Introducing the Temporary Skill Shortage (TSS) Visa
The government may have abolished the 457 Visa in name, but the TSS visa category itself is basically the same, it just has some stricter guidelines.
The implementation of the 457 Visa reforms proposed by the government will fully come into effect throughout the next 12 months.
By March 2018, the implementation of these reforms will be complete and the Temporary Skill Shortage (TSS) visa will fully come into effect.
Those who are currently on a 457 visas will continue under the existing 457 rules until further notice by the department. If they wish to transfer an existing 457 visa, this may then fall into the new regulations.
The TSS visa program will be split into two groups – the short term stream and the medium term stream.
Short-Term Stream
The Short-Term Stream of the TSS is designed for Australian businesses to fill gaps with foreign workers on a temporary basis, when a suitably skilled Australian worker cannot be found.
Employment positions which are listed on the Short Term Skilled Occupations List (STSOL) are eligible for a two year visa, with the capacity for one onshore visa renewal. This means that a Short-Term TSS Visa holder will only be able to stay in Australia for a maximum of four years.
These visa holders may not be eligible for Permanent Residence under the Employee Nominated Scheme (ENS) or the Regional Sponsored Migration Scheme (RSMS), as there is now a requirement of 3 years continual work to get ENS. (Further information will be sought on this).
All potential applicants will need to meet the English Language requirement, with the threshold for a Short-Term TSS set at an International English Testing System (IELTS) (or equivalent test) score of 5, with a minimum of 4.5 in each test component.
There will also be a genuine temporary entrant requirement plus a police check.
In July 2017, the Short Term Skilled Occupations List (STSOL) will be reviewed based on advice from the Department of Employment.
Medium-Term Stream
The Medium-Term Stream of the TSS will allow Australian businesses to source foreign workers to address shortages in a narrow range of highly skill and critically needed occupations. These positions will be for occupations which have been assessed as being of high value to the Australian economy, so that Australian business can find the right expertise to prosper when a suitably skilled Australian worker is not available.
The Skilled Occupations List (SOL) will be renamed the Medium and Long-Term Strategic Skills List (MLTSSL). Occupations on the list will be eligible for a visa up to four years, with the capacity for visa renewal onshore for another 4 years and a permanent residence pathway after three years.
The Medium-Term Stream of the TSS will also require applicants to meet English Language Requirements. There is a requirement of an IELTS (or equivalent test) score of 5, with a minimum score of 5 in each test component, meaning that there is a higher threshold than the Short-Term Steam.
Caveats
Different occupations have had some caveats imposed upon them under the TSS program. An example of this is a person who is nominated as an Accountant ANZSCO 221111 must not be filling a clerical, bookkeeper, or accounting clerk position.
In general, any company that is not turning over one million dollars or has less than five staff will not be able to become a sponsor.
The TSS programme also has established minimum salary levels they deem to be required which are over and above the $53,900AUD for particular occupations. An example of this is a Corporate Service Manager ANZSCO 132111, which requires a base salary not less than $80,000AUD.
General Requirements and Reforms for the Temporary Skill Shortage (TSS) Visa
The government has reduced the number of occupations that applicants can apply for a 457 Visa or a TSS visa under, with the list reduced from 651 to 435 occupations. The complete list is available here, however the government has yet to provide a separate STSOL or MLTSSL list to determine who will be eligible for the short-term or medium-term steam.
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Visa applicants will now have to have at least two years’ work experience in the skilled occupation, however, this is overridden by ANZSCO requirements, which means that certain jobs may actually have stricter job requirements.
The permanent residence eligibility period has been increased from two years to three years, and may only be available to applicants under the medium-term stream.
There will also be a strengthened requirement on employers to contribute to training Australian workers, and a non-discriminatory workforce test to ensure that employers are not actively discriminating against Australian workers.
Similarly to the outgoing 457 Visa, applicants under the TSS Visa will be required to meet the minimum market salary rate, meaning that a skilled overseas worker must be paid the same, or more, than an Australian worker occupying the same position. Employers pay the market salary, but must also meet the Temporary Skilled Migration Income Threshold, which has not changed at $53,900AUD.
Prior to December this year, the Department of Immigration and Border Protection will commence the collection of Tax File Numbers for these visa holders, and data will be matched with the Australian Tax Office’s records to ensure that visa holders are not paid less than their nominated salary.
Applicants will also have to provide a mandatory penal clearance certificate, which is obtained from an overseas country’s government or law enforcement authority. This is required to demonstrate good character and that applicants do not have a significant past criminal history.
If you are concerned about how these changes will impact upon you, please contact your migration agent or sponsoring employer.
The exact details of the changes and the impact they will have is yet to be released, and we will aim to keep you updated via blogs and social media of new information as it becomes available.
Further information on the reforms is available:
• The media release regarding the changes is available at Minister for Immigration and Border Protection website.
• Fact sheets that provide more detail about the reforms are available at:
o Fact sheet one: Reforms to Australia’s temporary employer sponsored skilled migration programme – abolition and replacement of the 457 visa (447KB PDF)
o Fact sheet two: Reforms to Australia’s permanent employer sponsored skilled migration programme (494KB PDF)
It’s a very clear explanation. Thanks.
I just need one more thing that I was applied for 457 visa November 16, still no update, nomination already approved. My occupation is in the list of short term stream.
Now what is the rules for me?
