Changes to the permanent employer sponsored program
Reforms to the permanent employer sponsored migration program will improve the program’s ability to meet Australia’s economic needs and simplify the pathway for 457 visa holders to permanent residence.
The reforms, effective 1 July, are designed to help the Australian Government respond swiftly to labour market demands, while ensuring that limited program places go to those who will make the greatest contribution to Australia.
A new visa structure will be introduced, which comprises two new visas replacing the current employer sponsored visa classes and subclasses. (http://www.immi.gov.au/skilled/skilled-workers/_pdf/skilled-migration-diagrams.pdf)
The new visa structure includes the Employer Nomination Scheme (ENS) and the Regional Sponsored Migration Scheme (RSMS).
The ENS allows Australian employers to sponsor skilled foreign workers to address skill shortages in their business located throughout Australia. The RSMS is designed to support employers in regional, remote or low population growth areas, to recruit the skilled workers they need to manage and grow their operations where they cannot be filled locally.
Within each of these visas are three streams:
- Temporary Residence Transition stream for subclass 457 visa holders who have worked for their employer for two years and the employer wants to offer them a permanent position in that occupation.
- Direct Entry stream for ENS and RSMS applicants who are untested in the Australian workforce and are not catered for in the Temporary Residence Transition or Agreements streams. Within this stream the range of occupations has broadened to include ANZSCO skill levels 1–3 occupations.
- Agreements stream for applicants who are sponsored by an employer through a labour agreement or regional migration agreement.
An employer or visa applicant will need to meet the requirements of the particular stream.
Simplifying the pathway to permanent residence
The permanent employer sponsored program reforms will see the implementation of a streamlined pathway to permanent residence for subclass 457 visa holders under the new Temporary Residence Transition stream.
The transition to permanent residence will be simpler and fast-tracked for applicants who hold a 457 visa and have worked for the same employer for a continuous period of two years on a full-time basis. Their English language ability will not be further scrutinised if they have previously completed tests for their 457 visa application, registration or licensing. However, if the applicant has not completed an International English Language Test System (IELTS) test, they may be required to meet the English language capability assessment—with a minimum of IELTS 5 in all modules (or equivalent).
For applicants who do not meet the Temporary Residence Transition stream, then the Direct Entry or Agreements streams are options available for consideration.
The Direct Entry stream is a more rigorous application process for applicants who have not been tested or proven in the Australian labour market. The minimum standard will be set higher for skills assessments and English language skills with a required IELTS rating of 6. In recognition of the value of extensive work experience, applicants up to 50 years of age can apply.
The Agreements stream will continue to allow employers to recruit a specified number of semi-skilled or highly skilled workers under a labour agreement negotiated by the employer with the government. The skills, age and English language requirements for workers under labour agreements will continue to be negotiated according to the needs of Australian employers.
There will be opportunity for exemptions approved by the minister for age, skills and English language ability. Exemptions will be based on a person’s nominated occupation, salary or the time they have been employed with their nominator.
For more information on the changes see the Frequently Asked Questions on the department’s website at www.immi.gov.au/skilled/.
SkillSelect webpage goes live!
The SkillSelect website goes live!
We are happy to announce that on 28 January the SkillSelect website was launched at www.skillselect.gov.au
This site provides information on SkillSelect, details on the Expression of Interest (EOI) and invitation process, and what information you will have to provide when you submit an EOI.
You will notice that the SkillSelect web page looks different to other pages on our website. Please let us know what you think about the new website design or the content we have published. Your feedback will assist us in improving the delivery of information to our clients.
Although the website has been launched, you will not be able to submit an EOI until 1 July 2012.
We plan to publish more information on the SkillSelect website in early April, including information on the new visa subclasses. Our blog will also continue to keep you up to date with SkillSelect and its implementation.
We encourage you to read our previous blogs on SkillSelect here as they may answer many of the questions you have about SkillSelect.
SkillSelect – Rankings and Invitations explained
In our previous blogs, we discussed SkillSelect and changes to our Skilled Migration Programs. You can view our previous blogs here.
We will now look at what happens after you submit an EOI using SkillSelect.
The below diagram displays the SkillSelect process:
How will you be ranked on your EOI?
Your ranking will be calculated based on the information you provide in your EOI. EOIs are ranked using points achieved on the skilled migration points test. A prescribed pass mark will be set as the minimum points score required for each visa category.
Ranking will be conducted electronically by SkillSelect with no intervention by the department. Equally scoring EOIs will be separated by time of submission with earlier submission dates ranking more highly.
