TSS (Temporary Skill Shortage) visa

TSS (Temporary Skill Shortage) visa

From 1/3/2018 the sc457 visa will be abolished and replaced with the Temporary Skill Shortage visa (TSS). This is part of the Government’s significant reform package to strengthen the integrity and qualify of Australia’s temporary and permanent skilled migration programs.

The TSS will consist of 2 streams:

  • Short-Term stream of up to two years1and
  • Medium-Term stream of up to four years

 

It’s purpose is to support businesses in addressing genuine skill shortages in their workforce. The TSS will further contain a number of safeguards which prioritise Australian workers.

Key Reforms announced on 17/4/2017 include

  • Introducing the TSS visa with new requirements, including but not limited to:
    • new, more targeted occupation lists which better align with skill needs in the Australian labour market
    • a requirement for visa applicants to have at least two years’ work experience in their skilled occupation
    • employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT)2 which ensures that overseas workers cannot be engaged to undercut Australian workers
    • mandatory labour market testing, unless an international trade obligation applies,
    • capacity for only one onshore visa renewal under the Short-Term stream
    • capacity for visa renewal onshore and permanent residence eligibility after three years under the Medium-Term stream
    • 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
    • the Department of Immigration and Border Protection will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records, and
    • mandatory penal clearance certificates to be provided.
  • Tightening eligibility requirements for employer sponsored permanent skilled visas, including but not limited to:
    • tightened English language requirements
    • a requirement for visa applicants to have at least three years’ work experience
    • applicants must be under the maximum age requirement of 45 at the time of application
    • a requirement to pay a contribution to the Skilling Australians Fund, and
    • employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT).
  • Concessions for regional Australia will continue to be available:
    • employers in regional Australia will continue to have access to a broader range of occupations under the temporary and permanent visas, to reflect their skills needs
    • existing permanent visa concessions for regional Australia, such as waiving the nomination fee and providing age exemptions for certain occupations, will be retained.
  • Significantly condensing the occupation lists used for skilled migration visas, including the subclass 457 visa.

The implementation of these reforms began in April 2017 and will be completed in March 2018.

Further information on reforms is available:

Further information on different aspects of the reforms will be published in due course.

Short-Term stream visa periods of up to four years are available where requested by the sponsor and required to meet Australia’s international trade obligations.
2 Set at $53,900 as at 12 April 2016.