There is a lot of talk around about the coming changes to the 457 visa program and the effects it will have on Australian businesses going forward. But, what’s not being talked about so much is that by taking action now you can avoid some of the significant changes about to hit Australian business who are struggling to fill roles.
Many new 457 visa changes will come into effect from March 2018. Accordingly, there is a window of opportunity - but you will need to take action now!
March 2018 457 Visa Changes
From March 2018 the 457 visa will be abolished and replaced with the Temporary Skills Shortage (TSS) visa. The TSS visa will be comprised of a short-term stream of up to two years (with ability to renew onshore once), and a medium term stream of up to four years (with renewal onshore and permanent residency pathway after 3 years).
After March next year businesses will pay $4,800 or $7,200 more for their employees under the new TSS (457 equivalent) program depending if your business turnover is less or more than $10 million (as explained below). This will be in the form of a training levy paid to the government. In addition to this, visa applicants will be required to meet higher standards of proficiency in English.
Eligibility for TSS Visa
According to the Australian Government Department of Immigration and Border Protection (DIBP) website, from March next year the eligibility criteria for both visa streams will include:
- Work experience: at least two years’ work experience relevant to the particular occupation.
- Labour market testing (LMT): LMT will be mandatory, unless an international obligation applies.
- Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold.
- Character: Mandatory penal clearance certificates to be provided.
- Workforce: A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers.
- Training requirement: Employers nominating a worker for a new visa will be required to pay a contribution to the Skilling Australians Fund. The contribution will be payable in full at the time the worker is nominated:
- $1,200 per year or part year for small businesses (those with annual turnover of less than $10 million), and
- $1,800 per year or part year for other businesses.
Avoid the 457 Visa Changes, Act Now
It is not too late. If you are struggling to secure loyal, hardworking employees talk to an experienced international recruiter now and set up your business prior to the new changes.
Make sure though that you look at your recruitment company’s guarantee. If they can offer a guarantee that your recruit will stay for 2 years (or they’ll replace them), then you can be pretty sure they are confident they’ll get you the right recruit in the first place. This is important if you are to avoid the changes.
