Introduction
The Temporary Skill Shortage (TSS) visa, also known as subclass 482, came into effect in March 2018, replacing the Temporary Work (Skilled) (subclass 457) visa. It was designed to meet skills shortages in the Australian labour market while ensuring the protection of local jobs, wages, and conditions. It allows employers to sponsor overseas workers where no Australian workers are available. As long as visa holders continue to work for their sponsoring employer, they can stay in Australia for up to 2–5 years. There’s no cap on the number of visas that can be granted each year, which provides flexibility in addressing the skills gap.
Benefits to Australian Businesses
- Filling Skill Gaps: The primary benefit of the TSS visa is that it enables Australian businesses to address skills shortages. If a business is unable to find local workers with the necessary skills, it can sponsor overseas workers to fill those roles.
- Flexibility and Mobility: The TSS visa offers businesses a great deal of flexibility. There are no limits on the number of visas that can be granted each year, allowing businesses to adjust their workforce as needed. Also, the visa includes three streams – Short-term, Medium-term, and Labour Agreement – which gives businesses the ability to bring in overseas workers for different durations and skill levels.
- Global Talent Access: With the TSS visa, businesses can access a global pool of talent. This is especially advantageous for industries that require highly specialised skills.
Challenges for Australian Businesses
- Costs: There are several costs associated with sponsoring a worker on a TSS visa. These include a standard business sponsorship fee, a nomination fee per worker, and the Skilling Australians Fund levy for each worker. These costs can add up and might be a deterrent for smaller businesses.
- Labour Market Testing Requirements: Businesses must undertake labour market testing to show they can’t find an Australian resident to do the work. This generally requires advertising the position for at least four weeks within the four-month period immediately prior to lodging the nomination application. This process can be time-consuming and may slow down the recruitment process.
- Salary Requirements: If the worker will earn less than $250,000 a year, businesses must pay them at least the Temporary Skilled Migration Income Threshold (TSMIT), currently set at $53,900, and the annual market salary rate. This requirement ensures that overseas workers are not exploited, but it may be a challenge for businesses in industries where wages are generally lower.
The Temporary Skill Shortage visa presents both opportunities and challenges for Australian businesses. While it offers a solution for skills shortages and provides access to global talent, it also comes with considerable costs and requirements. Businesses must carefully consider these factors when deciding whether to sponsor overseas workers.