Skills in Demand Visa (Subclass 482): The Complete 2026 Guide
What Is the Skills in Demand Visa?
The Skills in Demand visa (subclass 482) is Australia's primary employer-sponsored temporary work visa. It replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024 as part of the Australian Government's Migration Strategy reforms. Despite inheriting the same subclass number (482), the Skills in Demand visa operates under a substantially different framework.
I have been advising employers and sponsored workers on employer-sponsored visas for 27 years. The transition from TSS to Skills in Demand is one of the most significant structural changes to the temporary work visa program in a decade. This guide explains how the new visa works, who qualifies, what it costs, and the pathway to permanent residence.
The Three Streams
The Skills in Demand visa has three streams. The correct stream depends on the occupation and the salary being offered.
Core Skills Stream
The Core Skills Stream is the most commonly used pathway. It is designed for skilled workers in occupations on the Core Skills Occupation List (CSOL) — a list maintained by the Department of Home Affairs that reflects Australia's current labour market needs.
To qualify for the Core Skills Stream, the sponsored worker must:
- Be nominated for an occupation on the Core Skills Occupation List (CSOL)
- Be paid the Annual Market Salary Rate (AMSR) for the role and no less than the Core Skills Income Threshold (CSIT)
- Have at least one year of relevant work experience in the nominated occupation or a related field
- Hold a relevant skills assessment if required for the occupation
- Meet minimum English language proficiency requirements (IELTS 5.0 overall, or equivalent)
The CSIT is indexed annually. From 1 July 2026, the CSIT is AUD $79,423 per year (up from $76,515 in 2025–26). This figure excludes non-monetary benefits such as accommodation or vehicles.
The Core Skills Stream allows a stay of up to four years (five years for Hong Kong passport holders). Holders can apply for permanent residence through the Subclass 186 Employer Nominated Scheme after three years of continuous employment with their sponsor.
Specialist Skills Stream
The Specialist Skills Stream is for highly paid workers in management, professional, technical, and community and personal service occupations (ANZSCO Major Groups 1, 2, 4, 5, and 6). There is no occupation list restriction — any occupation in those ANZSCO Major Groups qualifies, provided the salary meets the income threshold for the Specialist Skills stream.
From 1 July 2026, the SSIT is AUD $146,576 per year (up from $141,210 in 2025–26).
The Specialist Skills Stream has a higher English language requirement: IELTS 6.0 overall (compared to 5.0 for the Core Skills Stream). Critically, Labour Market Testing is not required for the Specialist Skills Stream, which significantly reduces the administrative burden for employers.
Labour Agreement Stream
The Labour Agreement Stream is for skilled workers nominated by employers who have a formal Labour Agreement with the Australian Government. Labour Agreements are negotiated between the Department of Home Affairs and individual employers or industry bodies, and they allow for variations to the standard visa requirements — including occupation lists, salary thresholds, and English language requirements.
Labour Agreements are typically used in industries where standard visa pathways do not adequately address workforce needs, such as aged care, meat processing, and some regional industries. The process of obtaining a Labour Agreement is lengthy and complex.
Salary Thresholds (Updated for 2026–27)
Salary thresholds for the Skills in Demand visa are indexed annually in line with Average Weekly Ordinary Time Earnings (AWOTE) published by the Australian Bureau of Statistics. The 2026–27 increase is 3.8%.
Important: The salary threshold is a floor, not a ceiling. The sponsored worker must also be paid the Annual Market Salary Rate — the rate that an Australian worker would receive for the same role in the same location. If the market rate exceeds the threshold, the higher rate applies.
Timing note: If your nomination is close to the threshold, consider lodging before 1 July 2026 to be assessed under the current (lower) threshold. Once lodged, the threshold at the time of lodgement applies.
Government Fees
The application fee for the Skills in Demand visa (subclass 482) starts at AUD $4,015 for the primary applicant. Additional fees apply for secondary applicants.
