457 Visa Changes Event- Industry Insights
Job Capital recently held our 2017 457 Visa Changes Panel Discussion event to better understand the impacts and options of the policy changes announced in April by the federal government.
Many Sectors Present
It was super interesting how many sectors were represented on the day including: recruitment; technology; construction/ engineering; digital marketing/advertising; management consulting; financial services and registered migration agents (RMA’s).
To lead the conversation we were pleased to present a senior and select panel of industry expertise, balancing an immigration policy & practice focus (Lisa O’Hara & Alan Chanesman) with that of Aus tralian entrepreneurialism and business competitiveness (Jo-Ellen Burston & Alex McAuley).
With many questions asked and a good number answered we improved our understanding of the new 457 visa landscape, however the conversation is far from over.
Event Findings – High Level Summary
We have put together a high-level summary of insight and interest from the day. Much more to come in the future, stay-tuned.
Macro to Micro: The event started with a macro focus on the political and policy context surrounding the changes.
Political Strategy & Motivation: The changes appear to be a function of political strategy and campaigning between the Coalition and the Australian Labour Party.
New Government Revenue: The government accounts for $1.3 billion in new revenuefrom immigration as a result of 457 visa policy changes.
Increased Company Costs: The overall cost to companies of hiring foreign nationals is set to increase substantially – currently expectations are that the ‘per head’ cost will increase by $1,000’s as opposed to by the $100’s.
Multiple Sector Lobbying: Industry peak bodies are gearing up for lobbying campaigns to solicit changes.
The Good & The Bad: previously there was as a single list of occupations that a company could sponsor staff under for re-iterative 4-year 457 visas, there are now two lists from equal:
STSOL – “The Bad List”: 1 x initial 2 year visa followed by another 2 year visa then stop and leave that employment: plus no pathway to PR.
MLTSSL – “The Good List”: 1 x initial 4 year visa – no limit on future iterations and a pathway to PR does exist.
Permanent Residency (PR): Most frequently expressed concerns were about permanent residency (PR) and what options are available for employers and their employees – can it still be achieved and if so how?
Business Growth Impact: Most expressed serious concerns over how they will be able to attract and retain staff (that they can’t find on the domestic market) that are essential to company growth and/or competitive differentiation.
Start-Up Businesses – Investment: Start-ups in Australia are often challenged by investors on the choice of an Australian base given that acquiring talent is a key business challenge.
Will investment still flow with the perception that skilled talent will now be even harder to bring into Australia?
On Hire Labour Agreement – 25 x ‘Safe Havens’
The OHLA instrument is now being considered as the ‘Safe Haven’ for businesses and individuals requiring visa and business sponsorship, that provides security and longevity.
It has not been affected by the recent policy changes in any way.
Until legislation is actually passed through parliament, and until the DIBP has worked out how to apply that policy legislation, then the only rock-solid pathway and instrument is the On Hire Labour Agreement.
At Job Capital we have the largest collection of OHLA white collar categories (25) that we can sponsor employees on.
Furthermore, employees receive an endless cycle of 4-year 457 visa’s that will enable them to work for your company with security and stability until the dust finally settles and sanity returns to policy planning.
Check out the role categories that we can sponsor on our website and then make contact with us to start the conversation.
Visa Changes – Industry Insights
Job Capital recently held our 2017 457 Visa Changes Panel Discussion event to better understand the impacts and options of the policy changes announced in April by the federal government.
In our on-going series of 457 Visa Change – Industry Insights, we offer our latest findings and updates on the New 457 Visa Landscape.
Australian Citizenship Legislation
- Mid-June 2017 – the Australian Citizenship Legislation Amendment (Strengthening the Requirements for Australian Citizenship and Other Measures) Bill 2017 had its first reading in the House of Representatives.
- The Greens and the Labour Party have both indicated they do not support the Bill!
