Temporary Skills Shortage (TSS) Visa Subclass 482

The TSS visa replaces the 457 visa that was abolished on 18 March 2018.

If not already approved, employers will apply for approval as a Standard Business Sponsor (SBS) which will generally last for 5 years. Otherwise, businesses with an approved Standard Business Sponsorship in effect may continue to use this for the TSS visa.

Criteria

The application for a company sponsorship visa consists of 3 main parts:

1. Sponsorship

Applying for approval as a business sponsor would require the business to provide details to show:
  • The business is a lawful, operating business
  • The business has the financial ability to meet its sponsorship obligation
  • The business has continued to meet the training obligations (only for businesses who have previously been approved as a business sponsor)

2. TSS Nomination

Employers must then nominate one of the three TSS application streams. These are as follows:

a) Short term stream Under the short term stream:

  • The nominated occupation must be on the Short-Term Skilled Occupations List (STSOL)
  • Applicants must show that they are Genuine Temporary Entrants
  • The visa is valid for either 1 or 2 years (unless an International Trade Obligation applies)
  • The visa can only be renewed onshore once
  • Provides limited pathways for employer sponsored permanent residence

b) Medium term stream Under the medium term stream:

  • The occupation must be on the Medium and Long Term Strategic Skills List (MLTSSL)
  • A higher English language requirement applies compared to the short term stream
  • The visa can be valid for 1, 2, 3 or 4 years
  • The visa can be renewed without limitation and applicants may be eligible for permanent employer sponsored options

c) Labour Agreement stream This stream is for employers who have negotiated a labour agreement with the Australian Government.

Skilling Australians Fund

A Skilling Australians Fund (SAF) levy is payable for each nomination under the TSS program, as follows:
  • For businesses with an annual turnover of less than $10m:
  • An upfront payment of $1,200 per nominee, per year of intended employment will be required
  • For businesses will an annual turnover of more than $10m:
  • An upfront payment of $1,800 per nominee, per year of intended employment will be required

The revenue raised from these payments will go towards the training of Australian workers. Please note the SAF levy has replaced the ongoing training obligation for Standard Business Sponsors.

3. TSS Visa The employee would then apply for a visa to work in Australia to fill the nominated position. This would involve providing evidence that they:

  • Have at least 2 years of full-time, relevant work experience. A waiver is available in the Labour Agreements, and
  • Meet the ANZSCO requirements for the nominated occupation
  • Meet the English language requirement relevant to the stream in which the application is made (exemptions from English language testing are available in certain circumstances):
    • Short term stream: equivalent to average 5 in IELTS, with no scores under 4.5 in any of the 4 bands
    • Medium term stream: equivalent to a minimum of 5 in each band of IELTS, an average of 5 is not sufficient
    • Both streams: Hold passport from the UK, Ireland, USA, Canada and New Zealand
  • Do not have a substantial criminal history and meet the character requirements
  • Meet the health requirements unless a waiver applies

Duration and Conditions

Applying under the Short term stream will result in the TSS visa being valid for either 1 or 2 years (unless an International Trade Obligation applies).
Applying under the Medium term stream will result in the TSS visa being valid for either 1, 2, 3 or 4 years.

TSS Visas are subject to condition 8607:

  • The employee can only work for the nominating employer, in the occupation in which they were sponsored
  • If registration, licensing or professional membership is required to work in the position, the applicant holds this
  • The holder must commence work within 90 days of grant or arrival in Australia; and
  • The holder is subject to cancellation if they cease work for more than 60 days

Fees

The application fee will depend on which stream is being applied for:
  • Short term stream: $1,175 (Main applicant)
  • Medium term stream: $2,455 (Main applicant)
  • Labour Agreement stream: $2,455 (Main applicant)

Additional fees are payable for each dependent applicant included in the application.

Conclusion

The TSS visa is similar in concept to the 457 visa, but different in detail in a number of important ways.

If you would like advice on applying for TSS visas for your staff, or how the changes will impact your business, please contact us.

If you are looking for employer sponsored options and want to know more please book a consultation with one of our advisors. During your meeting the advisor will also consider any alternative pathways that might be available.

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