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457 Visa Ban - What does it mean for overseas workers?

The media was quick to jump in on Turnbull's announcement regarding "abolition" of the 457 visa scheme which naturally has both existing and future 457 visa applicants worried.  

This is what we know so far in regards to the the proposed reforms due to come into effect in March 2018.

  • The new visa will be called Temporary Skill Shortage (TSS) visa  and will come into effect in March 2018
  • There will be two streams, a Short-Term stream of up to two years and a Medium-Term stream of up to four years 
  • This visa will replace existing 457 visa and will likely impact existing subclass 186 visa

As published on DIBP's website, key changes anticipated will include the following:

  • new, more targeted occupation lists which better align with skill needs in the Australian labour market requirement for visa applicants to have at least two years’ work experience in their skilled occupation
  • a minimum market salary rate which ensures that overseas workers cannot be engaged to undercut Australian workers
  • mandatory labour market testing, unless an international obligation applies,
  • capacity for only one onshore visa renewal under the Short-Term stream
  • capacity for visa renewal onshore and a permanent residence pathway after three years under the Medium-Term stream
  • the permanent residence eligibility period will be extended from two to three years
  • a non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers
  • strengthened requirement for employers to contribute to training Australian workers
  • the Department of Immigration and Border Protection will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records, and
  • mandatory penal clearance certificates to be provided.

In addition, foreign nationals will need to meet the following:

  • tightened English language requirements
  • a requirement for visa applicants to have at least three years’ work experience
  • applicants must be under the maximum age requirement of 45 at the time of application
  • strengthened requirement for employers to contribute to training Australian workers, and
  • employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold

Some of the reforms such as review of the current skilled occupations list will take effect immediately whilst the rest of the changes are expected to be fully implemented by March 2018.  Full details can be found at http://www.border.gov.au/Trav/Work/457-abolition-replacement.

We will continue to keep you updated as we receive further news from DIBP.  In the meantime, please feel free to email me: This email address is being protected from spambots. You need JavaScript enabled to view it. with any questions.

 

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Comments

  • Guest
    John Tuesday, 18 April 2017

    How does this affect people currently on 457 visa hoping to transition to 186?

  • Guest
    mark glazbrook Tuesday, 18 April 2017

    For low population growth areas such as South Australia and regional SA, this is very bad news. No direct entry 187 and imposing a TSMIT to the 187 program is bad news.

  • Guest
    adam khaze Tuesday, 18 April 2017

    Based on my analysis, it appears the effect will actually be on the current holders of 457 visa's and those who will not be eligible for a 186 transitional visa until after March 2018. The new Medium Skills List is essentially a shorter version of the SOL. Most employer sponsored/457 Specialists may agree that many applicants who currently hold 457 visa's do not fall within the Medium list (Cooks/Restaurant Managers anyone!!!!). Unless the Medium lists becomes 'Mediumer" then under current prospects we will all have a lot of angry 457 holders who may never get PR!

  • Guest
    Vania Jacinto Wednesday, 19 April 2017

    Hi,

    Thanks for the helpful newsletter.

    Have you been able to understand if a PR pathway is available to 457 visa holders who are granted their visas for 2 years only (under the STSOL) between today and 18 March 2018?

    I have read contradictory information suggesting they will still be able to apply, since the limitation on moving on to PR will only be for the short-term stream of the new TSS visa. However, I have also read information that suggests the opposite...


    Thank you.

  • Timmy Ku
    Timmy Ku Wednesday, 19 April 2017

    FACT SHEET:
    Who is affected?
    Current 457 visa applicants
    457 visa applicants that had lodged their application on or before 18 April 2017, and whose application had not yet been decided, with an occupation that has been removed from the STSOL, may be eligible for a refund of their visa application fee.

    It's happening again.

  • Guest
    Happy Chappy Wednesday, 19 April 2017

    On the upside, migration agents (competent ones) will be needed to assist clients. It will not be as easy for an applicant to apply on their own. Hopefully this will weed out dodgy agents that tell white lies to convince clients to commit to applications they will ultimately fail.

    More money for me :p

  • Guest
    adam khaze Thursday, 20 April 2017

    You can be the most competent agent around but if you are a restaurant manager and cant secure an RSMS sponsor before March 18, you will need to speak to the dodgy agent to find you a wife/husband!