1 July 2017 changes
Visa Cost Increases
- All Visa Application Charges (VACs) will indexed in line with inflation (around 1.6%) on 1 July 2017.
- AAT lodgement fees are increasing by $58.
MLTSSL and STSOL Lists Update
- MLTSSL and the STSOL will be re-released on 1 July 2017 after review by Department of Education and Department of Employment.
- STSOL will then be reviewed on a 6 monthly basis and the MLTSSL on a less frequent basis and as yet, unspecified time-frame.
Leaving Australia – Passenger Cards Gone!
- Are you leaving Australia? Well the good news is that you will no longer need to beg, borrow or steal a pen whilst ‘sardined’ in economy class.
- Outgoing passenger cards are going….going….gone!
- A little known fact that these cards are actually an official form Department of Immigration and can be treated as an application form. So if anyone lies on one, the Department has access to them and will use it against you!
Changes to Modern Awards
- Changes to Modern Awards regarding penalty rates and public holidays will take effect on 1 July 2017.
- Employers must ensure that guaranteed annual earnings agreed to in the nomination for 457 visa holders must be maintained. FairWork can assist with advice on these changes.
Indian Passport Holders
Indian Passport holders will not be able to lodge Visitor visa (600) applications online any longer.
Singapore – 1 August 2017
Singapore will have access to 500 Work and Holiday visas in Australia.
457 Visa Changes – Business & Individual
Mandatory Police Clearances
- Mandatory Police Clearances will be required for all visa applicants 17 years and older, for countries lived in (accumulatively) for 12 months or more in the past 10 years.
- It is thought that any applications currently lodged and not decided prior to 1 July will be sent a request for further information instructing applicants to supply requisite police check.
English Language Exemption
Current English language exemption for income earners over $96,400 will be removed!
Business Revenue Turnover
- The subclass 457 nomination form will now collect information regarding the turnover of the business for the last financial year, which will be used to determine whether or not a caveat applies.
- It will also require disclosure of the number of employees employed by the business, whether they are Australian or overseas workers – similar to the current Sponsorship application form.
Occupations/Nationalities – Mandatory Skills Assessments
The occupations/nationalities that require mandatory skills assessments will expand. Stay tuned to lean which occupations and which nationalities will be impacted.
Training Benchmark Policy
- Policy settings for training benchmark requirements are being clarified and tightened, by setting out the types of training funds eligible for Training Benchmark A.
- Further, there will be a definition of the types of expenditure on training that are acceptable for Training Benchmark B
Skilled Migration Visas
Employer Nomination Scheme (subclass 186)
- There will be a raising of English language requirements to “Competent” for all applicants (IELTS 6), which will mean the Temporary Residence Transition (TRT) and Direct Entry requirements will now be consistent
- Direct Entry maximum age will be lowered to 44 (not turned 45)
- Skilled Independent visa (subclass 189) maximum age will be lowered to 44 (not turned 45)
Welcoming our Kiwi Cousins
The 189 visa will have a new stream added for NZ citizens holding the 444 visa.
- Less criteria and no age limit
- No skills assessment
- No English requirement
- No points test and no invitation required.
- Minimum salary for 5 years (TSMIT) as for a usual resident in Australia.
Western Australia – Reduced Occupation List – From 178 to 18!
- Good news if you are a Doctor or a Nurse, bad news for everyone else!
- Skilled Regional (Provisional) Visa (Subclass 489) and Skilled Nominated Visa (Subclass 190) – WA have reduced the State Government sponsored occupation list from 178 to 18 occupations.
- In essence, WA has culled all occupations (E.g. Engineering, Construction & Technical) and have only kept medical roles.
- Now only GP/Specialist Dr’s and RN Specialist nurses can be sponsored, given that they can provide an employment contract for a minimum of 1 year.
- Announced that Perth will be removed as a regional area in the future.
