Temporary Skill Shortage visa and complementary reforms ...

1 Department of Home AffairsAustralianGovernmentTemporary Skill Shortage visa and complementary reforms : questions and answers Contents Overview of reforms 3 What are the key reforms ? 3 What is the purpose of the reforms ? 3 When are the reforms scheduled to be implemented? 3 Which visas are impacted by the reforms ? 4 How do the reforms protect Australian workers and visa holders? 4 Occupation Lists 4 What are the lists? 4 What was considered in changing the occupation lists? 4 Why are the occupation lists being regularly reviewed? 5 Can occupations move between the STSOL to the MLTSSL and Regional Occupation List? 5 Occupational Caveats 5 What are occupational caveats? 5 How do these changes impact on Australia s International Trade obligations? 5 I want to hire a worker in an occupation that isn t on the list any more. What are my options? 5 The New Temporary Skill Shortage (TSS) Visa from March 2018 6 What is the Temporary Skill Shortage (TSS) visa?

2 6 How will the TSS visa help employers? 6 What is the Global Talent Scheme? 6 What eligibility criteria will underpin the TSS visa? 6 Why does the TSS visa have three streams? 7 What is the Short-Term stream of the TSS visa? 7 What is the Medium-Term stream of the TSS visa? 7 What is the Labour Agreement stream of the TSS visa? 7 How much will the TSS visa cost? 7 Version 15/03/2018 Temporary Skill Shortage visa and complementary reforms : questions and answers Page 2 of 16 What is the Skilling Australians Fund levy? 7 When is it expected the SAF levy will need to be paid? 8 Can I get my employee to pay the SAF levy? 8 Will there be any exemptions? 8 When will SAF levy payments commence? 8 What about the training benchmarks? 8 Will holders of the TSS visa be able to become Australian permanent residents? 9 What are there work experience requirements for the TSS visa? 9 Will sponsors be required to comply with sponsorship obligations?

3 9 What is the non-discriminatory workforce test? 9 How will labour market testing work under the TSS visa? 9 Will the Temporary Income Skilled Migration Threshold (TSMIT) be indexed? 9 Impacts for the Permanent Employer Sponsored Visa Program (subclass 186, 187) 10 What are the changes for subclass 186 and 187 visas? 10 How do the age changes affect the subclass 186 and subclass 187 visas? 10 I have applied for a subclass 186 or 187 visa, and can no longer meet the nomination requirements. Am I eligible for a refund? 10 How will I be affected by occupation lists changes if I hold, have applied for, or intend to apply for a subclass 186 or a subclass 187 visa? 10 If I hold a 457 visa, can I apply for permanent residence through the TRT stream of the subclass 186 or 187 visa after March 2018? 10 If I hold a 457 visa, can I apply for permanent residence through the DE stream of the subclass 186 or 187 visa after March 2018?

4 11 If I have turned 45, can I apply for permanent residence through the subclass 186 or subclass 187 visa?11 How do the changes to the subclass 186 and subclass 187 visas affect me if I held my 457 visa before the Government announced the changes on 18 April 2017? 11 I had to get a new subclass 457/TSS visa. Can I still access these transitional arrangements? 12 How long will these transitional arrangements be available? 12 Are there any transitional arrangements in place for the Direct Entry (DE) stream? 12 Why are you requiring people who hold a 457 or TSS visa to have an eligible occupation if they apply for permanent residence? 12 Why are ENS applicants no longer able to access occupations listed on the STSOL? 13 Why has the Government introduced a three-year work experience requirement for the ENS and RSMS?13 Why has the Government applied the Temporary Skilled Migration Income Threshold (TSMIT) to the subclass 186 and subclass 187 visas, which are permanent visas?

5 13 Impacts for the Points-Tested Visa 13 What are the changes for points-tested skilled visas? 13 Version 15/03/2018 Temporary Skill Shortage visa and complementary reforms : questions and answers Page 3 of 16 Will I be affected by occupation lists changes if I hold, have applied for, or intend to apply for a points-tested visa (subclasses 189, 190 and 489) 13 Impacts for International Student visa holders 14 What if I hold or am considering applying for a student visa? 14 What if I hold, have applied for or intend to apply for a Temporary Graduate visa (subclass 485 visa)? 14 What if I hold, have applied for, or intend to apply for a Training visa (subclass 407 visa)? 14 Impacts for the subclass 457 Visa Program 15 What if I already hold a subclass 457 visa? 15 If I already hold a subclass 457 visa, can I apply for a family member to join me?

