strengthened regional migration strategies
In 2025, expect further incentives for regional migration, including higher allocations for regional employer-sponsored visas. Policies encouraging settlement in regional areas will likely become a cornerstone of the Government’s strategy to balance population distribution and meet regional skill demands. Regional may not be as far away as you think; go West (or North or anywhere that’s not a capital city)!

Reforms to permanent residency pathways
The transition from temporary to permanent residency may undergo further simplification in 2025, with streamlined pathways aimed at improving Australia’s competitiveness in attracting global talent. Changes could include shortening the residency requirement for ENS eligibility or removing the occupation list restrictions for certain high-demand roles.

Enhanced digital processes
The Department of Home Affairs is likely to continue its focus on digital transformation in visa processing. Faster processing times and a more transparent application process will be key priorities, particularly for employer-sponsored visas, to reduce administrative burdens and enhance user experience.

Looking ahead
The Australian Government’s commitment to employer-sponsored migration remains steadfast, recognising its pivotal role in bridging skill gaps and supporting economic growth. However, employers must stay informed and adaptable as policies evolve to align with national priorities.

Kingston Reid’s Global Mobility team
Our team of dedicated migration professionals specialise in providing comprehensive and practical advice and assistance to our clients on strategic migration matters across all sectors.

Our migration services go hand-in-hand with our expertise in employment law to provide an end-to-end service offering, and that’s not all…

Kingston Reid is here, not only to assist with various visa processes, but to provide guidance, representation with Australian Border Force matters, assistance with streamlining the sponsorship process and continued support throughout the lifetime of your sponsorship period (that is, at the very minimum, 5 years!).

With the knowledge and expertise of the Kingston Reid migration team, we are committed to guiding our clients through the complexities of sponsorship that will allow you to harness international expertise, drive business growth and innovation.