In March 2022, the Australian Government introduced new legislative provisions to continue transitional arrangements for 457 visa holders (pre-18 April 2017) and to create permanent residence pathways for previously excluded 457 visa holders (post-April 18 2017). This article will examine the recent changes for the permanent residence pathway for 457 visa holders, via the 186 Visa (Temporary Residence Transition stream), positively impacting those who supported Australian businesses during the COVID-19 pandemic.
Previous Transitional Arrangements for 457 Visa Holders for Permanent Residency
The Australian Government implemented transitional arrangements after abolishing the 457 visas in March 2018. These aimed to ensure 457 visa holders could still access permanent residency via the 186 Visa (Temporary Residence Transition stream).
The transitional arrangements were in effect for grandfathered 457 visa holders from 18 March 2018 to 18 March 2022. Grandfathered 457 visa holders are those who:
- held a 457 visa before 18 April 2017; or
- applied for a 457 visa before this date, with the visa subsequently being granted.
457 Visa Holders Pre-18 April 2017
The government introduced new legislation on 18 March 2022 to keep these transitional arrangements in place. To apply for permanent residency via the 186 Visa (Temporary Residence Transition Stream), 457 visa holders must:
- have held or applied for a 457 visa before 18 April 2017, with a subsequently granted visa; and
- work in the nominated position with the same employer for at least two years. COVID-19 unpaid leave periods or COVID-19 reduced work periods will not impact the calculation of these 2 years. However, periods of unpaid leave will not count towards the two-year requirement.
457 Visa Holders Post-18 April 2017
The recent change in law also captures individuals who, after 18 April 2017:
- apply for and receive a subclass 457 visa;
- have been in Australia for at least 12 months between 1 February 2020 and 14 December 2021; and
- at the time of application, are employed by someone actively and lawfully operating a business in Australia.
These changes also cover subclass 457 visa holders who:
- could not access the previous transitional arrangements (as opposed to 457 visa holders pre-18 April 2017); and
- hold an occupation that is not on the medium-long term stream.
457 visa holders with an ANZSCO occupation on the medium-long term stream may also consider applying for the 186 visa (Direct Entry stream).
Age Exemption for 457 Visa Holders
If you are a 457 visa holder applying for the 186 Visa (Temporary Residence Transition stream), you do not have to meet the age requirement (to be under 45 years of age at the time of application) if you meet the following criteria:
- have held a subclass 457 visa on or after 18 April 2017; and
- have been in Australia between 1 February 2020 and 14 December 2021 for at least one year; and
- meet all other nomination and visa requirements.
The Department of Home Affairs has indicated that these age exemption criteria are in place for two years from 1 July 2022.
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Key Takeaways
In summary, this is a welcome change for 457 visa holders, specifically those who applied and were subsequently granted the visa after 18 April 2017. It beneficially impacts many temporary visa holders and Australian employers. Furthermore, the changes demonstrate that the Australian Government is heeding the Australian community’s concerns. Moreover, they recognise the significant contribution of 457 visa holders (particularly in short-term occupations) to the economy during the COVID-19 pandemic.
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Frequently Asked Questions
This list summarises the occupations for which there is a gap in the labour market. The Australian government’s intent is to encourage employers to sponsor skilled migrants from overseas to work in these fields in Australia.
The 186 visa is a permanent residency visa. There are two streams: (i) Temporary Residence Transition, and (ii) Direct Entry streams.
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