The global talent crunch is real, with “fewer babies, lower high school and college enrollment, rapid wage inflation, near-record unemployment, a skills shortage, the Great Resignation and the remnants of Covid-19 … all conspiring to hinder future business growth.” Securing access to the foreign talent pool is more important than ever before in ensuring that businesses can continue to provide services, innovate, and ultimately grow.
As a business, there are several visa options which can facilitate access to foreign workers, the most appropriate of which will depend on the individual’s skill level, the duration of stay, duties required, and of course, cost.
So what are the options?
This primer sets out a number of employer supported visa options, including the:
- Temporary Skills Shortage (subclass 482) (TSS) visa (see document checklist here);
- Employer Nomination Scheme (subclass 186) (ENS) visa (see document checklist here);
- Global Talent Employer Sponsored (GTES) visa;
- Temporary Work (subclass 400) (400) visa (see document checklist here);
- Training (subclass 407) (407) visa; and
- Skilled Employer Sponsored Regional Visa (subclass 494) (SESR) visa (see document checklist here).
A (very rough) guide to enable you to have an overview of the available visa options depending on your circumstances is as follows:
Type of application |
Minimum level of applicant’s skills/ qualifications |
Regional area requirement |
Complexity of a standard application |
Government fees |
Processing time |
Duration of stay |
TSS | Moderate | No | Moderate | High | Low / Moderate | Up to 4 years (with pathway to permanent residence) |
ENS | Moderate | No | Moderate | High | High | Permanent Residence |
GTES | High | No | High | Moderate | Low / Moderate | Up to 4 years (with pathway to permanent residence) |
400 | Moderate | No | Low | Low | Low | Up to 6 months |
407 | Low | No | Moderate | Low | High | Up to 2 years |
SESR | Moderate | Yes | Moderate | Moderate | Moderate | 5 years (with pathway to permanent residence) |
The below article addresses these different visas and provides guidance to applicants and businesses.
Temporary Skills Shortage (subclass 482) visa
The TSS visa is the work visa, being a temporary visa for skilled foreign workers employed in specified occupations, and allows employers to sponsor workers with suitable skills and qualifications where a suitable Australian worker cannot be sourced. You can read more about this visa here.
There are 3 key stages for TSS application:
Sponsorship
- have a legally established and currently operating business; and
- not have any adverse information regarded against it.
The business then assumes a number of sponsorship obligations, including assuming certain costs, ensuring your employee only works in their nominated occupations, and is subjected to equivalent terms and conditions of employment as your Australian workers. You will only need to apply for the SBS once every 5 years.
Nomination
- be a genuine, full-time position;
- have a salary in line with market rates;
- be subject to Labour Market Testing (see here); and
- be on the relevant occupation lists (see here).
If the position is on the Short-Term Skilled Occupation List (STSOL), the candidate may be eligible for an up to 2-year visa. The applicant will also need to demonstrate that they are a “genuine temporary entrant”.
If the position is on the Medium to Long Term Strategic Skills List (MLTSSL), the candidate may be eligible for an up to 4-year visa.
Visa
- have relevant skills and qualifications that match the role;
- have at least 2 years of experience in a related position;
- have a genuine intention to work in the nominated position;
- meet mandatory licensing, registration, or professional membership requirements;
- have adequate arrangements for health insurance; and
- satisfy health, character, and English requirements.
The applicant’s family members can be included in the TSS visa as secondary applicants, including their spouse/de facto partners and dependent children. They will be granted the same full working rights as the primary applicant, though they are not tied to working for your company.
The TSS visa may also have a pathway to permanent residency via the 186 visa (see below).
Employer Nomination Scheme (subclass 186) visa
The ENS visa allows businesses to sponsor foreign workers on a permanent basis. Nominated workers can already be living and working in or outside Australia. You can read more about this visa.
Though there are a number of streams, the most common are the Temporary Residence Transition (TRT) stream and the Direct Entry (DE) stream. We will not consider the other streams for the purposes of this primer.
In both cases, there are 2 stages for the ENS application, being the nomination and visa (with different requirements for the relevant streams):
Nomination
- if TRT stream, have worked for at least 3 out of the previous 4 years (before the nomination is made) in the nominated position whilst holding a TSS / 457 visa as the primary visa holder;
- the business must be actively and lawfully operating in Australia;
- there must be a genuine need for the visa applicant in the nominated position under its direct control;
- the business must have the capacity to employ the individual in that position for 2 years;
- the position must be full time and available for at least 2 years from the time the visa is granted;
- the position must be an occupation included on the current MLTSSL (unless transitional provisions apply);
- the position must have a salary that is at least (a) $73,150 per annum and (b) at least the annual market salary rate for the nominated occupation; and
- the position must be subject to conditions of employment that are no worse than those that apply (or would apply) to Australians performing equivalent work in the same location.
Visa (TRT stream)
- be under the age of 45 at the time of application (unless exempt);
- have the required skills and qualifications for the position;
- demonstrate a “competent” level of English (unless exempt);
- hold (or be eligible to become the holder of) the relevant license/registration/membership required to perform the tasks of the nominated occupation; and
- meet health and character requirements.
