Temporary Skill Shortage Visa - March 2018 Changes

 

Last April, significant changes were announced to the Temporary Work (Skilled) subclass 457 Visa. These changes have been staggered throughout the past year, with the 457 Visa set to be abolished in March 2018. With less than a month until the transition from the 457 Visa to the Temporary Skills Shortage (TSS) Visa, it is crucial that you are aware of the changes and how it may affect you, your employees and your business.

 

March 2018 Visa Changes

As you may be aware, the 457 Visa will be officially abolished and replaced by the Temporary Skills Shortage (TSS) Visa as of March 2018.

Some of the changes include:

  • New, more targeted occupation lists which better align with skill requirements in the Australian labour market
  • A requirement for visa applicants to have at least two years’ work experience in their skilled occupation
  • Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT) which ensures that overseas workers cannot be engaged to undercut Australian workers. The new TSMIT is due to be set at $65,000 as of March 2018
  • Mandatory labour market testing, proof that the company advertised to local workers but were unable to find a local Australian to fill the role, unless an international trade obligation applies
  • Under the Short-Term stream, there is capacity for only one on-shore visa renewal under the Short-Term stream, as well as no option to gain PR.
  • Under the Medium-Term stream, there is capacity for visa renewal on-shore and permanent residence eligibility after three years.
  • 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
  • The Department of Home Affairs will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records, and
  • Mandatory penal clearance certificates to be provided.

 

Skilled Occupation Lists - STSOL and MLTSSL

Occupations fall into two lists, the Short-term Skilled Occupation List (STSOL) and the Medium and Long-term Strategic Skills List (MLTSSL).

  • Short-Term stream – this is for employers to source genuine temporary overseas skilled workers in occupations included 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). You are not eligible to apply for permanent residency under this list.
  • Medium and Long-Term stream – this is for employers to source highly skilled overseas workers to fill medium-term critical skills in occupations included on the Medium and Long-term Strategic Skills List (MLTSSL) for up to four years, with eligibility to apply for permanent residence after three years

You are able to view the Skilled Occupation Lists here - https://www.homeaffairs.gov.au/trav/work/work/skills-assessment-and-assessing-authorities/skilled-occupations-lists/combined-stsol-mltssl


Oz Migration Blogs

Temporary Skill Shortage Visa - March 2018 Changes

 

Last April, significant changes were announced to the Temporary Work (Skilled) subclass 457 Visa. These changes have been staggered throughout the past year, with the 457 Visa set to be abolished in March 2018. With less than a month until the transition from the 457 Visa to the Temporary Skills Shortage (TSS) Visa, it is crucial that you are aware of the changes and how it may affect you, your employees and your business.

 

March 2018 Visa Changes

As you may be aware, the 457 Visa will be officially abolished and replaced by the Temporary Skills Shortage (TSS) Visa as of March 2018.

Some of the changes include:

  • New, more targeted occupation lists which better align with skill requirements in the Australian labour market
  • A requirement for visa applicants to have at least two years’ work experience in their skilled occupation
  • Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT) which ensures that overseas workers cannot be engaged to undercut Australian workers. The new TSMIT is due to be set at $65,000 as of March 2018
  • Mandatory labour market testing, proof that the company advertised to local workers but were unable to find a local Australian to fill the role, unless an international trade obligation applies
  • Under the Short-Term stream, there is capacity for only one on-shore visa renewal under the Short-Term stream, as well as no option to gain PR.
  • Under the Medium-Term stream, there is capacity for visa renewal on-shore and permanent residence eligibility after three years.
  • 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
  • The Department of Home Affairs will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records, and
  • Mandatory penal clearance certificates to be provided.

 

Skilled Occupation Lists - STSOL and MLTSSL

Occupations fall into two lists, the Short-term Skilled Occupation List (STSOL) and the Medium and Long-term Strategic Skills List (MLTSSL).

  • Short-Term stream – this is for employers to source genuine temporary overseas skilled workers in occupations included 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). You are not eligible to apply for permanent residency under this list.
  • Medium and Long-Term stream – this is for employers to source highly skilled overseas workers to fill medium-term critical skills in occupations included on the Medium and Long-term Strategic Skills List (MLTSSL) for up to four years, with eligibility to apply for permanent residence after three years

You are able to view the Skilled Occupation Lists here - https://www.homeaffairs.gov.au/trav/work/work/skills-assessment-and-assessing-authorities/skilled-occupations-lists/combined-stsol-mltssl