457 and Associated Visa Reforms - What You Need to Know

John Doe • April 21, 2017

The surprise announcement by the Prime Minister regarding the axing of the 457 Visa program has created a great deal of uncertainty for employers and foreign workers. Apart from the gazetted list of new occupations, there has been no new legislation or official policy guidance notes released by the Immigration Department. Our team at FCB Smart Visa has however curated all available information to cut through some of the ambiguity and misinformation circulating at present.At the outset, the abolition of the 457 visa program announced by Prime Minister Malcolm Turnbull on Tuesday 18 April 2017 is not a wholesale abolition of the employer sponsored visa regime. The politically charged 457 visa program will instead be replaced from March 2018 with a new category of visa, namely the Temporary Skill Shortage (‘TSS’) visa (subject to passage through both houses of parliament).

The headline features of the new TSS visa program will include: - Establishment of a consolidated training fund for sponsors - At least 2 years of relevant work experience for the nominee in the nominated occupation irrespective of whether the applicant otherwise meets the formal qualifications threshold under the Australia and New Zealand Standard Classification of Occupations (ANZSCO) classification - Universal 'Vocational English’ requirement - Universal Labour Market Testing requirement (unless inconsistent with an international obligation) - Mandatory criminal history checks for applicants - Introduction of a two-tiered list of occupations for regional and non-regional Australia The Commonwealth Government has already commenced phase one of the reform process and the staggered implementation timeline - as advised by the DIBP - is set out below:

Changes to temporary sponsored migration with immediate effect from 19 April 2017

1. List/s of ‘Sponsorable’ Occupations:

The previous list of occupations used to nominate a person in certain sponsored visa categories (referred to as the Consolidated Sponsored Occupation List or ‘CSOL’) has been effectively replaced by a combination of two new lists; the ‘Short-Term Skilled Occupation List’ (STSOL) containing 268 occupations and the ‘Medium and Long-term Strategic Skills List’ (MLTSSL) containing 183 occupations (the MLTSSL and STSOL are contained as Schedules 1 and 2 here ). All but 16 of the 451 occupations contained within these two lists currently apply to the following visa categories: - Temporary Worker (Skilled) Subclass 457 visas - Skilled Nominated Subclass 190 visas - State Nominated Skilled Regional Provisional Subclass 489 visas - Employer Nomination Scheme Subclass 186 visas (Direct Entry) - Training Subclass 407 visas As a result of the changes the overall number of occupations that can support a subclass 457 visa application has effectively been reduced by 216 (to 435) Of the 435 occupations now remaining, 24 farming and agriculture occupations are restricted to regional Australia , and a further 59 are effectively restricted by a set of ‘caveats’ which impose additional criteria relating to factors such as work experience, place of work, rate of pay, and mandated minimums for number of staff and business turnover. It is unclear at this stage whether the additional business related criteria will apply to the sponsoring entity itself, or can also be applied to an associated entity of the sponsor where it is the direct employer of the visa holder.

2. Visa validity periods

457 visas based on STSOL occupations and approved on or after 19 April 2017 will be granted for a period of 2 years. Visa grants of up to 4 years are possible only where the nominated occupation is drawn from the eligible occupation in the MLTSSL. The respective lists are reviewed twice a year.

Changes to temporary sponsored migration with effect from 1 July 2017

First of regular revisions to the STSOL and MLTSSL - Mandatory police clearances for 457 visa applicants will be phased in - Removal of the English Language exemptions for base salaries over $96,400

Changes to temporary sponsored migration with effect from December 2017

The DIBP will collect Tax File Numbers from visa holders and match with ATO data - The DIBP will publish a register of sponsors found to be non-compliant with sponsorship obligations

Changes to temporary sponsored migration with effect from March 2018

By March 2018, subclass 457 visas will be replaced by the new TSS visa regime (subclass is yet to be confirmed) and comprise a two-year short-term stream (STSOL occupations)and 4-year medium term stream for occupations on the MLTSSL. In addition to universal language assessment, mandated work experience (two years), criminal history checks, LMT and new training requirements for the sponsor, the respective streams will have the following attributes:

Short-term stream TSS visa Can only be renewed once (although possibly more than once if the holder is offshore) Will not have access to employer-nominated permanent skilled migration Medium-term stream TSS visa Can be renewed multiple times whilst onshore Provides a pathway to employer-nominated permanent residence after a 3 year qualifying period Associated changes to employer nominated permanent migration (ENS/RSMS) Changes to the employer nominated permanent residence visa categories are largely consequential to the reform of the 457 visa program.

