06 December 2017

AUSTRALIA: Updates on 457 visa

As reported back on April 26 in ReloTalk, following an announcement from the Australian Prime Minister the 457 Subclass Visa will be abolished and replaced with a Temporary Skill Shortage Visa (TSS) which will come into full effect as of March 2018. Although some changes took effect immediately, those already holding a 457 visa (granted before 19 April) will not be affected by any of the changes.

Recently the Australian government has released more updates regarding the tightening of restrictions on the 457 visa, this time for the permanent employment based visa schemes.

The first update is that as of 31 December The Australian Department of Immigration and Border Protection (DIBP) will start matching data for permanent employer-sponsored skilled visa holders with records of the Australian Tax office to ensure that these such foreign nationals are not paid less then what has been stipulated previously.

Further, more specific, clarifications from the Australian Government have also been released regarding the permanent employment based visa schemes (Employer Nomination Scheme and Regional Sponsored Migration Scheme):

  • Applicants must be under 45 at the time of application;
  • The residency requirement to be eligible to pass from a temporary visa to a permanent one will be raised from 2 to 3 years;
  • Work experience required will be raised from 2 to 3 years;
  • Employers nominating a foreign national under these schemes will be required to contribute to a fund that will facilitate skills trainings;
  • Only occupations on the medium and long term strategic skills list will be available through the direct stream for these visa schemes.

How does this affect the client?

 Australian clients should definitely be aware of the change in processes as they may have to re-evaluate recruitment strategies for foreign workers. In admission, processing times for applications could be increased. Further to this, if the DIBP finds that there is not a match between what has been stipulated and what the Australian Tax Office has on file then it is possible that fines will be applied to employers.




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