The Government has announced the introduction of a pathway to permanent residency for all Subclass 482 Temporary Skill Shortage (TSS) visa holders, to commence from 25 November 2023.
These subclass 482 to 186 visa new rules are a first step to providing more equitable access to permanent residency for all TSS visa holders as the Government continues to work on further reforms to skilled migration programs.
In this article, we outline the subclass 482 to 186 visa new rules to be introduced and examine the eligibility requirements for TSS visa holders to qualify for permanent residency, effective from 25 November 2023, including changes to the subclass 186 visa age limit exemption for regional medical practitioner applicants and high-income earning applicants.
What Are The Changes To The Subclass 482 Visa To 186 Visa Requirements?
The following subclass 482 to 186 visa new rules are to be introduced from 25 November 2023:
- all Subclass 482 TSS visa holders will be eligible to apply for a permanent employer sponsored visa
- the number of years to qualify for a permanent employer sponsored visa under the Temporary Transition stream (TRT) will be reduced from three years down to two years
- Skilled Occupation Lists will be removed – this means that the subclass 482 STSOL, MLTSSL and ROL will be abolished. Instead, applicants will need to specify any occupation on the Australia and New Zealand Standard Classification of Occupations (ANZSCO) to qualify
- there will also be no limit on the number of short-term stream TSS applications visa holders will be able to lodge onshore
- regional medical practitioners and high-income earners aged 45 years and over seeking age exemptions will be able to qualify for a permanent employer sponsored visa after two years rather than three years
These changes to the subclass 482 visa to 186 visa requirements under the TRT stream will apply to new permanent employer sponsored visa applications lodged on or after 25 November 2023, as well as to applications that are yet to be finally determined as at 25 November 2023.
Although these subclass 482 to 186 visa new rules will increase access to permanent residency for temporary skilled workers, migration program planning levels will remain unchanged.
How Can You Qualify For Permanent Residency After These Subclass 482 To 186 Visa New Rules Come Into Effect?
Temporary Skill Shortage Visa
The Subclass 482 Temporary Skill Shortage (TSS) visa is a temporary employer sponsored visa option that allows you to live and work in Australia for up to either two or four years, depending on which stream you apply for. As of 25 November 2023, it will also provide a pathway to permanent residence for all TSS visa holders after two years if specified requirements are satisfied.
To apply for a TSS visa, three applications must be lodged, namely:
- your sponsoring employer must apply for, and be approved as, a standard business sponsor. Alternatively, your sponsoring employer may enter into a labour agreement with the Government. One of the main benefits of a labour agreement is that it provides more flexible terms to the standard visa programs;
- your sponsoring employer must also apply to nominate you for the position; and
- you must apply separately for the subclass 482 TSS visa.
All three applications may be lodged at the same time.
If your sponsoring employer already has an approved sponsorship or labour agreement in place, only a nomination and visa application are required to be submitted to the Department (sponsorships and labour agreements generally last for a period of five years).
Subclass 482 Visa Streams
To qualify for a subclass 482 TSS visa, you must select one of the following visa streams:
- Short-term stream – your nominated occupation must be included in ANZSCO. As the holder of this visa, you can work for your sponsor in Australia for up to two years (or for up to four years if an international trade obligation applies);
- Medium-term stream – your nominated occupation must be included in ANZSCO. As the holder of this visa, you can work for your sponsor in Australia for up to four years; and
- Labour Agreement stream – under this stream, your sponsoring employer must enter into a labour agreement with the Department of Home Affairs. This is an alternative to the standard business sponsorship application which is required to sponsor workers under the short-term or medium-term stream. As the holder of this visa, you can work for your sponsor in Australia for up to four years.
Removal Of Subclass 482 STSOL, MLTSSL And ROL
Prior to 25 November 2023, in order to qualify for a subclass 482 TSS visa under the short-term stream, your nominated occupation must be included on the subclass 482 STSOL (Short-term Skilled Occupation List). Likewise, to qualify under the medium-term stream, you must be nominated for an occupation on the Medium and Long-term Strategic Skills List (MLTSSL), or the Regional Occupation List (ROL) if the position is located in a designated regional area of Australia. As of 25 November 2023, all skilled occupation lists, including the subclass 482 STSOL, are to be abolished.
To qualify for a subclass 482 TSS visa after these changes come into effect on 25 November 2023, applicants can nominate any occupation in the Australia and New Zealand Standard Classification of Occupations (ANZSCO).
Some of the main criteria that must be met to qualify for a subclass 482 TSS visa are set out below.
Sponsorship Application
The first step in being eligible for a subclass 482 TSS visa if for your sponsoring employer to apply for, and be approved as, a Standard Business Sponsor (unless they already have an approved sponsorship in place).
To be approved as a Standard Business Sponsor, your employer must be lawfully operating a business, and have a strong record of, or a demonstrated commitment to, employing local labour, and declare that it will not engage in discriminatory recruitment practices. There must also be no adverse information known to the Department about your sponsoring employer, or a person associated with your sponsoring employer (or it is reasonable to disregard this information).
