Changes announced by the Government on 18 April 2017, with implementation through to March 2018, substantially change skilled migration options to Australia.

Some changes commenced on 19 April 2017, others on 1 July 2017, then further changes on 31 December 2017 and in March 2018.

From 19 April 2017, for the existing 457 visa subclass:

  • The list of occupations eligible for 457 sponsorship has been substantially condensed or additional requirements imposed, with over 200 occupations removed from the main list;
  • The maximum duration of many 457 visas issued after 19 April 2017 will be two years.

Larger businesses benefit, with the Department imposing a requirement that the sponsoring business have a turnover in excess of $1 million to be eligible to sponsor several occupations, including chief executive officer and managing director.

Visa applicants must closely examine the occupation classification and check they comply with caveats to ensure they lodge a compliant application. Qualifications and experience will be essential for any 457 application to be successful.

English Language Exemptions removed

From 1 July 2017, the English language salary exemption threshold, which exempts applicants whose salary is over $96,400 from the English language requirement, will be removed. There remain some very limited exemptions. As a general rule, all 457 holders will be required to demonstrate English language ability after July.

Short term visas to replace 457s; pathways to permanent residence closed

From March 2018, the 457 visa will be abolished and replaced with the Temporary Skills Shortage visa. The visa will be comprised of a Short-Term stream of up to two years, which can be renewed only once. There is no permanent residence pathway from this visa.

The Medium-Term stream can be granted for up to four years. The length of time to be eligible for conversion to permanent residence will be increased to three years.

The occupation lists for eligibility for permanent residence will continue to change between now and March 2018.

Is it possible to beat the changes?

The implementation of these reforms will begin immediately and could even affect existing undecided applications.

Some visa holders may be able to secure permanent residence before any changes affect their eligibility. For 457 holders with existing rights to permanent residence, if an application is made immediately, it may be decided before further changes affect eligibility.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.