News Flash

UPDATED 1 July 2017: How changes to the 457 visa and the new Temporary Skill Shortage (TSS) visa imp

07-Jul-2017

The following information is of a general nature and cannot substitute for professional legal advice. Always seek the advice of a qualified immigration specialist who is aware of, and can take into account, your individual circumstances and tailor advice accordingly.

This Newsflash has been updated to incorporate changes that came into effect on 1 July 2017.

To follow up our initial newsflash on the momentous changes to the 457 visa program, below is a chronological summary of the key changes. We also explain in more detail how they will impact current and future holders of 457 visas.

Key changes from 19 April 2017 onwards

Date
Change Impact on 457 visa holders

From 19 April 2017

The current Consolidated Sponsored Occupation List (CSOL) will be renamed the Short-Term Skilled Occupations List (STSOL).

The Skilled Occupations List (SOL) will be renamed the Medium and Long-term Strategic Skills List (MLTSSL).

216 occupations removed from the list of eligible occupations.

Caveats added to 59 other occupations
If you already held a subclass 457 visa before 19 April:

Removed occupations will not impact you unless you apply for a further subclass 457 visa or are changing your occupation or employer.

If you lodged on or after 19 April 2017 or were lodged before 19 April 2017 but have not yet received a decision:

You will be impacted by the removed occupations

If a caveat applies to your occupation, further restrictions will apply.

All new 457 visas will be granted either a 2- or 4-year validity period. If you already held a subclass 457 visa before 19 April, you will not be impacted, even if your occupation was removed from the list.

If you lodged before 19 April 2017, have not yet received a decision AND your occupation was removed, your application cannot be approved. You will be given an opportunity to withdraw your application and receive a refund; if you do not withdraw, your application will be refused.

If you lodged before 19 April 2017, have not yet received a decision AND your occupation is ONLY on the STSOL, you will be granted a two-year short-term visa.

If you lodged before 19 April 2017, have not yet received a decision AND your occupation is on the MLTSSL, you will be granted a four-year short-term visa.

From 1 July 2017 Both the STSOL and MLTSSL have been reviewed and revised.

36 occupations newly eligible for the Subclass 457 and Subclass 186, and some occupations moved between the STSOL and MLTSSL.

12 occupations completely removed from the lists, nine of which were previously available for the subclass 457 (see list of removed occupations).

Caveats on some occupations revised (see list of caveats on occupations).
If your occupation has been removed from the list, you will be impacted if your 457 visa or nomination application is still being processed on 1 July 2017. In this case, you will be given the chance to withdraw your application, or have it refused.

This also applies for caveats.

English language salary exemption threshold, which exempts applicants whose salary is over $96,400 from the English language requirement, has been removed. Certain applicants employed by companies operating an established overseas business will still be exempt. (Full details can be found here.) Overall, 457 visa applicants will be subject to much stricter requirements than was previously the case.

Character: Police checks now mandatory.

Training benchmarks: New policy guidelines have altered the types of expenditures that are acceptable for business sponsors for meeting training benchmarks (the full legislative instrument can be found here).

Mandatory skill assessments apply to more people

Changes to sponsorship accreditation (for full details, see the DIBP website). A larger number of lower risk sponsors have access to accreditation and the priority allocation and streamlined processing arrangements that this entails.

Before 31 December Tax File Numbers for 457 visa holders will be collected to ensure that visa holders are not paid less than their nominated salary.

Details relating to sponsors sanctioned for failing to meet their obligations under will also be published.
For sponsors in particular, these are clear moves by the government to more strictly enforce compliance with sponsor obligations.

From March 2018 The 457 visa will be abolished and replaced with the Temporary Skill Shortage (TSS) visa.

Short-Term visa stream (up to 2-years in duration):

Renewal: Can be renewed onshore only once

Occupation: Must be on the STSOL (for regional Australia, additional occupations are available.)

English: A minimum International English Language Testing System (IELTS) (or equivalent) score of 5, with a minimum of 4.5 in each test component.

Genuine entry: A genuine temporary entrant requirement.

Medium-Term visa stream (up to 4-years in duration):

Renewal: Capacity for visa renewal onshore and a permanent residence pathway after three years.

Occupation: Must be on the MLTSSL (for regional Australia, additional occupations are available.)

English: A minimum IELTS score of 5 (or equivalent) in each test component.

Eligibility criteria for both streams will include:

Work experience: at least two years’ relevant work experience.

Labour market testing (LMT): LMT will be mandatory, unless an international obligation applies.

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

Character: Mandatory police checks.

Workforce: A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers.

Training requirement: a strengthened training requirement for employers.

These final changes represent the full implementation of tightening requirements for both temporary skilled workers and their prospective employers.

Employers nominating a worker for a TSS visa will be required to pay a contribution to the Skilling Australia Fund (SAF). The contribution will be:

payable in full at the time the worker is nominated;

$1,200 per year or part year for small businesses (those with annual turnover of less than $10 million) and $1,800 per year or part year for other businesses.