After submitting your EOI, you can view your point score; however you will not see your ranking because it will be continually changing. After each invitation round we will publish on our website the lowest score of a successful EOI for each occupation group. This will provide an indication of the score required to receive an invitation.
You can update your EOI at any time until you receive an invitation or your EOI expires. If you provide new information that changes your points score, SkillSelect will update your ranking automatically including your date of submission.
You should understand that if you provide false or misleading information on your EOI this will subject you to the Fraud Public Interest Criterion – PIC 4020. If it is established that you have provided false or misleading information including to third parties such as approved English language testing providers, assessing authorities, State/Territory governments etc, and your visa application may be refused. You may also be subject to a three year bar which may prevent the grant of a further visa that is subject to assessment under the Fraud PIC.
How do you receive an invitation?
Selected EOIs will be invited periodically to lodge an application. Depending on your visa preference/s, you could receive an invitation from the department for independent migration, family sponsored or from a State or Territory government for State/Territory sponsored or Business Skills migration. SkillSelect won’t issue invitations for any other migration programs.
Independent Migration and Family Sponsored Migration
It is proposed that SkillSelect will automatically issue invitations once per month, with the first round of invitations sent on 1 August 2012. Invitations will be issued to the highest ranking EOIs in descending order, subject to occupation ceilings. The date and time of submission may be used to separate those who score equally to ensure that the number of invitations issued at any one time matches both the number of visa places and the processing resources available. Those who don’t meet the pass mark or don’t score highly enough in a particular invitation round will not be issued an invitation. Departmental officers are not involved in the selection process.
Occupation ceilings are a limit on how many people are selected for points tested migration from an occupation group. This will ensure that these visa categories are not dominated by a narrow range of occupations. Once the limit is reached for a particular occupation group, no further invitations for that group will be issued in that program year with remaining program places allocated to other occupation groups even if they are lower scoring. In the event that the ceiling is reached remaining EOIs from people with skills in that occupation group won’t be affected.
Occupation Ceilings and Invitations
2. State or territory government and employer sponsored visas
State and Territory government representatives will search SkillSelect for prospective people to sponsor. State or Territory governments will be able to nominate prospective applicants at any time using SkillSelect (in accordance with their agreed State Migration Plans and subject to occupation ceilings not being reached). Those nominated will receive an invitation through SkillSelect to apply for a visa.
What happens next?
Invited applicants will have 60 days to lodge a visa application using the department’s electronic lodgement system. The visa application process will occur outside of SkillSelect.
If you receive two invitations in SkillSelect but do not lodge a valid visa application as a result of these invitations, your EOI will be removed from the SkillSelect database and will have to be formally resubmitted to be considered for future invitation rounds.
If you do not receive an invitation, it is proposed that your EOI will remain active in SkillSelect for 2 years. You will have the option to renew your EOI if it expires.
In future blogs we will provide further updates on SkillSelect as our long-awaited implementation date of 1 July 2012 approaches!
For more information on SkillSelect please go to www.skillselect.gov.au
Guide for the 457 program for the Tourism and Hospitality industries
This is a guest post written by Hayley, who works in the department’s 457 policy section.
Yesterday the Minister for Immigration and Citizenship, Chris Bowen MP, and the Minister for Tourism, Martin Ferguson AM MP launched a guide to using the 457 visa program for the hospitality and tourism industries.
The guide will assist employers to use the skilled visa program. You can access the guide below.
Guide to the 457 program for the tourism and hospitality industries
Information sessions will be coordinated to provide employers with information and answer questions about the guide. The first information session was in Perth and attracted around 20 employers from tourism and hospitality industries. The department received positive feedback and fielded some specific questions about using the 457 program in these industries. A further eight sessions will be held over the coming three weeks in capital cities and select regional locations. For further details about the department’s information sessions, please click here.
If you have any questions about the 457 program in these industries, please leave a comment below.
Edit: In case you are interested in further information, please see the attached 457 Tourism-Hospitality information session presentation that was delivered at the department’s information sessions.
Skilled visa options for Australia
Australia’s skilled migration program aims to meet the needs of the Australian labour market and strengthen our economy. Skilled workers in occupations in demand can help fill job vacancies which cannot be filled by an Australian resident worker. This video provides a brief overview of Australia’s skilled migration program.
For more information, visit the department’s website.
SkillSelect – the who, what, when, why and how?
On 11 May 2011, the Australian Government announced the implementation of the Skilled Migration Selection Register – SkillSelect.
