Australia’s skilled migration framework continues to evolve, and the latest reforms implemented on 29 November 2025 represent a significant shift in how the Skills in Demand (SID) visa operates within the Migration Regulations. Although the government refers to these updates as “technical measures,” they carry practical consequences for visa holders, sponsors, and applicants seeking permanent residency. This article outlines these developments in a clear and accessible way, highlighting what individuals and employers need to know moving forward.
The most notable change is the full legal integration of the SID visa into Australia’s migration system, officially replacing the former Temporary Skill Shortage (TSS) visa across the regulations. All references to the TSS visa have now been removed and substituted with the SID visa, ensuring that the new visa type is recognised consistently in all operational and compliance provisions. As a result, SID visa holders are now fully covered by the same obligations, work conditions and sponsorship requirements that previously applied to TSS visa holders. This ensures continuity but also reinforces the need for employers and visa holders to understand the updated framework.
Another significant amendment is the extension of the Minister’s cancellation powers to SID visa holders. Under the new rules, a SID visa can be cancelled if the sponsoring employer fails to meet sponsorship obligations, provides false or misleading information, or has its sponsorship approval or labour agreement terminated. Although this power existed for the former TSS visa, the new regulations ensure that it now applies explicitly to SID visa holders. This reflects the government’s focus on strengthening compliance and protecting the integrity of employer-sponsored migration. For visa holders, it underscores the importance of maintaining employment only with approved sponsors, while employers must ensure strict adherence to their obligations to avoid unintended consequences for their sponsored workers.
The regulations also clarify who is considered a sponsored worker under the new system. The definitions of “primary” and “secondary” sponsored persons have been updated to explicitly include SID visa holders, including those sponsored under labour agreements. This ensures consistent interpretation across all streams and removes any previous uncertainty about which workers fall under the legal obligations imposed on sponsors. These changes may appear technical, but they provide essential clarity that helps both visa holders and employers understand their responsibilities.
Importantly, the reforms also strengthen review rights for individuals applying for a SID visa from outside Australia. If an offshore application is refused, the applicant now has an explicit right to seek merits review through the Administrative Review Tribunal. This enhancement increases fairness and transparency in the decision-making process, providing offshore applicants with more certainty and an avenue to challenge adverse decisions.
One of the most impactful changes relates to the pathway to permanent residency through the Employer Nomination Scheme (ENS) subclass 186 visa under the Temporary Residence Transition (TRT) stream. Under the updated regulations, work experience can only be counted toward the TRT eligibility period if it is undertaken while the visa holder is employed by an approved sponsor. If an employer’s sponsorship lapses, expires, or is cancelled, any work completed during that period will not count toward the required time for permanent residency. This amendment makes it critical for both visa holders and employers to monitor sponsorship status closely. For visa holders, it may affect long-term migration planning, while employers must ensure that their sponsorship approvals remain current to avoid inadvertently jeopardising an employee’s permanent residency prospects.
Although these reforms are presented as technical adjustments, they carry substantial practical implications. Visa holders must be more vigilant than ever about maintaining compliant employment arrangements. Offshore applicants benefit from clearer review rights, and employers face greater responsibility in managing sponsorship obligations. For migration professionals, the new rules require updated advice and careful review of sponsorship and employment histories, particularly for clients pursuing the ENS TRT pathway.
As Australia continues to refine its skilled migration system, understanding these regulatory changes is essential. Whether you are a current SID visa holder, an employer sponsoring overseas workers, or someone planning a pathway to permanent residency, seeking professional migration advice can help ensure compliance and prevent unexpected setbacks in your visa journey.