General Tips and Tricks

Given the staggered nature and magnitude of the changes, a full and detailed eligibility assessment for temporary work visas will be unavoidably complex. Applicants will need to keep in mind that some changes are yet to be detailed.
Both visa applicants and employers should also consider whether it would be prudent to fast-track certain temporary or permanent visa applications before the changes come into effect.
For their part, employers should review how the changes will immediately impact employees who either already hold 457 visas, are in the process of applying for 457 visas, or are looking to lodge applications for permanent residency.
Employers in particular should also consider the impact of the significant additional costs associated with mandatory contributions to the Skilling Australia Fund, due to come into effect in March 2018. This provides further incentive to lodge outstanding 457 applications as soon as possible.

As always, we will be keeping a close eye on any new developments and update our clients as soon as they arise.

Source: DIBP

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Date	Change	Impact on 457 visa holders
From 19 April 2017	The current Consolidated Sponsored Occupation List (CSOL) will be renamed the Short-Term Skilled Occupations List (STSOL). The Skilled Occupations List (SOL) will be renamed the Medium and Long-term Strategic Skills List (MLTSSL). 216 occupations removed from the list of eligible occupations. Caveats added to 59 other occupations	If you already held a subclass 457 visa before 19 April: Removed occupations will not impact you unless you apply for a further subclass 457 visa or are changing your occupation or employer. If you lodged on or after 19 April 2017 or were lodged before 19 April 2017 but have not yet received a decision: You will be impacted by the removed occupations If a caveat applies to your occupation, further restrictions will apply.
From 19 April 2017	All new 457 visas will be granted either a 2- or 4-year validity period.	If you already held a subclass 457 visa before 19 April, you will not be impacted, even if your occupation was removed from the list. If you lodged before 19 April 2017, have not yet received a decision AND your occupation was removed, your application cannot be approved. You will be given an opportunity to withdraw your application and receive a refund; if you do not withdraw, your application will be refused. If you lodged before 19 April 2017, have not yet received a decision AND your occupation is ONLY on the STSOL, you will be granted a two-year short-term visa. If you lodged before 19 April 2017, have not yet received a decision AND your occupation is on the MLTSSL, you will be granted a four-year short-term visa.
From 1 July 2017	Both the STSOL and MLTSSL have been reviewed and revised. 36 occupations newly eligible for the Subclass 457 and Subclass 186, and some occupations moved between the STSOL and MLTSSL. 12 occupations completely removed from the lists, nine of which were previously available for the subclass 457 (see list of removed occupations). Caveats on some occupations revised (see list of caveats on occupations).	If your occupation has been removed from the list, you will be impacted if your 457 visa or nomination application is still being processed on 1 July 2017. In this case, you will be given the chance to withdraw your application, or have it refused. This also applies for caveats.
	English language salary exemption threshold, which exempts applicants whose salary is over $96,400 from the English language requirement, has been removed. Certain applicants employed by companies operating an established overseas business will still be exempt. (Full details can be found here.)	Overall, 457 visa applicants will be subject to much stricter requirements than was previously the case.
	Character: Police checks now mandatory.
	Training benchmarks: New policy guidelines have altered the types of expenditures that are acceptable for business sponsors for meeting training benchmarks (the full legislative instrument can be found here).
	Mandatory skill assessments apply to more people
	Changes to sponsorship accreditation (for full details, see the DIBP website).	A larger number of lower risk sponsors have access to accreditation and the priority allocation and streamlined processing arrangements that this entails.
Before 31 December	Tax File Numbers for 457 visa holders will be collected to ensure that visa holders are not paid less than their nominated salary. Details relating to sponsors sanctioned for failing to meet their obligations under will also be published.	For sponsors in particular, these are clear moves by the government to more strictly enforce compliance with sponsor obligations.
From March 2018	The 457 visa will be abolished and replaced with the Temporary Skill Shortage (TSS) visa. Short-Term visa stream (up to 2-years in duration): Renewal: Can be renewed onshore only once Occupation: Must be on the STSOL (for regional Australia, additional occupations are available.) English: A minimum International English Language Testing System (IELTS) (or equivalent) score of 5, with a minimum of 4.5 in each test component. Genuine entry: A genuine temporary entrant requirement. Medium-Term visa stream (up to 4-years in duration): Renewal: Capacity for visa renewal onshore and a permanent residence pathway after three years. Occupation: Must be on the MLTSSL (for regional Australia, additional occupations are available.) English: A minimum IELTS score of 5 (or equivalent) in each test component. Eligibility criteria for both streams will include: Work experience: at least two years’ relevant work experience. Labour market testing (LMT): LMT will be mandatory, unless an international obligation applies. Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT) requirements. Character: Mandatory police checks. Workforce: A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers. Training requirement: a strengthened training requirement for employers.	These final changes represent the full implementation of tightening requirements for both temporary skilled workers and their prospective employers.
From March 2018	Employers nominating a worker for a TSS visa will be required to pay a contribution to the Skilling Australia Fund (SAF).	The contribution will be: payable in full at the time the worker is nominated; $1,200 per year or part year for small businesses (those with annual turnover of less than $10 million) and $1,800 per year or part year for other businesses.