South Australia – Occupation List Changes to Come 4th July 2017
Skilled Regional (Provisional) Visa (Subclass 489) and Skilled Nominated Visa (Subclass 190) – SA will announce their new State Government sponsored occupation list on 4 July 2017.
Partner Visas – Holding Pattern
- The proposed changes to partner visa sponsorship’s, whereby a sponsor had to be approved prior to being able to lodge a partner visa, have now been held back until 2018.
- The Bill is currently still before the Senate.
Stayed Tuned and Start the Conversation With Us.
We will continue to provide you with insights and analysis, so stay tuned for our next installment.
Ultimately the recent policy changes means that each case needs to be considered individually and must be supported by a Registered Migration Agent (RMA), who is also full informed on the detail of these changes and how to interpret the myriad of information and misinformation currently ‘floating’ around the market.
Visit our ‘Contact Us’ page on our website to request contact or simply call in on the number below to start the conversation with us.
(+61) 28005 3420
Note: Information of general nature only. Professional advice should be sought to match individual circumstances. Information correct as at 21 June 2012.
457 Visa Changes – List of Removed Occupations
Below we provide a complete list of the occupations entirely removed from the list of eligible (for a 457 visa) skilled occupations, as of the 19th April 2017.
This should help as you seek to see how the recent changes may effect your business and workforce planning. It may be that you were previously able to sponsor a given category or role-type under your Standard Business Sponsorship (SBS), and that now you are wondering if you still can?
Scan the list and if you want to speak with us about options to solve any related business problems, then give us a call to start the conversation.
Note: Information correct 8 May 2017. Excerpt parts from 457 Agent News May 2017 General Advice Only
A further 16 occupations on the MLTSSL
A further 16 occupations (or categories – indicated by ‘** asterisks’) were restricted to only apply to the following visa programmes:
- Skilled – Independent (subclass 189)
- Temporary Graduate (subclass 485)
- Skilled-Regional (Provisional) (subclass 489)
These 16 occupations are indicated via ‘** asterisks’ on the Medium and Long-term Strategic Skills List (MLTSSL). That is, these 16 occupations are not available for other programmes, such as the 457 visa programme. For further information, see: legislative Instrument.
Also see our blog post providing summary commentary called 457 Visa Changes – Don’t Panic – specifically regarding MLTSSL and STSOL
Removed Occupation and ANZSCO Code
- Aboriginal and Torres Strait Islander Health Worker 411511
- Actor 211111
- Actors, Dancers and Other Entertainers NEC 211199
- Aeroplane Pilot 231111
- Air Traffic Controller 231112
- Air Transport Professionals NEC 231199
- Aircraft Maintenance Engineer (Avionics) 323111
- Amusement Centre Manager 149111
- Antique Dealer 142112
- Apparel Cutter 393211
- Archaeologist 272414
- Archivist 224211
- Art Director (Film, Television or Stage) 212311
- Artistic Director 212111
- Auctioneer 611111
- Author 212211
- Bed and Breakfast Operator 141911
- Betting agency Manager 142113
- Biochemist 234513
- Biotechnologist 234514
- Blacksmith 322111
- Boarding Kennel or Cattery Operator 149911
- Broadcast Transmitter Operator 399511
- Building and Engineering Technicians NEC 312999
- Business Broker 612111
- Butcher or Smallgoods Maker 351211
- Call or Contact Centre Manager 149211
- Canvas Goods Fabricator 393111
- Caravan Park and Camping Ground Manager 141211
- Cinema or Theatre Manager 149912
- Clinical Coder 599915
- Clothing Patternmaker 393212
- Clothing Trades Workers NEC 393299
