20/04/2017
"457 visa to be Abolished" - Don't panic keep calm
By now most of you will have heard about the Government’s announcement about 'abolishing the 457 visa'.
Our recommendation is don’t panic!!!
In fact, the Government has not abolished the 457 visa at all. For those currently in Australia on a 457 visa, you have not been affected by these announcements.
Yes, the current 457 visa will be replaced by a new Temporary Skilled Shortage (TSS) visa – but this is not going to happen until March 2018. And yes, there are some significant changes to the 457 criteria which I will discuss later in this article.
The new TSS visa is nothing more that the 457 Version 2.0
In reality what has happened is, as the Minister, Peter Dutton stated recently on the radio, “the 457 brand has been trashed’ and so the Government simply intends to replace it with a similar visa but under a different name.
However, one immediate major change has been to the lists of skilled occupations - the old Skilled Occupations List (SOL) and the Consolidated Sponsored Occupations List (CSOL)- upon which most skilled and employer sponsored visas are based.
The SOL has been replaced by the Medium and Long-term Strategic Skills List (MLTSSL) and the CSOL by the Short-term Skilled Occupation List (STSOL) and a total of 216 occupations have been removed from the old SOL and CSOL.
However, if you look closely at the 216 occupations that have been removed. None of them (apart from the Engineering group) are what one might call the main skilled occupations used under the 457 scheme.
There are still over 450 occupations on the MLTSSL and STSOL. Click here for the new lists.
To assist I have also provided a link to a list of those occupations that have been removed.
http://www.border.gov.au/Trav/Work/Work/Skills-assessment-and-assessing-authorities/skilled-occupations-lists/removed-skilled-occupations
The other major changes under the new arrangements are related to visa validly and access to Permanent Residence based on employer sponsorship:
If you are granted a 457 visa after 18 April 2017 and your occupation is on the MLTSSL list, it can be granted for 4 years. You will be able to be apply for a permanent 186/187 visa after 3 years on a 457 visa if that company decides to nominate you.
If you are granted a 457 visa after 18 April 2017 and your occupation is on the STSOL list, it can only be granted for 2 years. There will be one (only) further extension allowed after that for another 2 years. You will not be allowed to apply for a permanent 186/187 visa under that occupation if it is on the STSOL.
We at Reeves Valentine Immigration understand that apart from the changes listed above there will be other potential changes phased in over the next 12 months or so. Click Here for more information on timelines.
We also understand that the new Temporary Skilled Shortage (TSS) Visa will comprise of two streams:
Short Term - issued for two years with the ability to be extended a further two years, but no pathway to permanent residency available.
o overall IELTS (or equivalent test) score of 5, minimum of 4.5 in each
band.
Medium Term – catering for occupations that are considered as ‘genuine’ skill needs and will have a pathway to permanent residency. Medium term visas will be issued only for more critical skills shortages and these will be valid for up to four years.
o minimum of IELTS 5 (or equivalent test) in each band.
Cost
The new four-year visa will cost $2,400.00, (currently $1,810.00) The two-year visa will cost $1,150.00
Other Criteria
All applicants will need at least two years’ relevant work experience prior to the application being made;
Labour market testing (LMT) will be mandatory, unless an international obligation applies;
Employers must pay Australian market salary rate and meet Temporary Skilled Migration Income Threshold (TSMIT) currently $53,900.00, plus superannuation (due to increase 2017);
Mandatory penal clearance certificates to be provided for every applicant, slowing processing times;
Non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers;
Strengthened training requirement for employers to contribute towards training Australian workers.
However, we caution that the above information is only what is currently available and until the actual legislation is passed by Parliament to establish the new TSS visa these new criteria are only ‘proposed’.
These changes to the 457 visa scheme were not totally unexpected as there has been a significant level of public comment from both the Government, the Opposition and others in parliament about concerns with the old 457 scheme.
Apart from the removal of some 216 occupations from the two lists the most significant change will be the removal of the permanent residence option for those persons whose occupations are on the STSOL list.
For those currently holding a 457 visa or potentially granted a 457 visa after 18 April 2017 it appears that the 186 visa option is still open based on 2 years employment with their sponsoring employer if your occupation is on the MLTSSL.
For those on the STSOL we believe that while the 186 visa option may no be longer available. However if are be able to upgrade your work skills and experience to an occupation on the MLTSSL and then you may be eligible for either a new medium term TSS visa or a General Skilled Migration visa.
If you would like more information on these changes to the 457 visa scheme and the new TSS visa please contact us at Reeves Valentine Immigration.