What is the 457 visa?
The 457 visa was introduced in 1996 to help employers bring in skilled workers for jobs that couldn’t be filled from the local workforce. The 457 visa allows overseas workers to stay for up to four years, and to travel freely to and from Australia during this time.
How is the temporary skills shortage visa different?
The TSS program will introduce a short-term lower skills visa, allowing workers to stay in Australia for up to two years rather than four. However, workers with skills that are more urgently needed will be able to stay for four years on a medium-term visa.
The government says it will finalise the details of several of these requirements as the changes are implemented. Existing 457 visas will remain in effect until they expire.
Are my employees’ super entitlements affected?
No changes to the eligibility requirements for superannuation have been announced but broadly, every Australian employer is required by law to pay 9.5% into a super account on each employee’s behalf.
Temporary residents may also be eligible to benefit from this, unless their employer doesn’t have to pay super for them.
There are rules regarding this requirement depending on the type of job a temporary resident does in Australia, and their country of origin. Australia has an agreement with some countries, which means residents of those countries may not receive super when working in Australia.
What happens when an employee leaves Australia?
- They may be eligible to claim their superannuation, which is officially known as the departing Australia superannuation payment. There will also be tax to pay on this payment.
- Employees can check the ATO website to see if they are eligible.
Go to the experts
If your employees would like more information on their personal situations, they can speak to their financial adviser. If they don’t have an adviser, they are welcome to use our online tool or call us on 131 267 and we can put them in touch with one.