- Commissioned Defence Force Officer 139111
- Commissioned Fire Officer 139112
- Commissioned Police Officer 139113
- Communications Operator 342312
- Community Arts Worker 272611
- Composer 211211
- Conservation Officer 234311
- Construction Estimator 312114
- Conveyancer 599111
- Corporate Treasurer 221212
- Court Bailiff or Sheriff (Aus) / Court Collections Officer (NZ) 599212
- Deer Farmer 121314
- Defence Force Member – Other Ranks 441111
- Defence Force Senior Officer 111212
- Dental Hygienist 411211
- Dental Prosthetist 411212
- Dental Therapist 411214
- Detective 441311
- Director of Photography 212313
- Diver 399911
- Dog or Horse Racing Official 452318
- Drama Teacher (Private Tuition) 249213
- Dressmaker or Tailor 393213
- Driller 712211
- Driving Instructor 451211
- Education Reviewer 249112
- Electorate Officer 224911
- Electronic Engineering Draftsperson 312411
- Electronic Engineering Technician 312412
- Electroplater 322112
- Emergency Service Worker 441211
- Engineering Patternmaker 323411
- Engraver 323311
- Entertainer or Variety Artist 211113
- Environmental Health Officer 251311
- Exercise Physiologist 234915
- Film, Television, Radio and Stage Directors NEC 212399
- Financial Institution Branch Manager 149914
- Fire Fighter 441212
- Fire Protection Equipment Technician 399918
- First Aid Trainer 451815
- Fisheries Officer 311311
- Flight Attendant 451711
- Floor Finisher 332111
- Flying Instructor 231113
- Food Technologist 234212
- Funeral Director 451311
- Funeral Workers NEC 451399
- Futures Trader 222212
- Gallery or Museum Technician 399311
- Gas or Petroleum Operator 399212
- Geophysicist 234412
- Goat Farmer 121315
- Golfer 452412
- Graphic Pre-press Trades Worker 392211
- Gunsmith 323312
- Helicopter Pilot 231114
- Historian 272411
- Homoeopath 252212
- Horse Trainer 361112
- Human Resource Adviser 223111
- Hydrogeologist 234413
- Hydrographer 311415
- ICT Support and Test Engineers NEC 263299
- ICT Support Technicians NEC 313199
- Importer or Exporter 133311
- Insurance Investigator 599611
- Insurance Risk Surveyor 599613
- Intellectual Property Lawyer 271214
- Intelligence Officer 224411
- Interior Decorator 399912
- Jockey 452413
- Judge 271211
- Kennel Hand 361115
- Leather Goods Maker 393112
- Legal Executive 599112
- Liaison Officer 224912
- Licensed Club Manager 141411
- Life Scientist (General) 234511
- Life Scientists NEC 234599
- Light Technician 399513
- Magistrate 271212
- Maintenance Planner 312911
- Marine Surveyor 231215
- Marine Transport Professionals NEC 231299
- Market Research Analyst 225112
- Master Fisher 231211
- Mechanical Engineering Draftsperson 312511
- Media Producer (excluding Video) 212112
- Metal Casting Trades Worker 322114
- Metal Polisher 322115
- Metallurgist 234912
- Microbiologist 234517
- Migration Agent (Aus) 224913
- Mothercraft Nurse 411412
- Multimedia Designer 232413
- Music Director 211212
- Music Professionals NEC 211299
- Musical Instrument Maker or Repairer 399515
- Natural and Physical Science Professionals NEC 234999
- Nurse Researcher 254212
- Nurseryperson 362411
- Operating Theatre Technician 311214
- Optical Dispenser (Aus) / Dispensing Optician (NZ) 399913
- Optical Mechanic 399914
- Other Sports Official 452323
- Painter (Visual Arts) 211411
- Park Ranger 234314
- Parole or Probation Officer 411714
- Pathology Collector (Aus) / Phlebotomist (NZ) 311216
- Petroleum Engineer 233612
- Plastics Technician 399916
- Plumbing Inspector 312115
- Police Officer 441312
- Policy Analyst 224412
- Policy and Planning Manager 132411
- Potter or ceramic artist 211412
- Prison Officer 442111
- Procurement Manager 133612
- Production Manager (Manufacturing) 133512
- Public Relations Manager 131114
- Quarantine Officer 311313
- Radio Journalist 212414
- Radio Presenter 212113
- Railway Station Manager 149412
- Regional Education Manager 134412
