482 Temporary Skill Shortage Visa

The Subclass 482 Temporary Skill Shortage (TSS) visa enables employers to sponsor skilled overseas workers to fill job roles that cannot be filled locally.

• Duration of Visa: Up to 2 years (Short-term stream), and up to 4 years (Medium-term and Labour Agreement streams).

• Primary Requirements: Approved sponsor, occupation on eligible lists, minimum of 2 years post-qualification work experience, English proficiency.

• Pathway to Permanent Residency: Potential pathway to permanent residency after fulfilling certain conditions (post-November 2023 changes).

3 crucial steps to obtaining a subclass 482 visa

The subclass 482 visa application process involves three steps:

1. Employer Sponsorship

Employers must apply to become approved sponsors. This involves:

• Providing evidence of lawful business operations.

• Demonstrating a stable financial position

• Being transparent with past hiring practices and outlining future recruitment plans ‍

2. Nomination

Once an employer is approved, they must nominate the overseas worker for a specific role. This step involves:

• Proving the position is genuine and necessary.

• Ensuring that the salary meets the Temporary Skilled Migration Income Threshold (TSMIT) (currently at $73,150 per annum) or annual market salary rate, whichever that is higher.

• Labor market testing to show that the role could not be filled by an Australian worker (where international trade obligations do not apply).

3. Visa Application

The applicant must submit the visa application and provide:

• Evidence that they meet all eligibility criteria, including English proficiency, 2 years of post-qualification work experience (full-time preferred), and health/character requirements.

• Skills assessments for certain occupations as required.

Visa Conditions and Duration

Subclass 482 visa holders are required to adhere to the following conditions:

Work Restrictions

• Visa holders are limited to working only for their sponsoring employer.

• They must work in the occupation for which they were nominated.

• If they wish to change employers, a new nomination must be submitted and approved.

Visa Condition 8607

• Visa holders must commence work within 90 days of arrival (or visa grant if onshore).

• Employment gaps of more than 180 consecutive days are not permitted.

Health Insurance

Subclass 482 visa holders must maintain valid health insurance (OVHC) throughout their stay. Failure to comply may result in visa cancellation.

Duration

• Short-term stream: Up to 2 years (4 years if international trade obligations apply).

• Medium-term stream: Up to 4 years.

• Labour Agreement stream: Up to 4 years (or as specified in the agreement).

Pathways to Permanent Residency

The Subclass 482 visa can provide a pathway to permanent residency through the Employer Nomination Scheme (ENS) subclass 186 visa.

Eligibility for ENS Visa

• Visa holders in the Medium-term stream may be eligible for permanent residency after 2 years of working for their sponsoring employer.

• Age Limit: An age limit of 45 applies, although there are exemptions for certain occupations and circumstances.

• Employer Nomination: The employer must nominate the visa holder for permanent residency.

Employer Obligations and Costs

Employers who sponsor Subclass 482 visa holders must meet specific obligations, including:

1. Sponsorship Obligations

• Maintain proper records of the visa holder’s employment.

• Cooperate with government inspectors to ensure compliance.

• Ensure that visa holders receive equivalent terms and conditions as Australian employees.

2. Skilling Australians Fund (SAF) Levy

Employers must pay a levy when nominating a worker for a TSS visa:

• For businesses with an annual turnover of less than A$10 million: A$1,200 per year.

• For businesses with an annual turnover of A$10 million or more: A$1,800 per year.

3. Return Travel Costs

If requested in writing, employers are responsible for covering the reasonable travel costs for the visa holder (and their family) to return to their home country.

5 Common Reasons for 482 Visa Refusal

It's important to note that the 482 visa can only be approved when both the standard business sponsorship application and the 482 nomination of the employer are approved. This means that it can be beneficial to work closely with your employer in their nomination of your position. Providing them with comprehensive evidence of your skills and work experience in advance can help ensure that your 482 nomination and visa applications are as strong and complete as possible from the outset.

Here are the 5 most frequent grounds for a 482 nomination/visa refusal:

1. Failure to demonstrate that the nominated position is genuine.

The nominated position should realistically fits within the employer's organisational structure and they must provide substantial evidence to support its necessity. For instance, if a business only has five employees and wishes to sponsor a Corporate General Manager, the Department will quickly flag this as inconsistent with the business's scale and nature.

2. Misalignment between the nominated role and the Australian and New Zealand Standard Classification of Occupations (ANZSCO) codes.

It is crucial to use job titles and descriptions that correspond directly to ANZSCO codes. The job responsibilities should clearly match the chosen ANZSCO occupation, and applicants should be prepared to provide a detailed breakdown of how the nominee's daily tasks align with these requirements.

3. Insufficient work experience and/or qualifications

It's essential to demonstrate not just qualifications, but relevant and recent experience at the appropriate level. Applicants should carefully review the skills and experience criteria for their nominated occupation and provide comprehensive evidence of their work history, including detailed reference letters and payment evidence. In some cases, skills assessments or additional qualifications may be necessary to meet the requirements.

4. Insufficient labour market testing

Employers must adhere strictly to the 28-day minimum for job advertisements and use two national job advertisement platforms. They must also maintain comprehensive records of the recruitment process, including reasons for rejecting local candidates. Professional assistance and advice will be beneficial to ensure compliance with all LMT requirements.