Visa (DE stream)
- be under the age of 45 at the time of application (there are no exemptions);
- have the required skills and qualifications for the position;
- demonstrate a “competent” level of English (unless exempt);
- hold (or be eligible to become the holder of) the relevant license/registration/membership required to perform the tasks of the nominated occupation;
- have their skills assessed as suitable for the occupation by the relevant skills assessing authority; and
- have at least 3 years of full time (38 hours per week) post-qualification work experience in the nominated occupation (DE stream); and
- meet health and character requirements.
The applicant’s family members can be included in the ENS visa application as secondary applicants, including their spouse/de facto partners and dependent children.
Global Talent Employer Sponsored visa
The Global Talent Employer Sponsored program is specifically catered for applicants that are highly skilled and do not fall into the traditional occupations listed in the occupation lists. It essentially utilises the existing labour agreement stream of the TSS visa and employers will have to demonstrate to the Department of Home Affairs that they are unable to fill the position through existing skilled visa programs. You will have to demonstrate that you will be able to provide more opportunities for Australians (such as creating new jobs or transferring skills and knowledge) through this agreement. This visa is valid for up to 4 years and allows access to a permanent residence pathway.
There are 2 main streams for the GTES program:
- Established Business stream and
- Startup stream.
If successful, employers will have:
- access up to 20 positions per year for the Established Business stream;
- access up to 5 positions per year for the Startup stream;
- flexibility to negotiate certain visa criteria (including age and access to 4 year TSS visas); and
- simpler agreement applications and faster processing of agreements.
Common requirements
- you must also be able to demonstrate that you cannot fill the position through existing skilled visa programs;
- demonstrate that access to the program will support job opportunities and skills transfer for Australians;
- submit evidence of labour market testing that the specified positions cannot be filled by Australians; and
- have a good track record with relevant regulatory agencies, including compliance with immigration and workplace laws.
The applicant must:
- meet health, character and security requirements;
- not have any familial relationship with directors/shareholders;
- have relevant qualifications that are commensurate with the highly skilled role;
- at least 3 years of relevant work experience; and
- have capacity to pass on skills/develop Australians.
Additional requirements for Established Business stream
- be a publicly listed company or have an annual turnover for at least AUD 4 million for each of the past 2 years;
- be endorsed as a TSS Accredited Sponsor.
In addition, the visa applicant must:
- be paid annual earnings equivalent to the Fair Work High Income Threshold, being AUD 175,000 at the time of writing;
- meet health, character and security requirements;
- have no familial relationship with directors or shareholders;
- have qualifications commensurate with the highly skilled role;
- have at least 3 years work experience directly relevant to the position;
- have capacity to pass on skills or develop Australians.
Additional requirements for Startup stream
- operate in a technology based or STEM-related field;
- be a viable and genuine startup and be endorsed by the independent GTES startup advisory panel;
- have received either investment of at least AUD50,000 from a registered Early Stage Venture Capital Limited Partnership fund, or an Accelerating Commercialisation Grant.
In addition, the visa applicant must:
- be paid a minimum annual earnings at the market salary rate, though not less than AUD 80,000 (this can include equity but the cash component must be more than AUD 73,150);
- meet health, character and security requirements;
- have no familial relationship with directors or shareholders;
- have qualifications commensurate with the highly skilled role;
- have at least 3 years work experience directly relevant to the position;
- have capacity to pass on skills or develop Australians.
Temporary Work (subclass 400) visa
The 400 visa is a temporary visa that allows applicants working in highly specialised roles to work short-term in Australia. The general period of stay is 3 months; however, certain applications can be granted up to 6 months for strong business cases. There are two streams for this visa, but the most common stream is the “Highly Specialised Work Stream”. You can read more about this visa here.
To be eligible for the 400 visa, the applicant has to satisfy the following criteria:
- have highly specialised skills, knowledge, or experience;
- be able to support yourself and any dependents;
- be a genuine visitor; and
- meet health and character requirements.
Typically, applicants align with ANZSCO Major Groups 1 to 3 (Managers, Professionals, Technicians and Trades Workers), but could also include otherwise highly specialised workers who cannot reasonably be sourced in Australia.
The work also has to be “non-going”, which means that it should conclude in 3 months or so. You will need a strong business case and supporting evidence for visa applications that are longer than 3 months.
There is no minimum salary requirement, but Department policy holds that “Delegates must be alert to persons attempting to obtain a GA-400 visa to avoid the more stringent requirements of the UC-457 visa, particularly in regards to English language and minimum salary level requirements.” As a general rule of thumb, the salary paid during a person’s stay should be according to market rates.
Whilst subclass 400 visa holders allow for family members to accompany them, the family members are unable to work or study in Australia, except to complete a language training course. As such, the applicant must provide evidence of their financial capacity to support a reasonable standard of living for any accompanying family members.
