Australia: Removal of Onshore Renewal Restrictions and Other Concessions to Retain Foreign Workers Forthcoming

April 8, 2022

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Country / Territory

At a Glance

  • Starting July 1, 2022, certain Temporary Skill Shortage (TSS) visa holders who fall under the onshore renewal restriction for TSS visas granted in the ‘short-term’ stream, will have the ability to apply for a further TSS visa from within Australia if they have remained in Australia for at least 12 months between February 1, 2020 and December 14, 2021.
  • Also starting July 1, 2022, certain Temporary Work (Subclass 457) and TSS visa holders currently working in Australia will be able to apply for permanent residency under the Employer Nomination Scheme (ENS) visa program’s Temporary Residence Transition (TRT) stream.
  • Lastly, the government has extended an age exemption to certain current and former Subclass 457 visa holders who will no longer be subject to the standard age limit of 45 years.

The Australian government has granted three concessions to help employers retain foreign workers in the country. The concessions will be effective July 1, 2022.

Change Impact
  • Removal of onshore renewal restriction. Under the current Temporary Skill Shortage (TSS) regulations, certain applicants under the ‘short-term’ stream, who have held more than one TSS visa and were in Australia when their last TSS visa application was made, are required to be outside of Australia to make a valid visa application as part of the eligibility requirements (this is called the ‘onshore renewal restriction’).
  • Due to COVID-19 related travel restrictions, however, potential applicants face significant difficulties in departing Australia as part of the requirements.
  • As a concession, from July 1, 2022, these TSS visa holders will be able to apply for a further TSS visa in the short-term stream from within Australia if they:
    • have held a TSS visa(s) in the short-term stream for a period that totals at least 12 months between February 1, 2020 and December 14, 2021; and
    • submit their application before July 1, 2023, unless the Minister specifies a later date.

Eligible TSS visa holders will no longer need to leave Australia to apply for the short-term stream, allowing continued residence and work in Australia.

 

Employers will benefit from the opportunity to retain foreign workers in Australia.
  • New pathway for permanent residency Under another recently announced concession, starting July 1, 2022, certain Temporary Work (Subclass 457) and TSS visa holders currently working in Australia will be able to apply for permanent residency under the Employer Nomination Scheme (ENS) visa program’s Temporary Residence Transition (TRT) stream.

Eligible employees will benefit from relaxed requirements and eligibility to apply for permanent residency where they currently do not have one.

Employers will benefit from the opportunity to retain foreign workers in Australia. 
  • New age exemption. Also effective July 1, 2022, a new age exemption has also been extended to “legacy Subclass 457 workers” (those who have held a Subclass 457 visa on or after April 18, 2017 and were in Australia for at least 12 months between February 1, 2020 and December 14, 2021). These foreign nationals who will no longer be subject to the standard age limit of 45 years under the TRT stream.

More (older) Subclass 457 visa holders will now be eligible for the TRT stream, opening the candidacy pool for work under this scheme.

Employers will benefit from the opportunity to retain foreign workers in Australia. 

The rule changes are in line with the previously-announced changes that are scheduled to come into effect on July 1, 2022, aimed at retaining eligible skilled workers already in Australia in recognition of the contribution of these workers during the pandemic, as the government seeks to support local businesses facing critical shortages.  

The Australian government may introduce further rules, such as relaxed requirements and additional pathways to permanent residence, aimed at helping Australian employers attract and retain foreign talent in critical sectors with talent shortages. Fragomen will continue to monitor for any further developments and will provide updates as available. 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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