Abolition and Replacement of the 457 Visa

With the introduction of the Temporary Skill shortage (TSS) visa in March 2018, the Government announced that the Temporary Work (Skilled) visa (subclass 457 visa) will be abolished and replaced.

Along with it, the Government announced that the current 457 visa holders will not be affected by this change.

The announcement has come as a wave of change for workers and employers. When we look at it closely though, the 457 visa has been replaced by a new visa.

The TSS visa programme will be comprised of a Short-Term stream of up to two years and a Medium-Term stream of up to four years.

The Temporary Skill Shortage visa under the Medium-Term stream has mirrored the 457 visa arrangement, with capacity for visa renewal onshore and a permanent residence pathway after three years instead of the current 2 year requirement.

The Temporary Skill Shortage visa under the Short-Term stream will have the capacity for only one onshore visa renewal.

The requirements for Employer Sponsored Permanent Skilled visas have the following new requirements in place:

1.    Increase in the required English Language requirements.

2.    Visa applicant to have atleast three years’ work experience.

3.    Applicants must be under the maximum age requirement of 45 at the time of application.

4.    strengthened requirement for employers to contribute to training Australian workers, and

5.    employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold1.

The concessions for regional Australia will not be affected by any of these new changes.

Even though, the new changes have come without any signs, the current 457 visa holder will not be affected. The new visa changes have been mentioned in the Department of Immigration and Border Protection website.