Overview of key announcements from Home Affairs
During the Immigration Law Conference 2025 hosted by the Law Council of Australia from 19 to 21 March 2025, the Department of Home Affairs shared a series of important updates regarding visa programs, processing priorities, and workforce planning strategies. These changes aim to enhance efficiency and align migration policies with current labour market needs.
Training Visa (Subclass 407)
Applications for the Training Visa have increased by 360% compared to pre-COVID levels and 275% compared to the same period last year. The visa is increasingly being used as an alternative pathway to work in Australia, partly due to higher refusal rates in student visa streams, which have reached up to 50% in some sectors.
However, a rise in refusals has also been observed where applications lacked adequate training plans or supporting documentation, particularly from newly registered sponsors with limited operational history. The government is reviewing this trend to maintain program integrity while supporting genuine training opportunities.
Skills assessments and trade area updates
The Professional Assessment Team at the Department of Home Affairs now manages over 360 occupations, recently expanded to include roles such as content creators and trade professionals like chefs and carpenters. Trade teams continue to assess skilled trades and conduct trial-based assessments in collaboration with industry stakeholders.
Currently, 53% of applications come through agents and 47% from direct applicants. India remains the largest source country, followed by China, Iran, Pakistan, and Sri Lanka. Common assessment services include full skills assessments, DAMA support, and points test advisory services.
Employer Nomination Scheme (ENS) and work experience rules
Effective from 7 December 2024, updates to the Employer Nomination Scheme (ENS) Subclass 186 visa enhance flexibility and streamline eligibility across both the Temporary Residence Transition (TRT) and Direct Entry (DE) streams.
Temporary Residence Transition (TRT) stream:
- All full-time sponsored employment completed while holding a Subclass 457, 482 (TSS or SID), or eligible bridging visa now counts toward the two-year work experience requirement.
- Sponsored employment in different positions or occupations may also contribute toward the work experience total.
- Work experience is now assessed at the visa application stage, rather than at the nomination stage.
- Medical practitioners and certain executive-level occupations continue to benefit from existing exemptions and flexibility.
- Work experience gained on TSS, SID, or bridging visas may also be used to meet eligibility for income-based age exemptions.
- From 1 July 2024, visa holders who cease employment with their sponsor will have 180 days to find a new sponsor or make alternative visa arrangements.
Direct Entry (DE) stream updates:
- Nominated occupations must now appear on the Core Skills Occupation List (CSOL).
- All applicants must meet the Core Skills Income Threshold (CSIT), currently set at $73,150.
Key requirements for both TRT and DE:
- Eligible occupations are now defined under the 2022 release of the Australian and New Zealand Standard Classification of Occupations (ANZSCO), aligning all nominations with updated industry standards.
Skills in Demand (SID) visa trends and processing update
Between 7 December 2024 and 28 February 2025, demand for the Skills in Demand (SID) visa remained strong, with 28,239 applications lodged and 7,664 finalised during this period. Weekly application volumes continued at a steady pace, ranging from 2,500 to 3,000.
Here’s how applications were distributed across each stream:
- Specialist Skills Stream: 3,764 lodged | 2,161 finalised
- Core Skills Stream: 22,050 lodged | 5,004 finalised
- Labour Agreement Stream: 2,515 lodged | 499 finalised
Median processing times for February 2025 were:
- Specialist Skills stream: 13 days
- Core Skills stream: 41 days
- Labour Agreement stream: 71 days
Meanwhile, the Temporary Skill Shortage (TSS) visa backlog significantly improved, from 51,566 on-hand applications in December 2024 to 33,372 by February 2025, marking a 35.3% decrease.
This reflects the government’s continued efforts to streamline processing across high-demand visa pathways.
Income threshold updates
From 1 July 2025, the Core Skills Income Threshold (CSIT) will increase to $76,515. This adjustment aims to better reflect market salary expectations for skilled workers. Updates to the Specialist Skills Income Threshold (SSIT) will also follow, based on nomination-specific criteria.
These changes form part of the government’s broader efforts to align income requirements with evolving workforce needs and to ensure the integrity of skilled migration pathways.
