What’s new?
From 25 November 2023, more TSS visa holders will have pathway to permanent residence regardless of their occupation.  Employers will be able to nominate a TSS visa holder for permanent residence under the Employer Nomination Scheme (subclass 186) Temporary Residence Transition Stream (TRT) if the employee:

1. Holds a TSS visa approved in any stream (Short-term two-year, Medium-term four-year or Labour Agreement)
2. Has held that visa for at least two years in the three years before the nomination with the same employer
3. Is sponsored and working in an occupation that is listed in ANZSCO
4. Is under 45, or earns more than the Fair Work High-Income Threshold (currently $167,500)

The new rules will apply to all TRT nominations lodged after 25 November 2023, and to those nominations lodged earlier but not yet finallised by that date.

TSS visa holders who are in Australia and are sponsored under the Short-term two-year stream will be eligible for as many TSS applications as the employer requires. Unfortunately, any visa holder whose second Short-term TSS visa is due to expire before 25 November 2023, will need to depart Australia in order to lodge a third application.

These changes are still subject to parliamentary approval and we are yet to see the regulations and policy which may contain further detail or clarification.

More changes are expected to be announced in coming months.

What has not changed
TSS visas:

1. There will still be occupation lists for TSS visas. We do not know if the occupations on those lists will change. Employers will still need Labour Agreements for occupations not on the lists
2. Will still be granted for up to two years or up to four years depending whether the occupation is on the two-year or four-year list
3. Employees will still need to earn at least $70,000 ex super (unless previously approved for less or nominated under a Labour Agreement with a lower salary)
4. Employers will still need to do LMT as they currently do
5. Training Levies have remained unchanged
6. Employers will continue have to meet their sponsorship obligations

ENS visas:

1. Will still have TRT and Direct Entry pathways
2. Will still be limited to those under 45 years of age unless exempt (e.g. they are a High Income earner or a medical practitioner in regional Australia)
3. Employees can still pay for all costs associated with the ENS application, except for the training levy

What it means for your business
The changes will provide employers with more certainty when hiring that they will be able to retain the employee long-term regardless of the occupation. Although, employees will still be able to change employer without restriction once permanent residence is granted.

More employees will be eligible for permanent residence earlier and there may be a need to adjust or review policies or practices relating to support for permanent residence and who pays for it.

More information
Please join our webinar for a full briefing and discussion about the changes and how they will affect your business and your employees.

We will continue to provide updates as details are announced.

You should contact your Ajuria team if you have specific questions.