At the end of 2024, the Australian government updated its skilled migration program to address ongoing issues faced by the labour market, such as significant shortages in the education and childcare sector. Changes to the skilled visa program aim to address this and, in particular, will impact organisations seeking to source talent in the childcare industry.
In late 2024, the Commissioner for Jobs and Skills Australia, Professor Barney Glover released a report stating an urgent need for 20,000 skilled childcare workers in the short term.
The recent replacement of the Temporary Skills Shortage (TSS) visa with the new Skills in Demand visa (subclass 482) and the addition of childcare workers to the Core Skills Occupation List (CSOL) means international childcare workers are now able to be sponsored to work in Australia.
A new visa pathway for childcare workers
One of the additions that will impact the child care hiring process is the addition of childcare worker occupations on the Core Skills Occupation List containing 456 occupations. Childcare workers provide care and supervision for children in programs, such as long day care and occasional care, in childcare centres, hospitals, educational centres and preschools.
The following occupations are now eligible for sponsorship on a 482 visa:
- Child Care Worker
- Family Day Care Worker
- Nanny
- Out of School Hours Care Worker
The CSOL identifies occupations that are critical to Australia’s economy. It is designed to not only facilitate targeted migration that reflects the labour market needs but to simplify the application process for both talent and employers.
Via this stream, applicants seeking work in childcare will be able to use the Core Skills Pathway, which is expected to provide the majority of the visas under the new programme. This pathway allows focused hiring in the sectors with the most urgent shortages to take priority, such as childcare, education and healthcare.
To qualify for a SID visa under the Core Skills stream, the guaranteed earnings must be above the Core Skills Income Threshold. Currently set at $73,150, the income threshold will increase to $76,515 from 1 July 2025.
While the income threshold appears high, regional and remote employers can build the guaranteed earnings for SID visa holders with wages, salary, bonuses, overtime, allowances, car or accommodation allowances provided that they are guaranteed and regular.
Other childcare-related visa changes
Early childhood teachers with a relevant bachelor degree in early childhood education plus 1 year of full time, paid employment experience remain eligible for visa sponsorship on a 482 visa.
Child Care Centre Managers are no longer eligible for sponsorship on a SID visa. This occupation was removed from the skilled occupation list.
The positive impact of the updates
This update offers a number of key benefits to both childcare providers and talent.
- Changes to sponsor transfer rules: Skills in Demand visa holders can now change jobs within the childcare industry with greater ease without affecting their immigration status, provided their new employer meets sponsorship requirements.
- Smoother processing: The SID visa offers faster processing times, with an average of 21 days for Core Skills Stream applicants, which will greatly reduce ambiguity and delays surrounding starting or transitioning employment in a childcare role.
- Longer duration and a pathway to permanency: Many childcare employees sponsored under the TSS visa were restricted to the Short-Term Stream, which greatly affected retention. Under the SID, staff can live and work in Australia for up to 4 years – or 5 years for Hong Kong passport holders. Additionally, holders can apply for permanent residency through the Employer Nomination Scheme visa (Subclass 186) after working full-time for 2-3 years.
- PR eligibility criteria: Talent applying for an SID visa only need to have 1 year of experience within the childcare industry, as opposed to the 2 years previously required for the TSS. This makes it easier to sponsor candidates who meet qualification standards but might be younger or slightly less experienced.
- Competitive wages: The new Core Skills Income Threshold (CSIT) sets a minimum salary of $73,150. This is an increase from the previous Temporary Skilled Migration Income Threshold (TSMIT), which was set at $53,900. Increased financial security increases employee satisfaction and retention.
A Strategic Solution
These updates mark a significant step forward in addressing the hiring issues faced by the childcare sector. By streamlining the sponsorship process, offering clearer immigration pathways to permanent residency, and enhancing flexibility for both providers and employees, the SID visa creates a smoother system for both sourcing and retaining.
