The permanent employer-sponsored visa program currently consists of the following: • the Employer Nomination Scheme (ENS) • the Regional Sponsored Migration Scheme (RSMS) • permanent Labour Agreements. These visas allow employers to sponsor foreign workers for permanent residence to fill genuine vacancies in their business. The permanent employer-sponsored program is the fastest growing component of the Skill Stream of the Migration Program. In terms of employment and economic outcomes it is one of the best performing visa categories, 96 per cent of migrants who were granted an ENS visa work full time and earn a median income of AUD77 000 per annum.

From 1 July 2012, in order to apply for a General Skilled Migration (GSM) visa you will need to lodge an Expression of Interest (EOI) through SkillSelect and be invited to apply. Visa applicants who have pre-arranged employment and who want to migrate to Australia through one of the permanent employer-sponsored programs can by-pass the EOI process. However, if you do not have pre-arranged employment you can lodge an EOI through SkillSelect and indicate that you are interested in finding employment in Australia. Employers who are looking for skilled workers for their business will be able to search the EOI database to see if they can find people with the skills, qualifications and experience they require.

The employer-sponsored programs are designed to enable employers to respond to short to medium term labour market needs. A wide range of skilled occupations are eligible for this category, provided an employer is willing to sponsor you. The independent points tested skilled migration programs, which do not require an employer sponsor, are for Australia’s medium to long term skills needs. They are sharply focussed on helping to build Australia’s future. Only occupations from a limited list of high value skilled occupations are eligible for this category and you must have a range of skills and attributes. Both the subclass 457 and permanent employer-sponsored programs require employers or sponsors to either train or allocate funds for training of their workforce including Australians and permanent residents as their contribution to skilling up the workforce. Skilled migration seeks to complement opportunities for Australians and not adversely impact on Australian wages and conditions

The Skilled Migration program has a limited supply of places and we want to make sure that we get the best migrants who will be able to make the greatest contribution to Australia (economically and socially). There is no doubt that we need people – Australia has always been privileged to have more opportunities than we do people. The permanent employer-sponsored visa program reforms are part of the broader review of the Skilled Migration Program. These reforms will improve the operation and effectiveness of the permanent employer-sponsored visa categories. In addition, in the 2011-12 Budget, the government announced that it would establish a simplified pathway from the Temporary Long Stay (Business) subclass 457 visa to permanent residence through the permanent employer-sponsored visa program. To identify the best way to establish this pathway a review of the program was conducted and recommendations were given to the government. The review found that while the permanent employer-sponsored program performs well there is scope for simplification, reducing administrative costs for program users and the department, and in improving program integrity. In addition, there will be greater checks and balances in the programs to ensure that these prospective migrants who have not been tested in the Australian labour market succeed.

These reforms will ensure that the skilled migration program continues to deliver benefits to the economy through greater productivity and migrant employment outcomes. They will ensure that the employer-sponsored programs continue to be responsive to labour market pressures and address short to medium term demand for specific skills. Furthermore, these reforms will make it easier for subclass 457 visa holders to transition from temporary residence to permanent residence after they have worked for their employer sponsor for at least two years and will continue to do so after their permanent residence visa is granted.

The key reforms include: • simplifying the current visa structure • introducing a streamlined and simplified pathway to permanent residence for eligible subclass 457 visa holders •changing the upper age limit from less than 45 to less than 50 years of age • changing to key visa criteria including English language and skill requirements • introducing one consolidated sponsored occupation list to replace the 457, ENSOL and StatSOL occupation lists • strategically refocussing the Regional Certifying Body (RCB) network to the Direct Entry stream of RSMS • integrating the new ENS and RSMS visas with the skilled migrant selection model, SkillSelect, which will be launched on 1 July 2012.

