Summary of Changes to Subclass 457

Temporary work visas & subclass 186 and 187 permanent residence visas

• Any 457 sponsorship, nomination or visa applications that are NOT listed in the relevant Instrument IMMI 17/040 (check any notes against the relevant occupation) and NOT decided by 18th April 2017 will no longer be able to be approved.
• Any new 457 applications lodged from 19 April 2017 onwards will have to have their occupation on the STSOL or MLTSSL occupation lists.
• If applicants are granted a 457 visa after 18 April 2017 off the STSOL list, it can only be granted for 2 years. There will be one (only) further extension allowed after that for another 2 years. Applicants will not be allowed to apply for a permanent 186/187 visa under that occupation if it is on the STSOL.
• If applicants are granted a 457 visa after 18 April 2017 off the MLTSSL list, it can be granted for 4 years. Applicants will be able to be apply for a permanent 186/187 visa after 3 years on a 457 visa if that company decides to nominate them.
• From March 2018 the new TSS visa will have replaced the 457 visa. Applicants will need to have 2 years work experience before applying and their occupation will have to be on the STSOL or MLTSSL lists. If applicants are on the STSOL list they will also have to show that they only want to stay in Australia temporarily.
• From March 2018 applicants need to have their occupation on the MLTSSL occupation list to apply for company/employer sponsored permanent residence. They will also need to commit to working for the company for 3 years, have an IELTS of 6+ and be under 45 years of age.

Some consequences of this:

1. Occupations such as cook and restaurant manager are on the STSOL list. While applicants can still be sponsored for 2 years by a restaurant on the 457 visa and gain another 2 year extension, they can no longer apply for a permanent visa unless it is added to the MLTSSL list for being in a designated regional area.
2. Retail manager is still available in regional areas for the 187 visa at the moment. But from March 2018 this will not be the case, as this occupation is not on the MLTSSL list.
3. Student graduates will not be eligible for temporary or permanent company sponsorship after March 2018 if they do not have at least 2 years FULL-TIME WORK EXPERIENCE first.

Existing 457 visa holders (as of 18 April 2017) will still be able to apply for a Permanent visa and will not be affected by these changes.

Timeline of future Subclass 457 changes are:

• from 19 April 2017 – 216 occupations removed and 59 others restricted, 24 occupations restricted to regional Australia, Occupational lists renamed, validity period for occupations on STSOL 2 years.
• from 01 July 2017 – English salary exemption $96,400 to be removed, training benchmarks to be changed, mandatory penal clearance certificates.
• before 31 December 2017 – collection of TFN for 457 visa holders for ATO data matching, publication of sanctioned sponsors.
• from March 2018 – 457 visa abolished and replaced with TSS visa which will comprise the Short-Term (2 years) and Medium-Term stream(4 years).

Timeline of future 186/187 changes are:

• from 19 April 2017 – CSOL condensed, 216 occupations removed, 24 occupations restricted to regional Australia, Occupational lists renamed as STSOL and MLTSSL.
• from 01 July 2017 – review of STSOL and MLTSSL, IELTS 6 required in each component, changes in age.
• before 31 December 2017 – collection of TFN for 457 visa holders for ATO data matching, publication of sanctioned sponsors.
• from March 2018 – the MLTSSL will apply to ENS/RSMS with additional regional occupations, Market salary rate will apply, eligibility period for PR extended from 2 to 3 years, work experience required, under 45 years of age, contribution towards training fund.

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