- Research and Development Manager 132511
- Retail Buyer 639211
- Retirement Village Manager 141912
- Safety Inspector 312611
- Sail Maker 393113
- Sales Representative (Industrial Products) 225411
- Sales Representative (Medical and Pharmaceutical Products) 225412
- Saw Maker and Repairer 323315
- School Laboratory Technician 311414
- Screen Printer 392112
- Sculpter 211413
- Senior Non-commissioned Defence Force Member 139211
- Shearer 361211
- Shoemaker 393114
- Singer 211214
- Small Offset Printer 392312
- Sports Administrator 139915
- Sports Umpire 452322
- Stock and Station Agent 611112
- Surveying or Spatial Science Technician 312116
- Technicians and Trades Workers NEC 399999
- Telecommunications Cable Jointer 342412
- Telecommunications Technician 342414
- Television Equipment Operator 399517
- Television Presenter 212114
- Training and Development Professional 223311
- Translator 272413
- Travel Agency Manager 142116
- Travel Attendants NEC 451799
- Tribunal Member 271213
- Turf Grower 121218
- Vehicle Painter 324311
- Vocational Education Teacher (Non-Trades) 242211
- Vocational Education Teacher (Trades) 242211
- Web Developer 261212
- Wholesaler 133312
- Wood Turner 394214
- Wool Buyer 639212
- Wool Classer 399917
- Workplace Relations Advisor 223113
- Zookeeper 361114
457 Visa Changes – 21 Answers To Those Burning Questions
Job Capital senior legal migration counsel received credible guidance from the Department of Immigration and Border Protection at the end of last week. This has enabled the answering of topical questions that many Registered Migration Agents (RMA’s), their clients and candidates have been asking.
Q&A Highlights – 1st 21 Questions
We have a complete list of the Q&A highlights that came from over 100 RMA’s meeting in a MIA forum to share the questions and concerns they have been hearing from the market since the announcements of change in April.
We have curated the list and will be offering up more posts segmenting the content over the coming weeks. Here they are and we hope they help your review, planning and decision making.
Disclaimer: Information correct 8 May 2017. Excerpt parts from 457 Agent News May 2017 General Advice Only
Q1. What has already changed?
A. As of 19 April 2017:
- the Consolidated Sponsored Occupation List (CSOL) has been replaced with the new Short-term Skilled Occupation List (STSOL);
- the Skilled Occupation List (SOL) has been replaced with the new Medium and Long-term Strategic Skills List (MLTSSL);
- there has been a reduction of 216 occupations available for subclass 457 visa programme applications;
- 59 caveats now apply to specified occupations – these either relate to work experience, regional location or are occupation specific; and
- new visa validity periods also apply under the standard subclass 457 programme with a maximum 2 year period available for occupations that are eligible for the subclass 457 programme but not on the new MLTSSL.
Q2. Can people still apply for subclass 457 visas?
A. Yes. The subclass 457 programme remains open until the new TSS visa comes into effect in March 2018. The occupation list has been restricted (19 April 2017) and integrity settings will be further tightened.
Q3. Why were occupations removed?
A. They were removed due to a wide range of factors including:
- immigration integrity concerns
- low usage over the last five years
- being reserved for Australian citizens (e.g. magistrate)
- based on advice from the Department of Employment.
Q4. Where can I find information about the caveats?
A. This is contained in the Schedule 1 MLTSSL and Schedule 2 STSOL lists.
Q5. Do the above changes have any impacts on existing subclass 457 visa holders?
A. No – unless they wish to change employers or positions, in which case a new nomination will need to be approved under the new arrangements.
