Expanded PR Pathway for Employer-Sponsored Visa Holders Commenced
Welcome to a New Era in Skilled Migration Down Under!
One of the challenges our business clients face in recruiting global talent is the uncertainty surrounding the pathway to Australian Permanent Residency (PR). This lack of clarity can deter skilled professionals, especially those with young families, from relocating to Australia. A significant part of this issue arises from the complexities within the Employer-Sponsored visa sector. Since 2018, only a limited number of overseas workers have been able to access a PR pathway due to restrictions on various visa streams and occupations. Consequently, moving to Australia has become less appealing compared to other countries. For instance, the EU Blue Card Scheme offered in Germany provides a more streamlined route to PR, making it more attractive.
This issue, however, has been resolved as of 25 November 2023, with the implementation of The Migration Amendment (Expanding Access to Temporary Residence Transition Stream) Regulations 2023. These changes amend the Migration Regulations 1994, providing a simpler and clearer PR pathway for skilled professionals on Employer-Sponsored visas. To put it simply, an Employer-Sponsored TSS (subclass 482) visa holder may now be eligible for PR after having worked for the sponsor for a period as short as two years, regardless of their occupation and visa stream.
Major Changes
Major changes coming into effect from 25 November 2023 include providing a pathway to Permanent Residence (PR) in the subclass 186 TRT stream for all existing or prospective TSS subclass 482 visa holders. To be eligible, they must:
Have worked for their sponsor on a full-time basis in the same nominated occupation for at least two out of three years before the date of application (with limited exemptions),
Be nominated for the same occupation for their PR visa by their sponsor,
Meet all the other visa validity and eligibility requirements.
Despite the continued existence of three different visa streams in the Employer-Sponsored scheme, these changes effectively remove the previous PR requirements in the TRT stream for nominated occupations to be assessed against a specific skilled migration occupation list. Instead, the only requirement is that the occupation must be listed in the ANZSCO, a prerequisite to obtaining the TSS visa. The required employment period for a PR application has also been reduced from three to two years immediately before the date of application.
3rd Onshore Subclass 482 (Short-Term Stream) Now Allowed
To facilitate meeting the eligibility requirements for the PR visa application, the amended regulations have also removed the restrictions imposed on the number of renewal applications for subclass 482 visa holders (Short-term stream). This change allows this cohort of visa holders to renew their third visa in Australia, avoiding any disruption for them personally and their employer. Prior to the change, these visa holders had to travel overseas to lodge their third subclass 482 visa application, causing delays and inefficiency in their workforce. Some may have chosen not to return to Australia and pursued other overseas career opportunities instead.
Ending the Covid-19 Concession Period
The COVID-19 concession period also ceased on 25 November 2023, serving as an end date to allow periods of reduced work for 186 TRT PR applicants due to COVID-19. It also provided an end date of 1 July 2024 for relevant legacy subclass 457 visa holders to apply for age exemptions.
Impact on Businesses and Employees
For Australian Businesses:
Australian businesses are now offered a significant incentive to attract and retain global talent, with the assurance of a clear PR pathway for sponsoring top-tier professionals. This development enhances global competitiveness, allowing access to a broader talent pool and positioning Australian businesses favourably in the international market. Removing complex requirements and shortening qualifying periods have streamlined the nomination process, making it more efficient for companies and employees. This change facilitates building a sustainable and diverse workforce, which is crucial for business growth and talent retention.
For Employees:
TSS visa holders, particularly those in the Short-term stream, emerge as the winners of these changes. They now have a clear pathway to permanent residency, offering them long-term career stability and security. The ability to renew their third visa onshore, without the need to leave Australia, provides uninterrupted work and residency rights, ensuring continuity in their professional and personal lives. The expanded pathway opens up PR eligibility to more employees on TSS visa holders across all visa streams. It makes the Employer-Sponsored visa option more attractive for potential skilled professionals, especially as it allows for the inclusion of eligible family members in the subclass 482 visa and PR applications.
Future Outlook
These changes represent a significant shift in Australia's approach to skilled migration, moving towards a more inclusive and flexible system with an emphasis on benefiting Australian employers directly. They reflect the Government's recognition of the critical role skilled migrants play in the country's economic and social development. We expect further changes as part of the Government's announced Major Overhaul of the Skilled Migration Program.
Stay Updated and Prepared
We are committed to keeping you informed and guiding you through these changes. Our team is ready to provide bespoke advice and support to help you leverage these new opportunities to benefit your business and employees.