How does a transition from a TSS visa to permanent residency occur? A Temporary Skill Shortage visa or TSS visa (Subclass 482) enables Australian employers to address labour shortages. This temporary visa allows an employer to sponsor a suitably skilled worker to fill a position they can't find a suitably skilled Australian to fill.

Under this visa, skilled workers receive a nomination from an Australian employer for a specific job or skilled position. The visa also allows the holder to stay and work in Australia for up to four years.

But how does a transition from a TSS visa to permanent residency work? This article discusses matters pertaining to a transition of a TSS visa to permanent residency.

TSS Visa to Permanent Residency: The TSS Visa Streams

The TSS visa has three main streams: the short-term stream, the medium-term stream, and the labour agreement stream. The short-term stream holds validity for up to 2 years, while the medium-term stream holds validity for up to 4 years.

Employers and the Australian Government (represented by the Department) develop labour agreements under the labour agreement stream. This stream also allows employers to grant permanent residence to skilled foreign workers.

Transition from TSS Visa to Permanent Residency: Short-term Stream

Unlike the medium-term stream, which holds its own permanent residence pathway to the Employer Sponsored Scheme Subclass 186 Visa (discussed below), the short-term stream was specifically designed to have no direct pathway to permanent residency.

However, the DHA announced changes on 18 March 2022 to help applicants who stayed in Australia during the pandemic. A transition from a TSS visa to permanent residency can now be possible regardless of the stream. Pathways to permanent residency that was previously available only to the medium-term stream are now available to the short-term stream as well.

From 1 July 2022 onwards, TSS visa holders on the short-term stream are able to apply for permanent residency through the 186 Visa Subclass (Employer Nomination Scheme) if they:

  • Spent a cumulative (increasing) period of 12 months or more in Australia between 1 Feb 2020 and 14 Dec 2021, and
  • Currently hold a 482 TSS visa and meet the criteria for the 186 Subclass Visa.

Transition from TSS Visa to Permanent Residency: Medium-term Stream

Under this stream, the employee's occupation falls under the Medium and Long-term Strategic Skills List (MLTSSL). If you have a TSS 482 visa issued through the medium-term stream, you are eligible to apply for permanent residency if you:

  • have worked for the same sponsor for three years on your TSS visa. You will also have a pathway to permanent residency if your occupation is on the Regional Occupation list and working in a designated regional area have worked for the same employer for 3 years,
  • have worked in the same nominated occupation for the three years,
  • have competent English (at least 6.0 in all parts of IELTS or an equivalent test score, unless you are exempt),
  • have been paid at least the salary confirmed with your 482 application, and
  • are under 45 years of age at the time of lodging your permanent residency visa.

The medium-term stream aims for applicants working in skilled occupations which the Australian Government believes are critically needed, and will be needed in the longer term.

If you meet the criteria above, your employer may be able to sponsor you for permanent residence through the:

  • Employer Nomination Scheme (Subclass 186)
  • Regional Sponsored Migration Scheme (Subclass 187)

TSS Visa to Permanent Residency: The Employer Nomination Scheme (Subclass 186)

This visa allows skilled workers who are nominated by their employer to live and work in Australia permanently. The Employer Nominated Scheme (ENS) allows eligible employers to sponsor an employee for permanent residency.

To sponsor an employee for a 186 Visa, the employer needs to establish that the business is eligible to sponsor an employee. Hence, the employer needs to present:

  • the employment contract,
  • proof the business is actively and lawfully operating a business in Australia (the business complies with Australian immigration and workplace relations law),
  • proof the business has a genuine need for a paid employee to fill the position,
  • proof the employer will pay the annual market salary rate,
  • proof that the employer nominates a position from the MLTSSL,
  • proof that they offer a position that is full time and lasting at least 2 years, and

In addition, the employer needs to pay the Skilling Australians Fund levy when submitting the employer nomination application. The employer nominates a candidate from either of these streams:

  • Temporary Residence Transition stream: This pathway enables the employer to sponsor an employee who already holds a TSS 482 visa.

Under this stream, the sponsored employee must:

  • be under 45 years of age at the time of application (subject to exceptions),
  • show that they have been in Australia for 3 years, carrying out the same occupation with the employer for at least 2 of those 3 years,
  • have the required skills,
  • be eligible for any licence, registration or membership needed at the time the application is submitted,
  • meet health and character requirements,
  • meet the English language requirements, and
  • sign the Australian values statement.
  • Labour Agreement stream: Skilled workers could apply through this stream if their employer has arranged a labour agreement with the Australian Government.

TSS Visa to Permanent Residency: The Regional Sponsored Migration Scheme (Subclass 187)

The Regional Sponsored Migration Scheme (RSMS) Subclass 187 Visa enables a regional employer to sponsor an employee for permanent residency in Australia. The employee must be nominated by the employer who sponsored their 482 visa.

To nominate a position for the RSMS 187 visa, an employer needs to:

  • be based in a designated regional area,
  • lawfully operate a business in that regional area,
  • establish their need for an employee to fill the position,
  • offer a position in the skilled worker applicant's field that is full time and lasting for at least 2 years,
  • pay a market salary rate, and
  • comply with Australian immigration and workplace relations law.

To be nominated for the RSMS 187 visa, the employee needs to:

  • be less than 45 years old at the time of submitting their application (subject to exceptions),
  • hold a 482 visa,
  • work for the same sponsoring employer for 3 years,
  • have the required skills,
  • be licensed as required by the state intended to work in,
  • meet health and character requirements,
  • meet the English language requirements, and
  • sign the Australian values statement.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.