Changes to Employer Nominated Permanent Residence (subclass 186 visa)

In addition to the 457 changes recently and unexpectedly announced by Prime Minister Malcolm Turnbull, the Permanent Employer Sponsored Skilled Migration Program will also undergo a number of changes. The 457 visa has historically been a pathway to Australian Permanent Residence under this program.


From 19 April 2017

• Applicants under the Direct Entry Stream will only be eligible to apply if their nominated occupation is on the MLTSSL or STSOL
• Applicants under the Temporary Residence Transition Stream can still apply as usual (even if their nominated occupation is no longer on the STSOL or MLTSSL)

From 1 July 2017

• Occupation lists: The STSOL and MLTSSL will be further reviewed based on advice from the Department of Employment and Department of Education and Training
• English language requirements: A score of IELTS 6 in each component will be required (or equivalent test)
• Age: Applicants under the Direct Entry Stream must be under the maximum age requirement of 45 at the time of application. The maximum age requirement of 50 at the time of application will continue to apply to applicants under the Temporary Residence Transition Stream
  

From March 2018

• Salary: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT), currently $53,900 excluding superannuation
• Residency: The eligibility period under the Temporary Residence Transition Stream will be extended from 2 years to 3 years
• Work experience: At least 2 years of post- qualification relevant work experience will be required
• Age: All applicants (under both the Temporary Residence Transition Stream and Direct Entry Stream) must be under the maximum age requirement of 45 at the time of application
• Training requirement: Strengthened training requirement for employers to contribute towards training Australian workers

Who is affected?

It is expected that further details and clarifications to be announced by the Government over the coming weeks. 

Individuals who were preparing an application under the Direct Entry Stream and their occupation has now been removed - No longer eligible under the Direct Entry Stream

Individuals turning 45 years old - From 1 July 2017, applicants under the Direct Entry Stream must be under 45 years at time of application. From March 2018, all applicants must be under 45 years at time of application.

Individuals who were preparing applications under the Temporary Residence Transition Stream - Minimal impact if lodged before March 2018 (although new English language requirement applies from 1 July 2017).

Please contact Nevett Ford immigration lawyers to discuss your individual circumstances by telephone + 61 3 9614 7111.

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Subclass 457 Visa - Training Benchmark Requirements

As a Subclass 457 Employer Sponsor, the business must meet prescribed training benchmarks. 


The Migration Regulations require that the business must provide clear evidence that there has been, and continues to be, adequate provision for business related training for existing employees (Australian citizens and Australian permanent residents).  This training requirement must be met for at least three (3) years from the date of sponsorship approval, depending on the term of your sponsorship approval (and on the basis that the business continues to employ a subclass 457 visa holder). This policy reflects the government’s intention to ensure that the employment of skilled overseas workers will not prejudice any commitment and investment by the business in providing adequate training to employees who are Australian citizen or permanent residents.

 

TRAINING BENCHMARK REQUIREMENTS

Employers wishing to sponsor under the subclass 457 visa program must demonstrate their contribution and commitment to the training of employees who are Australian citizens and Australian permanent residents is related to the purpose of the business.

 

If your Business Has Been Trading For 12 Months or More

The Sponsor must provide evidence of meeting one of the following training benchmarks:

Ø  Training expenditure to the level of 1% of its payroll of Australian employees for the most recent financial year, OR failing to meet this requirement

Ø  Pay 2% of the payroll to an industry training fund,

 

and a commitment, by the business, to maintain expenditure in each fiscal year, to that level, for at least three (3) years, depending on the term of approval of your business sponsorship.

 

HOW THE BUSINESS CAN PROVIDE EVIDENCE

Expenditure that can count towards this benchmark relating to employees who are Australian citizens and Australian permanent residents includes:

 

Ø  Receipts for a formal course of study for employees or for TAFE or University students attending training in the workplace, as part of the organisational training strategy

Ø  Funding a scholarship in a formal course of study approved under the Australian Qualifications Framework or, for TAFE or University students, as part of the organisational training strategy

Ø  Employment of apprentices, trainees or recent graduates on an ongoing basis in numbers proportionate to the size of the business (please provide a copy of Apprenticeship Agreement)

Ø  Employment of a person who trains the business’ Australian employees who are Australian citizens and Australian permanent residents as a key part of their job (please provide evidence of Trainer’s qualifications)

Ø  Evidence of payment of external providers to deliver training for Australian employees

Ø  On-the-job training that is structured with a timeframe and clearly identified increase in the skills at each stage, and demonstrating:

v  the learning outcomes of the employee at each stage;

v  how the progress of the employee will be monitored and assessed;

v  how the program will provide additional and enhanced skills;

v  the use of qualified trainers to develop the program and set assessments; and

v  the number of people participating and their skill/occupation.

Nevett Ford Lawyers Melbourne can provide advice and assistance with all visa types, including the Subclass 457 visa.

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New Skilled Occupation List (SOL) released for 2016 / 17

The Department of Immigration & Border Protection (DIBP) has announced the New Skilled Occupation List (SOL) for subclass 485, 189 and 489 (family sponsored) visa applications. 

They have also released the Consolidated Sponsored Occupation List (CSOL) which is used for subclass 457, 186 and 190 applications.

The following occupations have been removed from the SOL - Petroleum and Mining Engineer, Metallurgist, Mining Engineer, Dental Hygienist, Dental Prosthetist, Dental Technician, Dental Therapist, Environmental Health Officer, Occupation Health and Safety Advisor. 

The occupations of Orthotist or Prosthetist and Audiologist have been added to the SOL.

There have not been any exclusions from the combined lists that make up the COSL and so no changes to the subclass 457 and 186 eligibilities.

The skilled list that will be used from RSMS / 187 (direct entry) applications from 1 July 2016 has not yet been released.

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Skills assessment validity period - 3 years from the date of issue

Following amendments to the Migration Regulations 1994, from 1 July 2014, if a skills assessment is mandatory as part of a visa application, it will only be valid for a period of 3 years from the date of issue, unless a shorter validity period is specified on the assessment.

A skills assessment must be valid at the time of lodgement for the following visas:

• Direct Entry stream of the Employer Nominated Scheme (subclass 186) visa;
• Direct Entry stream of the Regional Sponsored Migration Scheme (subclass 187) visa; and
• Graduate Work stream of the Temporary Graduate (subclass 485) visa.

A skills assessment must be valid at the time of invitation to apply through SkillSelect for the following visas:

• Skilled—Independent (subclass 189) visa;
• Skilled—Nominated (subclass 190) visa; and
• Skilled Regional (Provisional) (subclass 489) visa.

These changes do not affect the Temporary Work (Skilled)(subclass 457) visa.

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