More information about the skilled migration program reforms is available on the department’s website. See: www.immi.gov.au/skilled/ If you have a specific question relating to the permanent employer-sponsored visa program reforms, you can email the Sponsored Skilled section. Email: [email protected]

An Employer Nomination (Class EN) Employer Nomination Scheme (Subclass 186) visa, with: A Temporary Residence Transition stream A Direct Entry stream An Agreements stream

The Temporary Residence Transition stream is for applicants who have been working in their nominated occupation with their sponsoring employer for the last two years as a subclass 457 visa holder, and their employer wants to sponsor them for permanent residence in the same occupation, in order to retain their skills within the business. The Direct Entry stream is for applicants who are not eligible to apply for either of the other streams. That is, applicants who are outside Australia, are in Australia but have not currently hold a subclass 457, or do but have not held it for the required two year period, or applicants who are not being sponsored under an Agreement The Agreements stream is for applicants who are being sponsored by an employer through a Labour or Regional Migration Agreement which provides a permanent residence option.

For the Temporary Residence Transition stream you must be holding a subclass 457 visa and have been with your employer in the nominated occupation for at least two years. For the Direct Entry stream you must hold a substantive visa, or a bridging visa A, B or C.

No. The schedule 3 criteria will not apply to permanent employer-sponsored visas from 1 July 2012.

From 1 July 2012 the age requirement will be increased from less than 45 to less than 50 years of age. Exemptions for age may include: • people nominated in specific occupations where the typical age profile is older due to the specialised or technical nature of their work, for example Ministers of Religion and researchers of scientists employed by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) or the Australian Nuclear Science and Technology Organisation (ANSTO) • people who have worked full–time in Australia for the last four years on a subclass 457 for their sponsor and have been and will continue to be paid a salary equivalent to the Fair Work Australia High Income Threshold (AUD118 100 as at 1 July 2011).

There will be changes to the current English language requirements for permanent employer-sponsored visa applicants. Currently ENS applicants need to demonstrate they have a vocational level of English language proficiency. This is equivalent to an International English Language Testing System (IELTS) test score of 5 in each component of speaking, reading, writing and listening. RSMS applicants should have a functional level of English, which is an average IELTS score of 4.5 From 1 July the English language requirement will be determined by the stream that you apply for. Temporary Residence Transition stream applicants must demonstrate that they have English language ability commensurate with the Subclass 457 visa requirement. That is, an IELTS score of 5 in each test component of speaking, reading, writing and listening. They will not be required to undertake another test if they have done one for their subclass 457 visa in the last three years, or for the purposes of obtaining their license or registration and the requirement was an IELTS score of 5 or higher, or a ‘B score’ in the Occupational English Test (OET). Direct Entry stream applicants will need to have at least competent English, which requires a minimum IELTS score of 6 in each component of the test or a ‘B Score’ in the OET. Agreements stream applicants may be subjected to lower English levels if this has been negotiated as part of the associated Agreement. Exemptions to the English language requirement may be available to applicants: • nominated in an occupation that the Minister for Immigration and Citizenship determines is exempt, for instance Ministers of Religion • who are a citizen of and hold a valid passport from the United Kingdom, the United States of America, Canada, the Republic of Ireland or New Zealand • applying through the Temporary Residence Transition stream and have completed at least five consecutive years of full-time study in a secondary and/or higher education institution where all of the tuition was delivered in English.

English is an important attribute that contributes to labour market and social outcomes. The English language requirement is changing to ensure that migrants can participate in the community and the workplace in order to make the best contribution to Australia. In addition, the changes to the English language requirement will ensure that workers are not in a situation with little bargaining power, are not vulnerable to potential exploitation because they are more likely to be unaware of their workplace rights and confused about options available to them to rectify any complaints.

Yes. The skill requirement you need to meet will depend on the visa stream you apply for. If you are applying for an ENS visa through the Temporary Residence Transition stream you will be deemed to have met the skill requirement because you have been employed for two years or more on a subclass 457 and your employer continues to want to sponsor you in the same occupation for permanent residence. Your skills will have already been proven. Applicants who apply for an ENS visa through the Direct Entry stream will be required to provide a positive skills assessment and show that they have three years relevant work experience. Exemptions will be available to applicants who are employed in any of the following: • in an occupation where formal academic training is uncommon, such as Ministers of Religion • in an occupation where they would be paid executive-level salaries (currently AUD250 000) • by Australian universities or scientific research agencies such as the CSIRO or ANSTO for research, academic, scientific or other specialist work. ENS Agreement stream applicants will need to demonstrate that they have the skills, qualification or experience as required by the relevant Agreement.