Note: This will include situations where due to business structure changes, an employer is required to lodge a new sponsorship application and is required to lodge new nomination applications to accommodate existing subclass 457 visa holders (unless they continue to work for an associated entity of an Australian sponsor).
A new nomination approval for an occupation listed on the STSOL will not result in reduction of the visa period already held by the visa holder.
Q6. What if we have a pending application where the occupation has been removed from the list – what happens now?
A. Once the application has reached the assessment stage, you will be contacted by the Department and given the opportunity to withdraw your application in writing. The letter will specify a period for required response (i.e. 14 days for nomination applications and 28 days for visa applications).
Alternatively, you can request a withdrawal in writing at any time and you will then be entitled to a refund of the application fee. If you do not withdraw your application, it will be refused. This could have unintended consequences as far as s48 bar and possible Schedule 3 criteria being met for subsequent visa applications. Note:
- If seeking to withdraw a visa application, the Department ask that you complete and attach Form 1446 to your ImmiAccount where possible to facilitate faster processing.
- If seeking to withdraw a nomination application, the Department ask that you attach a written request to this effect to your ImmiAccount where possible to facilitate faster processing.
- Once a withdrawal has been actioned, the process to facilitate a refund will be initiated.
Applications which do not meet the requirements and are not withdrawn within the prescribed timeframes will be refused. No refund will be provided in such circumstances.
Q7. Can I get a refund for an approved nomination if a related visa application now cannot be approved?
A. Yes, if, a subclass 457 visa application is unable to be granted where the approved nomination is for an occupation that has been removed from the list, the sponsoring business can request that the nomination be withdrawn and request a refund of the nomination fee.
- If seeking to withdraw your approved nomination, it has been requested by the Department that you utilise Form 1446 where possible to facilitate faster processing. The completed form should be emailed through to email@example.com not your ImmiAccount.
- Once a withdrawal has been actioned, the process to facilitate a refund will be initiated.
Q8. Can I get a refund of my sponsorship fee if my sponsorship application has been lodged and/or approved but I no longer wish to use the subclass 457 program due to the changes in occupation lists?
A. No – a refund is not available under the legislative framework.
Q9. What about situations where you have a pending application but a caveat now applies?
A. Once the application has reached the assessment stage, an officer will assess whether or not the caveat applies. If it does, the same withdrawal and refund options as noted above (Q7) will be made available to you – as the occupation is no longer ‘on the list’ in the circumstances specified.
Note: where a caveat may apply, but the nomination has already been approved and it is only the visa application that is outstanding, the Department will assess caveats for visa applicants based on information already available on Departmental systems. They will not seek further information if there is no clear indication that a caveat applies.
Q10. Can I change the nominated occupation?
A. No – but you can withdraw and lodge a new nomination with a new occupation specified for the nominee. This may, however, raise concerns about the genuineness of the position – particularly if the new occupation is substantially different.
Q11. Can I change the nominated base salary for a position post lodgement of the nomination?
A. Yes – you can provide updated information to the Department via ImmiAccount, but you must also provide an updated contract of employment reflecting the new salary rate. This may, however, raise concerns about the genuineness of the position and whether the local labour market has been effectively tested.
Q12. What is the impact of 19 April 2017 changes on the subsequent dependent applications?
A. Nil – if the primary visa application has been granted, then subsequent dependent applicants can still be granted for the same period as the primary (subject to any 457 MOFU extension restrictions).
Q13. Do the changes impact cases that have a review application pending?
A. Yes – the AAT must make a decision based on the current framework – i.e. they are required to take into account recent occupation removals and caveats.
Q14. Will the reforms affect visa processing times?
A. Processing times are expected to slow down in the short term as Department staff become familiar with the new arrangements. Additional concurrent measures are, however, being considered for 1 July 2017 to streamline processing for lower risk sponsors – including possible further expansion of 457 accredited sponsor arrangements.
Q15. What are caveats?
