The 457 Temporary Work (Skilled) visa is meant for skilled workers coming to Australia. It gives visitors the right to work in the country and bring their families to Australia. In 2017, the 457 was changed and in 2018, it will be removed entirely and replaced with a completely new visa class called the Temporary Skill Shortage (TSS) visa.
How are current 457 visa holders or applicants affected?
If you are currently in Australia on a 457 visa then your visa remains unchanged and will continue as before.
If you lodged an application for a 457 visa on or before 18 April 2017 then the changes affect your application. Each new set of changes will affect subsequent applications. For example, the changes on 1 July will then begin affecting subsequent applications.
How have 457 visas changed?
As of 19 April the approved occupations list for 457 visas has changed. Many occupations have been removed and new conditions now apply to some occupations. Some occupations have also been divided into different groups for short- and long-term visas. The Australian government will introduce other changes throughout 2017. By March 2018 there will be no more 457 visas.
For applications after 1 July 2017
English language salary threshold exemption. As of July 2017 all applicants will need to meet English language requirements regardless of salary (previously applicants earning over $96,400 were exempt).
Character requirements. Penal clearance certificates become mandatory for all applicants. Australia’s immigration department will check applicants for any criminal record overseas.
Training benchmarks. Training benchmark requirements will be made clearer in legislation. This change is aimed at Australian businesses, not visa applicants.
New occupation Lists (April 2017)
Previously there were 651 approved skilled occupations that let people work in Australia. After the changes there are fewer occupations, which are divided into two categories.
Short-term visa occupations
Formerly the Consolidated Sponsored Occupation List (CSOL), this is now the Short-term Skilled Occupations List (STSOL).
Being accredited in these occupations lets you get a two year working visa, which you can renew once in Australia.
This list of occupations will be revised every six months, and the occupations will change over time.
Some of the occupations on this new list, such as those related to farming, are only available for regional areas.
Medium- and long-term visa occupations
Formerly the Skilled Occupations List (SOL), this is now called the Medium- and Long-term Strategic Skills List (MLTSSL).
Being accredited in these occupations lets you get a visa for up to four years.
Some of the occupations on this list are only available with certain visa programs.
Future changes
There will be further changes for both Australian businesses and visa applicants until 2018.
December 2017
In December the Department of Immigration will start collecting tax file numbers for 457 visa holders and other employer-sponsored migrants. This data will be matched with the tax office’s records to ensure that visa holders are not being paid less than their nominated salary.
The Department of Immigration will start publishing the details of businesses who fail to meet their obligations.
The termination of the 457 visa scheme and the new TSS visa
By March 2018 the 457 visa will end. It will be replaced with the new TSS visa. The following conditions will apply to the TSS visa. Some of these also apply to the old 457 visa, and some of these are being introduced before the TSS visa comes out.
Work experience. Applicants need to have at least two years of relevant work experience.
Character. Penal clearance certificates are mandatory.
Additional requirements may apply depending on whether the occupation is a short-term (STSOL) or a medium-term (MLTSSL) one.
Short-term skilled occupation list (STSOL)
Renewability. Visas can be renewed in Australia only once.
No residency pathway. Applicants must satisfy the immigration department that they are only getting the visa for temporary work purposes.
English language requirements. Applicants require an IELTS score of 5. This is the same as the English language requirements on the 457 visa, although some exemptions will no longer apply.
Occupation. Your occupation must be on the STSOL.
Medium and long-term strategic skills list (MLTSSL)
Renewability. Visas can be renewed more than once.
Residency pathway. This visa stream includes a pathway to permanent residency.
English language requirements. Applicants require an IELTS score of 5. This is the same as the English language requirements on the 457 visa, although some exemptions will no longer apply.
Occupation. Your occupation must be on the MLTSSL.
There will also be some changes which may affect your chances of being offered a job in Australia and the number of TSS visas which will be offered. Australian businesses will also have some additional requirements.
Labour market testing. Businesses must check the local labour market for qualified applicants before bringing in overseas workers, except in special circumstances.
Minimum market salary rate. Employers must pay visa applicants the Australian market salary rate, and must pay applicants at least the Temporary Skilled Migration Income Threshold ($53,900 as of April 2016).
Workforce. A non-discriminatory workforce test is required to ensure that employers are not actively discriminating against Australian workers.
457 versus TSS visa: a snapshot
Visa conditions
457 visa
TSS visa
English language requirements
Vocational English
Vocational English
Eligible occupations
651 eligible occupations
435 eligible occupations
Employer requirements
Able to bring in overseas workers when needed
Strict requirements for bringing in overseas workers
Residency pathways
One visa type, with a pathway to permanent residency
There is no residency pathway for Short-term TSS visas. Medium-term TSS visas have a pathway to permanent residency
English language salary exemptions
As of July 2017 visa holders earning over $96,400 are no longer exempt from English language requirements
All visa holders must meet English language requirements regardless of salary
Find a migration agent and begin your Australian visa application
If you're thinking of migrating to Australia and find the recent visa changes confusing, a migration agent can make the whole process much simpler. A migration agent can help you:
Stay up-to-date on changes to Australian immigration law
Richard Whitten is Finder's home loans writer. He helps Australians understand the ins and outs of mortgages so they can find lower rates and make smarter property decisions. Richard trained as a high school English teacher at the University of Sydney, but found that mortgage management was more rewarding than classroom management. Before working at Finder he lived in Seoul, where he edited textbooks and ran communication courses for Korean corporations.
This guide will take you through what visa Indian students can get and the eligibility requirements as well as provide information on meeting healthcare requirements.
If I am currently on a 457 visa, am I eligible for PR? I am looking to move businesses and have only had my visa for 6 months, will i lose out if i move or will i be able to apply for PR either way?
Hello Katherine. Unfortunately we cannot give you specific advice about visa eligibility on this website. If you’re concerned about the visa changes and permanent residency you should contact the Australian department of immigration or talk to a registered migration agent. Good luck!
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If I am currently on a 457 visa, am I eligible for PR? I am looking to move businesses and have only had my visa for 6 months, will i lose out if i move or will i be able to apply for PR either way?
Thanks
Hello Katherine. Unfortunately we cannot give you specific advice about visa eligibility on this website. If you’re concerned about the visa changes and permanent residency you should contact the Australian department of immigration or talk to a registered migration agent. Good luck!