Australia abolishes the subclass '457' visa for overseas workers

The Australian government has abolished the most popular route to Australia i.e. the subclass 457 visa category for skilled overseas workers and have, instead introduced a new Temporary Skill Shortage (TSS) visa from March 18, 2018. The '457' abolished visa was a popular route for Indians headed to work & lsquo down under'. Out of the 90,000 approx. holders of the 457, 22% were Indians. While TSS will continue to allow overseas workers to be hired, the sad news for Indians eyeing permanent residency is that the new norms are restrictive. Apart from this, new job entrants, including Indian students who have qualified from Australian varsities, may find it more challenging to get a job as a minimum work experience of 2 years is required. Hiring overseas workers will be comparatively more costly as it is proposed that sponsoring firms must contribute additionally to a skilling fund. In addition to this, labour testing norms that aim at ensuring locals are given preference for a job vacancy, are expected to be stricter, even though final rules are yet to be announced. Australia lists jobs where there is a shortage of skill and for which overseas workers can be hired. The migration reform process began several months ago, in January an updated list for skilled migration visas was issued with significant pruning of occupations and some reshuffling of skill categories. Another list may follow in the coming months. For the year ended September 30, 2017, cooks, resident medical officers and restaurant managers were the top three occupations to be allotted the 457 visas. The 457 visa had a maximum duration of 4 years. According to the Australian Department of Home Affairs, TSS visa has 2 main streams. A short-term stream that enables the hiring of temporary expat skilled workers in occupations included on the Short Term Skilled Occupation List (STSOL). The duration of this visa is a maximum of 2 years which can be extended to up to 4 years but only if an international trade obligation applies. The second stream is a medium-term stream where expats can be hired for jobs included in the Medium and Long-Term Strategic Skills List (MLTSSL) and its duration is for up to four years. The Managing Director, Visa Solutions Australia, Dan Engles says, “ Short Term TSS visa holders are not eligible to apply for permanent residence. The medium or long-term TSS visa holder may apply for permanent residence, after having held the TSS visa for a minimum period of three years.” He adds, “ Unless you (i.e. your occupation) are on the correct list, options for permanent residency are restrictive.” Main features of TSS visa - There are 2 streams of TSS, a short-term, and medium term. - Occupations for which there is a skill gap are listed on either of the 2 streams. - Those holding a short-term TSS visa cannot seek permanent residency. - Sponsoring employer may have to contribute to a & lsquo Skilling Australia Fund'.