A. Occupational caveats are additional requirements for certain occupations to demonstrate that the position you have nominated is appropriate for a skilled visa programme. Caveats do not prevent lodgement of all applications for that particular occupation. They limit use of the occupation in certain circumstances.
These caveats will be subject to regular review and may be added, altered or removed in future.
Q16. Where the caveat requires a business to have a turnover of at least $1M, what is the period in which $1M turnover is considered?
A. From 1 July 2017, the subclass 457 nomination form will collect information regarding the turnover of the business for the last financial year, which will be used to determine whether or not this caveat applies.
Up until this time, the Department will use existing information available on their systems if they indicate that this element of a caveat is met. Where such information is not available in Departmental systems, additional information will be sought from the sponsoring company. If this occurs, it is recommended that you provide financial information to cover the last financial year. Independently verifiable information should be provided where possible.
Q17. Can the $1M include turnover from related entities?
A. No – this relates to the sponsoring business only.
Q18. Can the $1M turnover figure include GST?
Q19. Will occupational caveats apply to businesses that have traded for less than 12 months? If so, will projected turnover suffice where relevant?
A. Yes – they apply. In general, projected turnover will not suffice. As above, the turnover needs to be at least $1M for the last financial year. However, the Department will consider exceptional circumstances on a case by case basis.
Q20. Where the caveat requires a business to have a minimum of five employees, are there any restrictions on the type of employee (e.g. do they have to be full time, Australian)?
A. No – not at this stage. If the business declares that they have five employees and this is consistent with other information provided (e.g. structure chart for business etc.), then this will be accepted unless the Department has concerns that this is not the case. From 1 July 2017, the subclass 457 nomination form will ask companies to declare their total number of employees and how many are Australian/overseas workers, as per the current subclass 457 sponsorship form.
Q21. Where the caveats require at least two years of work experience, what does this mean?
A. This means that a successful candidate for the nominated position would be expected to have completed at least two years’ full time (as per the industry standard) work experience in the relevant occupation post qualification.
More To Come
We will post up the last section of Q&A’s to round out this two-part series and complete this share.
To start conversation with job capital give us a call on (+61) 02 80053420 or hit us up via our contact page. Whilst you are being awesome at what you do, all we think about is all things immigration and workforce solutions.
457 Visa’s – What Just Happened?
Earlier this week our Prime Minister Malcolm Turnbull provided a headline splash when he announced on Facebook the abolishment of the 457 Visa pathway as of March 2018.
Since the announcement was made we have seen a variety of commentary, analysis and concerns being aired – a significant proportion of it appearing alarmist in nature. Not really the best way for us as a market and business community to be addressing the broader scenario
This week Job Capital has been reviewing all the information issued by the Department of Immigration and Border Protection (DIBP) to the public, Registered Migration Agents and peak bodies. Here are some of our initial thoughts to share with you.
The main change is that when the 457 Visa changes next year, the Temporary Skill Shortage (TSS) Visa will replace it.
Watch This Space – Regular Updates
We will be updating our website with analysis and commentary relating to the impacts. Simply call in to our office to start the conversation or contact via our website – in our experience there is often a solution to be found given the required subject matter knowledge and resources.
The Job Capital On Hire Labour Agreement – BAU
Regarding Job Capital and our federal On Hire Labour Agreement (OHLA) contract with the Department of Immigration (DIBP), we are happy to announce that there are no changes as to how we can support you as a business, employee or both.
It is business as usual for the 25 white collar occupations we can sponsor and then on-hire to your organisation.
If you are an organisation or an employee/ candidate seeking support, then let’s talk and understand how we can help you solve the immigration or workforce problem(s) you are facing.
Standard Business Sponsorship & Permanent Residency
The changes announced have substantial impacts outside of Labour Agreements, key to which will be restrictions effecting businesses seeking to sponsor employees under their own Standard Business Sponsorship (SBS).
There are now two lists of occupations that employers can sponsor staff through, however only one of them leads the employee to Permanent Residency (PR).
