Replacement of the 457 visa for the Temporary Skill Shortage 482 visa

Replacement of the 457 visa for the Temporary Skill Shortage 482 visa!

In April last year, the Australian Government announced the end of the 457 visa era. From March 18 2018 the 457 visa has been replaced with the new 482 Temporary Skill Shortage (TSS) visa.

The TSS 482 visa allows an employer to sponsor overseas skilled workers temporarily in occupations listed on the Short-term and Medium-term skill occupations lists and under a labour agreement. Those are the three streams available under the TSS visa program to fill positions for a maximum of two years or four years if an International Trade Obligation applies:

1. Short-term stream – this stream is for employers seeking genuine temporary overseas skilled workers in occupations on the Short-term Skilled Occupation List (STSOL) for a maximum of two years (or up to four years if an international trade obligation applies), this visa can only be renewed once onshore and the applicant must show they are Genuine Temporary Entrants.

2. Medium-term stream – this stream is for employers seeking highly skilled overseas workers to fill occupations included on the Medium and Long-term Strategic Skills List (MLTSSL) for up to four years renewable without limitation and eligibility to apply for permanent residence after three years. There is a higher English requirement as to the short-term stream.  

Note: Employers in regional Australia have now access to a broader range of occupations. Existing permanent visa concessions for regional Australia continue without any changes, for example the nomination fee waiver and age exemptions for certain occupations.

3. Labour Agreement stream - on special cases where standard visa programs are not available and it is demonstrated that it cannot be met in the Australian labour market, employer can negotiate a labour agreement with the Australian Government.

In April 2017 the government significantly tightened the occupations lists used for skilled migration visas, including for the 457 visa. Then in January 2018 more reforms took place for the occupation lists used for skilled migration visas, including the 457 and 407 visas. And finally, in March 2018 with the introduction of the TSS 482 visa, the new requirements including but not limited to:

  • tightened English language requirements: minimum score of 5.0 IELTS exam

  • a requirement for visa applicants to have at least two years work experience in their skilled occupation, however if sponsored under a labour agreement a waiver of the two year work experience is possible.

  • mandatory labour market testing, unless an international trade obligation applies

  • capacity for only one onshore visa renewal under the Short-term stream

  • capacity for visa renewal onshore and permanent residence eligibility after three years under the Medium-term stream

  • a non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers

  • a requirement to pay a contribution to the Skilling Australians Fund (subject to legislation passing).

  • In terms of Permanent migration, the March 2018 reforms have tightened the eligibility requirements for employer sponsored permanent skilled visas:

  • a requirement for visa applicants to have at least three years work experience

  • applicants must be under the maximum age requirement of 45 at the time of application (unless exemptions apply)

  • employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT) = $53,900 AUD as of 12 January 2018.

  • a requirement to pay a contribution to the Skilling Australians Fund.

  • Standard Business Sponsorship will be valid for 5 years in must cases

Fees 

  • Short Term Stream: $1,150

  • Medium Term Stream: $2,400

  • Labour Agreement Stream: $2,400

As per the Training Levy, the Government has announced that it will apply to the TSS nominations, however, this bill has not passed yet, but it is highly likely that the following amounts will apply:

  1. Large organisations (over $10 million turnover): $1,800 per year of visa validity

  2. Smaller organisations: $1,200 per year

The downside when this training levy is introduced, will be that the costs for employers will increase significantly in obtaining a TSS visa.

All in all, the TSS visa is very similar to the 457 visa, however, different details make major changes to the way it applies to employers and applicants. If you are a potential applicant, it is important to get the best advice from our immigration lawyers.