The Australian government has recently made significant changes to the visa subclass 457, which is the most common visa for Australian or overseas employers to sponsor skilled overseas workers to work temporarily in Australia. The changes are aimed at ensuring that Australian workers are given the first opportunity for jobs while ensuring that businesses can access the critical skills they need. This article will delve into the key changes to the subclass 457 visa and what they mean for both employers and potential visa applicants.
Introduction to Visa Subclass 457
The visa subclass 457 was designed to allow employers to address labour shortages by bringing in skilled workers from overseas where they could not find an appropriately skilled Australian. It was a temporary visa that could be granted for up to four years and allowed the visa holder to bring any eligible family members, who had unrestricted work and study rights in Australia.
Abolition and Replacement of the 457 Visa
In March 2018, the Australian Government abolished the subclass 457 visa and replaced it with the Temporary Skill Shortage (TSS) visa, subclass 482. The TSS visa has been designed to ensure Australian workers are given the absolute first priority for jobs, while businesses will be able to temporarily access the critical skills they need to grow if they cannot source them locally.
Key Changes to the Visa
The key changes to the visa subclass 457 include:
- Introduction of two streams: The TSS visa has two streams: a Short-Term stream of up to two years, and a Medium-Term stream of up to four years.
- Labour market testing (LMT): LMT is now mandatory, unless an international obligation applies.
- Tighter regulations: There are tighter regulations around the occupations that can be sponsored for a TSS visa.
- Work experience: Applicants must now have at least two years’ work experience in their skilled occupation.
- English language requirements: There are stricter English language requirements for the Medium-Term stream.
- Eligibility for permanent residency: Only the Medium-Term stream offers a pathway to permanent residency after three years.
Impact on Employers
The changes to the visa subclass 457 will have a significant impact on employers. They will need to adjust to the new requirements, including the mandatory LMT and the tighter regulations around the occupations that can be sponsored for a TSS visa. Employers will also need to be aware of the stricter English language requirements and the changes to the eligibility for permanent residency.
Impact on Visa Applicants
The changes will also have a significant impact on potential visa applicants. They will need to be aware of the new requirements, including the need to have at least two years’ work experience in their skilled occupation and the stricter English language requirements. Applicants will also need to understand that only the Medium-Term stream offers a pathway to permanent residency after three years.
Conclusion
The changes to the visa subclass 457 are significant and will have a major impact on both employers and potential visa applicants. It is important for both parties to understand the new requirements and to seek professional advice if necessary. While the changes may present some challenges, they also present opportunities for businesses to access the critical skills they need to grow and for skilled overseas workers to gain valuable work experience in Australia.
