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CHANGES TO THE 457 TEMPORARY VISA & WHAT IT MEANS FOR YOU

CHANGES TO THE 457 TEMPORARY VISA & WHAT IT MEANS FOR YOU

Author: Sophie Schaedel/Wednesday, April 19, 2017/Categories: Quinton Anthony

Sweeping changes to the skilled migration program have sent employers and foreign workers in Australia into a tailspin.  Our Business Consulting team have put together the below guide which outlines the changes and what it means for employers, current and future visa holders.  

The legislation came in to force on 19 April 2017 and affects all new 457 temporary visa applications lodged after this date, as well as current applications that have been lodged with the Department of Immigration but have not yet been approved.  

What has changed?

-       The STSOL is the Short Term Skilled Occupation List

-       The MLTSSL is the Medium and Long-Term Strategic Skills List

  • 200 occupations have been removed from the list. The link to these is below

https://www.border.gov.au/Trav/Work/Work/Skills-assessment-and-assessing-authorities/skilled-occupations-lists/removed-skilled-occupations

  • Any lodged 457 visa application that was not approved by 18 April where the occupation has been removed, will no longer be able to be approved. The application fees may be refunded.

Timeline of future changes to visas

March 2018 

  • The 457 visa will be abolished and will be replaced by the new Temporary Skill Shortage (TSS) visa which comprises of two streams – short term (2 years) and medium / long-term (4 years)

TSS (short term) visa granted based on STSOL list

TSS (medium/long term) visa granted based on MLTSSL list

Must have 2 years’ minimum full-time work experience in that occupation

Must have 2 years’ minimum work experience in that occupation

Must confirm that the person genuinely only wants to come to Australia temporarily to work

Labour market testing is mandatory

Australian market salary rate

Up to a 2 year visa term

Up to a 4 year visa term

Must have a police check (from 1 July 2017)

Must have a police check (from 1 July 2017)

International English Language Testing System (IELTS) score of 5

English language salary exemption threshold has been removed (from 1 July 2017)

International English Language Testing System (IELTS) score of 5


Potential to apply for 1 renewal for up to 2 years (not guaranteed and must be onshore)

Visa renewal available (must be onshore)

Not eligible to apply for Permanent 186/187 visa for an occupation on the STSOL

- Employer Nomination Scheme (subclass 186) visa (ENS)

- Regional Sponsored Migration Scheme visa (subclass 187)

Is eligible to apply for Permanent 186/187 visa after 3 years on that 457 visa. Upcoming new PR visa obligations:

- 3 years’ work experience in that occupation

- Must commit to working for that company for 3 years following approval

- Under 45 years old

- IELTS of 6

 

Advice for employers with current employees on 457 visas:

  • Existing 457 visa holders (as of 18 April 2017) will not be affected by these changes. This includes transferring their existing 457 visa if they move to a new employer.
  •  Current 457 visa holders will be subject to the new legislation if they need to apply for a new 457 visa before March 2018.
  • You should contact them to let them know about the changes and they will need some advice on their personal situation.
  • Review their occupations and check whether their occupation is on either the STSOL or MLTSSL list; or has been removed completely.
  • If you sponsor ENS visas for eligible 457 visa holder employees, consider whether you will support them to apply for permanent residency before the end of their current visa term. We would advise doing this as soon as possible due to the likely increase in applications.


Notes for construction / engineering employers and candidates

  • Most recent graduates who may have been on student visas will not be eligible for temporary or permanent company sponsorship after March 2018 as they require at least 2 years’ full-time work experience in that occupation.
  • Many of the common construction/engineering related positions – most engineers, quantity surveyor, construction project manager are still available but some have moved to the short term list
  • Recruiting from overseas – consider that senior level roles - General Manager, CEO are still available but are now short term so attracting candidates may be more difficult as there is no route to permanent residency.
  • When you are recruiting candidates who require visas (and who want to gain permanent residency in the future), check if their occupation is on the short term or medium/long-term list as this may affect their interest and they should be advised.


If you are affected by these changes and want additional advice, please do not hesitate to contact Sophie Schaedel of Quinton Anthony at Sophie.schaedel@quintonanthony.com

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