In addition to government fees, employers and applicants should budget for:
- Sponsorship application fee (if the employer is not yet an approved sponsor): AUD $420
- Nomination fee: AUD $330 per nomination
- Skills assessment fees (if required): varies by assessing body, typically $300–$800
- Medical examination: $300–$500 per person
- Police clearances: $50–$150 per country
- Professional legal fees: varies by complexity
The Pathway to Permanent Residence
One of the most significant improvements under the Skills in Demand visa is the universal PR pathway. Under the previous TSS visa, only workers in the Medium-term stream (occupations on the MLTSSL) could apply for permanent residence. Short-term stream holders had no direct PR pathway.
Under the Skills in Demand visa, all Core Skills Stream holders can apply for permanent residence through the Subclass 186 Employer Nominated Scheme (ENS) — Transition Stream — after three years of continuous employment with their sponsor.
The eligibility criteria for the Subclass 186 Transition Stream are:
- Hold or have held a Subclass 482 (Skills in Demand) or Subclass 457 visa
- Have worked for the nominating employer for at least three years in the nominated occupation
- Be nominated by the employer for the same or a closely related occupation
- Meet the age requirement (generally under 45, with some exemptions)
- Meet health and character requirements
- Be paid the market salary rate, which from 1 July 2026 must be at least AUD $79,423
Baker McKenzie advises that employers should proactively identify employees seeking Subclass 186 nomination whose current salary is close to the threshold and lodge nominations before 1 July 2026 if all other eligibility criteria are met.
Labour Market Testing
Labour Market Testing (LMT) is a requirement for the Core Skills Stream. Before nominating a position, the employer must demonstrate that they have genuinely tried to recruit an Australian citizen or permanent resident for the role and were unable to find a suitable candidate.
- Advertising the position for at least four weeks in the 12 months before lodging the nomination
- Using at least two advertising channels, one of which must be a national platform (e.g., Seek, LinkedIn, Indeed)
- Keeping records of all applications received and the reasons why Australian candidates were not selected
LMT is not required for the Specialist Skills Stream, or for occupations exempt under international trade obligations (e.g., certain intra-company transfers under Free Trade Agreements).
Sponsor Obligations
Approved sponsors have ongoing compliance obligations that extend beyond the initial application. Key obligations include:
Pay the market salary rate at all times. The obligation to pay the AMSR is continuous, not just at nomination. If the market rate increases, the employer must increase the sponsored worker's salary accordingly.
Cannot recover visa costs from the sponsored worker. Under s.245AQ of the Migration Act 1958, it is a criminal offence for a sponsor to seek to recover, or to recover, certain costs from a sponsored worker — including visa application fees and sponsorship costs.
Notify the Department of changes. Sponsors must notify the Department within 28 days of certain changes, including changes to the sponsored worker's position, work location, or employment status.
Keep records. Sponsors must keep records of their compliance with sponsorship obligations for five years.
Cooperate with monitoring. The Department may conduct workplace inspections and audits. Sponsors must cooperate.
Failure to meet sponsorship obligations can result in sanctions including cancellation of the approval to sponsor, barring from future sponsorship, and civil penalties.
Common Reasons for Refusal
Based on my experience advising employers and sponsored workers, the most common reasons for Skills in Demand visa refusals are:
Salary below the AMSR. The most frequent issue. The salary offered must reflect what an equivalent Australian worker would receive — not just the minimum threshold. Underpaying relative to market rates is a common and costly mistake.
Inadequate Labour Market Testing. LMT records that are incomplete, use non-compliant advertising channels, or do not genuinely demonstrate that Australian workers were unavailable.
Occupation not on the CSOL. The nominated occupation must be on the Core Skills Occupation List. Attempting to fit a role into an occupation that does not accurately describe the duties is a frequent source of refusals.
Insufficient work experience. The sponsored worker must have at least one year of relevant experience. Experience in a related field may count, but the connection must be clearly demonstrated.
English language requirements not met. The sponsored worker must provide evidence of English proficiency unless exempt. Submitting outdated test results or results that do not meet the minimum score is a common error.
