How will the abolition of the 457 visa impact small business?

This week, the Australian government pledged to remove and replace the 457 visa entirely, so what will this mean if you run a small business that relies on this category of workers?

We expect that more details will be coming soon, but here is what the government has released so far.

On 18 April, the government announced that the Temporary Work (skilled) visa or 457 visa will be abolished and replaced with the new temporary skill shortage visa (TSS) in March 2018. The goal of this is to address genuine skill shortages in the workforce and will prioritise Australian workers.

The main things to know at this stage are:

There will be two-year and four-year streams

The TSS visa program will be made up of a short-term stream of up to two years and a medium-term stream of up to four years. The two-year visa will be available to a wider variety of industries, whereas the four-year visa will be targeted at higher skills.

Eligibility requirements will change

Eligibility requirements for employer sponsored permanent skilled visas will be changed in a number of ways:

  • Visa applicants must have at least three years work experience
  • Tightened English language requirements
  • Applicants must be under the age of 45 at the time of application
  • Employers must pay the Australian market salary rate
  • Employers are required to contribute to training Australian workers

Current 457 visa holders will not be affected

Minister Peter Dutton said there will be a grandfathering arrangement in place for those already under the 457 visa. This means that those already in Australia under the visa will not be affected. There is no information about those currently in the queue at this time.

Concessions for regional Australia will still be available

Employers in regional areas will still have access to occupations under the temporary and permanent visas to reflect their skills needs.Existing permanent visa concessions for regional Australia, such as waiving the nomination fee and providing age exemptions for certain occupations, will be retained.

For more information visit the Department of Immigration and Border Protection

Comments (2)

  • Con Reply

    The facts most people dont know about this new visa scheme.

    1 The new scheme still allows employers to hire migrant workers over Australian workers, it just charges them more for the privileged.
    2 The eligibility requirements already exist to a similar level, they are only changing them very very slightly.
    3 This new scheme in no way creates job opportunities for Australian workers, as its a change to a scheme for migrant workers, a scheme that needed to be setup because Australians dont have the skills to fill these positions, ie where are the Australian Thai Chefs, Indian restaurant managers, hospital translators that speak upwards of 5 languages.

    The new scheme has 1 sole purpose, to generate more revenue from the 457 scheme for the government.
    Its not about Australian jobs for Australian people. but sadly the general public take our media at face value

    The 457 scheme definitely needed reevaluation but the proposed new scheme does not address any of the issues the government scare you with such as migrants coming to Australia that dont want to integrate.

    Asylum seeking boat people get granted permanent residency but hard working migrants that want to take on the Australian life can not.

    I encourage intellectual debate on the matter, not fear mongering using catch phrases.

    28/04/2017 at 8:27AM
  • alvinasarah Reply

    Hii Rebecca Bendikov,

    Awesome post! A very good step-by-step guide especially for a beginner like me. It’s overwhelming with information, thank you for making it easy and very detailed.. I’ll pop some questions here, if I need help, hope that’s okay.

    05/05/2017 at 4:38PM

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