Currently, if an applicant is older than the upper age limit, or they do not have the required level of English or cannot meet the skill or qualification requirements it is possible to grant them a visa, but they must demonstrate that exceptional circumstances exist in their case. From 1 July 2012 the subjective exceptional circumstance provisions will be replaced with more objective exemptions. This will allow the program to continue to respond to unique and special cases.

The current exceptional circumstance provisions are subjective and administratively difficult to manage. Introducing a new exemption model that is objective will provide more certainty and clarity for clients while also ensuring that the programs continue to have a responsive and flexible ‘safety net’ to cater to those cases where there are circumstances that justify an exemption from outside the main requirements.

If you are unable to meet the higher benchmark for the Direct Entry stream, and are not exempt, you may still have a skilled visa option. You may be able to obtain a subclass 457 visa first and, if your employer wants to continue to sponsor you after two years work in Australia, you may be eligible to qualify for the streamlined, fast-tracked, Temporary Residence Transition stream

Many of the applicants who will be coming through this stream will have little to no exposure to the Australian labour market. People who meet the new eligibility thresholds will be able to compete in the Australian labour market outside of the economic cycle while also being able to make their best contribution to and participate in life in Australia.

No. Any subclass 457 visa holder who was granted their visa on the basis of a Labour or Regional Migration Agreement would only be able to access permanent residence if the Agreement also offers a permanent residence option. They would then be eligible to apply through the ENS or RSMS Agreements stream. If the Agreement does not offer a permanent option, but their employer is eager to nominate them for permanent residence, and their occupation is on the new consolidated sponsored occupation list it may be possible for them to apply for permanent residence through the ENS Direct Entry stream. If their occupation is an ANZSCO skill level 1 to 3 occupation, and their employer is located in a regional, remote or low population growth area of Australia it may be possible for them to apply for permanent residence through the RSMS Direct Entry stream.

No. The Temporary Residence Transition stream is only for you if you hold a subclass 457 visa and have been working in your nominated job with your sponsoring employer for the last two years as a subclass 457 visa holder and your employer wants to sponsor you for permanent residence in order to retain your skills within the business. However, you may still apply for permanent residence through the permanent employer-sponsored program if you meet the requirements under the Direct Entry stream.

A single consolidated sponsored occupation list will be introduced from 1 July 2012. The new list will replace the current Employer Nomination Scheme Occupation List (ENSOL), subclass 457 occupation list and the State and Territory Skilled Occupation List (StatSOL). The consolidated list will provide greater simplicity and support the streamlined transition from temporary to permanent residence.

The ANZSCO is a classification model developed by the Australian Bureau of Statistics. It classifies occupations by skill level. The department uses ANZSCO to understand what qualifications a skilled migrant would need to undertake the full range of duties required for their nominated occupation. ANZSCO skill level 1 occupations (professionals and most managers) require an Australia or comparable overseas degree • ANZSCO skill level 2 occupations (technicians, some managers and some sales, clerical and service workers) require an Australian or comparable overseas diploma • ANZSCO skill level 3 occupations (non-trade occupations, technicians, some sales, clerical and service workers) require at least an Australian Qualification Framework (AQF) certificate III or comparable overseas qualification • ANZSCO skill level 3 trade occupations require an Australian trade certificate, an AQF level trade qualification, or a skills assessment from Trades Recognition Australia (TRA).

however the training requirement will be changing. Existing ENS nominating employers must show that they provide training to their existing employees, or that they are committed to providing training to their employees. From July 1 2012, ENS nominating employers will need to meet training requirements that are in line with the subclass 457 visa training requirements. This will be one of the following: •recent expenditure of at least two per cent of the business payroll to be paid as a contribution to an Industry Training Fund •recent expenditure of at least one per cent of overall payroll to be spent on training existing Australian employees.