Changes to permanent sponsored migration with effect from 19 April 2017

From 19 April 2017 until March 2018, new applicants for an employer nominated, subclass 186 visa under the Direct Entry stream can be nominated in an occupation on either of the STSOL or MLTSSL (minus the 16 occupations as per the above). Applications for a subclass 186 in the Temporary Residence Transition stream do not currently refer to a specific occupation list and instead will continue under current legislative criteria for the time being. We understand that in practice this means people with 457s granted under the 216 occupations removed from the 457 list on 19 April 2017 can still obtain permanent residence, as long as they reach 2 years of employment on their 457 with their current sponsor and lodge an application before March 2018. In relation to RSMS visas, there will be no immediate change to the rules for a subclass 187 application in the Temporary Residence Transition stream, and the current gazetted list of occupations relevant to a subclass 187 visa in the Direct Entry stream remains the same for the time being.

Changes to permanent sponsored migration with effect from July 2017 - Introduction of a universal English language assessment requiring an International English Language Testing System (IELTS) (or equivalent test) score of 6 in each component - Time of application age limit of 45 for all Direct Entry stream applicants (remaining at 50 for applicants under the temporary Residence Transition stream)

Changes to temporary sponsored migration with effect from December 2017

The DIBP will collect Tax File Numbers from visa holders and match with ATO data - The DIBP will publish a register of sponsors found to be non-compliant with sponsorship obligations

Changes to permanent sponsored migration with effect from March 2018

The permanent residence eligibility period will be extended from two to three years - Only MLTSSL occupations can be used to nominate under the ENS/RSMS (with additional occupations available to support regional employers for the RSMS). It appears as though applicants who need to traverse this date to make up their 3 years on a 457 will be blocked from applying for the 186 if their occupation is not on the MLTSSL - The Temporary Skilled Migration Income Threshold will apply to ENS and RSMS - All applicants must be under the maximum age requirement of 45 at the time of application (we are as yet unaware of any exemptions that might apply) - At least three years’ relevant work experience will be required for all ENS/RSMS applicants In addition to the employer sponsored categories dealt with above, the Government’s reform package has major implications for applicants in other parts of the migration program, and for those wishing to become Australian citizens by conferral. If you or your staff are affected and require assistance to navigate these substantial changes, please contact one of our immigration specialists on (+612) 9922 5188 or [email protected]

Find the job you love I Find the right talent
Get in touch with people2people
Australia   I    United Kingdom

In business since 2002 in Australia, NZ, and the United Kingdom, people2people is an award-winning recruitment agency with people at our heart. With over 12 offices, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 Outstanding Large Agency and Excellence in Candidate Care Awards, we are dedicated to helping businesses achieve success through a people-first approach.

Recent articles

The Rise of Temp and Contract Hiring: A Win-Win in the UK Market

By Maddy Laing • May 19, 2025
As businesses continue to navigate economic uncertainty, temporary and contract hiring has emerged as a flexible and strategic solution in the United Kingdom. With companies needing to adapt quickly to shifting market conditions, this hiring model is proving increasingly relevant. Temporary roles are no longer just short-term fixes; they are playing a significant role in long-term talent strategies. According to Maddy Laing, Senior Recruitment Consultant at people2people, this hiring shift is being driven by caution around long-term commitments. "When businesses aren't sure about what the next few months look like, committing to a permanent role does sometimes feel like too much. That's when a temporary contract hire comes in." "Temps can be brought in really quickly, often within a day or even a couple of hours" In today’s landscape, agility is everything. Temp staff help businesses respond rapidly to seasonal demands, cover long-term absences like maternity leave, or support project-based work. Financially, this approach often proves cost-effective—companies only pay for the hours worked, avoiding many of the additional expenses tied to permanent roles. Host Liz Jones, UK Managing Director at people2people, explores both sides of the temp hiring equation. On the business side, it’s about flexibility, fast onboarding, and lower risk. For job seekers, it’s about opportunities to gain skills, expand networks, and even transition to permanent employment. Laing points out that despite the hesitation some candidates feel about temporary roles, the experience gained can be a major career booster. "You get the chance to build new skills, work in a different environment, work for a different team or company and learn new systems as well," she says. "That kind of experience can really make a difference in the long term and make you more marketable for permanent roles." Some temporary roles also offer higher pay due to urgent needs or niche skill requirements. And in many cases, exceptional temporary employees are offered permanent positions when companies want to retain their talent. For recruitment agencies, strong performers are often placed repeatedly across valued client accounts. Flexibility is another key advantage. For those between permanent jobs or seeking work-life balance, temporary roles offer the freedom to work for a few months and then take a break. And with longer placements, many temp workers receive the same benefits as permanent staff, including the possibility of remote work. As Laing summarises, "Versatile, efficient, and often comes with a lot of big opportunities. That's probably the most impressive thing we always see with temp and contract work."  In today’s dynamic market, overlooking temporary and contract roles might mean missing out on valuable career and business opportunities. Whether you’re an employer looking to stay agile or a job seeker navigating a transitional period, this hiring model offers real value and potential.