Alternatively, your sponsoring employer may apply for a labour agreement. If the business is located in a regional part of Australia, your sponsoring employer may consider applying for a Designated Area Migration Agreement (DAMA).
For further information on how your sponsoring employer may sponsor you in their business, please refer to our article on How To Become A Sponsor to learn about the different ways in which your employer may sponsor foreign workers. Please also see our Guide To Australian Sponsorship Visa Costs for information about the costs your employer can expect to incur if it proceeds with an employer sponsored visa option.
Nomination Application
The next step is lodgement of a nomination application by your sponsoring employer. A number of prescribed requirements for nomination approval must be satisfied, which include the following:
- the entity must be an approved sponsor or have a labour agreement in place;
- the entity must nominate an occupation included in ANZSCO, or as specified in a labour agreement;
- there must be no adverse information known to the Department about the business or any person associated with the business;
- the position must be genuine and generally full-time employment;
- the entity must provide a written contract of employment for you as the proposed sponsored worker;
- you must be employed as a direct employee, or as an employee of an associated entity if your sponsoring employer is an Australian business sponsor;
- meet requirements relating to your nominated salary and employment conditions;
- provide evidence of labour market testing where required (this relates to advertising in the local labour market); and
- not engage in discriminatory recruitment practices.
Visa Application
Short-term Stream
The key requirements to be met for grant of a subclass 482 visa under the short-term stream include that you must:
- demonstrate that you have at least two years of employment experience in your nominated occupation or in a related field (this should generally be full-time employment completed in the last five years, although the Department may consider part-time employment). The nominated occupation must be included in ANZSCO;
- have a relevant skills assessment (if required for your occupation);
- meet the genuine temporary entrant requirement. This is concerned with ensuring that you intend to genuinely reside in Australia temporarily and to comply with visa conditions; and
- meet an English language requirement (unless you qualify for an exemption).
The nomination application must also be approved.
Medium-term Stream
The key requirements to be met for grant of a subclass 482 visa under the medium-term stream include that you must:
- demonstrate that you have at least two years of employment experience in your nominated occupation or in a related field (should generally be full-time employment completed in the last five years, although the Department may consider part-time employment) and your nominated occupation must be included in ANZSCO;
- have a relevant skills assessment (if required for your nominated occupation); and
- meet an English language requirement (unless you qualify for an exemption).
The nomination application must also be approved.
Labour Agreement Stream
The key requirements that you must satisfy for grant of a subclass 482 visa under the labour agreement stream include that you must:
- demonstrate that you have at least two years employment experience in your nominated occupation or in a related field (this can be disregarded if the labour agreement specifies otherwise) and your nominated occupation must be included in ANZSCO;
- have a relevant skills assessment (if required according to the labour agreement);
- meet an English language requirement, which is generally the same as that which applies to applicants in the short-term stream (unless the labour agreement specifies a different English language competency requirement); and
- your nominated occupation must be included in a labour agreement between your sponsoring employer and the Government.
Renewing A Subclass 482 TSS Visa
Commencing from 25 November 2023, there will be no limitation to renewing a subclass 482 TSS visa onshore in Australia. This means that you will not be required to depart Australia to apply for a subclass 482 TSS visa, irrespective of how many times you have previously applied.
Before these changes came into effect, there were limitations on renewing a 482 visa onshore under the short-term stream.
Employer Nomination Scheme (ENS)
As of 25 November 2023 when the changes to the subclass 482 visa to 186 visa requirements come into effect, as a TSS visa holder, you may qualify for a Subclass 186 permanent employer sponsored visa under the Temporary Residence Transition (TRT) stream if you have worked for your sponsoring employer on a full-time basis for at least two years out of the last three years (before being nominated for the ENS visa).
Under policy, the Department has confirmed that it can consider applications where lodgement has occurred a few days prior to the two-year date. This means that a person on a 2-year TSS visa will be able to apply for a subclass 186 TRT visa when they reach the 23-month mark (to avoid the expense of applying for a new 482 visa).
Alternatively, you may qualify for immediate permanent residence under the Direct Entry stream if you have at least three years of relevant skilled work experience and a positive skills assessment in your nominated occupation (unless an exemption applies).
Or you may be eligible for a Subclass 186 permanent employer sponsored visa if you are sponsored for a subclass 482 TSS visa under the Labour Agreement stream. To qualify under this stream, you must have the minimum qualifications, experience and English language skills that are suitable to perform your nominated occupation (in accordance with the labour agreement). And, as a TSS visa holder, you must have worked for your sponsoring employer on a full-time basis for at least two years out of the last three years (before being nominated for the ENS visa).
This option requires two applications to be lodged in all cases: one for the nomination (which relates to the position which you are being nominated for, and one for the visa (which requires you to meet specified criteria for grant of the visa).
