Why The Skills In Demand Visa Is Changing Employer Hiring Strategy

Jobs and Skills Australia has released its 2025 Skills in Demand (SID) Report, giving employers the first detailed look at how the new Skills in Demand visa is being used.

The report covers the period from the introduction of the SID visa in December 2024 to 30 September 2025.

The SID visa is largely working as intended. Salaries are increasing. The Core Skills stream is carrying most employer demand. The Specialist Skills stream is being used for higher-paid professionals and managers. Labour Agreements are playing a larger role, especially for sectors where workforce shortages sit below standard salary thresholds.

The SID visa is not a complete reset

One of the clearest findings from the report is that the shift from the old TSS visa to the SID visa has not completely changed the profile of employer-sponsored migration. More than 90 per cent of SID visas granted were for occupations that were also available under the former TSS visa settings.

It shows that most employers are still using sponsored migration for familiar workforce gaps. The change is not so much about who employers need. It is about how those roles are assessed, priced and managed under the new system.

The Core Skills Occupation List (CSOL) has created some movement, especially for occupations that were previously harder to access. Child Care Worker is one example. But overall, the new system is still being shaped by long-standing shortages across healthcare, trades, technology, construction and hospitality.

Salary thresholds are doing real work

The report confirms that indexed salary thresholds have had a strong impact on nominated salaries. This is one of the clearest changes under the SID framework.

Under the old TSS system, the salary threshold sat at $53,900 for a long period. It then increased to $70,000, followed by further indexation. Under the SID visa, the Core Skills Income Threshold and Specialist Skills Income Threshold now form a central part of the sponsorship strategy.

From 1 July 2025, the Core Skills Income Threshold is $76,515. The Specialist Skills Income Threshold is $141,210. That means employers need to be more deliberate before starting a nomination.

The salary question is no longer a final check at lodgement. It should be part of the first workforce planning conversation.

Employers should be asking:

• Is the proposed salary above the relevant threshold?
• Is the salary consistent with the Australian market rate?
• Does the role fit the Core Skills stream, Specialist Skills stream or a Labour Agreement pathway?
• Will the salary remain defensible if the Department reviews the nomination?

The report suggests the market has responded to salary indexation. For employers, that also means budget planning for sponsored roles needs to be more disciplined.

Core Skills is the main employer pathway

The Core Skills stream is doing most of the work.The report states that 78 per cent of SID visas, excluding Labour Agreements, were granted through the Core Skills stream.

This is not surprising. Most sponsored roles sit below the Specialist Skills salary threshold. Many employers are not hiring chief executives, senior finance leaders or highly paid technology specialists. They are filling operational gaps across healthcare, trades, education, engineering, construction, accounting, technology and other skilled occupations.

The report also shows that most Core Skills visas were granted for Professionals and Technicians and Trades Workers. For corporate employers, this confirms the Core Skills stream will remain the main pathway for most sponsorship programs.

Employers should not treat the CSOL as static. Jobs and Skills Australia has made it clear that regular reviews are needed so the list reflects current and future labour market needs.

If a business relies on sponsored workers, it should monitor CSOL updates as part of its annual workforce planning process.

Specialist Skills is useful, but narrower

The Specialist Skills stream is designed for higher-paid roles. The report shows that 98 per cent of Specialist Skills grants were for Managers and Professionals. It also shows the stream is dominated by Skill Level 1 occupations.

This stream is useful for employers with senior, niche or highly paid roles. It also offers faster processing where the salary threshold is met. But it is not a broad solution for every role.

Major Groups 3, 7 and 8 are excluded from the Specialist Skills stream. This means many trades and operational roles, even where salaries are strong, still need to sit under Core Skills or another pathway.

For employers, the key point is, do not assume a high salary solves everything. Occupation classification still matters.

Labour Agreements are becoming more important

The report shows Labour Agreements are playing a larger role under the new framework. This is especially relevant for aged care, meat processing and regional employers.

Labour Agreements allow access to occupations and concessions that are not always available under standard SID settings. They are often used where the labour need is real, but the role does not neatly fit the standard skilled visa framework.

The aged care example is important. The Aged Care Industry Labour Agreement gives access to roles such as Aged or Disabled Carer, Nursing Support Worker and Personal Care Assistant. It also includes concessions and a specific salary threshold, subject to the Australian market salary rate and workplace law.

The sector has deep workforce shortages, but many critical care roles sit below the standard salary settings used in the broader SID program.

For employers in sectors like aged care, hospitality, agriculture, meat processing and regional services, Labour Agreements are no longer a side issue. They are becoming a central part of workforce strategy.

The report also points to a risk. The report does not give every sector a free pass. Jobs and Skills Australia notes that for some occupations, including chefs, café and restaurant managers and cooks, the relationship between visa grants and job vacancy data is less consistent.

That raises a harder question, Is sponsored migration filling a genuine skills gap, or is a sector becoming too dependent on temporary migration instead of building local workforce capacity?

Employers should pay attention to that point. The Government is not only looking at visa volumes. It is looking at whether migration is complementing domestic employment and training.

That means employers should be prepared to explain their workforce strategy, not only their immediate vacancy.

Employer takeaways from the 2025 SID report

The 2025 Skills in Demand Report is less about headline visa numbers and more about where employer-sponsored migration is heading next.

The SID visa is here to stay. Salary thresholds are being used to shape behaviour. The Core Skills stream is the main pathway. Specialist Skills is useful for higher-paid roles. Labour Agreements are becoming more important for sectors with lower-paid but essential workforce needs.

Employers should use the report as a prompt to review their current sponsorship settings. The employers that manage this well will have more control over timing, cost and workforce continuity.

The employers that treat SID as a paperwork exercise will feel more pressure as thresholds move, occupation lists change and compliance expectations increase.

Roam Migration Law works with employers to build sponsorship programs that are strategic, compliant and commercially practical.

Talk to us about your employer-sponsored workforce strategy.