Temporary Hiring as Strategy: Why UK Businesses Must Rethink Flexibility in 2025

By Liz Jones • May 19, 2025
In today's rapidly evolving UK job market, businesses are re-evaluating how they approach hiring. With economic shifts, digital transformation, and workplace flexibility becoming more prevalent, temporary hiring is emerging not as a short-term fix, but as a strategic tool for long-term growth. On a recent PTP Live episode, host Hannah Slee and guest Maddy Laing, Senior Recruitment Consultant at people2people, discussed this very shift. The conversation focused on dismantling outdated myths around temp roles and spotlighting how companies can use them as a powerful workforce strategy. "Temp hires today can be a really big strategic fix" Temporary roles have traditionally been seen as a last resort—a bandaid solution to cover staff absences or urgent vacancies. But as Laing explains, the game has changed. "Because of massive changes around economic uncertainty, new regulations, even AI and digital transformations, the way temporary hires are looked at is really evolving." These roles now often bring in skilled consultants, project leads, and industry experts who opt for temp work due to the flexibility and variety it offers. Businesses are also using temp hiring as a way to test new positions or headcounts without the risk of permanent commitment. In effect, temp staff provide not only capacity but also fresh perspectives and innovation. Slee adds, "Temp talent isn't just a safety net. It's really a competitive advantage." Companies can onboard quickly, scale up efficiently during peak periods, and stay agile in times of change—all without the overheads associated with permanent roles. Moreover, the quality of temp candidates has seen a significant uplift. As Laing notes, "The quality of temp work and the quality of temp hires and jobs has also really changed for the positive." Far from being a fallback, temporary work can drive significant value and often leads to longer-term opportunities. Another rising trend is using temp roles as a pipeline for permanent hires. When a temporary employee proves to be a great fit, many businesses are keen to retain them permanently, turning a short-term solution into a long-term asset. Businesses that continue to view temp hires as a last resort may find themselves missing out on talent, efficiency, and adaptability. The smartest organisations are already integrating flexible hiring into their broader strategy, recognising that these professionals can fill immediate needs while fuelling innovation and growth. As Laing summarises, "If you're still thinking of temp hires as a last resort, then I definitely think you're really missing out on a lot of potential."  In a job market where 72% of professionals are considering a job change, it's clear that flexibility and strategic hiring are more important than ever. Whether you're navigating transformation, covering a gap, or planning for growth, now is the time to rethink the role of temporary staff in your business.

Job Hunting Abroad: Practical Steps for a Smooth Move to the UK

By Maddy Laing • May 19, 2025
As international travel opens up and more professionals seek overseas opportunities, finding work abroad remains a compelling yet complex challenge. For those eyeing a move to the United Kingdom, preparation is the critical factor that separates a smooth transition from a stressful one. While visa options are fairly accessible for Australians relocating to the UK, securing employment is often the real hurdle. According to Maddy Laing, Senior Recruitment Consultant at people2people, the initial excitement of moving abroad is quickly followed by the practical challenge of job hunting. "Doing your research before you arrive makes all the difference," she says, emphasising that preparedness is key to navigating the UK job market effectively. "Make sure you have your status set to the correct country" One of the first and most impactful steps a job seeker can take is updating their LinkedIn profile. Laing stresses that setting your job search status to the correct location—like London rather than your current city—helps recruiters find you. It provides visibility and signals intent. "LinkedIn is a huge advantage and a really big network people need to look into, especially when you're moving to a new job and looking for new work." Work eligibility is another cornerstone of successful job applications. As Laing points out, being able to clearly explain your visa status is essential. Recruiters and employers need immediate clarity on whether a candidate can be legally hired, and uncertainty here can lead to delays or lost opportunities. Connecting with local recruiters before arriving is another strategic move. Beyond job matching, recruiters offer invaluable market insights—like which roles are in demand, realistic salary expectations, and industry trends. "Even if you're not ready to apply just yet, those early conversations can set you up with better expectations and a clearer understanding of the landscape," says Laing. Preparation extends to researching local salaries, which may not match what candidates earn in their home country. Factors like cost of living, supply and demand, and economic shifts all play a role in salary levels. Laing notes, "Just because you earn a certain salary in a previous country, doesn't mean that you're going to earn that same salary where you're going." A personal and professional network is also invaluable. Reaching out to former colleagues, friends, or even LinkedIn connections can lead to opportunities that haven't hit the open market yet. Laing encourages prospective movers to engage with their network early: "Put a post out there, start to chat to people, connect on their posts, and opportunities may come through that way." Host Hannah Slee, Recruitment Manager at people2people, adds that the UK job market is showing cautious optimism. With employment up and vacancy rates stabilising, there's reason for hopeful candidates to be encouraged. While traditional sectors like retail continue to face challenges, areas such as tech, professional services, and immersive technologies are experiencing growth. That said, some challenges remain. Unemployment has slightly increased, and economic inactivity remains high, driven largely by longer-term health issues. These trends continue to shape talent availability and influence hiring strategies across sectors. If you're planning a move to the UK, the key takeaways are clear: start early, make use of digital tools like LinkedIn, be transparent about your work eligibility, and tap into local recruiter expertise. Aligning expectations with local realities and activating your network could make all the difference in your overseas job search. Laing concludes with a reassuring message: "If you're planning to move to the UK and to London, definitely we can help you with your job search or any questions that you may have." For professionals ready to embrace the UK job market, a proactive and informed approach will pave the way to success. 

