Effective 18^th March 2018 the 457-visa program was replaced by the Temporary Skill Shortage (TSS) Visa. This was a year-long process in the making with new occupation lists underpinning the new TSS visa.

Eligible Skilled Occupation Lists 

The staged implementation of the TSS split the Consolidated Skills Occupation List (CSOL) into separate lists:

1. Short Terms Skilled Occupation List (STSOL): Currently, occupations on this list are granted up to a 2-year TSS visa with the option for a further 2 years onshore. There is no pathway to permanent residency; and
2. Medium to Long Terms Skills Occupation List (MLTSOL): Occupations on this list are granted for up to 4 years TSS visa and permits a pathway to permanent residency through the ENS (Subclass 186) or RSMS (Subclass 187) Transitional streams.
3. Regional Occupation List (ROL): Effectively an extension of the STSOL to cater for skill shortages in regional areas.        
    

In conjunction with the Government’s announcements over the last few months, additional changes were applied to both of the skilled occupation lists originally announced under the 457 visa program on April 18, 2017. Amendments included the introduction and removal of occupations, as well as changes and caveats on some occupations. The STSOL is to be reviewed every 6 months i.e. 1 January and 1 July. The MLTSOL has reviewed annually on 1 July.

The next update to the list of eligible occupations will be 1 July 2018. Please note that applications for other visa subclasses will be affected by the occupation list changes, but the lists are complex so please contact us for specific advice. 

General Eligibility Requirements

Requirements for both streams are as follows:

1. At least 2 years work experience relevant to the occupation;
2. Labour market testing (LMT) will be mandatory for all nominations;
3. Annual Earnings will apply to reflect the Australian market salary rate by way of a new Australian Market Salary Rate (AMSR) and the minimum income threshold (Temporary Skilled Migration Income Threshold (TSMIT)) remains at the current $53,900 pa requirements;
4. Mandatory penal clearance certificates;
5. A non-discriminatory workforce test (NDWT) to ensure that Australian employees are not being discriminated;
6. Pending Senate approval, training will be made by a contribution to the Skilling Australians Fund (SAF). [Refer to SAF].            
    

Short-Term Stream Eligibility Requirements (STSOL)

Designed to provide employers the option to fill skill gaps with foreign workers on a temporary basis:

1. Can only be renewed for a further 2 years once and whilst the applicant is onshore with no pathway to Permanent Residence (PR)
2. The eligible occupations will be those listed on the STSOL.;
3. The English language requirement in IELTS, or equivalent, is an overall score of 5 with a minimum of 4.5 in each component;
4. There will be a genuine entrant requirement applicable;
5. Additional occupations are available for regional employers under the new Regional Occupation List (ROL).

Medium-Term Stream (MTLSSL)

The Medium-Term stream is aimed at employers who wish to source foreign workers to address shortages in a narrower range of highly skilled and high-value needed occupations, where a suitably skilled Australian worker cannot be sourced:

1. Visa can be approved for up to 4 years;
2. Can be renewed onshore with a permanent residency pathway after 3 years;
3. Only occupations on the MLTSSL will be eligible.
4. English language requirement in IELTS, or equivalent, is an overall score of 5 in each component and
5. Additional occupations are available in Regional areas under the ROL.

Costs

TSS visa (STSOL) application fee:

·Main applicant: $1,150;

·Adult dependent applicant: $1,150;

·Child dependent applicant: $290

TSS visa (MTLSSL) application fee:

·Main applicant: $2,400;

·Adult dependent applicant: $2,400;

·Child dependent applicant: $600

New 457 Sponsorship Accreditation

Current Standard Business Sponsors (SBS) can apply for accredited status by lodging a sponsorship variation application. They can request a sponsorship accreditation online and they must provide extra evidentiary information at the time of application.

Existing Accredited Sponsors were not being affected by the 1 July 2017 changes. They continue to access priority allocation and streamlined processing arrangements as usual.