Michael Wall and Ivan Hoe outline the Government's announced abolition of 457 temporary visas and what this may mean for businesses.
The Federal Government’s decision this week to abolish 457 work visas and replace with a new Temporary Skill Shortage (TSS) visa has created uncertainty and confusion for both businesses and individuals directly impacted by the changes.
While the current visa status of existing Subclass 457 visa holders in Australia remains unaffected by these changes, employers will need to be aware of how these changes impact on all new (and unfinalised) Subclass 457 visa applications going forward.
In addition, employers will also need to consider their 457 visa holders’ eligibility to qualify for the new TSS visa or for company sponsored permanent residence. The key changes taking effect are:
From 19 April 2017:
From 1 July 2017:
From 31 December 2017:
From March 2018:
The aforementioned changes will significantly impact businesses that require access to the 457 visa program, particularly businesses that can no longer sponsor highly experienced specialist personnel in certain key occupations which have been removed from the eligible occupation lists. Alternative pathways to access these specialist personnel (such as Labour Agreements where possible) may need to be given due consideration, however, these programs are often difficult to access.
KPMG’s Immigration Services team has been active in the media providing commentary on these changes and working with our clients to minimise the impacts of these changes. Our Migration Newsflash outlines more.