Hi Myin, if your occupation is still on the list for the short term stream, you will still be eligible for your visa. If your visa was granted prior to the Governments announcement it would have followed the rules of the 457 Visa, if it was not granted prior to the announcement (which from your comment it appears that it wasn’t) you will fall under the rules of the Short Stream TSS Visa, meaning you will be granted your visa for a period of 2 years with the opportunity to renew for another two years. Kind regards, the team at Pendragon Management.
Good One, thanks.
Thanks for taking the time to read Girish! Kind regards, the team at Pendragon Management.
What happens In case of working in the country for four years under the shirt term stream (one renewal)? Any chance to stay/work in the country?
Hi Sam, at the moment it would appear that under the short term stream you won’t be able to go for PR through the Employee Nominated Scheme, however there may be other options available to you in order to achieve PR if you meet the requirements for the Direct Entry scheme. I would advise talking to a migration agent to see what options are specifically available to you. Kind regards, the team at Pendragon Management.
Hi, I am currently 6 months into a 2 year 457 Visa. I assume I will no longer be able to extend this visa after the 2 years are up however I should then be able to successfully apply for the 2 year TSS. My question is, will I be able to extend the 2 year TSS by another 2 years or will the 2 years already worked on my 457 be taken into consideration and prevent this?
Hi Phil, as long as your occupation is still on the approved occupation list you will be able to apply to extend the visa for another two years when your current 457 visa expires. However, at the moment, we can’t confirm whether you will be able to extend your TSS visa or whether they will use the 457 visa as your original stay. I would look into seeing whether you may be eligible to apply for PR if you wish to extend your stay. You should contact a migration agent to discuss what options are available to you. Kind regards, the team at Pendragon Management
My occupation of Insurance Loss Adjuster is not on the MLTSSL which means that unless something changes I can never go PR. I never would’ve uprooted my entire life to Australia had there been no transitional route to PR so to say I’m angry at these sudden changes is quite the understatement! Thanks for your advice.
Hi Phil, as Insurance Loss Adjuster is still on the STSOL, I would still seek specific advice from a migration to make sure that PR is definitely not possible, especially seeing as you are currently still under the 457 visa rules until your visa expires. Hopefully there will be changes in the future to assist people in similar positions as you as these changes have put many people in an unknown situation. Kind regards, the team at Pendragon Management
Hi, it is still on the list at the moment however when the MLTSSL comes into effect in March 2018 I would not be eligible for either the 4 year TSS or PR. Unfortunately I do not have sufficient qualifications (as advised by a migration agent) to attempt the Direct Entry stream before the changes come into effect. Thanks again. Phil
is there also a Skill Assessment for VISA TSS?
Hi John, the TSS Visa should follow the same processes as the 457 Visa, meaning there won’t be a skill assessment, my colleague Louise will explain more over livechat. Kind regards, the team at Pendragon Management
Hi pendragon team,
I am wondering where to find my occupation. I work as Revenue Manager, however under what description does this appear on the list?
Best regards
Stefano
Hi Stefano, are there any alternative titles for Revenue Manager that you are aware of? Do you have a job description and also what degrees or experience do you have? Are you currently on another visa or are you looking to apply for one? Sorry for all the questions, but I need a little more detail to determine what your position would fall under on the list (assuming it does appear on the list). Kind regards, the team at Pendragon Management
Hi pendragon team
I m planning to apply to a EOI very soon for a TSS visa as ICT project manager. I have already done my Foreign Language internet-based test (TOEFL iBT). But do I also required to do a Skill Assessment thought ACS?
Thanks
Lori
Thanks for your question. You mention you’re planning to apply for EOI for a TSS visa, however you do not need to put in an EOI for a TSS visa. The TSS visa is replacing the old 457 visa and you require a sponsoring entity e.g. a company willing to sponsor you for a role. An EOI (Expression Of Interest) is only if you are looking to apply for Permanent Residency. Once again for a TSS/457 visa you do not need to have your skills assessed through ACS you only require that if you are applying for PR. Are you looking for PR or TSS Temporary Skills Shortage visa? For your information the ITC project manager is on the 2 year STSSL list and does not qualify at the moment for PR, to qualify for PR you need to have a qualification on the 4 year MLTSSL list. If you would like us to give you a full assessment of your visa options please complete the following website form https://pendragon.net.au/visa-advice/ and we will clarify what visa routs might be open/best for you.
Hello, I have 5 years of English study experience certificate. Is English test is mandatory for TSS or 5 years of elnglish certificate is enough for TSS
Hi Shubhendra, if you are able to provide documents to prove that you have completed study in English, then you may not be required to sit the English test. If you fill in our free visa assessment https://pendragon.net.au/visa-advice/ one of our team will be able to advise you as to your visa options, whether we can sponsor you for a TSS visa and whether your English Study Experience is sufficient. Kind regards, the Team at Pendragon Management
Hi is there any visas temporary type open for skilled workers over 55 not wanting to live in Australia but fifo work ?
Hi Ian, you should speak directly with a migration agent, however I have had a quick chat with one of the migration agents in our office and if you are looking to come into the country for short periods for 3 months, with the possibility of up to 6 months, under the 400 visa, however you need to have a job to go to and a client will need to provide evidence that they need you for the job. If you need further information, you might wish to contact the migration agents of our sister company Oz Migration Solutions – info@ozmigration.net.au