The Transition from ANZSCO to Occupation Standard Classification for Australia (OSCA): What You Need to Know

ANZSCO

Written by Julie Williams | MARN 9903637 | Published 9 October 2024

Australia’s migration and employment landscape is constantly evolving, and with it, so are the systems used to classify and manage occupations. One of the most significant recent changes in this area is the transition from the Australian and New Zealand Standard Classification of Occupations (ANZSCO) to the new Occupation Standard Classification for Australia (OSCA). This shift marks an important development for industries, employers, skilled workers, and migration professionals

Australia will introduce the new Occupation Standard Classification for Australia (OSCA) in 2024, with the first version being released on December 6, 2024.

In this article, we’ll explore what OSCA is, how it differs from ANZSCO, and what it means for skilled migration and employment in Australia.

What is ANZSCO?

The Australian and New Zealand Standard Classification of Occupations (ANZSCO) has long been the authoritative framework for defining and classifying occupations in Australia and New Zealand. Developed by the Australian Bureau of Statistics (ABS) and Statistics New Zealand, ANZSCO categorises occupations based on skill levels, qualifications, and job responsibilities. This classification system has been used extensively in various sectors, including migration, education, and employment, to match job roles with required qualifications and competencies.

ANZSCO has also played a pivotal role in Australia’s skilled migration program. Visa applicants are typically required to nominate an occupation from the ANZSCO list that aligns with their qualifications and work experience. The system helps the Department of Home Affairs assess whether the applicant possesses the necessary skills to fill gaps in the Australian labour market.

Introducing OSCA: The Occupation Standard Classification for Australia

The Occupation Standard Classification for Australia (OSCA) is the new framework that has been introduced to replace ANZSCO in Australia, from 6 December 2024. The decision to transition from ANZSCO to OSCA reflects a need to modernise the occupation classification system and ensure it better aligns with the current Australian labour market and its future needs. OSCA has been designed to provide a more flexible, updated, and comprehensive classification of occupations, improving accuracy and usability for employers, industries, and government bodies.

How OSCA Differs from ANZSCO

While ANZSCO and OSCA share some similarities in their approach to defining occupations, OSCA introduces several key improvements and updates:

  1. Australia-Specific Focus: While ANZSCO was developed as a joint system between Australia and New Zealand, OSCA is tailored specifically to the needs of Australia. This allows for more targeted classification that better reflects Australia’s unique labour market dynamics, skills shortages, and industry requirements.
  2. Increased Flexibility: OSCA is more adaptive to changes in the workforce and emerging industries. With new occupations constantly evolving due to technological advancements and other factors, OSCA provides a more dynamic framework that can be updated more frequently and flexibly than ANZSCO.
  3. Modernised Occupation Classifications: OSCA includes updated classifications that better reflect the current roles and industries in Australia. Occupations that may have been underrepresented or outdated in ANZSCO have been refreshed in OSCA, ensuring the classification system aligns more closely with modern labour market demands.
  4. Clearer Skill Level Definitions: The OSCA system refines the way skill levels are categorised, making it easier for employers and migration authorities to identify the exact skills and qualifications required for each role. This helps streamline the process for both skilled migrants and employers in assessing eligibility and job matching.
  5. Support for Emerging Occupations: As industries such as technology, renewable energy, and healthcare rapidly grow, OSCA is designed to better accommodate and classify new and emerging occupations. This flexibility allows the system to remain relevant in a rapidly evolving job market.

How OSCA Relates to ANZSCO

Though OSCA replaces ANZSCO for Australian occupation classifications, the two systems share a foundational structure. Both are built on the principle of grouping jobs based on the level of skill required and the tasks involved. However, OSCA enhances the framework by adding more current classifications, focusing solely on Australia, and improving the way skill levels are defined and updated.

For employers and visa applicants, the transition from ANZSCO to OSCA means that occupation lists and requirements may be updated more regularly to reflect labour market changes. For example, visa applicants will now nominate an occupation from the OSCA classification list instead of ANZSCO, which may include new roles that were not previously captured under ANZSCO.

In the short term, there may be some overlap or transitional period where both ANZSCO and OSCA are referenced, but ultimately OSCA will become the standard for assessing skilled migration applications.

Implications for Skilled Migrants and Employers

The introduction of OSCA brings several key benefits for both skilled migrants and employers:

  • Improved Alignment with Labor Market Needs: The more dynamic nature of OSCA ensures that occupations critical to Australia’s economic growth and workforce needs are accurately reflected. This benefits skilled migrants by providing greater clarity on what occupations are in demand and the skills needed for each role.
  • Easier Visa Application Process: With clearer skill definitions and modernised job classifications, visa applicants can expect a more streamlined and transparent application process. It will be easier to demonstrate qualifications and work experience in relation to OSCA’s up-to-date classifications.
  • Enhanced Opportunities for Employers: Employers will benefit from a more accurate and flexible system for identifying the skills they need in the workforce. OSCA’s adaptability to emerging industries and roles means businesses can more effectively find and recruit talent from both the local and global labour pools.
  • Ongoing Updates: One of the key advantages of OSCA over ANZSCO is its ability to adapt to future labour market trends. This means that skilled migrants and employers can expect the system to be updated more frequently to reflect changes in demand for particular occupations and industries.

Conclusion

The shift from ANZSCO to the Occupation Standard Classification for Australia (OSCA) marks an important step in Australia’s efforts to keep pace with the changing labour market. OSCA provides a more tailored, flexible, and up-to-date framework for classifying occupations in Australia, making it easier for employers, industries, and migration professionals to work with. Skilled migrants can expect more transparency and relevance in the visa application process as OSCA becomes fully implemented.

For those navigating Australia’s skilled migration program or seeking to hire talent in a competitive workforce, understanding the transition to OSCA will be essential. Staying informed about updates to occupation classifications and visa requirements will help ensure a smoother path to securing skilled work and contributing to Australia’s growth and prosperity.

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