New Foreign Visa Worker Rules Explained
Wade Du Preez • May 30, 2017
Here is a simplified brief on how the new VISA replacement scheme will work and what it means for employees currently on a 457 visa.
- The new visa program will include requirements around work experience, English language proficiency and labour market testing.
- The new visa will include a short-term two-year stream with a broad list of occupations reduced from the current list of more than 200.
- A second visa class focused on strategic, long-term skills gaps will have a four-year limit and require a higher standard of English than the two-year visa.
- Both visas will require prior work experience.Both visas will require a criminal record check, which is not currently required
- The four-year visa would also require mandatory labour market testing in the majority of cases.
- The new two-year visa will not allow permanent residency.
- Anyone now in Australia on a 457 visa will not be affected by the new arrangements and will continue under their current conditions.
- The new scheme will require employers to advertise jobs before filling them with foreign workers.
- A fee of $1,150 will apply for the short term visa, while medium-term applicants will pay $2,400.
- A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers.
- A strengthened requirement for employers to contribute to training Australian workers.
- The Department of Immigration and Border Protection will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records.
Eligibility requirements for employer-sponsored permanent skilled visas will be tightened.
- English language requirements will be stricter.
- A requirement for visa applicants to have at least three years’ work experience.
- Applicants must be under the maximum age requirement of 45 at the time of application.
- Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold set at $53,900 as at 12 April 2016.
- Concessions for regional Australia will continue to be available:
- Employers in regional Australia will continue to have access to occupations under the temporary and permanent visas, to reflect their skills needs.
- Existing permanent visa concessions for regional Australia, such as waiving the nomination fee and providing age exemptions for certain occupations, will be retained.
- Consideration will be given to expanding the occupations in regional Australia that are exempt from the age requirement.
List of removed occupations
The Department of Immigration has published the list of jobs removed from the new visa regime. They include actors; pilots, butchers, flight attendants, futures traders; jockeys, public relations managers, radio journalists, web developers.
The current 457 visa
There are currently 95,000 457 visa holders in Australia, Mr. Turnbull said.
The Temporary Work (Skilled) visa (subclass 457) allows skilled workers to come to Australia and work for an approved business for up to four years, according to the border.gov.au site. Applicants must be sponsored by an approved business, but only if the business cannot find an Australian citizen to do the work. The visa holder can then work in Australia until the visa expires and travel in and out of Australia. If the visa holder ceases to be employed by the sponsor for more than 60 days the visa becomes invalid.
India has the highest number of workers granted 457 applications in 2016-17 to September 30 last year, followed by the UK and then China.
Decide between permanent and contract IT hires with Peoplebank's practical guide — learn when to choose each model and let us assess, source and manage your hire.
Discover how Peoplebank reduces time-to-hire without sacrificing quality. Learn our proven process for fast, reliable, and compliant tech recruitment.
Stand out in tech! Expert recruiter Jaylene Quiaonza shares proven tips for crafting a winning resume. Land your dream job with Peoplebank.
Discover how AI is transforming tech careers and industries, creating winners, new roles, and opportunities for professionals and employers in Australia.
Peoplebank Salary Guide Insights
How to stand out, or step in, to a growing field.
Australia’s tech sector continues to face crucial skill shortages, particularly in areas such as software development, cybersecurity, and cloud infrastructure. For organisations trying to scale quickly, launch new products or undergo digital transformation the talent gap can feel like a bottleneck (or at least a very frustrating aspect of business operations). While none of us can change market realities, it is possible to grow effectively without overextending or overworking your existing staff. With a forward thinking 3-phase approach to scale your tech team, you can create a far more sustainable internal talent pool, even in a talent-tight market. 1. Prioritise Critical Roles Begin by clearly identifying the roles that are essential to progress now — not every hire needs to happen at once. This phase should focus on: High-impact positions (e.g., Lead Developer, Cloud Engineer, Product Owner) Contractors or consultants for immediate delivery Partnering with a specialist recruiter to fast-track access to talent It can also be helpful to use workforce planning tools to map existing capability against business demand, identifying real skill gaps vs. nice-to-haves in real-time. 2. Supplement with Flexible Talent Once the foundation is stable, look at short-term or contingent hires to expand capacity without permanent headcount pressure. Contracting is especially useful for: Agile product teams Time-sensitive projects Specialist skills (e.g., penetration testing, DevOps automation) Contract-to-permanent is also a great way to trial cultural fit and minimise long-term risk. Building a team that mesh well together avoids interpersonal issues impacting retention, a key point for all teams, but especially when addressing crucial and finite talent pools. 3. Building a Sustainable Talent Pipeline With your core needs covered you can shift focus to building a sustainable team through: Junior hires who receive structured pathways to professional growth and skill development Diversity recruitment to reach new talent pools Uplift employer branding and employee benefits to passively attract candidates over time While there is a shortage of many tech skills businesses need now, there is a deluge of talented people willing to learn, with forward thinking and the right support many gaps can be filled. Skills shortages will continue but with the right plan, your team doesn’t have to stall (or burnout trying to fill gaps). If you need help finding the right talent for whatever phase of recruitment you are in, get in contact with one of our highly skilled Account Managers here.
Taking the Chance to Reset and Carve a Clear Way Forward
Hiring IT Web Developers on Contract is a Smart Move for Your Transformation and Security Projects
In the fast-evolving IT and digital industry, organisations must constantly adapt to new technologies, processes, and strategies to remain competitive. A Change Manager plays a critical role in ensuring these transitions are smooth, effective, and embraced by all stakeholders.
