Australia has taken a significant step in modernising how occupations are classified. In December 2024, the Australian Bureau of Statistics (ABS) officially released the Occupation Standard Classification for Australia (OSCA), replacing the long-standing Australian and New Zealand Standard Classification of Occupations (ANZSCO) for Australian statistical purposes.
For migrants, employers, and industry stakeholders, the announcement has generated an important question: what does the transition from ANZSCO to OSCA mean for skilled migration?
Why Was ANZSCO Replaced?
ANZSCO was first introduced in 2006 and was designed to classify occupations across both Australia and New Zealand. While it underwent periodic updates, the framework largely reflected labour market conditions from the early 2000s. Over the past two decades, Australia’s workforce has changed considerably due to technological advancements, new industries, evolving job roles, and changing workforce demands.
Following a comprehensive review conducted between 2022 and 2024, the ABS concluded that Australia required a classification system tailored specifically to its own labour market. As a result, OSCA was developed as Australia’s standalone occupation classification. New Zealand has separately adopted its own National Occupation List (NOL).
Understanding OSCA’s Structure
Like ANZSCO, OSCA uses a hierarchical coding system to classify occupations according to skill level and skill specialisation. However, it provides greater detail and reflects modern occupations more accurately.
OSCA 2024 includes:
· 1,156 occupations
· Six-digit occupation codes
· Five skill levels
· A revised occupational structure designed to better reflect Australia’s contemporary labour market.
One of the key improvements is that OSCA provides occupation-specific task descriptions at the six-digit occupation level, offering greater precision than the previous ANZSCO framework.
The review also resulted in more than 300 new occupations being added and almost 250 outdated occupations being removed.
The Transition Timeline
The transition from ANZSCO to OSCA has already occurred for statistical purposes.
Key milestones include:
· July 2022 to December 2024: Comprehensive review of ANZSCO undertaken by the ABS.
· 6 December 2024: OSCA 2024 Version 1.0 officially released.
· 2025 onwards: Australian labour market and statistical reporting progressively transition to OSCA.
· Future updates will continue through consultation with industry, government agencies and other stakeholders.
Importantly, while OSCA has replaced ANZSCO within Australia’s statistical framework, the migration system has not yet fully transitioned.
Does OSCA Currently Affect Skilled Migration?
At present, Australia’s skilled migration programs continue to rely on ANZSCO-based occupation references within migration legislation and occupation lists. This means visa applicants, employers, and skills assessing authorities should continue to follow the occupation requirements specified by the Department of Home Affairs and relevant assessing bodies.
However, OSCA is expected to play an increasingly important role in the future.
Because occupation classifications underpin skilled occupation lists, sponsorship programs, labour market analysis, and workforce planning, any future migration reforms are likely to consider the updated occupational structure provided by OSCA. Occupations that have been newly created, reclassified, split, or merged under OSCA may eventually influence future migration pathways and occupation list reviews.
What Employers Should Be Paying Attention To
Many employers focus on occupation lists only when sponsoring a worker. However, occupation classifications are often the foundation upon which future migration settings are built.
The ABS developed OSCA following extensive consultation with industry groups, employers, professional associations, government agencies, and labour market experts. More than 2,000 stakeholders contributed to the review process.
As OSCA continues to evolve through future updates, employer feedback remains important in ensuring emerging occupations, changing skill requirements, and industry realities are accurately reflected. This can ultimately influence how occupations are recognised within workforce planning and, potentially, future migration settings.
What Migrants Should Do Now
While OSCA is not yet being used directly for migration purposes, applicants and employers should stay informed about future developments.
· Continue using the current occupation requirements and occupation lists published by the Department of Home Affairs and relevant skills assessing authorities.
· Ensure that skills assessments, visa applications, and nomination applications are prepared using the occupation classifications currently recognised under migration legislation.
· Monitor future updates from the Australian Bureau of Statistics (ABS) and the Department of Home Affairs regarding the integration of OSCA into migration and workforce planning frameworks.
· Employers should pay close attention to how occupations within their industry are classified under OSCA, particularly where emerging roles or specialised occupations may become relevant to future sponsorship pathways.
This proactive approach can help migrants and employers anticipate future changes and position themselves more effectively as Australia’s skilled migration framework continues to evolve.
Final Thoughts
OSCA represents the most significant overhaul of Australia’s occupation classification system in almost two decades. While ANZSCO served Australia and New Zealand well for many years, OSCA has been designed to better reflect Australia’s contemporary labour market and emerging occupations.
For now, migrants and employers should continue to follow the occupation requirements currently used by the Department of Home Affairs. However, understanding OSCA and monitoring future developments will be increasingly important as Australia’s migration and workforce systems continue to evolve.
