Employment Law

An introduction to the Temporary Skill Shortage (TSS) visa

Published in: October 2017

The Australian government recently announced the abolishment of the Temporary Work (Skilled) visa (subclass 457 visa). The subclass 457 visa will be replaced by a new Temporary Skill Shortage (TSS visa) visa that will come into effect on March 2018. The TSS visa will include a Short-Term stream of up to two years, and a Medium-Term stream of up to four years.  Additionally, the Government has also made a number of changes relating to the employer sponsored permanent skilled visa which this piece will also explore.

What are some of the reforms included in the TSS visa?

The TSS visa has introduced an occupation list that is more refined in the targeting of occupation lists, and aims to be better aligned with any skills required by Australia.

With the introduction of the TSS visa, 216 jobs have been removed from the 457 visa occupation list and restrictions have been placed on the other 59 of the 435 occupations underpinning the TSS visa. Additionally, of the 435 occupations, 24 will be restricted to regional Australia.

Some of the other requirements mandate that applicants must have at least two years’ work experience in their nominated skilled occupation.

Employers must pay market salary rates to ensure they meet the Temporary Skilled Migration Income Threshold (TSMIT) which exists to ensure that overseas workers cannot be used to undercut Australian workers.

The permanent residency eligibility period will also be extended from two to three years.

It should be emphasised that this is not an exhaustive list of the new requirements that will be introduced by the TSS visa.

Eligibility requirements for employer sponsored permanent skilled visas

Some of the new eligibility requirements include tightening English language requirements, and that applicants have at least three years’ work experience. Additionally, applicants must also be under the maximum age requirement of 45 years at the time of making the application, and similar to the TSS visa, employers must also adhere to TSMIT.

It again be should be emphasised that this not an exhaustive list of the new requirements of the TSS visa or the employer sponsored permanent skilled visa. For more information relating to the reforms, please visit the Department of Immigration and Border Protection website at www.border.gov.au

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