In today’s blog we will address the who, what, when, why and how of SkillSelect for the independent skilled and family sponsored skilled migration programs.
What is SkillSelect?
SkillSelect is a new skilled migrant selection register that will ensure Australia can select the best and brightest skilled migrants from a pool of prospective migrants. It is based on an electronic two-stage process whereby prospective migrants first submit an Expression Of Interest (EOI) and may then be invited by the department to make a skilled migration visa application.
Why SkillSelect?
SkillSelect will build upon and draw together the suite of reforms made to the skilled migration program over the past several years. It will deliver the skills Australia needs by matching the best and brightest prospective migrants to the available places in the migration program.
How will SkillSelect operate?
Prospective applicants first submit claims for skilled migration through an online EOI and then may be invited to make a visa application. It is important to note that an EOI is not a visa application; it is an expression of interest in being considered for migration. All prospective applicants will be required to have met the relevant English language standard and obtained the necessary skills assessment before submitting an EOI.
People will be invited to lodge an application on the basis of their EOI. Applicants will be ranked according to their points test score and the time they submitted their EOI. The highest ranking applicants will be invited to apply each month. An occupation ceiling will exist that will cap the number of invitations to apply for migration in the points tested visa categories by occupation so that we can ensure that the program covers as many occupations as possible on the Skilled Occupations List.
SkillSelect will ensure a match between the number of applicants, the number of available program places and the available processing resources. This will streamline processing times.
Who will SkillSelect affect?
All prospective applicants for Independent Skilled, State/Territory/Family Sponsored or Business Skills visas will need to submit an EOI and receive an invitation before they can apply.
People who have lodged a visa application before SkillSelect takes effect and whose applications are pending processing, will have their application processed in accordance with any priority processing direction in effect at that time.
When will SkillSelect be implemented?
SkillSelect will commence on 1 July 2012. As of this date, new applicants for Independent, Family or State/Territory Sponsored or Business Skills migration will need to submit an EOI and be issued with an invitation before lodging their visa application.
Transitional arrangements currently apply to certain people who, on 8 February 2010, held or had applied for a Skilled Graduate (subclass 485) visa. This group will still be able to apply for a permanent skilled visa under the current system until the end of 2012.
In our future blogs we will address some common questions about SkillSelect and the impact it will have on the State and Territory Sponsored, Business Skills and Employer Sponsored migration programs.
For more information on SkillSelect see:
www.skillselect.gov.au
The 457 visa program – 2010/11 Year in Review
There were 48 075 primary subclass 457 visas granted in Australia in 2010-11
This post was written by Laura, a graduate who recently completed a stint in the Temporary Skilled Migration Section in the Labour Market Branch.
At the Labour Market Branch, we closely monitor the trends that occur in the programs we deliver. The end of the program year is a good time to share our thoughts on the trends of 2010-11. Below, we review the year in the 457 program.
Overall, 2010-11 saw an increase in demand for the program – up from last year when the global financial crisis led to a softening in the demand in the labour market and a corresponding decline in 457 visa grants. The program is on track for an even larger increase in the coming year as the need for skilled labour in Australia increases in line with the growing economy and increased demand, particularly in the resource sector.
The 457 visa
The 457 visa was introduced in 1996. It allows skilled people to temporarily work in Australia if an approved employer sponsors them. They can work from one day to four years.
Since its beginnings, the program has undergone considerable change, yet it has continued to be responsive to the labour market, as seen in our previous post about how the 457 program creates employment in the Australian labour market. Through boom times, program usage has increased significantly, demonstrating the important role it has come to play in supporting the growing Australian economy.
Demand for the program declined in 2009-10, following the global economic downturn. This is not surprising, given that trends of the 457 program usually reflect other trends that happen in the Australian labour market.
If unemployment in Australia is high, employer demand for 457 visas declines. When there are more Australians available to fill skilled vacancies, it makes sense that employers don’t have as great a need for overseas workers. The decline demonstrates the way the program automatically responds to the trends in the labour market.
The 2010-2011 program year
We have seen a different trend in the last 457 program year. The recovering economy and resources boom are just some of the reasons why employers have relied more heavily on 457 workers in 2010-11.
In the past year, the number of people applying for a primary 457 visa rose 39.7 per cent and the number of primary visas granted increased 38.2 per cent. From a policy perspective, this shows the program has responded quickly to demand from employers.
Location and positions
The acute skills shortages in the mining sector have partly driven many of the trends for jobs and locations this year.
