QHA REVIEW June_2017

Curt Schatz
LEGAL MATTERS
CHANGES TO THE
457 VISA PROGRAM
Many of you employ staff who come from overseas.
I thought that the recent announcements on the
proposed Visa changes may be of interest to you.
A key point of this year’s federal budget was the
government’s changes to Australia’s skilled sponsored
visa program, and effective from 19 April 2017, 457
visas will be phased out.
What is a 457 Visa?
The 457 visa system was the key short-term working
visa program in Australia, and allowed Australian
employers to sponsor skilled overseas workers to
work on a temporary basis in Australia. Under the old
system, visa holders were able to be employed for a
period of four years, and were required to meet English
language, health and character standards before being
granted a visa.
What is the new system?
While there will be no impact to 457 visas which
have already been approved, the 457 visa system
will be replaced with a new Temporary Skill Shortage
(TSS) visa scheme. The new scheme is split into
two streams, with the list of occupations for which
skills shortages exist revised by the Department of
Immigration and Border Protection (DIBP) to allow for
two-year (short term) and four-year (medium term)
visas, depending on the occupation. These lists are
known as the Short Term Skilled Occupation List
(STSOL) and Medium and Long Term Strategic Skills
List (MLTSSL), and can be found on the DIBP website.
Changes to the Occupation Lists
Under the new system, 216 occupations have been
removed entirely from the previous occupation lists,
and applications relating to these occupations will
be cancelled, with the application fees refunded to
applicants. Applications removed from the lists include
Licensed Club Managers, Training and Development
Professionals, Bed and Breakfast Operators and Flight
Attendants. A minimum of two years’ work experience
in the skill will now be required for applications, and
a number of occupations must also meet additional
“caveat” requirements, which exclude applications for
certain positions within these occupations based on
the nature of the work or the employer business.
KEY OCCUPATIONS IN THE INDUSTRY SUBJECT
TO CAVEAT REQUIREMENTS INCLUDE HOTEL AND
RESTAURANT MANAGERS, CHEFS AND COOKS
What do the changes mean for Australian
workers?
The DIBP has made these changes with the goal
of better aligning the permanent and temporary
programmes, and by sharpening the focus of
Australia’s migration programmes. It aims to ensure
it better meets Australia’s skills needs, increases the
contribution of skilled migrants and addresses public
concerns about the shortage of jobs for Australian
workers. The changes to the list of occupations, and
introduction of caveat requirements, will have the
effect of broadly reducing the jobs available to visa
applicants, particularly those of an entry level or lowerskilled
nature, and increasing the opportunities in these
fields to Australian workers.
What do the changes mean for my business?
As the hospitality industry makes up a significant
share of the sponsorships for skilled workers, while
potentially reducing sponsorships and the associated
fees for employers, the restrictions in the new visa
program will present challenges in recruitment of
staff, and encourage employers to provide entry level
opportunities to Australian workers. Key occupations
in the industry subject to caveat requirements include
hotel and restaurant managers, chefs and cooks,
and with many of these exclusions relating to limited
service restaurants, owners of these businesses will
need to source a number of these positions from the
local labour market.
Mullins Lawyers have two partners skilled in Migration
law, being John Siong and Tony Hogarth. If you have
any queries in relation to this topic, please do not
hesitate to call me on my direct line, 07 3224 0230,
and I will direct you to the appropriate person.
QHA REVIEW | 37