Australia Updates: Temporary Skill Shortage (TSS) Visa & Skilled Occupation List

As we are now well aware, the Temporary Skill Shortage (TSS) visa is scheduled to replace the Subclass 457 visa in March 2018. There will be 3 streams available under TSS, and they are as follows:

(1) Short-term stream: this is for employers to source genuine temporary overseas skilled workers in occupations included on the Short-term Skilled Occupation List (STSOL) for a maximum of 2 years (or up to 4 years if an international trade obligation applies); OR

(2) Medium-term stream: this is for employers to source highly skilled overseas workers to fill medium-term critical skills in occupations included on the Medium and Long-term Strategic Skills List (MLTSSL) for up to 4 years, with eligibility to apply for permanent residence after three years; OR

(3) Labour Agreement stream: this is for employers to source overseas skilled workers in accordance with a labour agreement with the Commonwealth, on the basis of a demonstrated need that cannot be met in the Australian labour market and standard visa programs are not available, with the capacity to negotiate a permanent residence option.

NOTE: the Australian Department of Home Affairs (DHA) has confirmed that Labour Market Testing (LMT) exemptions based on occupation will NOT be available under the TSS visa.

However, LMT will not apply if it conflicts with Australia’s international trade obligations. For example, LMT exemptions will still apply if the worker nominated is a citizen/national of China, Japan or Thailand, or is a citizen/national/permanent resident of Chile, South Korea, New Zealand or Singapore.

In order to streamline processing of TSS and other temporary skilled work visas, measures are in place that include: a new standard 5-year sponsorship agreement period, a new streamlined renewal process for existing sponsors, and an automatic approval of lower-risk nomination applications lodged by accredited sponsors.

In addition, provisions are in place to assist with the transition to TSS visa. Notable provisions include:

  • All Subclass 457 nominations and visa applications lodged prior to TSS implementation will be processed under the current framework.
  • If a Subclass 457 nomination application is lodged without an associated 457 visa application being lodged before the commencement of TSS, it will effectively become “redundant” as Subclass 457 nominations cannot be linked to TSS visa applications. This applies even where the nomination has already been approved.
  • Employers who are already approved standard business sponsors for Subclass 457 will be immediately able to sponsor skilled overseas workers under the TSS visa program.
  • Subclass 457 visa holders who are to change occupations or need a new visa will be required to lodge a new TSS visa application and reference a new TSS nomination application.
  • Subclass 457 visa holders that will change employer after the implementation of TSS visa can have their new employer lodge a TSS nomination application and link it to the existing 457 visa.
  • Dependents will be able to lodge TSS visa dependent visa applications linked to pending 457 visa applications or linked to current 457 visa holders.

Skilled Occupation Lists 

Updates to the skilled occupation lists for both temporary and permanent skilled visas went into effect on January 17. These updates will only apply to applications lodged after January 17 and will not apply to pending applications. More details can be found directly at the DHA website at

We can expect the next set of occupations lists to be published in March 2018. For more frequent updates, please follow us on twitter (@GrahamAdairLaw).