The majority of applications lodged were for jobs in New South Wales and Victoria, which has been the case for a number of years. However, there was a 64 per cent increase in the number of applications lodged for positions in Western Australia, where much of the work from the mining boom exists.
The expansion of mining projects also explains much of the the increase in demand for workers in trade and technician occupations, which rose 65.4 per cent in 2010-11. In particular, there was a 74.7 per cent increase in the number of visas granted for workers in the construction industry.
Individual occupation breakdowns tell a similar story. The number of electrical engineering technicians rose 248.9 per cent from the previous year and the number of drillers rose 152.0 per cent. The steep increase in 457 visas granted to skilled workers in mining occupations in the past year shows just how quickly the program can respond to the needs of industry.
As well as responding to temporary labour needs, each year the program responds to industries that have significant skills shortages. For example, the demand for 457 health professionals is always strong, and the highest number of 457 visas granted in the last year was for people working in health care and social assistance.
Salary
The average amount a 457 worker is paid often mirrors their skills and expertise and the demand for their occupation in Australia. It’s not surprising that skilled workers employed in mining had the highest salaries of any industry in 2010-11, given that they are often highly trained people and there is a shortage of the skills they have in Australia.
457 salaries increased again overall in 2010-11, continuing their steep upward trend from 2009 when program reforms changed the requirements for paying 457 workers. Rather than setting bottom limits on the salaries of 457 workers, the program has moved to a fairer system of market salary rates. This means that workers are given conditions “no less favourable” than Australian workers performing the same work. This prevents employers from using the program to undercut local wages.
The continued rise in average 457 worker salaries says to us that these reforms are working the way they should be.
Sponsors
There were 11 290 Australian and overseas employers who were approved to sponsor 457 workers in 2010-11. There were 18 530 active sponsors at 30 June 2011, with the vast majority of these identifying as small to medium businesses.
Countries
People from the United Kingdom were granted the highest number of 457 visas in the last year. Citizens from India came in second and the United States made up the third largest group. 2010-11 saw a significant increase in the number of Irish people applying for 457 visas, with a 60.9% rise from the previous year.
The top fifteen countries using the 457 program have been fairly consistent over the past two years and make up 84.4 per cent of 457 visas granted this year.
Processing
457 processing times were at historically low levels in the past year. The median processing time was 23 calendar days (30 per cent lower than 2006-07) which is well below our published service standards of between 2-3 months.
Even the 10 per cent of applications that took the longest to process came in at an average of 70 days. While this is still not ideal, it’s down from 83 days in the previous year.
Processing times are something we will continue to strive to improve in 2011-12.
The Year Ahead
Overall, the main trend for the 2010-11 year was growth. If current employment conditions continue and businesses struggle to find sufficient skilled Australian workers, the 457 program will bridge the gap and offer employers access to skilled workers in the coming year.
The current shape of the program makes it a quick and effective tool for businesses to access skilled workers, while at the same time ensuring that the training and employment of Australians is the first priority for business.
For more details on the 2010-11 program year, see this report containing State-based 457 data on the main DIAC website.
Skills Australia Needs events in Berlin and Athens
The Department will host Skills Australia Needs information sessions on October 6 in Berlin, Germany and October 8-9 in Athens, Greece.
These information sessions will provide an opportunity for skilled workers in Germany and Greece to hear about skilled visa options and possible sponsorship and employment opportunities in Australia.
Skills Australia Needs events help address current skill shortages in areas of occupational demand in Australia, particularly health care, engineering and select trade occupations.
The department has staged these events for a number of years in various countries to provide information to skilled workers about skilled visa options for Australia, with a focus on matching skilled workers with Australian state and territory governments and employers in target occupational areas.
To be eligible to attend these events, interested skilled workers must have qualifications and experience in one of the occupations targeted, a high level of English language ability and be under 50 years of age.
Australian employers in the fields of health care, engineering or specified trades with current job vacancies they are unable to fill through the Australian labour market, who are interested in attending are encouraged to visit the department’s website to register their interest.
More information about the Skills Australia Needs events for both skilled workers and employers is available on the department’s website: www.immi.gov.au/skillexpos/
Review of the permanent Employer Sponsored visa categories
Today, the department released a discussion paper which provides the starting point for public consultation on the review of the permanent Employer Sponsored visa categories.
The permanent employer sponsored visas, which include the Employer Nomination Scheme, Regional Sponsored Migration Scheme and Labour Agreements, have become increasingly popular with visa applicants and Australian employers.
