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Hear about the Abolition and Replacement of the 457 Visa
Vanessa Song • August 16, 2017
On the 18th of April, 2017, the Government announced that the Temporary work (Skilled) visa (subclass 457 visa) will be abolished and replaced with the completely new Temporary Skill Shortage (TSS) visa in March 2018.
The TSS visa programme will be comprised of a Short-Term stream of up to two years and a Medium-Term stream of up to four years and will support businesses in addressing genuine skill shortages in their workforce and will contain a number of safeguards which prioritise Australian workers.
This new visa is part of the Government’s significant reform package to strengthen the integrity and quality of Australia’s temporary and permanent employer sponsored skilled migration programmes.
Key reforms include:
Introducing the temporary skill shortage visa with new requirements, including but not limited to:
- New, more targeted occupation lists which better align with skill needs 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)1 which Ensures that overseas workers cannot be engaged to undercut Australian workers
- Mandatory labour market testing, unless an international obligation applies,
- Capacity for only one onshore visa renewal under the Short-Term stream
- Capacity for visa renewal onshore and a permanent residence pathway after three years under the Medium-Term stream
- The permanent residence eligibility period will be extended from two to 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 Immigration and Border Protection 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.
Tightening eligibility requirements for employer sponsored permanent skilled visas, including but not limited to:
- Tightened English language requirements
- 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
- A requirement to pay a contribution to the Skilling Australians Fund, and
- Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT)1.
– Toni-Marie Muirhead, Recruitment Consultant
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