6 15 If I already hold a subclass 457 visa, can I change employers? 15 How will the reforms affect existing 457 sponsors/visa holders? 15 Stakeholder Engagement 15 How have stakeholders been engaged on the reforms ? 15 Overview of reforms What are the key reforms ? Replacing the Temporary Work (Skilled) visa (subclass 457) program with the new Temporary Skill Shortage (TSS) visa on 18 March 2018. complementary reforms to strengthen the integrity of Australia s permanent employer sponsored skilled migration programs. What is the purpose of the reforms ? The replacement of the subclass 457 visa with the new TSS visa marks a significant milestone. The subclass 457 visa has been in place for over 20 years and has been subject to major changes and reviews. However, the program is no longer meeting Australia s labour market and economic needs. The TSS visa provides a credible mechanism for bringing skilled overseas workers to Australia.

7 It will ensure Australian workers have priority for Australian jobs. This new visa is part of the Government s reform package to strengthen the integrity and quality of our skilled visa programs. The reforms ensure that these programs meet Australia s needs and help build a strong and more prosperous Australia. When are the reforms scheduled to be implemented? The reforms commenced from 18 April 2017 and have been implemented in phases. This implementation will be completed by March 2018, with the replacement of the subclass 457 visa with the TSS visa. Further information about the reforms is available in the following factsheets: reforms to Australia s Temporary employer sponsored skilled migration program commencement of the Temporary Skill Shortage visa reforms to Australia s permanent employer sponsored skilled migration program Version 15/03/2018 Temporary Skill Shortage visa and complementary reforms : questions and answers Page 4 of 16 These factsheets are available at Which visas are impacted by the reforms ?

8 The reforms affect employer sponsored Temporary and permanent skilled work visas, including: Temporary sponsored skilled work visas: The subclass 457 visa. This visa will cease in March 2018. The new TSS visa will commence in March 2018. Permanent sponsored skilled work visas: Employer Nomination Scheme (ENS) (subclass 186) visa. Regional Sponsored Migration Scheme (RSMS) (subclass 187) visa. Other permanent skilled visas ( those that are points tested) will also be impacted. How do the reforms protect Australian workers and visa holders? The reforms better protect Australian jobs by ensuring that overseas workers supplement the labour market, and do not replace Australian workers. Tightened English language and salary requirements will ensure that overseas workers are less vulnerable to exploitation, and can participate fully in the workforce and community. To help address worker exploitation and support compliance, two key reforms will be implemented, subject to the passage of legislation: an arrangement between the Department of Home Affairs (the Department) and the Australian Taxation Office to share Tax File Numbers (TFNs) of skilled overseas workers; and publicly naming sponsors that are sanctioned for breaching their sponsorship obligations.

9 Most sponsors do the right thing. However, for the very few who breach their sponsorship obligations, publishing businesses details provides a strong incentive to do the right thing. Using TFNs of visa holders will assist the Department to identify where visa holders are underpaid. This protects non-citizens from exploitation, protects Australian wages and conditions, and allows action to be taken against businesses that do the wrong thing. Occupation Lists What are the lists? The lists set out skilled occupations where Australian employers have genuine difficulties in finding local workers. Each list reflects particular time periods and geographic areas of skills Shortage . Short-term Skilled Occupation List (STSOL) Medium and Long-term Strategic Skills List (MLTSSL) Regional Occupation List (ROL). What was considered in changing the occupation lists? The composition of the occupation lists are based on reviews by the Department of Jobs and Small Business that include public consultations, labour market analysis and advice from government agencies.

10 Version 15/03/2018 Temporary Skill Shortage visa and complementary reforms : questions and answers Page 5 of 16 Changes are made to ensure the lists remain focussed and responsive to genuine Skill needs across Australia. The list of occupations, as well as a summary of recent changes, are available at: Why are the occupation lists being regularly reviewed? The Government announced on 18 April 2017 that occupations on the MLTSSL and STSOL will be regularly reviewed to make sure the entry of skilled foreign workers to Australia remains carefully calibrated to Australia s skills needs. The occupation lists are designed to be dynamic. These reviews will consider information from a range of labour market data, as well as stakeholder feedback. For more information, including how to make a submission for the next review, please visit the Department of Jobs and Small Business website Can occupations move between the STSOL to the MLTSSL and Regional Occupation List?