Changes to 457 Visa System


At the end of March 2018, the 457 visa system used for recruiting overseas employees will be phased out and replaced with a new system. The new visa system will be called the Temporary Skills Shortage (TSS) Visa, with the official title of sub-class 482 and will bring higher fees for employers and tougher conditions for approvals.

Similar to the 457 visa system, the TSS visa will allow an employee to work full-time in Australia for a sponsoring employer in the job specified in the visa application. However, there are now two options for the TSS visas:

  1. Short-term visas: for employees in occupations on the Short-Term Skilled Occupations List. Theses visas will last for two years and can only be renewed once for another two years.
  2. Longer-term visas: for employees in occupations on the Medium and Long-Term Strategic Skills List. These will last for four years, with eligibility for permanent Australian residency after three years, or renewal of the TSS for a further four years.


What steps do employers need to take?

Step 1: Employers must apply to be a Standard Business Sponsor. If you have previously sponsored employees under 457 visas, you already comply.

Step 2: Employers must provide evidence of “labour market testing” that shows they are unable to fill the specified job with a local employee. This could be evidence to show that the job has been extensively advertised in Australia during the previous 12 months.

Step 3: Remuneration for the job must exceed either the Temporary Skilled Migration Income Threshold set by the Department (currently $53,900 plus superannuation) or another amount specified by it and must be line with market rates for similar jobs.

Step 4: The department will assess the application, using new procedures which include police checks and an “English language proficiency” assessment (which does not apply to applicants from English-speaking countries such as USA, UK or New Zealand).


It is also important to note that application fees have increased considerably, mainly because employers now must pay a Skilling Australians Fund (SAF) levy. Businesses with annual turnover of less than $10 million per year will pay $1200 per year for a TSS visa, while larger businesses will pay $1800.

Other changes include a reduced maximum age for applicants (now 45 years), stricter minimum relevant job experience requirements, and employers will need to provide a Tax File Number for each employee.


For advice regarding the visa system changes, please contact us on (08) 9316 9896 or



More Posts

How Are You Managing Your Farm's HR

How Are You Managing Your HR?

The recent election of the Labor government is likely to lead to significant employment and industrial relations changes. With the new government, I anticipate several

Industrial Manslaughter Imprisonment

Industrial Manslaughter Imprisonment

Businesses should now be aware of Western Australia’s new Work, Health, and Safety (WHS) legislation and the implications concerning workplace deaths and industrial manslaughter.  If

Contact us for help

Contact Us

Start your HR or Safety assessment for your business

Treat yourself

Let Us Take Care Of You

Copyright © ProcessWorx 2022

marisa ross team photo

Marisa Ross

HR Advisor

Marisa is an experienced and motivated HR professional with a strong HR generalist and business operations background with a focus on employee relations, performance management, leadership training & development, workers compensation & injury management, and employee retention. Marisa holds a Bachelor of Human Resource Management and a Bachelor of Behavioural Science with a minor in Counselling. Having worked in a variety of industries from SMEs to large blue-chip organisations, Marisa is passionate about enriching employee experience, employee retention, and building leadership capability in people management.

Aimee Grigson

Aimee Grigson

WHS Advisor

Aimee has a strong understanding of Workplace Health and Safety Legislation and standards and has extensive HSEQ experience in a number of industries. Aimee has a great ability to engage across all levels of organisation, including field teams, leadership and external stakeholders. Aimee ensures Health and Safety Management Systems are compliant to legislation, effectively implemented and understood by all. Aimee has a Certificate IV in Work Health and Safety and qualifications in auditing and incident investigations. Aimee is passionate about coaching and developing small businesses towards a positive safety culture.