January 23, 2024
The Australian Government is currently consulting with employers, industry bodies and unions to finesse a new set of policies and regulations for employer-sponsored visa programs, which are expected to be finalised by the end of this year. And it couldn’t come at a better time! You can find more information on the Department of Home Affairs website here.
A ‘Broken’ System
Since 2017, Australia’s employer-sponsored visa programs have undergone several major reforms.
It started in April 2017, with a reduction in the number of eligible occupations, adding caveats for certain roles and moving to a system of short- and medium-term lists, and then in March 2018 the replacement of the 457 visa with the current 482 or TSS (Temporary Skill Shortage) visa . One of the key impacts of this change was that only occupations on the medium-term list came with an employer-sponsored pathway to permanent residency (PR).
Before we even had a chance to test the waters and determine the impact of these changes, COVID happened — which led us to essentially halt processing on all visa applications.
And CV19 drastically changed the pool of immigrant talent in Australia.
Now we’ve reflected on events and can see the changes made to Australia’s visa system have significant gaps – it’s no longer fit for purpose.
Sponsored Workers Trapped in a State of ‘Permanent Temporariness’
Following the unfortunate situation that arose from COVID, the Government has identified a large number of visa holders trapped in a situation of ‘permanent temporariness’.
Many overseas-born workers have been living in Australia for the past five or even 10 years, on a series of ongoing temporary visas, with effectively nothing to show for it.
This issue was compounded by the fact that many 482 temporary skilled visas were due to reach the end of their tenure, meaning that visa holders on the short-term occupation steam, without a pathway to PR, were unable to apply for a third temporary skilled visa whilst in Australia.
Individuals falling into this category were faced with the prospect of having to leave Australia and attempt to return without knowing whether they would be considered a ‘genuine temporary entrant’ or not.
For businesses that had invested in training these workers for anywhere from two to as many as five years in some cases, this situation was far from optimal. These employers were expected to miraculously fill the sudden vacancies that resulted from these gaps in visa coverage during the pandemic. Such a scenario is hardly tenable when local talent is scarcely available for these roles at the best of times!
More Clarity and Certainty with Extended Visa Pathways
The Government has kicked off changes to visa programs that will give individuals the clarity and certainty they need to make informed decisions about working in Australia.
Whilst several reforms are in the pipeline and are yet to become law, we do know that workers and employers can look forward to a much more simplified visa system.
Anyone who meets the minimum threshold for a skilled visa in Australia will know from the outset what their pathway to permanent residency will look like.
Which Visas Lead to PR in Australia?
Recent announcements by the Government have indicated more applicants will have a pathway to permanent residency, but we can expect pre-existing limits to remain like age restrictions and English language requirements (with certain concessions available), and for PR to apply to specific categories. We keenly await more information when policies are announced.
For now, here’s the rundown of the visa changes that are expected to be in effect by the end of 2023:
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To allow more people to be eligible for the TRT, the Government will reduce the employment requirement from three years to two years with the current sponsoring employer.
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Removing the distinction between short- and medium-term occupations and regional occupations within the skilled visa program, opening up the TRT pathway to permanent residency for all eligible occupations to be sponsored to PR
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Removing the limits on how many short-term stream visa applications TSS holders can make in Australia. This means visa holders who are currently in Australia won’t be required to leave the country to make a third TSS visa application.
For the past five years, we have seen people find themselves partially covered by old and superseded visa rules, while cut-off dates for eligibility changed more than once during the COVID period. Finally, we have certainty!
Although we do expect age limits and English language competency standards to remain in place, these recently announced changes are a step in the right direction.
Changes to Salary Thresholds
Another welcome change announced as part of these reforms is the increase to the Temporary Skilled Migration Income Threshold (TSMIT). As of 1 July 2023, the TSMIT has increased from AUD$53,900 to $70,000.
Raising the minimum base salary for skilled visas is a sensible deterrent against organisations using sponsored workers for unskilled positions. It’s a helpful way to support migrant workers, as the threshold ensures they can afford to live and work in Australia.
Summary
With these changes, professionals wishing to acquire visas to work in Australia are now armed with the knowledge of what their pathway to PR can look like.
With Australia’s skills shortages showing no sign of relief anytime soon, we’re positive that an improved visa system will help support employers in finding the talent they need, when they need it.
If you would like guidance on which visas lead to PR in Australia, finding a new role or filling critical roles, the friendly and knowledgeable team at TalentWeb is ready to get you started.
As a leading technology recruitment agency in Sydney and Melbourne, our nuanced understanding of the local business landscape can help you make the right investments for growing your workforce. Get in touch today!
