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Pendragon Management is pleased to announce that we have successfully negotiated our new Labour On-Hire Agreement with the Department of Home Affairs. We have worked with the Department over the past few months to incorporate the new requirements being introduced in March. As a result Pendragon will now be able to sponsor individuals under existing 457 Visas and Temporary Skills Shortage (TSS) Visas.

March 2018 Visa Changes

As you may be aware, the 457 Visa will be officially abolished and replaced by the Temporary Skills Shortage (TSS) Visa as of March 2018.

Some of the changes include:

  • New, more targeted occupation lists which better align with skill requirements in the Australian labour market
  • A requirement for visa applicants to have at least two years’ work experience in their skilled occupation
  • Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT) which ensures that overseas workers cannot be engaged to undercut Australian workers.
  • Mandatory labour market testing, proof that the company advertised to local workers but were unable to find a local Australian to fill the role, unless an international trade obligation applies
  • Under the Short-Term stream, there is capacity for only one on-shore visa renewal under the Short-Term stream, as well as no option to gain PR.
  • Under the Medium-Term stream, there is capacity for visa renewal on-shore and permanent residence eligibility after three years.
  • A non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers
  • A requirement to pay a contribution to the Skilling Australians Fund
  • The Department of Home Affairs will collect Tax File Numbers and data will be matched with the Australian Tax Office’s records, and
  • Mandatory penal clearance certificates to be provided.


Skilled Occupation Lists – STSOL and MLTSSL

Occupations fall into two lists, the Short-term Skilled Occupation List (STSOL) and the Medium and Long-term Strategic Skills List (MLTSSL).

  • Short-Term stream – this is for employers to source genuine temporary overseas skilled workers in occupations included on the Short-term Skilled Occupation List (STSOL) for a maximum of two years (or up to four years if an international trade obligation applies). You are not eligible to apply for permanent residency under this list.
  • Medium and Long-Term stream – this is for employers to source highly skilled overseas workers to fill medium-term critical skills in occupations included on the Medium and Long-term Strategic Skills List (MLTSSL) for up to four years, with eligibility to apply for permanent residence after three years

You are able to view the Skilled Occupation Lists here.


What is an On-Hire Labour Agreement?

An on-hire labour agreement allows your on-hire business to sponsor temporary skilled overseas workers in occupations on the combined list of eligible skilled occupations for subclasses 457, where you can demonstrate that there is no appropriately qualified Australian worker readily available. A business which enters into an on-hire labour agreement becomes an approved sponsor and is able to nominate and sponsor overseas workers in the approved occupations.

As an approved sponsor with an on-hire business your overseas workers can be assigned to work for a third party. The on-hire business has to comply with the mandatory conditions as required by law (Fair Work Act 2009) and the Department of Home Affairs Regulations.


If you want to learn more about how Pendragon Management can assist you with visa sponsorship… talk to us…


email: [email protected]

phone: +61 2 9407 8700

Purnima Kabra