It is also important to note that:
- you cannot apply for a 400 visa while the applicant is onshore; and
- a further 400 visa application which is not far removed from the original 400 visa application could suggest to the Department that the work is “ongoing” in which case the 400 visa may be refused. A TSS visa may be more appropriate in these circumstances (see above).
Training (subclass 407)
The 407 visa allows visa holders to take part in workplace-based occupational training activities to improve their skills for their job, area of tertiary study, field of expertise or in a professional development training program in Australia. This can be applied onshore or offshore, and the applicants can live in Australia for up to 2 years. This visa does not have a direct pathway to permanent residence, but it can enable the visa holder to apply for a TSS visa and potentially the ENS visa (as above).
There are 3 key stages for a 407 application:
Sponsorship
- have a legally established and currently operating business in Australia;
- not have any adverse information regarded against it; and
- provide evidence that it has financial capacity to meet its sponsorship obligations.
The business undertakes a number of sponsorship obligations, including to assume certain costs and ensuring that the visa holder only works or participates in the nominated occupation, program or activity. You will only need to apply for the TAS once every 5 years.
Nomination
- Occupational training required for registration
- Occupational training to improve skills in an eligible occupation
- Occupational training for capacity building overseas
Occupational training required for registration
This is applicable where workplace-based training is required to get occupational registration, membership, or licensing. The registration, membership, or licensing is mandatory to work in that occupation in Australia or the applicant’s home country.
Occupational training to improve skills in an eligible occupation
Workplace-based structured training programs that:
- is specifically tailored and timed to the training needs of the nominated person;
- is in relation to an occupation specified on the list of eligible skilled occupations;
- involves an applicant who has at least 12 months of full-time experience in the occupation within the last 24 months.
Occupational training for capacity building overseas
This is further split into 3 different categories:
- Overseas qualification, which is structured workplace-based training in Australia for up to 6 months for students who:
- are currently enrolled in a foreign educational institution
- must complete a period of practical training, research or observation to get their qualification and
- where the training must be specifically tailored to the training needs of the nominated person.
- Government support, which is structured workplace-based occupational training which has:
- the support of a government agency in Australia or
- the government in the home country of the nominated trainee and
- where the training is specifically tailored and timed to the training needs of the nominated person.
- Professional development, where programs are delivered in face-to-face teaching in a classroom or similar environment in Australia.
- This is for overseas employers to send their managerial or professional employees.
Visa
- be at least 18 years of age;
- demonstrate financial capacity to support themselves (and their dependents, if any) for the duration of stay in Australia;
- be a genuine temporary entrant;
- have adequate arrangements for health insurance; and
- satisfy health, character, and English requirements.
The applicant’s family members can be included in the 407 visa as secondary applicants, including their spouse/de facto partners and dependent children.
Skilled Employer Sponsored Regional (SESR) (subclass 494) visa
The SESR visa is a temporary, employer sponsored 5-year visa for skilled foreign workers employed in positions located in “designated regional areas”. The visa offers pathways to permanent residency after 3 years via the Skilled Regional (subclass 191) visa, though the subclass 191 does not require a sponsor. Unless you have a Labour Agreement with the Australian Government, you will likely need to apply under the Employer Sponsored Stream. You can read more about this visa here.
There are 3 key stages for SESR application:
Sponsorship
- have a legally established and currently operating business; and
- have not any adverse information regarded against it.
The business undertakes a number of sponsorship obligations, including assuming certain costs, ensuring your employee only works in the nominated occupations and is subjected to equivalent terms and conditions of employment to your Australian workers. You will only need to apply for the SBS once every 5 years.
Nomination
- be a genuine, full-time position that is available for at least 5 years;
- be in a designated regional area;
- approved by an appropriate certification board;
- have a salary in line with market rates;
- be subject to Labour Market Testing (see here); and
- be on the relevant occupation list.
Visa
- have relevant skills and qualifications that match the role;
- have at least 3 years of experience in a related position in the last 5 years;
- be under the age of 45 at time of application (unless exempt);
- have a positive skills assessment (unless exempt);
- satisfy health, character, and English requirements; and
- hold a substantive visa (or a Bridging visa A, B or C) if applying in Australia.
Most locations of Australia outside major cities (Sydney, Melbourne, and Brisbane) are classed as designated regional areas for migration purposes (see Designated regional area postcodes).
The applicant’s family members can be included in the SESR visa as secondary applicants, including their spouse/de facto partners and dependent children.
Once approved, the visa grant will have Condition 8579 attached, being that the visa holder must live, work and study only in a part of Australia that was a designated regional area at the time the relevant nomination in relation to the primary visa holder was made.
Fees
TSS / GTESMost Common
ENS
400
407
SESR
As the government fees can be complex, please refer to our cost calculator here for a more accurate quote, or directly contact us (details below).
Next Steps
There are various types of visas available for you to support your current and potential employees, depending on the applicant’s skillsets, employment location and duration of stay. If you have any questions about the best visa pathway to pursue, feel free to contact us by email at [email protected] or phone +61 3 9016 0484 to obtain further guidance.