Australia’s 2025 Skilled Visa Overhaul: Your Complete Guide

Australia is preparing for one of its most significant skilled visa reforms in years. If you're planning to build your future in Australia, understanding these changes is critical. Here’s everything you need to know — and how Legacy Migration can help you navigate the new system with confidence. 

The Skilled Visa System is Changing — What’s Happening? 

Starting July 2025, Australia is introducing a completely restructured skilled visa framework to better meet its evolving labor market needs. The old Temporary Skill Shortage (TSS) visa system is being phased out and replaced by the Skills in Demand visa, which introduces a more targeted and flexible approach to employer-sponsored skilled migration. 

The new system aims to ensure that skilled foreign workers are properly compensated, aligned with the current wage standards for similar roles in Australia. It also aims to make the skilled migration process more transparent, responsive, and efficient — both for employers and for applicants. 

Understanding the Three New Visa Streams 

Core Skills Stream  This stream is designed for occupations that are in genuine shortage across Australia's industries. It targets workers whose skills are in demand based on regularly updated occupation lists, ensuring that businesses can fill critical roles while protecting the local labor market. 

Specialist Skills Stream  The Specialist Skills stream is tailored for highly specialized professionals who offer expertise in niche, high-demand fields. This stream is designed to fast-track highly skilled workers who bring significant value to Australia's economy. 

Labour Agreement Stream  Labour Agreements allow businesses to negotiate customized migration pathways with the government for roles that may not be covered under the standard lists but are still essential for certain industries or regions. This stream provides flexibility while ensuring that fair employment standards are maintained. 

Why the Changes Matter for Skilled Visa Applicants 

For anyone considering moving to Australia for work, these changes mark a new chapter. The new framework aims to balance two important priorities: 

• Ensuring that skilled foreign workers receive competitive compensation that reflects Australian market conditions 

• Allowing businesses to address genuine skills shortages that cannot be met locally 

As the Australian economy evolves, so too does its migration policy — ensuring that it remains globally competitive while protecting both local and international workers. 

How Employers Are Affected 

Australian employers who plan to sponsor skilled workers will also face new responsibilities. The new structure will require businesses to meet updated salary benchmarks, document genuine need for the role, and show evidence of compliance with labor standards. 

Employers must carefully assess: 

• Their readiness to meet new salary and contract standards 

• Their ability to support employees on pathways to permanent residency 

• Their ongoing obligations for workplace rights and fair treatment 

Working with an experienced migration adviser like Legacy Migration can help both applicants and employers avoid costly mistakes and delays during this period of change. 

What is Australia’s 2025 Skilled Visa Overhaul? 

Australia’s 2025 Skilled Visa Overhaul introduces a new Skills in Demand visa, replacing the old employer-sponsored system. It features three tailored streams — Core Skills, Specialist Skills, and Labour Agreements — to better align skilled migration with Australia’s workforce needs and ensure fair compensation for all applicants. 

The Skilled Visa System is Changing — What’s Happening? 

Starting July 2025, Australia is introducing a completely restructured skilled visa framework to better meet its evolving labor market needs. The old Temporary Skill Shortage (TSS) visa system is being phased out and replaced by the Skills in Demand visa, which introduces a more targeted and flexible approach to employer-sponsored skilled migration. 

The new system aims to ensure that skilled foreign workers are properly compensated, aligned with the current wage standards for similar roles in Australia. It also aims to make the skilled migration process more transparent, responsive, and efficient — both for employers and for applicants. 

Understanding the Three New Visa Streams 

1️⃣ Core Skills Stream  This stream is designed for occupations that are in genuine shortage across Australia's industries. It targets workers whose skills are in demand based on regularly updated occupation lists, ensuring that businesses can fill critical roles while protecting the local labor market. 

2️⃣ Specialist Skills Stream  The Specialist Skills stream is tailored for highly specialized professionals who offer expertise in niche, high-demand fields. This stream is designed to fast-track highly skilled workers who bring significant value to Australia's economy. 

3️⃣ Labour Agreement Stream  Labour Agreements allow businesses to negotiate customized migration pathways with the government for roles that may not be covered under the standard lists but are still essential for certain industries or regions. This stream provides flexibility while ensuring that fair employment standards are maintained. 

Why the Changes Matter for Skilled Visa Applicants 

For anyone considering moving to Australia for work, these changes mark a new chapter. The new framework aims to balance two important priorities: 

• Ensuring that skilled foreign workers receive competitive compensation that reflects Australian market conditions 

• Allowing businesses to address genuine skills shortages that cannot be met locally 

As the Australian economy evolves, so too does its migration policy — ensuring that it remains globally competitive while protecting both local and international workers. 

How Employers Are Affected 

Australian employers who plan to sponsor skilled workers will also face new responsibilities. The new structure will require businesses to meet updated salary benchmarks, document genuine need for the role, and show evidence of compliance with labor standards. 

Employers must carefully assess: 

• Their readiness to meet new salary and contract standards 

• Their ability to support employees on pathways to permanent residency 

• Their ongoing obligations for workplace rights and fair treatment 

Working with an experienced migration adviser like Legacy Migration can help both applicants and employers avoid costly mistakes and delays during this period of change. 

What is Australia’s 2025 Skilled Visa Overhaul? 

Australia’s 2025 Skilled Visa Overhaul introduces a new Skills in Demand visa, replacing the old employer-sponsored system. It features three tailored streams — Core Skills, Specialist Skills, and Labour Agreements — to better align skilled migration with Australia’s workforce needs and ensure fair compensation for all applicants. 

The upcoming skilled visa overhaul in Australia is one of the most significant changes in recent years. With three new visa streams, updated salary benchmarks, and stronger pathways to permanent residency, the new system aims to balance Australia’s economic needs with fair opportunities for skilled professionals worldwide. Preparation, proper planning, and expert guidance are critical to navigating these changes smoothly. 

Don’t wait for the changes to catch you off guard. Schedule a free consultation with Legacy Migration today and get personalized advice for your skilled visa pathway. With Legacy Migration, you’re never navigating Australia’s migration system alone. 

The information, updates, news, and advice provided are intended for general informational purposes only and should not be construed as personalised guidance. For accurate advice regarding your specific migration case, we invite you to reach out to us directly by sending a message through this link: https://www.legacymigration.com.au/take-your-first-step-to-living-working-or-studying-in-australia

Migration Agents Registration Number: 1797357

QEAC Number: S041