Australia’s Skills in Demand visa explained for employers sponsoring overseas workers under temporary work visa rules

Australia’s Skills in Demand visa is a temporary work visa designed to help employers address skill shortages when suitable local workers cannot be found. Known formally as the Skills in Demand visa, it allows approved businesses to sponsor overseas skilled workers for specific roles under regulated conditions.The visa operates within Australia’s skilled migration framework and is administered by the Department of Home Affairs. It provides employers with access to global talent while setting clear requirements around sponsorship, skills, income thresholds, and visa duration.What the Skills in Demand visa coversThe Skills in Demand visa requires applicants to be nominated by an approved employer and to demonstrate skills relevant to the nominated role.

Applicants must also meet English language requirements. Skilled visa income thresholds under this programme are indexed annually in line with Average Weekly Ordinary Time Earnings, ensuring alignment with prevailing wage levels.Employers can sponsor workers for up to four years, while Hong Kong passport holders may be eligible for a longer stay of up to five years. The visa replaces earlier temporary skilled work arrangements while maintaining similar compliance obligations for sponsors.

Core Skills stream targets priority shortagesThe Core Skills stream applies to occupations listed on the Core Skills Occupation List. It is designed for roles experiencing clear labour shortages where local recruitment efforts have not been successful. Under this stream, employers can sponsor overseas workers for up to four years, or up to five years for eligible Hong Kong passport holders.Occupations are assessed against workforce needs, and employers must show that the nominated role aligns with the approved list and meets required skill levels.Specialist Skills stream focuses on higher-paid rolesThe Specialist Skills stream is aimed at highly skilled positions within specified ANZSCO major groups. Roles under this stream must meet the Specialist Skills Income Threshold, reflecting the seniority and expertise required.Successful applicants can remain in Australia for up to four years, with extended stays available for Hong Kong passport holders. This stream is intended to support industries requiring advanced or specialised capabilities not readily available domestically.Labour Agreement stream supports ongoing workforce needsThe Labour Agreement stream applies when an employer has an active labour agreement with the Australian Government. These agreements are used in sectors with persistent workforce shortages that cannot be met through standard visa pathways.Visa conditions, including maximum stay of up to four years, depend on the specific terms of each agreement, allowing flexibility while maintaining oversight.Subsequent Entrant stream allows family members to joinThe Subsequent Entrant stream enables family members of existing subclass 457 or Skills in Demand visa holders to join them in Australia.

Applicants apply separately and may stay for the same duration as the primary visa holder.Costs and processing timesThe visa application charge across all streams starts from AUD 3,210. Processing times vary depending on individual circumstances and are outlined in the visa processing time guide.

The Skills in Demand visa remains a central mechanism for employers seeking temporary skilled workers while meeting Australia’s regulatory requirements.