News Flash

URGENT NEWSFLASH - Australian government axes the 457, and what it means for you

19-Apr-2017


Australian government axes the 457, and what it means for you

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.

The Australian government dropped a bombshell today by scrapping the Temporary (Skilled) visa (Subclass 457). In his announcement, Prime Minister Malcolm Turnbull emphasised repeatedly that the dramatic move was to put ‘Australians and Australian jobs first’.

With over 95,000 people currently on 457s, the sudden announcement has understandably caused a wave of uncertainty for visa applicants, visa holders and businesses alike. We are aware many of our own clients are concerned with what the changes mean for them. That’s why we have put together a summary of what we know so far, and what this might mean for you. We are keeping close tabs on industry sources, as there will most likely be further changes announced in the coming days and weeks. To receive updates, you can bookmark our newsflash page and sign up for our regular news alerts.

What we know so far

New Temporary Skill Shortage program
The 457 program will be replaced with a new visa program, called the Temporary Skill Shortage (TSS) Visa. It will consist of two visa streams: one with a two-year limit, the other a four-year limit. The new program will come into force in March 2018.

Key changes include:

Stricter visa requirements
The new visa will have stricter requirements than the current 457 program, including:

  • higher standards of English
  • criminal record checks
  • a two-year work experience requirement; and
  • mandatory labour market testing for employers.
Stricter pathways to permanent residency
Holders of the new visas will also have a tougher time applying for permanent residency. Currently, 457 visa holders can apply for permanent residency after two years. But under the new two-year visa stream, there will be no pathway to permanent residency. Those on the four-year visa will need to wait three years before they are eligible to apply for permanent residency.


Why are these changes being made?

The 457 program has been under fire from all sides of politics for some time. We’ve written previously about the ongoing reviews into the migration program – clearly, claims that Australians have been unfairly passed over for jobs, particularly from the more conservative quarters of government, have won the day for now.


When will the changes happen?

While the new visa program won't come in until March 2018, some changes are effective as of 19 April 2017. These include significantly reducing the number of approved occupations for skilled migration. Specifically, the government has removed 216 occupations and restricted access to 59 other occupations. The full list of occupations being removed immediately can be found here.

Other changes, some still to be spelled out in detail, will be staggered over the coming months. A more comprehensive list of changes and when they will take place can be found on the DIBP website here.

What the changes mean if you are:

(1) A current 457 visa holder

Some good news for current 457 visa holders: Your visas will not be affected by the changes and will continue to remain in effect under a ‘grandfathering arrangement’.

However, we still don’t know whether current 457 visa holders who then wish to extend their visas will be able to do so under previous 457 conditions, or whether they will be moved to the new, stricter visa program when their current visa expires.

(2) Someone currently in the process of applying for a 457

The situation is slightly more complicated for current 457 visa applicants. Those who lodged their application on or before 18 April 2017, and whose application has not yet been decided, will be affected by the changes.

As the changes will impact you differently depending on your particular circumstances – for example, if your occupation has been removed from the list, or if a new ‘caveat’ applies – we advise you contact a qualified immigration specialist to review your options. In some cases, the best course might be to withdraw and seek a refund for an application already lodged; in other cases, it will be to understand whether and how exactly a caveat will affect your application.

(3) An employer

For employers, key features of the new visa program include mandatory labour testing; a non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers; a strengthened training requirement for employers to contribute towards training Australian workers; and the prospect of more expensive sponsorships, with the fee for a four-year visa more than doubling to $2400 and a two-year visa to be $1150.

We understand the changes will have significant impact on our clients. We cannot stress enough that what this impact will be, exactly, depends very much on individual circumstances, as well as on further changes still to be confirmed by the government. If you have questions or concerns regarding your visa, please contact one of our immigration specialists today.

Source: DIBP

By Linda McCreath
Principal Lawyer and Managing Director
MARN: 0104387

18 April 2017