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Key Changes for Businesses 

We have previously discussed changes to the lists of occupations which are eligible for 457 / skilled visas as part of the Government’s planned replacement of the 457 visa by March 2018.

The occupation lists have changed, and new occupation lists determine whether or not an occupation is eligible for a skilled visa.

 

What key changes can businesses expect in the future?

In effect, there are two new lists for practical purposes:

  • Medium and Long-term Strategic skills List (MLTSSL);
  • Combined list including the Short-term Skilled Occupation List (STSOL).

The maximum duration of 457 visas where the occupation is listed on the STSOL is 2 years. If listed on the MLTSSL the maximum duration is 4 years.

From a commercial perspective, the following key additional changes are planned in the coming months:

  1. Tax file number collection: It has long been the case that when nominating an occupation for employer sponsored visas, the salary for the nominated occupation must be notified to the Department of Immigration and Border Protection, must be above $53,900, and must be equivalent to the market salary rate for the relevant occupation. Prior to 31 December 2017, the Department of Immigration and Border Protection will start to collect tax file numbers for employer sponsored visa holders in order to verify that visa holders are being paid at least the salary which was notified to the DIBP. We believe this measure seeks to further strengthen the integrity of the scheme and ensure that visa holders are in fact paid their full salary.
  1. Skilling Australians Contribution: From March 2018 the 457 visa will be replaced with:
    1. a Temporary Skills Shortage visa (Short Term Stream) for up to 2 years. The occupations in the STSOL list will apply for this visa; and
    2. a Temporary Skills Shortage visa (Medium Term Stream) for up to 4 years. The occupations in the MLTSSL will apply for this visa.

In both scenarios, employers will have to pay a contribution to the “Skilling Australians Fund” (payable in full at the time of nomination of the worker). Based on presently available information the contribution will be $3,000 if the business has an annual turnover of less than $10 million. Otherwise it will be $5,000.

Sponsoring EmployeesStandard Business SponsorshipHow to become an approved sponsor?

To minimise any possible interruption from upcoming visa changes for your business, contact us and stay informed:

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