457 Visa Change and How It Will Affect Small Businesses

Visa

A country popularly known for diversity, Australia was always seen to be a country that attracts different kinds of people from all over the world to be able to promote business growth and diversification. This was made possible through the country’s Temporary Work Skilled visa, also known as the subclass 457.

 

However, the government has already announced the abolition of the said visa and will be replaced by a new program, which is called Temporary Skill Shortage (TSS) scheme, starting from March next year. According to Dynamic Business, this was received with a mixed welcome.

 

Unions claim that the abolishment is only a ‘cosmetic’ since it would not have any difference. On the other hand, other industries point out that it will be harder to hire experienced individuals and can have cost implications for small businesses. Moreover, this could put a stop on commercial growth and innovation.

 

With the changes to the 457 visa, small businesses will definitely have the hardest blow. These businesses will have a hard time on the costs of hiring workers abroad since the visa replacements, Short-Term TSS and the Medium-Term TSS, will have a higher price than the current 457 visa.

 

Furthermore, a company that has less than five staff or cannot turn over $1,000,000 and jobs that require a ‘caveat’ are not eligible to get the visa.

 

Then for businesses with a turnover of less than $10 million are required to pay an upfront fee of $1,200 for every year stay of their employed worker under the Temporary Skill Shortage visa and pay a one-off visa fee of $3,000 for every employee they sponsor for a permanent skilled visa.

 

As for businesses that have a turnover of $10 million and above per year are required to pay an upfront visa fee of $1800 for every year of employment of a worker under the Temporary Skill Shortage visa and a one-off visa payment of $5,000 for each employee they sponsor for a permanent skilled visa.

 

The levy and visa fees can take a toll for small businesses and can provide eligibility restrictions, which can lead to a decrease in visa applications. Not only have that, this can block the supposed increase in the training budget.

 

With all these changes, business visa services may experience a decrease, especially for small businesses who want to explore or expand to a new country. Interested businessmen should find a trusted migration office to be guided on the changes that will take effect next year.

 

For individuals or parties who are interested in starting their visa application process in Australia, VisaTEC Legal is a trusted immigration law firm that offers an exceptional and personalised service for your Visa needs. Call us today 1300 484 728 or email us at info@visatec.com.au.

 

Image Courtesy of Dynamicbusiness.com.au

 

 

 

 

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