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Changes to Working Holiday Visas

April 7, 2018

Recent government changes to the Working Visa’s may impact many businesses in how they work with international talent. So to understand the changes in greater detail we’ve consulted with Visa Essentials to outline some of the key changes international candidates and employers should know.

 


The 457 Visa has been replaced with a TSS Visa



From 18 March 2018 it is no longer possible to apply for a 457 visa. Instead we must now apply for a ‘TSS’ visa. This is the Temporary Short Stay Visa.


Structurally the program is much the same as it was previously. An employer wanting to sponsor a person for a temporary employment visa must first become registered as a Standard Business Sponsor (SBS). Once this is granted they are able to keep this status for 5 years. They must then nominate a role and individual for a TSS Visa and that individual must apply for a TSS visa.


In many ways it is arguably a ‘re-branding’ exercise although there are some critical points of difference.



What are the key differences between TSS and the 457 Visa?


Work experience


All TSS visa applicants must now have at least 2 years of relevant work experience. So, in essence it means that temporary employment visas are no longer suitable for recent graduates.


Labour market testing


Under the 457 Visa, companies were largely exempt from having to provide evidence of labour market testing. This means they were not required to provide proof that they have made efforts to recruit a suitable local worker. Under the new system there are no exemptions so companies will need to show evidence of recruitment efforts for at least 21 days prior to lodgement of a TSS nomination. So this new requirement will need to factored into hiring by businesses when looking to fill gaps with international talent.


Increased costs


Unfortunately costs for visa applicants are going to be higher and will depend on the occupation being nominated. There will also be a levy payable for each year of nomination called the Skills Australia Fund. This is currently being mooted as $1200 per year for businesses with a turnover of less than $10M and $1800 per year for businesses with a turnover of more than $10M. 

 


So whilst many elements regarding working visa’s will remain the same – there are some key changes both candidates and businesses must be aware of. A prior history of work experience for candidates entering the country is now mandatory (not good news for recent graduates!) and businesses must now demonstrate that they have made efforts to hire locally before applying for a TSS nomination. Increased costs for visa’s must also be considered.


It’s also important to note that if a 457 application was lodged prior to 18 March it will still be processed & granted. So we have several months of 457 visa grants still ahead of us.

 


SCC Talent is happy to assist candidates and businesses through the process of hiring international talent. However we do recommend seeking expert Migration Advice. Contact the wonderful team at Visa Essentials www.visaessentials.com.au for more information. 

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