On 18 April 2017, the Government announced the abolishment of the Temporary 457 Work (Skilled) visa and replacement with a new Temporary Skill Shortage (TSS) visa in March 2018.
This new visa is part of the Government’s strategy to focus temporary and permanent employer sponsored skilled migration on skills shortages and gaps.
Immediate changes (from 19 April 2017)
- 216 occupations were removed from the Consolidated Sponsored Occupation list (CSOL). The list was also renamed to Short-term Skilled Occupations List (STSOL). The maximum duration for 457 visas issued for occupations on this list will be 2 years. The STSOL will be updated every 6 months based on advice from the Department of Employment.
- The Skilled Occupations List (SOL) was renamed the new Medium and Long-term Strategic Skills List (MLTSSL). The maximum duration for 457 visas issued for occupations on this list remains 4 years.
Changes from 01st July 2017
- Applicants with salary over $96,400 will no longer be exempt of English language requirements.
- Police clearance certificates will become mandatory for 457 visas.
Changes before 31st December 2017
- 457 Visa holders will be required to provide Tax File Number to the Department of Immigration. TFN information will be matched with the Australian Taxation Office records to ensure the nominated salary has been paid.
Changes from March 2018
The 457 visa will be completely abolished and replaced with the new Temporary Skills Shortage (TSS).
The TSS will be comprise of a short and medium-term stream and the criteria surrounding which stream are detailed below.
The Short-Term Stream
The short-term stream is designed for businesses to fill skill gaps with foreign workers on a temporary basis (up to 2 years) and the following criteria applies:
- Nominate an occupation on the STSOL (including additional occupations for Regional Australia).
- English language requirement of minimum score of 5 and at least 4.5 in each band on IELTS or equivalent test system.
- Evidence that this is a genuine temporary entrant requirement.
- Visa renewal only onshore.
The Medium-Term Stream
The medium-term stream is designed for businesses to source foreign workers to address shortages in a narrower range of high skill and critical need occupations. Visa is up to 4 years and the following criteria applies:
- Nominate an occupation on the MLTSSL (including additional occupations for Regional Australia).
- Minimum score of 5 in each band of IELTS or equivalent test system.
- Evidence that this is a genuine temporary entrant requirement.
- Visa renewal only onshore however with a pathway for permanent residency after 3 years
Eligibility criteria for both streams will include:
- Work experience: at least two years’ work experience relevant to the occupation.
- Labour market testing (LMT): LMT will be mandatory for every occupation (unless an international obligation applies).
- Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (minimum salary of $53,900 as per 18 April 2017)
- Character: Mandatory penal clearance certificates to be provided.
- Workforce: A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers.
- Training requirement: Employers nominating a worker for a TSS visa will be required to pay a contribution to the Skilling Australians Fund. The contribution will be:
- o payable in full at the time the worker is nominated;
- $1,200 per year or part year for small businesses (those with annual turnover of less than $10 million) and $1,800 per year or part year for other businesses.
How we can help
If you would like advice on your situation understanding how these changes will affect your 457 visa or assistance if you are an employer looking for advice on sponsorship obligations or how to sponsor staff please book an appointment. Our initial consultation is free of charge. Contact us or call +61 2 9262 4707
Sources:
- Department of Immigration and Boarder Protection – https://www.border.gov.au/Trav/Work/457-abolition-replacement
- Fact sheet: https://www.border.gov.au/WorkinginAustralia/Documents/abolition-replacement-457.pdf