    **NOTE: not condoning above as advice

  • Guest
    Marcia Thursday, 20 April 2017

    Market salary is no good without setting the hours of work to match the salary. I know many 457 workers who do excessive mandatory hours for no extra money, in fact reducing the value of the market rate of pay. Employers must pay for additional hours of work performed outside of 40 hours or normal full-time hours for their industry. They are grossly underpaid. Also often classified in lower roles than they are working in to save employer money. This happens in big business.

  • Guest
    Happy Chappy Thursday, 20 April 2017

    People are willing to work ridiculous hours, because the situation in their home country is worse (or could be worse). I am not condoning this, but the harsher requirements will weed out non-genuine applicants. Maybe they should also enforce a similar fee structure to AAT. If a visa applicant submits an application, they will need to pay a bond that will be returned when the visa is granted. The case officer should at all times enforce s57 to ensure fairness and at least provide genuine assessments (rather than the normal subjective decisions they often make). Losing an applicant's time will make them think twice about lodging dodgy applications. @adam khaze - eHarmony is not illegal :p;)

  • Guest
    Derrick Peters MARN: 1175659 Thursday, 20 April 2017

    I have asked for clarifications from the MIA on the following matters. Will Migration Alliance like to assist?

    Clarifications are sought on the following:

    Based on the MIA circulation: No 22, 19 April 2017 which states:

    “The Prime Minister and Minister for Immigration confirmed that existing 457 visa holders (as of 18 April 2017) will still be able to apply for a Permanent visa and will not be affected by these changes”

    please clarify the following:

    1) There are holders of 457 visa that are for 12 or 18 months that are granted for new businesses. These holders who were holders of a 457 visa as of 18 April 2017 have to apply and be granted a visa (after 19 April 2017) to complete the 2 years requirement for permanency. Will the fact that they are granted a visa after 19 April 2017, affect the chances of applying for a permanent visa under TRT (the old regime)?

    2) There are clients who have a 457 as of 18 April 2017. However, they have been displaced by the sponsoring employer and are awaiting the outcome of a nomination application lodged for them by another employer. On the nomination being approved, will they be able to transition to a permanent visa via TRT:

    i. If there current visa is still valid when they complete 2 years with the new employer?, and
    ii. If they have to apply for a new visa whilst working with the new employer (which will be granted after 19 April 2017) in order to complete the 2 years employment requirement?

    3) If the current visa with the sponsoring employer has expired before the 18 April 2017 and the employer has lodged subsequent nomination and visa applications and is awaiting an outcome on 18 April 2017, will the grant of visa after 19 April 2017 affect the his permanent residency application?

    4) Will current ENS application (already lodged) via TRT for removed occupation be affected by the deletion of the CSOL (and replacement with the STSOL) list?

  • Guest
    Happy Chappy Thursday, 20 April 2017

    Hmm....https://www.legislation.gov.au/Details/F2017L00450

    This instrument is no longer in force so what is??????

  • Guest
    Dorota Sokolowski Friday, 21 April 2017

    Hi Happy Chappy,

    Good question. This instrument comes into operation upon registration. It was registered on 18 April 2017:
    Made 18 Apr 2017
    Registered 18 Apr 2017
    Date of repeal 20 Apr 2017
    Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003

    It was repealed by the Legislation Act 2003, presumably under automatic repeal provision because it did not provide for any transitional provisions:
    48A Automatic repeal of amending and repealing instruments
    (1) This section repeals a legislative instrument or notifiable instrument whose only legal effect is to amend or repeal one or more other legislative instruments or notifiable instruments, without making any application, saving or transitional provisions relating to the amendment or repeal.

    If it was repealed automatically it should have been repealed on 18 April, not 20 April. Only those who applied between 18 and 20 April will be affected by it!!!??? If the government doesn't know what they are doing how are we going to navigate the mess. The Department will not help. Their lines are so busy they will not even put you on hold. It is really so Kafkaresque. I hope someone will expose their incompetencies in the media. So many people had lost sleep over the announcement which was even picked up by international media. Will Turnbull and Dutton have guts to go back to the media and apologise for their incompetencies???

  • Guest
    Pooja Patel Saturday, 22 April 2017

    Hello,

    Me and my husband has applied for 489 Regional Visa file for PR process. We have completed all criteria. Our file is in process since December 2016. We have not received any status from Immigration Department till date.

    Will this changes in new immigration process will affect our file.

    Awaiting for reply.

    Thanks.

  • Guest
    ovi Sunday, 07 May 2017

    Hi i am on 457 visa which was granted in 2016 and hopefully finishing 2 years in 2018. am i still eligible for PR?? because i am a Cook and it has been removed from the list. I am not sure yet, different lawyers say different think.

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