Yes. At the moment ENS nominating employers must pay their nominated employees a salary that is at least the current MSL. Currently, the MSL requires a minimum annual salary of AUD67 556 for certain information technology occupations and AUD49 330 for all other occupations. Currently, RSMS employers are required to pay their nominee in accordance with the Australian award or minimum wage as specified by industrial relations law. From 1 July 2012 all ENS and RSMS nominators will be required to pay their nominee the market rate. This will apply to the Direct Entry and Temporary Residence Transition streams.

The market salary rate is the salary paid to an Australian performing the duties of that occupation. If you employ an Australian in an equivalent position, you should pay the nominated skilled foreign worker no less than you pay the Australian. You can demonstrate what you pay your Australian worker by providing pay slips, the applicable enterprise agreement or employment contract. If you do not employ an Australian worker in an equivalent position, you must demonstrate what an Australian worker would be paid in that position. You can demonstrate this by providing evidence of an enterprise agreement from another workplace, job advertisements for a similar position, or remuneration surveys which show what Australians are paid.

No. The Temporary Skilled Migration Income Threshold (TSMIT) is used in the subclass 457 program. From 1 July 2012 the permanent employer-sponsored program will use a market salary regime - this means that skilled foreign workers must be paid no less than Australian workers in equivalent positions. This market salary rate must be at least as much as the award rate which applies to that occupation. While the award rate is the minimum salary that an Australian or skilled foreign worker can be paid, in many industries the market salary is well above the award rate. Simply providing evidence of the award rate is not sufficient to demonstrate the market salary rate - the employer must demonstrate what Australians are actually paid. Where there is no Australian worker performing equivalent work in the same workplace, the employer may demonstrate the market salary rate by reference to what an Australian would be paid in that occupation. The employer can demonstrate what an Australian would be paid by referring to job advertisements for similar positions, enterprise agreements in another workplace or remuneration surveys

Employer nominations are valid for six months. After the reforms have been implemented an ‘old’ nomination will continue to be valid. Any visa application lodged after the reforms which is associated with an old nomination will be considered against the new ENS or RSMS Direct Entry stream requirements.

No. The current ENS, RSMS and Labour Agreement visa subclasses will be closed to new primary applications for 1 July 2012. If a nomination has been lodged that names the applicant as the nominee, the applicant can still lodge a visa application in association with the nomination, but they will have to meet the new ENS or RSMS Direct Entry criteria.

Any application that was lodged before 1 July 2012 that has not been decided will continue to be processed and considered against the pre-1 July 2012 legislation.

Yes. In recognition that the visa applicant has paid to lodge their independent GSM application, they will only have to pay the difference between the permanent employer-sponsored visa application charge (VAC) and the GSM VAC. The visa applicant will be considered against the Direct Entry stream criteria of the visa they apply for.

No. They will be considered against the Direct Entry stream criteria of the ENS or RSMS visa subclass.

To qualify for the Temporary Residence Transition stream for a permanent residence application, the visa applicant must be nominated to fill a position in the same occupation as the one that they filled for their subclass 457 visa.

Previously, some semi-skilled workers, ANZSCO skill level 4 and below occupations, were accommodated through the RSMS, using the exceptional appointment provision. This will not be possible from 1 July 2012. Employers who want to nominate semi-skilled workers in their business will be able to access permanent residences through the negotiated and scrutinised Agreements stream of the ENS or RSMS visa

Labour agreements allow employers to negotiate concessions to the standard visa arrangements. Negotiations concerning concessions may be protracted due to the department’s efforts to ensure that the risk of exploitation is mitigated and that opportunities for Australians are safeguarded While Labour Agreements are complex, the length of time to negotiate an agreement depends greatly on the quality and completeness of the information provided by the company seeking an agreement. The average negotiation timeframe is approximately six months.

The standard processing time for an ENS application is between three to eight months. Information about the processing times of an employer-sponsored skilled migration visa is available on the department’s website. See: www.immi.gov.au/about/charters/client-services-charter/visas/8.0.htm