5. Inaccurate, misleading, or insufficient information

The Department of Home Affairs scrutinises all aspects of the application, including the sponsoring business details, the nature of the nominated position, and the applicant's qualifications and experience. Any inconsistencies or omissions in these areas can raise red flags, potentially resulting in visa refusal. To maximise the chances of approval, applicants and sponsors must ensure that all provided information is truthful, comprehensive, and aligns perfectly across all components of the application. This meticulous attention to detail not only demonstrates credibility but also facilitates a smoother assessment process.

6. Visa applicant's salary is not reflective of annual market salary rate

The annual market salary rate (AMSR) is a critical component of the 482 visa application process, designed to ensure that overseas workers are not underpaid and that local wage standards are maintained. The Department of Home Affairs scrutinises the proposed salary to confirm it aligns with what an Australian worker would earn in the same role and location. This requirement serves multiple purposes: it protects overseas workers from exploitation, prevents wage deflation in the local job market, and ensures that businesses are sponsoring foreign workers based on skills shortages rather than as a cost-saving measure.

To meet this requirement, employers must demonstrate that the salary offered to the visa applicant is at least equal to the AMSR. This involves providing evidence of comparable salaries for Australian workers in similar roles, which can include recent job advertisements, salary surveys, enterprise agreements, or awards relevant to the industry and location. If the proposed salary is lower than the AMSR, the application is likely to be refused. In cases where the salary exceeds the AMSR significantly, employers should be prepared to justify this discrepancy, as it may raise questions about the genuine nature of the position or the accuracy of the nominated occupation.

It's important to note that the AMSR can vary considerably based on factors such as geographic location, industry sector, and the specific duties of the role. For instance, a software developer in Sydney may command a different salary compared to one in regional Australia. Employers must also consider additional remuneration components beyond base salary, such as superannuation, bonuses, and non-monetary benefits, as these can impact the overall package assessment.

Furthermore, for highly paid positions (typically those with a base salary above the high-income threshold of A$96,400), there may be some flexibility in how the AMSR is determined. However, even in these cases, employers must still demonstrate that the salary is market-competitive and reflective of the role's responsibilities.

Given the complexity of determining and justifying the AMSR, many employers seek professional assistance to ensure compliance. This might involve conducting formal salary benchmarking exercises or obtaining expert opinions on industry standards. Ultimately, a well-documented and justified salary proposal that clearly aligns with or exceeds the AMSR can significantly strengthen a 482 visa application, reducing the risk of refusal on these grounds.

Upcoming Changes

Several important changes, expected to come into effect in late November 2024, will broaden the scope of the TSS visa program and provide more opportunities for both local employers and skilled international workers.

The Government has announced that from 23 November 2024 onwards, the work experience requirement for the subclass 482 visa applicant will be reduced from 2 years to 1 year for all streams. This change will enable visa applicants to apply for their visas sooner. However, as of present, the government has not released formal legislation to support the change.

The Australian government has also announced plans to introduce a new "Skills in Demand" visa, which will replace the current TSS visa program by the end of 2024. This visa will focus on attracting workers in industries facing chronic skill shortages and will offer more streamlined pathways to permanent residency. Proposals have been made by Jobs and Skills Australia to remove certain occupations from the skilled occupation list for the "Skills in Demand" visa. This is by no means final, but may be indicative of what is to come.

Compliance and Consequences

Both employers and visa holders must adhere to the conditions of the Subclass 482 visa to avoid penalties:

• Non-compliance with visa conditions, such as failure to maintain health insurance or breaching work restrictions, may result in visa cancellation.

• Visa holders who fail to comply with conditions may be barred from future visa applications, affecting their ability to remain in Australia.

• Employers who fail to comply with their obligations may be barred from sponsoring future visa holders or face significant fines.

It is important for both visa holders and employers to stay informed about their obligations and report any changes in circumstances (e.g., changes in employment status) to the Department of Home Affairs immediately.

Practical Aspects of Moving to and Working in Australia

1. Cost of Living

Research the cost of living in your intended city, as major Australian cities such as Sydney and Melbourne can be expensive. Regional areas may offer more affordable living options.

2. Accommodation

Plan for temporary accommodation upon arrival, as long-term rental properties often require a rental history, which new arrivals may not have.

3. Banking

Set up an Australian bank account before arriving in the country. Most major banks allow international clients to open accounts remotely.

4. Tax File Number (TFN)

Apply for a TFN soon after arriving in Australia. This is necessary for tax purposes and to avoid emergency tax rates.

5. Medicare

If eligible (for example, citizens from countries with reciprocal healthcare agreements), register for Medicare for access to Australia’s public healthcare system.

6. Superannuation

Australia’s retirement system requires employers to contribute to a superannuation (pension) fund for their employees. Understand how this works and how you can access your super if you leave the country.

5. Processing Times

Visa processing times may be longer than expected, which can affect start dates for employment. Employers and applicants should factor in possible delays when planning their timelines.

Importance of Professional Advice

Immigration law is complex, and the rules governing the Subclass 482 visa and pathways to permanent residency are subject to frequent changes. While this guide provides a general overview, applicants and employers should consider seeking professional advice, particularly in the following circumstances:

• Unusual cases, such as family members with specific health conditions.

• If you are unsure of your eligibility for a specific visa stream.

• If you have had previous visa refusals or cancellations.

• Employers new to the sponsorship process, especially those with complex business structures

Professional advice can help navigate the application process, avoid costly mistakes, and ensure compliance with immigration law.

The content on this page does not constitute legal or immigration advice. Australian immigration doesn't have to be complex and we can help with your unique circumstances. To seek legal advice or information that is specific to your situation, please contact us.