April 11, 2012

The changes to the permanent employer sponsored visas (ENS and RSMS) coming in on 1 July 2012 are quite significant. One of the main intentions behind the changes to the ENS/RSMS programs is to streamline the process of applying for permanent residence whilst holding a 457 visa.

People will be affected differently by the new changes depending on their circumstances. This article goes through the main winners under the new system.

ENS/RSMS Eligibility Streams

The requirements for ENS and RSMS vary depending on which “eligibility stream” you apply under from 1 July. To appreciate the impact of the changes, it’s important to have an understanding of the eligibility streams:

Temporary Residence Transition:

where applicants have worked with the employer on a 457 visa for the last 2 years. Applicants in this category have a streamlined pathway onto permanent residence through ENS and RSMS from 1 July.

Direct Entry Stream:

for applicants who have not worked in Australia, or who have worked in Australia on a visa other than a 457 visa. Criteria for these applicants are higher – for ENS they must have a skills assessment and 3 years of work experience in their occupation, and RSMS applicants must get approval from a Regional Certifying Body and may also require skills assessment.

Agreement Stream:

for applicants whose employer has a Labour Agreement. Labour agreements are special arrangements individually negotiated with the Department of Immigration, and allow sponsorship in a wider range of occupations and are required for the “on-hire” or “labour hire” industry.

1. People on 457 visas in non-ENS occupations

There are many people on 457 visas who have been sponsored in an occupation which is not on the current ENS Occupations List.

Examples of such occupations include:

  • Cafe or Restaurant Manager
  • Customer Service Managers
  • Various IT specialisations
  • Intermediate service managers (eg
  • Divers and Diving Instructors
  • Farmers

People sponsored for 457 visas in these occupations are currently on a “road to nowhere” – they can stay in Australia on 457 visas, but have limited options in applying for permanent residence.

From 1 July 2012, there will be a single consolidated list of occupations which applies to 457, ENS and State/Territory Sponsored Skilled Visas.

As a result, people already on a 457 visa will be able to look at an ENS visa once they have worked with their employer on a 457 visa in their occupation for 2 years, even if their occupation is not on the current ENS list.

2. Applicants between 45 and 50 years of Age

The age limit for ENS and RSMS visas will increase from 45 to 50 from 1 July 2012.

As a result, applicants between 45 and 50 will be able to qualify for an ENS or RSMS visa without needing to show Exceptional Circumstances.

3. Applicants over 60 years on 457 visas

Under current arrangements, it is extremely difficult for applicants aged over 60 to obtain an ENS or RSMS visa. Under current DIAC policy, applicants must show that they will make a significant economic contribution to Australia and have a very high salary level ($213,000 or more).

From 1 July 2012, applicants who have worked for their employer for the last 4 years on a 457 visa and who have a salary of over $118,000 should be eligible for an exemption to the age requirement.

This will make it far more possible for applicants over 60 to qualify for migration under the Employer Nomination Scheme.

 

July 8, 2010

The jobs market continues to grow at a blockbuster pace and keeps the Reserve Bank on course to resume raising interest rates once it is satisfied Europe’s troubles have subsided.

New labour force data released on Thursday – showing another 45,900 people had found work last month – coincided with a warning from the International Monetary Fund (IMF) that downside risks to world economic growth have intensified.

In its World Economic Outlook Update released in Hong Kong on Thursday, the IMF has upgraded its world growth forecast for 2010 because of “stronger activity during the first half of the year”.

“(But) downside risks have risen sharply amid renewed financial turbulence,” it said.

The 45,900 seasonally adjusted jump in Australian employment in June was three times larger than predicted by economists, and included a further 18,400 people finding full-time work.

The jobless rate was 5.1 per cent in June, unchanged from May after revisions, and having been originally reported as 5.2 per cent.

The rate is the lowest level since January 2009, Australian Bureau of Statistics data show.

“Australia’s strong labour force figures stand in stark contrast to the stubbornly high unemployment rates still being experienced in many other advanced economies, where the aftershocks from the crisis are continuing to reverberate,” Employment Minister Simon Crean said in a statement.

The strength of the report saw financial markets price out any chance of an interest rate cut this year, a move that had been toyed with given the uncertainty generated by Europe’s debt problems.

RBS Australia senior economist Felicity Emmett said the Reserve Bank may “sit on its hands” if global financial markets continue to sharply deteriorate, but she thought a rate cut was unlikely unless the world economy slipped back into recession.

“The ongoing strength in the labour market confirms our view that the RBA still has a tightening bias, given that falling unemployment is likely to put pressure on wages with the potential to add to inflationary pressures next year,” Ms Emmett said.

The IMF has maintained its previous growth forecasts for Australia due to “still-robust commodity prices boosting private domestic demand”.

It predicts growth of 3.0 per cent in 2010, accelerating to 3.5 per cent in 2011, as it did in April.

It has revised up its growth forecast for world growth to 4.6 per cent in 2010 from 4.2 per cent previously, while leaving its 2011 forecast at 4.3 per cent.

“The new forecasts hinge on implementation of polices to rebuild confidence and stability, particularly in the euro area,” it said.

Treasurer Wayne Swan said the IMF report showed Australia remains a “world leader” in the global recovery.

“Together with today’s strong employment figures, the IMF’s report shows the Australian economy is still well ahead of the curve,” he said.

Mr Swan said the Australian economy was well placed to benefit from its proximity and links to the world’s fastest growing region – Asia.

The IMF said Asia had only limited direct financial linkages to the most vulnerable euro area economies.

“But a stall in the European recovery that spilled over to global growth would affect Asia through both trade and financial channels.”

In IMF’s accompanying update of it Global Financial Stability Report it said while the most acute market strains seen in late April and early May had “receded somewhat”, “market confidence remained fragile”.

Source: COLIN BRINSDEN, ECONOMICS CORRESPONDENT July 8, 2010 – AAP

 

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