Over 200 role categories removed from previous category list(s), which means that employers can no longer sponsor employees in these role types and via their own SBS.
In these instances, employers may only have two options:
- Utilise an On Hire Labour Agreement service provider who can support the need end-to-end.
- Gain their own Labour Agreement (LA), which requires significant commercial and operational investment so as to meet the obligations (E.g. Training Benchmark Obligations) involved with administering a LA.
- This is the only way to access the removed occupations directly if you are not going to utilise an OHLA.
Short Term Skilled Occupation List (STSOL)
- 2 – year visa
- Option to extend for a further 2-years only and application must be ‘onshore’
- PR cannot be achieved via this pathway after March 2018.
- PR can be achieved through the 186 Direct Entry (DE) pathway from either MLTSSL or STSOL lists, as long as other criteria are met.
- Replaces the previous “Consolidated Skilled Occupation List” (CSOL) – see Schedule 2 of the relevant legislative instrument
Medium Long Term Skilled Shortage List (MLTSSL)
- 4 – year visa grant
- Option to extend for a further 4 – years.
- PR will be available with a minimum of 3 – years of relevant experience
- Replaces the previous “Skilled Occupation List” (SOL) – see Schedule 1 of the relevant legislative instrument
Please note: the two lists referenced above are in effect as of the 19/04/17 – it has already happened.
The reality is that some Registered Migration Agents (RMA) consider the information supplied to-date, as lacking enough detail for them to provide completely ‘safe’ guidance to their stakeholders on how the changes will affect their business or visa case(s).
It would be fair to say that with this reluctance, often comes anxiety in the market as all involved seek to make optimal decisions.
Many people do not realise that future updates and changes will in fact be defined by the Department of Employment or the Department of Education, not the DIBP.
The Department of Employment – STSOL
The Department of Employment will define market demand and relevant actions in relation to the STSOL list. This is in keeping with the name of the list – Short Term Skilled Occupation list – www.employment.gov.au/employment-research-and-statistics
Department of Education – MLTSSL
The Department of Education will define market demand and relevant actions in relation to the MLTSSL list. This is in keeping with the name of the list – Medium Long Term Skills Shortage List – https://www.education.gov.au/skilled-occupation-list
We expect future announcements from both the Department of Employment and the Department of Education, which are likely to include the removal (and possibly addition) of categories available for sponsorship, from the two new role category lists (STSOL & MLTSSL).
To be fair this makes sense (well at least to us it does) – ultimately the intent of skilled visa pathways is to support broader productivity and business growth in the market, through the acquisition of genuinely hard-to-find and specialist skills and experience.
In our view, ‘labour market demand analysis’ is firmly in the ‘wheelhouse’ of the Department of Employment, rather than the Immigration Department.
The Department of Employment and the Department of Education will define and DIBP will implement – all playing to their strengths and purpose.
Let’s keep perspective on these announcements bearing in mind that the reality of how the new regime will play out, is yet to be established.
For some initial reading on the new TSS Visa, check out the Immigration Department via this link.
Stay tuned to our website, start the conversation with us and we will work through it together. There is no need to panic, however it is without doubt, the time to take action.
Written by Dominic Trewick (General Manager Job Capital)
Transition period – the changes recently announced are significant and will effect many aspects of the Australian market.
Our initial sense is that the majority of these changes will be manageable once all stakeholders understand how to utilise the new visa pathways, and how to manage the transition period between now and when the changes are finalised in March 2018.
Job Capital is currently working through all the new information being provided by the Department of Immigration and Border Protection (DIBP) in relation to recent announcements by the Prime Minister Malcolm Turnbull and the Immigration Minister Peter Dutton.
We will be providing regular updates as to the impact and implications for business, employees and candidates via email and our website.
Contact our office on the phone or via our website and we will bring you up to speed with our current understanding of these changes and how we intend to support the market through this transition period.