Australian Government Abolish The 457 Visa

The Temporary Skill Shortage visa (TSS) (subclass 482) has officially replaced the temporary skilled visa program (subclass 457). The Government’s decision to replace the 457 visas is to assist businesses in addressing genuine skills shortages and to protect Australian workers and give them the first preference for potential employment. Results Migration take us through what all of these changes mean for new applicants.

This replacement brings many new eligibility requirements and complexities for applicants, including added work experience requirements, higher English language skills and the visa itself is far more costly than the 457.

Three streams available

The first list is the “Short Term Skilled Occupations List” (STSOL) and will replace the Consolidated Skilled Occupations List (CSOL). The second is the “Medium and Long Term Strategic Skills List” (MLTSSL), which will replace the Skilled Occupations List (SOL).

Short-term stream

The first list is the “Short Term Skilled Occupations List” (STSOL) and will replace the Consolidated Skilled Occupations List (CSOL). This list has been designed for employers to fill skill gaps temporarily

Valid for two years
Can be renewed once for two more years
No pathway to permanent residency
The occupation list will be reassessed every six months
The applicant needs to show genuine intention to stay temporarily in Australia
Similar English proficiency to 457 visa

Short-term stream fees

Primary Applicant – $1,150
Dependant over 18 – $1,150
Dependant under 18 – $290

Medium-term stream

The second list is the “Medium and Long Term Strategic Skills List” (MLTSSL), which will replace the Skilled Occupations List (SOL).

Similar to the 457 visa
Valid for four years
Possibility for permanent residency after 3 years
Occupations are considered critical to the economy
Possible caveats on occupations
Higher English proficiency expectations

Medium-term stream fees

Primary Applicant – $2,400
Dependant over – $2,400
Dependant under 18 – $600

Labor agreement stream

Only to be used in exceptional circumstances
Must need that cannot be met by the Australian labor market
Can only be used if no other visas are available
No formal English requirements needed

Do I need work experience?

Yes. The Australian Government has now decided that applicants will need at least two years of work experience in the relevant occupation and field of expertise. This is a complete change from the 457 visas, where one could just have the relevant qualification. This is one of the bigger changes and may make it difficult to be eligible for the TSS visa.

What if I was on a 457 before 2017?

Don’t worry, the old 457 rules will still apply to you! The Government has introduced ‘grandfathering’ provisions which means that if you already held a 457 visa you will retain access to the pathway to permanent residency. The work experience requirement will also stay the same, as will the age and language requirements.

What if I want to change jobs?

The TSS condition 8607 means that if you wish to change occupations, you must obtain a new nomination from a sponsoring employer and apply for a new visa. This is obviously significantly different to the 457 where you could just show you have the skills required for the new occupation.

Differences between the two main streams:

	Short-Term	Medium-Term
Duration	2 years	4 years
Renewal	Can be renewed onshore only once	Can be renewed onshore
Permanent Residency	No pathway to permanent residency	Permanent residency pathway after three years
Occupation List	STSOL – can be reviewed every 6 months	MLTSSL – only ‘critical’ or ‘high value’ occupations are considered
English Requirements (IELTS or equivalent)	Similar to the 457 visas: An overall score of at least 5 with a minimum score of 4.5 in each of the 4 test components	Higher-level required than 457 visas: Overall score of at least 5 with a minimum of 5 in each component
Exemptions to English Requirements	Passport holders from the UK, Ireland, USA, Canada, and New Zealand People who have studied in English for at least 5 years Intra-company transfers where the base salary is at least $96,400 Diplomatic/Consular appointments
Fees	Primary Applicant $1,150	Primary Applicant – $2,400
Employer Nomination Fees	$330
Employer Sponsorship Fees	$420
Prior Work Experience	Two years of work experience in the nominated occupation or related field
Age	Maximum age of 45
Health Requirement	All applicants must show they do not have any medical conditions which are of public health concern or would result in a significant cost to the Australian community.
International Trade Obligations	Labour market testing (LMT)
Character Test	Mandatory police check for all applicants from each country lived in for 12 or more months in the past 10 years
Adult Children	The visa will be valid until the child’s 23^rd birthday
Employers	Must meet a non-discriminatory workforce test
Salary	Minimum salary

Changes for Sponsors

A Training Levy will be introduced for the TSS visa. This means sponsors will not need to prove the training of Australians in the business to become an approved sponsor. A TSS sponsorship will be valid for five years.

Changes to Nomination Requirements

The TSS visa is only available for full-time positions. The TSS also specifically requires the sponsors to pay the nomination fees.

Industries affected

A significant amount of occupations have been cut from both lists, leaving the short-term stream with 268 occupations and the medium-term stream with a small amount of 167 occupations. Such substantial cuts suggest that nearly all industries will be affected by this change. Many affected industries are actively working to have ‘critical jobs’ reinstated. Additionally, many occupations will find a variety of caveats that may be difficult to meet.

What does this really mean?

The 457 visa was very popular and successful, however with Australia continuously changing it was in need of an upgrade. The new TSS visa, while more challenging for applicants to acquire, will actually benefit businesses as it will be easier to meet the necessary training requirements. Whether the TSS is successful in addressing Australia’s skill shortages will be assessed in the next few years, but for now, we will just have to see how it unfolds.