This trend is reflected in the changing composition of the skilled migration program. Specifically, how the proportion of employer sponsored places now exceeds the proportion of general skilled migration (GSM) places. In 2010-11 38 per cent of the skilled migration program was employer sponsored and 31 per cent GSM. Contrast this with 2007-08 where only 19 per cent of the skilled migration program was employer sponsored and more than half was GSM.
The growth of the permanent employer sponsored categories can be attributed to the shift toward an actively managed demand driven migration program, the popularity of the subclass 457 temporary visa program and the department’s promotion of these programs through the outreach network and Skills Expos. It is also expected that this trend will continue in to the future.
A demand driven skilled migration program recognises that employers are best positioned to identify the skills that they need to maintain, grow and expand their businesses, and should support them in their efforts. That is, it should offer them the ability to source foreign skilled workers to address their skills needs where they have been unable locate suitable workers from the Australian labour market.
In this context it is vitally important that these visa programs remain responsive to the needs of employers. This will ensure that the best outcomes are delivered for the Australian economy. That’s why this review is so timely, especially given that the last comprehensive review was back in 2004!
In Budget 2011-12 the government announced that the permanent employer sponsored programs would be reformed to fast-track the transition to permanent residence for subclass 457 visa holders who have worked inAustralia for several years.
Providing a fast-tracked pathway for these temporary skilled visa holders makes good sense. In 2010-11 83 per cent of ENS and 59 per cent of RSMS visa approvals were to people who held a subclass 457 when they lodged their application for permanent residence.
The fact that their nominating employer wants to continue to employ them, and will sponsor them for permanent residence, shows that there is a good fit between the visa applicant and the business. It also demonstrates that there continues to be a need for their skills and that they possess the appropriate skills to perform the work.
The discussion paper canvasses this topic, as well as a number of other key issues which will be considered as part of the review. Interested members of the public are encouraged to put forward any views and ideas that will help to improve the permanent employer sponsored programs by Friday 16 September 2011.
The discussion paper can be accessed from the departments website here: http://www.immi.gov.au/media/publications/discussion-papers/skilled-visas
Business Skills and innovation
The Department of Immigration and Citizenship is conducting a comprehensive review of the Business Skills visa program to determine whether the program is meeting its intended objectives and what role the program should play in building Australia’s economy.
Innovation is the key to making Australia more productive and more competitive. Economic growth depends on the diffusion of new technology and knowledge, driven by national innovation systems that can absorb and implement knowledge. In high income countries such as Australia, the challenge is to maintain a flexible innovation system that can both create knowledge and absorb it from elsewhere.
We know that targeted immigration is one source for the supply of skilled workers and it supports a flexible labour market, but also, migrants themselves are strong contributors to innovation. A recent working paper by the Department of Innovation, Industry, Science and Research (DIISR) titled Migration and the Innovation Agenda, which reviewed international literature on immigration and innovation, argues that a positive correlation exists between immigration and innovation output in domestic economies.
There is no general path towards innovative success, and this introduces considerable diversity and variety in approaches to innovation. Innovation is not something that happens only in a relatively small group of high technology industries, nor something that is driven by a small set of industries or technologies. The service sector is also strongly innovative, and this is particularly important since the service sector is the largest sector in all advanced economies.
Innovation by businesses is not purely the result of independent decision making at the level of the enterprise. Innovation occurs in a system that is shaped by the social and cultural context, the institutional and organisational framework, regulatory systems, infrastructure and processes that distribute knowledge.
Business Skills is a niche category within Australia’s skilled migration program in that it directly creates business, and visa holders become business owners, rather than supporting existing businesses and industries facing skill shortages with a supply of skilled employees.
The program’s objectives are very similar to innovation activities and outcomes:
- generating employment
- increasing the export of Australian goods and services
- increasing the production of goods and services inAustralia
- introducing new or improved technology
- increasing competition and commercial activity
- developing links with international markets
Our capacity for invention and discovery depends on the strength of our national innovation system. General Skilled Migration and the Employer Nomination Scheme will contribute to the national innovation system through the placement of highly skilled people into the domestic workforce. However, these migrants have been selected on the basis of filling skills shortages and medium to long-term skill needs, not specifically on their history or capacity for innovation. The Business Skills program is about increasing entrepreneurial talent and diversifying business expertise in Australia. Therefore, the Business Skills program is ideally positioned to target migrants that have a demonstrated history of innovation and success in business to make a powerful contribution to the national innovation system and too the Australian economy.
