457 Visa Changes 101

Table of Contents

Share at:

On the 18th of April 2017, the Federal Government announced a series of reforms to the Temporary Work (Skilled) visa (subclass 457 visa). These major changes will have an impact on current 457 visa holders, prospective applicants, businesses sponsoring skilled migrants and industry.

The Temporary Skills Shortage (TSS) Visa (482)

By March 2018, the Temporary Work (Skilled) visa (visa subclass 457) will be abolished and replaced with the new Temporary Skills Shortage (TSS) visa. The new TSS visa programme will introduce two new visa terms for foreign workers: short term and medium term.

  • Short term visas will be issued to fill skill gaps on a temporary basis, require applicants to have previous work experience and will be only two years.
  • Medium term visas will be issued only for more high skill and critical need occupations, for up to 4 years and may offer a pathway to permanent residency after 3 years.

The Department of Immigration and Border Protection outlined that these two terms will include strict requirements for applicants, such as:

  • English language tests;
  • Mandatory labour market testing;
  • A new non-discriminatory workforce test;
  • Mandatory criminal history checks;
  • A market salary rate assessment; and
  • A new two-year work experience requirement.

Both visas will only be issued where a suitably skilled Australian worker cannot be sourced by the business.

Changes to the Occupation Eligibility

From April 19 2017, the number of occupations eligible for these two streams will be reduced from 651 professions under the former list to 435, a deduction of 216 occupations. Within this new list, 24 occupations will be restricted to regional Australia (for example agriculture and farming).

The former Consolidated Sponsored Occupation List (CSOL) has changed to the new Short-term Skilled Occupations List (STSOL). It will be updated every six months based on advice from the Department of Employment. The occupations list used for skilled migration, the Skilled Occupations List (SOL) will be renamed to the new Medium and Long-term Strategic Skills List (MLTSSL).

According to the Department of Immigration and Border Protection the skilled occupations outlined in this list will be assessed based on their “value to the Australian economy and their alignment to the Government’s longer term training and workforce strategies.” The Department has also stated that further information about the Occupation Lists will be made available in the near future.

Current and Prospective Visa Holders

Persons under the 457 visa scheme before the announcement will be exempt from these changes, including those working in one the 216 occupations removed from the list. High-demand 457 visa occupations in industries such as health care (doctors and nurses), food services (chefs and restaurant management) and most IT occupations, will remain eligible under the new TSS scheme. However, further changes will be made to the occupation lists in June 2017, with caveats to be imposed on specific occupations and the businesses seeking to employ skilled migrants.

Let us know your thoughts on the latest visa reforms by tagging us #lawpath or @lawpath

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

How to Value a Business in Australia: The Methods Explained

From 1 July 2027, what your business was worth on 30 June sets your future CGT bill, even if you never sell. Here's why it matters.

Are Merchant Fees Tax Deductible? GST and Tax Rules for Businesses

Understand when merchant fees are deductible in Australia and how to record them correctly for tax and GST purposes.

Director’s Guarantee: What Are You Personally Liable For?

Understand your liabilities under a director’s guarantee and how to draft an agreement that protects your assets.

Can You Pay Your ATO Tax Bill by Credit Card? What Changes After 30 June 2027

After 30 June 2027, you can no longer pay ATO by credit card. So what are your other options? Read our comprehensive guide.

Can You Vary PAYG Instalments If Your Business Income Drops?

Understand when and how to vary PAYG instalments, how it affects your tax bill, and when to get legal and tax help.

Should You Leave Profits in Your Company or Pay Them Out?

Determine whether to leave profits in the company or pay dividends based on your cash flow forecasting, tax position, and other considerations.