Changes in skilled migration and visa rules
- Reduced work experience requirements: employer-sponsored visas now accept pro-rata work experience for part-time and casual roles.
- Increased worker mobility: from 7 December 2024, sponsored visa holders will have up to 180 days at a time, and 365 days in total during their visa period, to find a new sponsor, apply for another visa, or depart Australia.
- Less restriction on job roles: employers are no longer required to ensure that former sponsored employees remain in their nominated occupation after leaving the role.
- New accredited sponsor pathway for STEM start-ups: available to Australian start-ups in STEM fields with venture capital funding from a registered Early-Stage Venture Capital Limited Partnership.
- Stronger compliance measures: the government will now strictly enforce sponsorship obligations and accreditation criteria for all accredited sponsors.
Labour agreements and DAMAs
Labour Agreement applications remain unaffected under both the Temporary Skill Shortage (TSS) and Skills in Demand (SID) visas. Employers can continue using existing agreements for SID nominations, and all on-hand TSS Labour Agreement applications are being assessed under the conditions in place at the time of lodgement.
Labour agreement approvals have grown by 53.7%, with 72% of current agreements operating under Designated Area Migration Agreements (DAMAs). Thirteen DAMAs are now in effect across Australia.
The government has reaffirmed its commitment to a state-led DAMA model, aimed at better aligning migration with regional workforce strategies. South Australia and Western Australia currently operate state-led DAMAs, the Far North Queensland DAMA has been extended until April 2027, and the Northern Territory has transitioned from NT DAMA II, which expired on 13 December 2024, to NT DAMA III, executed on 19 March 2025.
Migration program update and processing outlook
As at March 2025, the Skilled Migration Program remains on track for full delivery, with 18.9% of the employer-sponsored permanent visa allocations already filled. Demand for employer-sponsored permanent visas has increased by 40% compared to the same time last year, reflecting a strong shift in migration focus on meeting workforce needs through sponsorship pathways.
The Department of Home Affairs is continuing to monitor processing trends and adjust resources accordingly to manage surges in application volumes. Processing times may vary later in the program year as resources are reallocated to meet high-demand caseloads and deliver program targets efficiently.
Student Visa (Subclass 500) and Temporary Graduate Visa (Subclass 485)
Visa processing and prioritisation
At the end of 2024, the government replaced Ministerial Direction 107 with MD 111, introducing a two-tier system: Priority One (vocational and higher education visas until 80% of places are filled) and Priority Two for remaining applications. Permanent and specific training visas remain in Priority One.
Processing delays and caseload management
In early 2024, onshore student visa processing faced delays due to a spike in applications, particularly in June, ahead of the 1 July 2024 policy changes. Offshore processing remained more efficient. Processing times were also influenced by provider codes, leading to stakeholder consultations aimed at improving efficiency for semester two.
Key Temporary Graduate (Subclass 485) Visa changes
- Higher English language requirements
- Age limit reduced from 50 to 35 (with exceptions for some postgraduates)
- Stricter eligibility and stay conditions
- Visitor visa holders can no longer apply for student visas onshore
These updates caused a pre-July 1 surge in applications. However, processing has improved, with approvals outpacing lodgements and stable application volumes.
As Australia’s migration landscape continues to evolve, keeping up with policy changes is essential for both employers and individual applicants. With reforms in visa eligibility, processing priorities, and sponsorship pathways now in effect, it is more important than ever to have a clear, strategic approach. Seeking expert advice can help navigate complexities, ensure compliance, and support long-term success in a competitive and dynamic migration environment.
How Absolute Immigration helps you navigate migration with confidence
In an evolving migration landscape, aligning with the right immigration strategy is essential. At Absolute Immigration, we partner with businesses of all sizes and individual clients to deliver tailored, compliant, and forward-thinking solutions that support workforce planning, talent acquisition, and long-term success.
From visa processing and skills assessments to sponsorship compliance and labour agreement management, our expert team provides end-to-end support helping businesses remain competitive and individuals achieve their migration goals with confidence.
For personalised support, contact admin@absoluteimmigrationlegal.com