Temporary to Permanent Residency
Do you still sponsor 457 visa holders?
If the answer is yes, you may wish to consider the option of encouraging your workers to convert their temporary visa to permanent residency. There are advantages to both employers and workers of such a move.
What are the Permanent Residency (PR) Options?
Under employer sponsored permanent residency there are two main options:
- ENS (Employer Nomination Scheme) Subclass 186; and
- RSMS (Regional Sponsored Migration Scheme) Subclass 187.
Where possible we recommend to our clients that they pursue the RSMS. To be eligible, the employee must be working in a Regional Area. For the purposes all of WA (including Perth) is regional, all of the Northern Territory (including Darwin) and then all of the rest of Australia except the capital cities (Brisbane, Sydney, Adelaide, Melbourne, Hobart and Canberra.
The reason Perdaman Global Services encourage our corporate clients to pursue RSMS is that their sponsored employees must work for them for an additional 2 year period, after their permanent residency has been approved. Also under the RSMS there is no need to show evidence of training.
The ENS is usually the option chosen by the employee as there is no cancellation provision if they do not continue to work for the employer for 2 years after PR has been approved. ENS is also used in the capital cities outside WA.
What are the different streams?
Under the RSMS regulations, there are two options:
- Temporary Transition Stream: Applicants must meet the English requirement (IELTS scores of 5.0 in each band), age requirement (under 50 years) and skill requirement (been employed on a 457 with the nominating employer for a period of two years prior to making the application).
- Direct Entry Stream: Applicants must meet the English requirement (IELTS scores of 6.0 in each band), age requirement (under 50 years) and skill requirement (have a relevant Australian or overseas qualifications. Trade occupations will require a skills assessment from Trades Recognition Australia if they do not hold an Australian qualification); Employers must demonstrate advertising in the 3 month period prior to loding the application.
Perdaman Global Services recommend that our corporate clients take advantage of the temporary transition stream, as evidence of advertising is not required. Employees will also usually prefer the temporary transition stream because they do not have to undertake a skills assessment and the English threshold is lower.
Benefits to employers
- Helping 457 employees convert to permanent residency will:
Release sponsoring businesses from their sponsorship undertakings, e.g. providing medical insurance and the cost of relocating employees and their families to their country of origin on termination of employment.
- Remove the need for ongoing monitoring of the Department of Immigration and Citizenship.
- Eliminate the need for business sponsors to renew or terminate temporary visas at the time of expiry.
- Engender employee loyalty and corresponding willingness of employees to commit to long-term tenure.
- Remove the ‘cloud of uncertainty’ over employees allowing them to focus on their work.
- Avoid concerns regarding re-employing workers who are in occupations on ASCO 5, 6 & 7, as these occupations will only be granted further visas under a Labour Agreement.
Benefits to employees
Benefits to employees include:
- Opportunity to purchase property.
- Lower education fees in certain states.
- Opportunity to apply for Australian citizenship.
- Greater opportunity for other family members to migrate.
- Entitlement to remain in Australia indefinitely.
- Eligibility to apply for Medicare and social security benefits (after qualifying period).
Perdaman Global Services would be pleased to help you identify the best pathway to permanent residency for your employees. If you would like an obligation free consultation regarding the options, please contact the Perdaman Global Services on 9346 8888.
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