The new Temporary Skill Shortage (TSS) visa will replace the Temporary Work (Skilled) visa Subclass 457


From March 2018, the new Temporary Skill Shortage (TSS) visa will replace the Temporary Work (Skilled) visa Subclass 457.

Under the TSS visa program, visa applicants will be granted either a Short-Term stream visa of up to two years or a Medium-Term stream visa of up to four years. The visa stream is dependent on whether the visa applicant’s occupation is listed on the Medium and Long-term Strategic Skills List

(MLTSSL) or Short-term Skilled Occupation List (STSOL). Unlike the Subclass 457 visa, a pathway to becoming an Australian permanent resident will only be available to applicants under the Medium-Term stream only.

Key reforms include:

  • Visa applicants must have at least two years’ work experience in their nominated occupation;
  • Sponsoring employers must pay the Australian market salary rate and must pay at least the Temporary Skilled Migration Income Threshold (TSMIT);
  • Mandatory labour market testing, unless an international trade obligation applies. That is, provide evidence of your attempts to recruit Australians;
  • TSS visa holders under the Short-Term stream are permitted only one onshore visa renewal;
  • TSS visa holders under the Medium-Term stream are permitted to renew onshore and apply for permanent residence after three years;
  • Employers are subject to non-discriminatory workforce test to ensure they are not actively discriminating against Australian workers;
  • Employers are required to pay a contribution to the Skilling Australians Fund;
  • The Department of Home Affairs will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records;
  • Visa applicants are to provide mandatory police clearance certificates;
  • Significantly condensing the occupation lists used for skilled migration visas will continue; and
  • Changes to the English language requirements: The English requirements for the Short-term stream will be the same as the current 457 visa, with a minimum IELTS result (or equivalent) of 4.5 in each test component required, and an overall score of 5. There will be a higher standard required for the Medium-term stream with a score of 5 required in each test component.