• Temporary Skill Shortage Visa and Related Reforms to Take Effect March 18
  • April 13, 2018
  • At a Glance

    • The amending regulations to implement the new Temporary Skill Shortage (TSS) visa and restrict the permanent employer sponsored programs have now been registered and will take effect March 18, 2018.
    • After March 18, subclass 457 applications will no longer be accepted.

    The situation

    Regulations to implement the new Temporary Skill Shortage (TSS) visa will take effect March 18, 2018, abolishing the subclass 457 visa. Reforms to restrict the permanent Employer Nomination Scheme (subclass 186) (ENS) and Regional Sponsored Migration Scheme (subclass 187) (RSMS) visas will also take effect that date, including the reduction of the maximum age limit for all eligibility streams from 50 to 45.

    A closer look

    • TSS visa fees.
      • As expected, the Visa Application Charges for the TSS visa will be as follows:

      • The business sponsorship and nomination fees will remain at AUD 420 and AUD 330, respectively, and the ENS/RSMS nomination and visa application charges remain unchanged.
    • Stream Primary Applicant Adult dependent Dependent under 18
      Short – term stream AUD 1,150 AUD 1,150 AUD 290
      Medium – term stream AUD 2,400 AUD 2,400 AUD 600
      Labour Agreement Stream AUD 2,400 AUD 2,400 AUD 600
    • Legislative details.
      • While regulations relating to TSS visa and ENS/RSMS reforms are now available, the Legislative Instruments which contain important additional details about the reforms are expected to be released March 17. The Legislative Instruments yet to be published include the specific occupation lists, International Trade Obligations that will apply to labour market testing, annual market salary rate methodology, Temporary Skilled Migration Income Threshold (TSMIT), English language exemptions and the duration of transitional arrangements for ENS and RSMS visa programs.
    • Formal written policy (by way of a Procedural Advice Manual) to further support and give further substance to the changes has not yet been released.
    • Labour Market Test and levy details. Reforms to restrict acceptable evidence of labour market testing and to introduce the Skills Australian Fund (SAF) levy are subject to the passage of two Bills through Parliament, which are likely to be considered when the Senate sits next week. These changes are expected to come into effect no earlier than the week of March 26.