Student-to-Skilled Migration Overhaul: New SID Visa and Salary Thresholds

Student-to-Skilled Migration Overhaul: New SID Visa and Salary Thresholds

Introduction

In July 2025, the Australian government implemented one of the most significant changes to its skilled migration program in recent years. The Temporary Skill Shortage (TSS) visa, which had long served as a bridge between international students and permanent residency, was officially replaced by the Skills in Demand (SID) visa. This reform is part of a broader migration strategy aimed at improving labor market outcomes, reducing exploitation, and aligning migration with national priorities.

For international students, the SID visa represents both new opportunities and new challenges. While it offers clearer pathways to skilled migration, it also introduces stricter eligibility criteria, particularly around salary thresholds and occupation lists.

Background: Why the TSS Visa Was Replaced

The TSS visa (Subclass 482) had been criticized for years due to:

• Low salary thresholds, which allowed employers to sponsor workers at below-market rates.
• Exploitation risks, especially in hospitality and retail sectors.
• Limited PR pathways, particularly for short-term stream holders.

The government’s migration review found that the TSS visa was no longer fit for purpose. It failed to meet Australia’s evolving labor market needs and contributed to wage suppression in certain industries.

In response, the Skills in Demand (SID) visa was introduced to:

• Ensure fair wages for migrant workers.
• Prioritize occupations with genuine shortages.
• Create more transparent and reliable PR pathways.

Key Features of the SID Visa

The SID visa is divided into three streams:

1. Core Skills Stream

• Minimum salary threshold: AUD 70,000–76,515 (indexed annually).
• Occupations must be listed on the new Core Skills Occupation List.
• Offers a clear pathway to PR after 2–3 years of full-time work.

2. Specialist Skills Stream

• Minimum salary threshold: AUD 135,000–141,210.
• Designed for high-demand sectors like tech, engineering, and finance.
• Fast-tracked PR eligibility and priority processing.

3. Essential Skills Stream

• For lower-paid roles in aged care, disability support, and agriculture.
• Requires union oversight and employer sponsorship.
• Limited PR options but offers regional incentives.

Impact on International Students

For international students, the SID visa changes the landscape of post-study migration. Here’s how:

1. Salary Thresholds Affect PR Eligibility

Students must now secure jobs that meet the minimum salary thresholds to qualify for skilled migration. This means:

• Graduates in high-demand fields (e.g., IT, nursing, engineering) have better chances.
• Those in low-paid sectors (e.g., hospitality, retail) may struggle to meet the criteria.

2. Occupation Lists Are More Targeted

The government has replaced the outdated Skilled Occupation List with:

• Core Skills Occupation List (CSOL).
• Specialist Skills List. These lists are updated quarterly based on labor market data, ensuring that migration aligns with real workforce needs.

3. Regional Work Offers Extra Points

Students who work in regional areas under the SID visa receive:Students who work in regional areas under the SID visa receive:

• Extra points for PR under the General Skilled Migration (GSM) system.
• Priority processing for employer-sponsored PR.
• Longer visa durations and lower salary thresholds in some cases.

Post-Study Work Rights and the 485 Visa

The Temporary Graduate (Subclass 485) visa remains a key bridge between study and skilled migration. However, its conditions have been tightened:

• Duration now depends on qualification level and field of study.
• Applicants must meet stricter English and financial requirements.
• Regional graduates receive longer durations and priority access to the SID visa.

For example:

• Bachelor’s graduates in regional areas may receive 3–4 years of post-study work rights.
• Master’s and PhD graduates in priority fields may qualify for fast-tracked PR.

Financial Requirements and Compliance

To ensure only genuine applicants benefit from the SID visa, the government has introduced:

• Higher financial proof thresholds (e.g., AUD 24,000+ in savings).
• Mandatory health insurance and tax compliance.
• Employer audits to prevent underpayment and exploitation.

Education providers must also report academic progress and attendance, ensuring that students meet visa conditions before transitioning to skilled migration.

Sector Response and Challenges

Universities and migration agents have welcomed the SID visa’s clarity but raised concerns about:

• Reduced PR access for graduates in non-priority fields.
• Increased pressure on students to secure high-paying jobs quickly.
• Regional relocation challenges, including housing and transport.

Some smaller education providers fear losing enrolments if students perceive limited migration prospects. The government has pledged to support regional institutions and improve infrastructure to attract more students.

Expert Opinions

Migration experts have praised the SID visa for its focus on labor market alignment.Abul Rizvi, former Deputy Secretary of Immigration, stated:

“This is the most targeted skilled migration reform in two decades. It rewards genuine graduates and employers while protecting vulnerable workers.”

“We must ensure that the system doesn’t punish ambition. Graduates should be supported, not penalized, for starting in entry-level roles.”

Tips for Students Planning Skilled Migration

To navigate the new system successfully, students should:

1. Choose courses aligned with the CSOL or Specialist Skills List.
2. Aim for regional study and work placements.
3. Secure internships and graduate roles with reputable employers.
4. Maintain strong academic records and English proficiency.
5. Consult migration agents early to plan PR pathways.

Conclusion: A New Pathway with Clearer Rules

The introduction of the Skills in Demand (SID) visa marks a turning point in Australia’s migration policy. For international students, it offers a more structured and transparent route to skilled migration and permanent residency—but only for those who meet the new standards.

While the reforms may reduce overall migration numbers, they aim to improve outcomes for both migrants and the Australian economy. Students who plan strategically, choose high-demand fields, and engage with regional opportunities will find the SID visa a powerful tool for building a future in Australia.