Changes to the 457 Visa and what it means for you

Changes to the 457 Visa and what it means for you

On Tuesday 18th April 2017, Prime Minister Malcolm Turnbull and Immigration Minister Peter Dutton announced changes to 457 Visas and Permanent Visas in Australia. Whilst making these changes, the Federal Government along with industry groups, have acknowledged that Australia needs skilled foreign workers.

The changes to the 457 Visa do not affect current 457 visa holders. They will however affect any new 457 nomination and visa applications, and those that have been lodged and are still being processed. If you have lodged a nomination or visa application, this can be withdrawn and a refund of application fees requested.

Further detail of the changes, and proposed changes between now and March 2018 follow:

Changes as at 19 April 2017

  • The occupation lists have changed as follows:
  • Skilled Occupation List has become the Medium and Long-term Strategic Skills List (MLTSSL)
  • Consolidated Sponsored Occupation List has become the Short-term Skilled Occupation List (STSOL)
  • For 457 related occupations, 216 occupations have been removed from the list of eligible occupations and 59 caveats have been added
  • The caveats are additional requirements for certain occupations on the STSOL, to limit the use of the occupations on the 457 programme.
  • There are 3 groups of caveats:

Group A – must have 2 years of work experience

Group B – must be working in a regional area

Group C – occupation specific caveats

  • For 457 visas granted from 19/4/2017 the period of validity of the visa will change from a maximum of 4 years to the following:
  • If the nominated occupation is on the MLTSSL the visa can be granted up to 4 years
  • If the nominated occupation is not on the MLTSSL, only on the STSOL, then it can only be granted for up to 2 years
  • Subsequent applicants (family members of a 457 visa holder) will still be granted a visa for the same period as the primary 457 holder, up to 4 years.

Changes as at 1 July 2017 (proposed)

  • Possible further changes to the occupations on the MLTSSL and STSOL
  • Expansion of the nominated occupations requiring a skill assessment to be completed
  • English exemption for those on a salary above $96,400 will be removed
  • Minor changes to the 457 sponsor training benchmark requirements
  • Introduction of police checks for 457 visa applicants
  • Application lodgement system upgrade

Changes by 31 December 2017

  • Tax File Numbers will be collected for 457 visa holders (and other employer sponsored migrants) so data can be matched with the Australian Taxation Office (ATO) to ensure visa holders are paid the nominated salary.
  • The Department will publish details of sponsors that were sanctioned for not meeting their obligations as a 457 sponsor.

Changes from March 2018

  • The 457 visa will be replaced by the Temporary Skill Shortage (TSS) visa.
  • The TSS will have 2 streams:

Short-term stream:

  • Visa granted for up to 2 years
  • Can only renew visa once
  • Does not lead to permanent residency
  • Uses the STSOL (plus additional occupations for regional applicants)
  • Same English requirement as current 457 – IELTS (or equivalent) 5 overall with a minimum of 4.5 in each component

Medium-term stream:

  • Visa granted for up to 4 years
  • Uses the MLTSSL (plus additional occupations for regional applicants)
  • English requirement – IELTS (or equivalent) 5 in each component
  • Pathway to permanent residency after 3 years
  • New eligibility requirements for both streams:
  • Visa applicants required to have at least 2 years of work experience in their nominated occupation
  • Labour market testing for all occupations
  • Additional requirements for employer sponsored permanent skilled visas:
  • Tightened English requirements (no details as yet)
  • Visa applicants to have at least 3 years of work experience
  • Maximum age of 45 years old

Permanent Visa Changes

As with 457 Visas, changes were announced that are effective today, April 19th 2017, whilst other proposed changes for between now and March 2018 are outlined below:

Changes as at 19 April 2017

  • The ENS (subclass 186) now uses the Short-term Skilled Occupation List (STSOL)
  • No changes to RSMS (subclass 187)

Changes as at 1 July 2017

  • Possible further changes to the occupations on the STSOL
  • English requirement remains the same as 6 in each for IELTS (or equivalent) for Direct Entry Stream
  • Maximum age of 45 for Direct Entry Stream, maximum of 50 for Temporary Residence Transition Stream

Changes by 31 December 2017

  • Tax File Numbers will be collected for visa holders so data can be matched with the Australian Taxation Office (ATO) to ensure visa holders are paid the nominated salary.
  • The Department will publish details of sponsors that were sanctioned for not meeting their obligations as a sponsor.

Changes from March 2018

  • The new MLTSSL will apply, not the STSOL, with additional occupations for regional RSMS applications
  • Minimum market salary rate will apply, including for RSMS applications (rate to be confirmed)
  • Permanent residency eligibility extended from 2 to 3 years
  • Must have at least 3 years of relevant work experience
  • All applicants must be below 45 years old
  • A strengthened training requirement

It has never been as important to make sure you get your application right! Contact eVisas to speak to one of our immigration experts for help with your Australian visa.

Still looking for more information? See the links below or call us today.

MLTSSL – https://www.border.gov.au/Trav/Work/Work/Skills-assessment-and-assessing-authorities/skilled-occupations-lists/mltssl

STSOL – https://www.border.gov.au/Trav/Work/Work/Skills-assessment-and-assessing-authorities/skilled-occupations-lists/combined-stsol-mltssl

Removed occupations – https://www.border.gov.au/Trav/Work/Work/Skills-assessment-and-assessing-authorities/skilled-occupations-lists/removed-skilled-occupations

DIBP website overview of changes – https://www.border.gov.au/Trav/Work/457-abolition-replacement

Email a eVisas Migration consultant: info@evisas.com.au

Phone us: 07 3211 3700

On Tuesday 18th April 2017, Prime Minister Malcolm Turnbull and Immigration Minister Peter Dutton announced changes to 457 Visas and Permanent Visas in Australia. Whilst making these changes, the Federal Government along with industry groups, have acknowledged that Australia needs skilled foreign workers.