Month: January 2018

Transitioning from the subclass 457 visa to the new TSS visa

From March 2018, the subclass 457 visa will be replaced by the new Temporary Skills Shortage (TSS) visa. Whilst there are going to be big adjustments for businesses and visa holders from a practical and commercial perspective, the Department of Home Affairs (Department) has also released information about how the transition will occur from a regulatory perspective, as explained below.

Existing sponsors

Employers who are already approved standard business sponsors under the subclass 457 program will still be able to sponsor overseas workers under the TSS visa program.

The following transitional arrangements are expected to be in place for nomination and visa applications (subject to final approval):

  • if subclass 457 nomination and visa applications are both lodged before the TSS is implemented they will be processed under the current (ie subclass 457) framework.
  • if a subclass 457 nomination application is lodged without a 457 visa application being lodged before the new TSS visa commences, the nomination application will effectively become ‘redundant’. The Department has advised that subclass 457 nominations will not be able to be linked to TSS visa applications, even where the nomination has already been approved.

The Department has also flagged that there will be arrangements made so that ‘redundant applications’ can be finalised and/or withdrawn with a refund of the fee provided. In light of the administrative complications associated with the transition to the TSS visa, the Department is encouraging applicants to:

  • lodge subclass 457 nomination and visa applications together before the end of February, or
  • postpone lodgement until commencement of the TSS visa.

Other arrangements in relation to secondary applicants and changing employer or occupation under the new TSS system are as follows:

  • Secondary visa applicants (of 457 visa holders or pending 457 visa applicants) will be able to lodge a subsequent dependent TSS application and (provided they meet requirements) will be granted a TSS visa linked to their family’s subclass 457 visa/nomination application. The period of the TSS visa will match the expiry date of the subclass 457 primary visa holder.
  • After the implementation of the TSS, subclass 457 visa holders whose visa is still valid but wish to change employer can get their new employer to lodge a TSS nomination application. However subclass 457 visa holders who wish to change occupation or need a new visa (eg because their visa is expiring) will need to lodge a new TSS visa application in connection with the new TSS nomination.

Given the changes announced last year are now well and truly on the horizon, it is important that where possible, businesses plan well ahead at this time to avoid having to lodge applications at the last minute and potentially being left with a ‘redundant’ application.

For advice regarding skilled visas, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.

Looking forward – Changes to Skilled Visas in 2018

On 18 April 2017 the Government announced major changes to the temporary and permanent skilled visa framework. Whilst many of these changes were implemented last year, there are still a number of reforms slated for March 2018. In this article, we give an overview of the key changes which are on the horizon for skilled visas.

Changes to the Temporary Skilled Visa Program

From March 2018, the subclass 457 visa, which has been used by Australian businesses since 1996 to bring skilled workers from overseas, will be abolished. In its place, the Government will establish the Temporary Skills Shortage (TSS) visa. The key difference will be that the TSS visa will consists of two streams, theses streams will have different durations and carry different entitlements:

Short Term Stream (STS) Medium Term Stream (MTS)
Duration Two years Four years
Renewal Visa renewal onshore, once only Visa renewal onshore
Occupations Occupations on the Short-Term Skilled Occupation List (STSOL) Occupations on the Medium and Long-Term Strategic Skills List (MLTSSL).
English language A requirement of an International English Language Testing System (IELTS) (or equivalent test) score of 5, with a minimum of 4.5 in each test component. A requirement of a minimum of IELTS 5 (or equivalent test) in each test component.
Permanent residency options No pathway to permanent residency Permanent residency pathway after three years
Other A genuine temporary entrant requirement will apply Additional occupations will be available for regional employers

 

The following changes will also take place to the temporary visa program:

Work experience: At least two years relevant work experience will be required

LMT exemptions LMT will become mandatory for all occupations, unless international trade obligations apply. Employers will therefore need to ensure they conduct LMT within the required timeframes, irrespective of the skill level of the occupation they are seeking to fill, unless the international trade obligation exemption applies.

Training: Employers will be required to contribute to a “Skilling Australians Fund”. The contribution must be paid at the time the worker is nominated and will be $1200 per year or part year for small businesses (those with annual turnover of less than $10 million) and $1800 per year or part year for other businesses.

Character: Mandatory penal clearance certificates are to be provided

Key Changes to the Permanent Skilled Visa Program

The following changes will take place to the permanent employer sponsored skilled visa programs:

Occupation lists: the new MLTSSL will apply to the Direct Entry stream for both the Employer Nomination Scheme subclass 186 visa (ENS) and the Regional Sponsored Migration Scheme subclass 187 visa (RSMS), with certain additional occupations available through the RSMS for regional employers.

Eligibility for Residency: The period required to transition to permanent residence will be extended from two to three years.

Training requirement: Employers will be required to pay a contribution to the Skilling Australians Fund at the time the worker is nominated. The required contribution will be $3,000 for small businesses (those with annual turnover of less than $10 million) and $5,000 for other businesses.

Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold.

Work experience: At least three years’ work experience relevant to the occupation will be required.

Age: All applicants will need to be under the maximum age requirement of 45 at the time of application.

We note that for people who held, or had applied for, a subclass 457 visa on 18 April 2017 will still be able to access certain existing requirements under the Temporary Residence Transition stream.

For advice regarding skilled visas, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.