Is Your Business Ready for the Financial Year? Strategic Hiring Insights

By Liz Jones • May 19, 2025
As the United Kingdom edges closer to a new financial year, businesses across the region are taking stock of their hiring strategies and workforce plans. A recurring theme is the importance of readiness, especially in a market where timing and preparation can make or break recruitment outcomes. According to recent insights, many companies remain uncertain about headcount budgets and future role requirements. This hesitation often stems from a lack of clarity in strategic planning, making it increasingly difficult to align recruitment with business goals. In today’s hiring landscape, the ability to plan ahead and forecast talent needs is no longer a luxury—it's essential. Recruitment experts are observing a notable shift. No longer are businesses simply approaching agencies with job specifications. Instead, they seek comprehensive market insights, including salary benchmarks and team structuring advice. This proactive engagement indicates that organisations are beginning to understand that recruitment strategy is deeply entwined with overall business success. "Strategic planning isn't just a financial thing" Maddy Laing, Senior Recruitment Consultant at people2people, highlights a common issue: "A lot of businesses do need to be prepared and think that they should be prepared. But once you actually dig into the details, especially around recruitment, there's usually some gaps that do need attention." Laing notes that businesses frequently fall into a reactive hiring mode, only deciding on needs once the new quarter has begun. This often results in top candidates being snapped up by more prepared competitors. "When you do recruit within a reactive process, chances are that the top candidate's already gone," she says. The shift towards strategic recruitment is echoed by Liz Jones, UK Managing Director at people2people, who notes, "Businesses aren't just coming to us with job specs. They're asking for market insights, salary trends, even advice on team structure. That early planning really makes such a difference." To combat recruitment pitfalls and build stronger hiring frameworks, both experts advocate for a structured approach. The first step is to review past recruitment patterns: which roles were hardest to fill, where growth occurred, and where gaps still exist. This data provides a solid foundation for future hiring plans. Next, it’s crucial to align hiring goals with business objectives. Whether expanding into a new region or launching a new product, understanding the type of team needed to support these initiatives is key. Laing advises, "Make sure that they are matching and in alignment... what kind of team will you need to support this and how is that going to be different to what you may have hired last year?" Retention also plays a critical role. Planning is not solely about acquiring new talent but also about keeping existing staff engaged and in the right roles. As Jones points out, "Maybe you don't need to hire many if you're investing in developing your current team." Final advice for businesses looking to stay ahead in the financial year? Collaboration. Laing stresses, "Don't plan in isolation... talk to your internal recruitment team, talk to hiring managers... and even some of your current employees." The more perspectives gathered, the stronger and more effective the hiring strategy. In a competitive market like the UK, strategic recruitment planning isn’t just beneficial—it’s essential. With the financial year fast approaching, now is the time for businesses to shift gears, adopt a proactive stance, and ensure that their hiring strategy supports long-term growth.

Employee Monitoring: Is Your Oversight Strategy Hurting Retention?

By Liz Jones • April 16, 2025
Over half of UK employees would consider quitting if they discovered their employer was monitoring them, according to recent research. With 85% of businesses admitting to tracking screen activity and website usage, employee trust is at risk. In this blog, people2people’s UK Managing Director Liz Jones explores the impact of surveillance on workplace culture, stress, and retention. Learn how to strike the right balance between oversight and autonomy, with practical strategies to build a trust-first culture that supports both performance and wellbeing. Is your business protecting productivity—or pushing your top talent away? Read more to find out.

Latest Media Features

Get in touch

Find out more by contacting one of our specialisat recruitment consultants across Australia, New Zealand, and the United Kingdom.

Contact us