Some of the main requirements that apply include (note these vary depending on which stream you apply under):
- your skilled occupation must be listed in ANZSCO or in a labour agreement, and you must demonstrate that you have the minimum qualifications and/or employment experience as specified for your nominated occupation;
- you must be under 45 years of age at the time of application (unless an exemption applies or a labour agreement specifies otherwise);
- A positive skills assessment may be required; and
- you must have Competent English (unless an exemption applies or a labour agreement specifies otherwise).
The Department has confirmed that to qualify for a subclass 186 TRT visa from 25 November 2023, you will need to nominate an occupation in the same 4-digit ANZSCO unit group as was nominated for the most recent TSS visa held.
Please also note that applicants who hold a TSS visa under a labour agreement and who have been nominated for occupation code 070499 (which is not an ANZSCO occupation) will not be eligible for a subclass 186 ENS visa under the TRT stream from 25 November 2023.
A pathway will continue to be available in the labour agreement stream of the ENS visa where permitted under the terms of the labour agreement.
Subclass 186 Visa Age Exemptions
To qualify for a subclass 186 permanent employer sponsored visa under the TRT or Direct Entry stream, you must be under 45 years of age at time of application, unless a subclass 186 visa age exemption applies.
If you have been sponsored for a TSS visa under the Labour Agreement stream, where the labour agreement provides a subclass 186 visa age limit exemption, it will specify an alternative age limit that you must satisfy at the time of application to qualify for a subclass 186 ENS visa.
When Does An Age Exemption 186 Visa Apply?
To qualify for a subclass 186 ENS visa under the TRT stream, a subclass 186 visa age exemption applies to specified classes of persons. These include regional medical practitioner applicants and Subclass 457/482 workers.
To qualify for a subclass 186 ENS visa under the Direct Entry stream, an age exemption 186 visa applies to academic applicants, science applicants and subclass 444/461 workers.
Regional Medical Practitioners
A regional medical practitioner applicant is a person:
- nominated in a position located in a designated regional area;
- who is a medical practitioner (ANZSCO Minor group code 253);
- who has been employed as a medical practitioner for the three years immediately before the ENS visa application was lodged;
- who spent at least two years during the three years mentioned above, employed as a medical practitioner in a designated regional area; and
- who held a Subclass 457 or TSS visa at almost all times during the three-year period.
To satisfy the requirement for the age exemption 186 visa, the applicant should generally have held a subclass 482 TSS visa for the whole three-year period.
Commencing from 25 November 2023, changes to the subclass 186 visa age limit exemption mean that regional medical practitioner applicants aged 45 years and over will be eligible for a subclass 186 ENS visa after two years.
Subclass 457/482 Worker
A Subclass 457/482 Worker is a person who, at all times during the three years ending immediately before the day the visa application was made, the person was employed:
- by their sponsoring employer in their nominated occupation;
- for each of those three years, the person’s earnings for the year were equal to or greater than the high-income threshold (as applying at the end of the year);
- at almost all times during those three years, the person held a subclass 482 TSS visa.
The high-income threshold varies each year due to indexation. Set out below is the Fair Work High Income Threshold (FWHIT) for the years ended 30 June 2017 to 30 June 2023:
- 1 July 2016 – 30 June 2017: $138,900;
- 1 July 2017 – 30 June 2018: $142,000;
- 1 July 2018 – 30 June 2019: $145,400;
- 1 July 2019 – 30 June 2020: $148,700;
- 1 July 2020 – 30 June 2021: $153,600;
- 1 July 2021 – 30 June 2022: $158,500;
- 1 July 2022 – 30 June 2023: $162,000.
Commencing from 25 November 2023, changes to the subclass186 visa age exemption mean that high-income earner applicants aged 45 years and over will be eligible for a subclass 186 ENS visa after two years.
Get More Information
Subscribe to our newsletter for regular updates and additional information.
Contact us to book a no-obligation consultation to find out more about how you may qualify for a subclass 482 TSS or Subclass 186 permanent employer sponsored visa, and how the changes to the subclass 482 visa to 186 visa requirements will affect you, including the age exemption 186 visa, and the abolition of skilled occupation lists, including the subclass 482 SOL.
* * * * * * * * * * * *
In conclusion, we note that the above discussion provides an overview of the subclass 482 to 186 visa new rules, to commence on 25 November 2023, introducing a pathway to permanent residency for all subclass 482 TSS visa holders and changes to the subclass 186 visa age exemption for regional medical practitioner applicants and high-income earning applicants, as well as the abolition of skilled occupation lists, including the subclass 482 SOL.
Australia’s migration laws are complex, and each case is different. We recommend that you seek professional advice if you are interested in applying for an employer sponsored visa, as being fully informed will give you the best chance of achieving a successful outcome on your case. A migration professional can help you to do this.
For up-to-date advice on how you may qualify for a subclass 482 TSS or Subclass 186 permanent employer sponsored visa, and how the changes to the subclass 482 visa to 186 visa requirements as discussed in this article will affect you, including the subclass 186 visa age limit exemption, and the abolition of skilled occupation lists, including the subclass 482 SOL, book your confidential consultation with a migration agent in Adelaide. PAX Migration Australia is a leading immigration advice service based in Adelaide.
