On the 18th of April the Australian Government announced the abolishment of the 457 working visa and its replacement by two new temporary visas. If you are an International student who was on a 457 visa, or who one day hoped to work in Australia, you might be wondering what these changes mean for you.
Read more on how studying in Australia will change your life.
What Was The 457 Visa?
The 457 visa, formally known as the Temporary Work (Skilled) (subclass 457) visa, was introduced in Australia in 1996. It was a common business visa issued by the Australian Government that allowed employers to bring highly skilled overseas workers into the Australian workplace to live and work temporarily. An individual on this visa was eligible to:
- Live and work in Australia for up to 4 years
- Work in over 650 occupations
- Bring family members and dependants over to Australia with them on a 427 secondary visa
- Apply for permanent Australian residency after two years
Who Was Eligible For The 457 Visa?
This visa was designed to fill the job vacancies that Australians couldn’t. It proposed that a business could sponsor an overseas worker to complete the job if they could prove there wasn’t a suitable Australian available to. The Department of Immigration and Border Protection state that individuals eligible for this sponsorship must have experience in a position listed on the eligible skilled occupations list.
This list included a range of over 650 different jobs that varied in skill, salary and expertise. For example: Aeronautical Engineer, Choreographer, Mechanic, Nurse or Illustrator.
What Happened To It?
The 457 visa no longer exists. In its place, Prime Minister Malcolm Turnbull said two new visa programs called the Temporary Skill Shortage Visa (TSS) would take over immediately and be fully implemented by March 2018.
TSS Short-Term: Overseas workers are eligible to live and work in Australia for up to two years. This can be renewed for another two years. There are no permanent residency options available after the expiry of this visa. A total of 268 occupations qualify for this visa.
TSS Medium-Term: Overseas workers are eligible to live and work in Australia for up to four years. This visa recruits foreign workers with high-level skills. There is a permanent residency option available upon expiry of this visa. A total of 167 occupations qualify for this visa.
What Were The Changes?
The new TSS visas have higher requirements than the old 457 visa. These key reforms include:
- The removal of 216 occupations from the eligible skilled occupations list
- Proof of two years’ work experience in their skilled occupation
- Stricter requirements in English language proficiency
- Mandatory labour market testing
- Required criminal record checks
Another significant change includes the increased cost of the TSS visa. The Short-term visa will now set overseas workers back $1,150 and the Medium-term visa $2,400. This is a price increase of up to $1,340 - the original 457 visa previously costing $1,060.
Why Did The Australian Government Abolish it?
To put it simply, many Australian workers claimed they were missing out on jobs due to overseas workers. Some Australians blamed the Government for allowing the eligible skilled occupation list to include too many jobs.
Prime Minister Malcolm Turnbull told reporters from the Sydney Morning Herald that the abolishment of the 457 visa and overall restriction on overseas workers was about “jobs for Australians.”
"We are putting jobs first, we are putting Australians first," Mr Turnbull said.
"We are an immigration nation, but the fact remains that Australian workers must have priority for Australian jobs.
"We are abolishing the 457 visa, the visa that brings temporary foreign workers into our country. We will no longer allow 457 visas to be passports to jobs that could and should go to Australians."
The introduction of the Temporary Skill Shortage Visa (TSS) is meant to be the best of both worlds. In a press statement released by the MP himself, titled Putting Australian Workers First, Mr Turnbull said this new visa ensured Australian workers were given the first priority for jobs whilst still allowing businesses to access the critical skills they need to grow if Australian workers were not available.
What Does This Mean for Current Visa 457 Holders?
Current 457 visa holders in Australia will not be affected. All 457 visas issued before the 18th of April 2017 will remain unchanged.
However it is unsure how individuals on their current 457 visa will be treated once it expires. The circumstances surrounding when they can apply for permanent residency and what visa conditions they will be assessed under still remain unclear.
It is noted that individuals who lodged a 457 visa application on or before the 18th of April 2017 are eligible for a refund.
I Wanted to Apply for 457 visa. What Does This Mean For Me?
The abolishment of the 457 visa does not mean foreign or overseas workers will be denied working rights in Australia.
Instead of applying for a 457 visa students or overseas workers can apply for the new Temporary Skill Shortage Visa (TSS). However, it is important to note which industries will be most affected by the 457 visa scrap.
The Australian Broadcasting Association (ABC) released an article The Occupations Most Affected by the 457 Visa Changes that showed of the 216 occupations removed from the visa list, human resources, production managers and web developers will be the most affected. Other occupations no longer listed or available to overseas workers include training and development professionals, sales representatives, ICT support and ship engineers.
To see the full list of jobs that were removed click here.
If you have any more questions about the 457 visa feel free to call Queensford college student support on 1300 236 364.
