It has been predicted for a while now, but March 18th, 2018, marks the end of the temporary skilled visa program (subclass 457) and the introduction of the Temporary Skill Shortage visa (TSS) (subclass 482). The Department of Home Affairs announced the TSS visa would be implemented to prioritise Australian workers, and further to address the skill shortages in Australia.
While many of the aspects remain similar to the 457 visa, there are also added complexities in the application process which may make it difficult for applicants to be eligible for the visa. Results Migration take us through all of the changes and what these changes mean for new applicants.
The TSS visa will have 3 streams: the short-term and medium-term and the Labour Agreement Stream.
AN OVERVIEW: Differences between the short-term stream and the medium-term stream
| Short-term | Medium-term | |
| Duration | 2 years | 4 years |
| Renewal | Can be renewed onshore only once | Can be renewed onshore |
| Permanent Residency | No pathway to permanent residency | Permanent residency pathway after three years |
| Occupation List | STSOL – can be reviewed every 6 months | MLTSSL – only ‘critical’ or ‘high value’ occupations are considered |
| English Requirements (IELTS or equivalent) | Similar to the 457 visa:
Overall score of at least 5 with minimum score of 4.5 in each of the 4 test components |
Higher level required than 457 visa: Overall score of at least 5 with a minimum of 5 in each component |
| Exemptions to English Requirements | – Passport holders from the UK, Ireland, USA, Canada and New Zealand
– People who have studied in English for at least 5 years – Intra-company transfers where the base salary is at least $96,400 – Diplomatic/Consular appointments |
|
| Fees | Primary Applicant $1,150 | Primary Applicant – $2,400 |
| Employer Nomination Fees | $330 | |
| Employer Sponsorship Fees | $420 | |
| Prior Work Experience | Two years work experience in the nominated occupation or related field | |
| Age | Maximum age of 45 | |
| Health Requirement | All applicants must show they do not have any medical conditions which are of public health concern or would result in a significant cost to the Australian community. | |
| International Trade Obligations | Labour market testing (LMT) | |
| Character Test | Mandatory police check for all applicants from each country lived in for 12 or more months in the past 10 years | |
| Adult Children | The visa will be valid until the child’s 23rd birthday | |
| Employers | Must meet a non-discriminatory workforce test | |
| Salary | Minimum salary | |
So, what exactly are the new occupation lists?
The first list is the “Short Term Skilled Occupations List” (STSOL) which will replace the Consolidated Skilled Occupations List (CSOL). The second is the “Medium and Long-Term Strategic Skills List” (MLTSSL), which will replace the Skilled Occupations List (SOL). Both streams are also a lot more expensive than the 457 visa. However, the nomination and sponsorship fees remain the same.
Short-term stream
The first list is the “Short Term Skilled Occupations List” (STSOL) will replace the Consolidated Skilled Occupations List (CSOL). This list has been designed for employers to fill skill gaps temporarily
– Valid for two years
– Can be renewed once for two more years
– No pathway to permanent residency
– Occupation list will be reassessed every six months
– Applicant needs to show genuine intention to stay temporarily in Australia
– Similar English proficiency to 457 visa
Short-term stream fees
– Primary Applicant – $1,150
– Dependant over 18 – $1,150
– Dependant under 18 – $290
Medium-term stream
The second list is the “Medium and Long-Term Strategic Skills List” (MLTSSL), which will replace the Skilled Occupations List (SOL).
– Similar to the 457 visa
– Valid for four years
– Possibility for permanent residency after 3 years
– Occupations are considered critical to the economy
– Possible caveats on occupations
– High English proficiency expectations
Medium-term stream fees
– Primary Applicant – $2,400
– Dependant over 18 – $2,400
– Dependant under 18 – $600
Labour Agreement Stream
This stream is for employers who have negotiated a labour agreement with the Government. This visa can only be used if no other visas are an option. The labour agreement stream has different rules to the short-term and medium-term steam, such as having far lower English language skills and no formal testing required.
Changes for Sponsors
It will be much easier to become an approved sponsor as the Government has introduced a new training levy. A TSS sponsorship will be valid for 5 years.
Changes to Nomination Requirements
Only full-time positions can be nominated under the TSS visa. The nomination period must be specified and be exactly 1, 2, 3 of 4 years. The TSS also requires the sponsors to pay the nomination fees.
What if I was on a 457 before 2017?
All the old rules of the 457 will apply to you under the ‘grandfathering’ provisions. This means that the March visa changes will not affect you. Luckily, this means the pathway to permanent residency still exists.
Industries affected
With hundreds of cuts made to both occupation lists, it is inevitable that most industries will be affected by the TSS visa. Especially those industries in technology, mining and hospitality, who are actively working to have ‘critical jobs’ reinstated.
What else is new?
The TSS has a few new provisions which were not included in the 457 visa. These include:
– 8607 condition specifies that if a visa holder wants to work in a different occupation, they must obtain a new nomination from a sponsoring employer and apply for a new visa
– Work experience – applicants now need to have at least two years of work experience in their relevant occupation
– English Language requirements are stricter than the 457 visa.
What does this really mean?
It is difficult to assess whether the TSS visa will address Australia’s skill shortages. However, a few things are evident.
- It is clear that applicants applying for the short-term stream of the TSS will need to prove their genuine intentions to stay in Australia temporarily
- Applicants on the medium-term stream will have to really prove themselves over the three years if they want to stay in Australia
- Employers will need to consider whether an Australian can contribute to the economy first
Overall, the TSS visa has made it easier for employers to meet the training requirements but it is more challenging for applicants due to all the additional criteria involved. It is clear that the Government has taken this change seriously and it will be interesting to see how it works in practice.
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