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Temporary skill shortage visa (Subclass 482)

February 21, 2018

The new Temporary Skill Shortage (TSS) (subclass 482) visa replaces the Temporary Work (Skilled) visa (subclass 457 visa) which will be abolished in March 2018. The TSS (Subclass 482) visa is a temporary visa which permits the holder to live in Australia, while working full-time for the sponsoring employer, in the nominated position. Applicants for this subclass 482 visa may include dependent family members similar to its predecessor the subclass 457.

 

The Subclass 482 visa has a short-term stream and a medium-term stream as well as an agreements stream. Applicants with occupations on the Short-Term Skilled Occupations List (STSOL) are eligible for visas of up to two years (renewable once, for a further two years), whilst those on the Medium and Long-Term Strategic Skills List (MLTSSL) can apply for up to four years, with eligibility for permanent residency after three years.

 

The Short-term stream will include the following criteria:

  • Short-term stream – this is for employers to source genuine temporary overseas skilled workers in occupations included on the Short-term Skilled Occupation List (STSOL) for a maximum of two years (or up to four years if an international trade obligation applies

  • requirement for visa applicants to have at least two years’ work experience in their skilled occupation

  • mandatory labour market testing, unless an international trade obligation applies,

  • capacity for only one onshore visa renewal under the Short-Term stream

  • TSS short term stream visa holders will not qualify for permanent residence 

  • a non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers

  • a requirement to pay a contribution to the Skilling Australians Fund (subject to legislation passing).

  • If applicants are not from an exempt country (UK, USA, Canada, NZ or Ireland), they will also need to meet English language requirements. A requirement of an International English Language Testing System (IELTS) (or equivalent test) score of 5, with a minimum of 4.5 in each test component.

  • Genuine entry: A genuine temporary entrant requirement. 

The Medium-Term stream will include the following criteria:

  • This stream is for employers to source highly skilled overseas workers to fill medium-term critical skills in occupations included on the Medium and Long-term Strategic Skills List (MLTSSL) for up to four years, with eligibility to apply for permanent residence after three years

  • Capacity for visa renewal onshore

  • Only those on the Medium-term stream will have a pathway to permanent residence after three years under the medium stream

  • If applicants are not from an exempt country (UK, USA, Canada, NZ or Ireland), they will also need to meet English language requirements. a requirement of a minimum of IELTS 5 (or l equivalent test) in each test component.

  • Additional occupations will be available to support regional employers.

  • work experience: at least two years’ work experience relevant to the particular occupation. 

  • Labour market testing (LMT) will be mandatory, unless an international obligation applies. This means the employer will need to advertise the role and prove that it can not be filled by an Australian citizen or permanent resident.

  • Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold requirements.

  • Police clearance certificates are required for every country in which the applicant has lived for 12 months or more since turning 16 years of age, within the last ten years.

  • A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers.

 

The Labour Agreement stream will include the following criteria:

  • This stream is for employers to source overseas skilled workers in accordance with a labour agreement with the Commonwealth, on the basis of a demonstrated need that cannot be met in the Australian labour market and standard visa programs are not available, with the capacity to negotiate a permanent residence option.

 

Mandatory Training Levy

  • Employers nominating a worker for a Subclass 482 visa will be required to pay a contribution to the Skilling Australians Fund. 

  • The contribution will be:

    • Payable in full at the time the worker is nominated;

    • $1200 per year or part year for small businesses (those with annual turnover of less than $10 million) and 

    • $1800 per year or part year for other businesses.

 

How do I apply for the TSS visa? 

  • Standard business sponsorship - A business must become approved as a Standard Business Sponsor in order to employ a TSS visa holder. To obtain a Standard Business Sponsorship agreement, the business must demonstrate lawful and active operation in Australia. This includes identifying the correct ABN to apply under, registering the business name, supplying Business Activity Statements (BAS) and financial statements, as well as compliance with workplace and other Australian laws.

  • Nomination - Following the SBS application, an employer must nominate a position within their business as one which must be filled by an overseas citizen. As part of this step, there are various requirements to be met:

    • Labour Market Testing - in order to nominate an employee for a TSS visa, a business must demonstrate that they have a genuine need to do so. This is partly met by providing evidence that the business has conducted labour market testing in the 12 months prior to making a nomination application. Labour market testing might be having unsuccessfully advertised for a role, for example. Evidence of market testing will need to be supplied as part of the application.

    • Salary Level - The salary for the nominated position must meet two requirements. Firstly, the remuneration must be above the Temporary Skilled Migration Income Threshold (TSMIT). This threshold is set by the Department each year and is currently $53,900 plus superannuation. Secondly, the proposed salary must be within the market rate for the role. This ensures that the applicant will be paid in line with Australian employees in comparable roles. Note: Some occupations will be subject to caveats that set a minimum remuneration level that is above TSMIT.

    • Training Levy - The introduction of the TSS visa brings with it a new Skilling Australians Fund (SAF) levy to be paid at nomination stage. The SAF levy will make nominating employees a considerably more expensive undertaking for a business.

  • Visa application - the nominee must demonstrate that they meet the requisite skill level for their occupation, as well as health and character requirements.

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