Skills assessment not obtained. Some occupations require a skills assessment from a designated assessing body. Lodging without the required assessment results in an invalid nomination.
My View as a Practising Immigration Lawyer
The Skills in Demand visa is a significant improvement on its predecessor. The universal PR pathway for Core Skills Stream holders removes one of the most significant structural inequities of the TSS visa. The Specialist Skills Stream — with no occupation list restriction and no Labour Market Testing requirement — is a genuinely streamlined pathway for high-earning professionals.
However, the salary threshold indexation creates a compliance risk that many employers underestimate. The obligation to pay the AMSR is continuous. As thresholds increase each July, employers who do not proactively review their sponsored workers' salaries risk falling into non-compliance — which can trigger visa cancellation and sponsorship sanctions.
For employers with multiple sponsored workers, I recommend a structured annual review of all 482 visa holders' salaries against both the indexed threshold and the current market rate, conducted before 1 July each year.
Frequently Asked Questions
What is the difference between the Skills in Demand visa and the old TSS visa?
The Skills in Demand visa (subclass 482) replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024. The key differences are: the two TSS streams (Short-term and Medium-term) have been replaced by the Core Skills Stream and Specialist Skills Stream; all Core Skills Stream holders now have a PR pathway via the Subclass 186 ENS (previously only Medium-term stream holders had this); and the maximum stay has been extended to four years for all streams (previously two years for short-term stream holders).
Do I need a skills assessment for the Skills in Demand visa?
Skills assessments are required for some occupations but not all. Whether an assessment is required depends on the specific occupation and the assessing body for that occupation. You should check the Core Skills Occupation List and the relevant assessing body's requirements before lodging.
Can I change employers on a Skills in Demand visa?
You can change employers, but you must obtain a new nomination from your new employer before you start working for them. Working for an employer who has not nominated you is a visa condition breach. If you are considering changing employers, seek advice before making the move.
What happens if my salary drops below the threshold?
If your salary falls below the CSIT or SSIT, your employer is in breach of their sponsorship obligations. This can result in visa cancellation and sanctions against the employer. If your employer reduces your salary, seek legal advice immediately.
Can my family members come to Australia on my Skills in Demand visa?
Yes. Your spouse or de facto partner and dependent children can be included in your application as secondary applicants, or they can apply separately as subsequent entrants. Secondary applicants have the same work and study rights as the primary applicant.
Is there an age limit for the Skills in Demand visa?
There is no age limit for the Skills in Demand visa itself. However, the Subclass 186 ENS permanent residence pathway has an age requirement (generally under 45), with some exemptions. If you are approaching 45 and planning to apply for permanent residence, seek advice about timing.
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Questions and answers
My employer wants to sponsor me for a 482 visa but the salary is $78,000. Is that enough?
The current Core Skills Income Threshold (CSIT) is $76,515 until 30 June 2026, and $79,423 from 1 July 2026. If your nomination is lodged before 1 July 2026, $78,000 would meet the threshold — provided it also meets the Annual Market Salary Rate for your occupation and location. If lodged on or after 1 July 2026, the salary would need to be at least $79,423. I would need to review the specific occupation and location to advise on the market salary rate.
I am on a Core Skills Stream 482 visa. How long before I can apply for permanent residence?
You can apply for the Subclass 186 ENS Transition Stream after three years of continuous employment with your sponsor in the nominated occupation. The three years is counted from the date your 482 visa was granted (or from the date you started working in the nominated occupation, if later). You must also be under 45 (with some exemptions) and meet health and character requirements.
Does my employer need to advertise the job before sponsoring me for a 482 visa?
Labour Market Testing (LMT) is required for the Core Skills Stream. The employer must advertise the position for at least four weeks using at least two advertising channels (one of which must be a national platform) and demonstrate that no suitable Australian worker was available. LMT is not required for the Specialist Skills Stream, or for occupations exempt under international trade obligations.