As featured in the latest edition of QHA Review Magazine
Mullins Immigration Partner, Corina Chen has explored the recent changes to visa solutions and how these changes can positively impact the Hospitality Industry in the following article.
The Australian hospitality industry is a significant contributor to the country’s economy, employing over 900,000 workers as of 2023. It accounts for approximately 7% of Australia’s total employment, with a growth rate of 3.6% in 2023. The industry continues to face a high demand for skilled labour, particularly in roles such as chefs, cooks, and hotel managers, with no indication of slowing down.
As of early 2024, the job vacancy rate for accommodation and food services stands at approximately 3.7% – a significant and notably higher-than-average job vacancy rate which reflects the industry’s ongoing challenges in filling positions.
In response to this predicament, hospitality employers must turn to innovative solutions to bolster their workforce and to mitigate the impact of the skilled worker shortage.
Australia’s visa programs offer a variety of pathways for employers to access overseas talent. For instance, the Temporary Skill Shortage Visa (Subclass 482) allows Australian employers to address labour shortages by sponsoring overseas skilled workers to fill positions that cannot be filled by the local workforce. In the hospitality industry, the 482 visa is a particularly useful option as it enables businesses to recruit skilled chefs, cooks, and restaurant managers.
As of 1 July 2024, a number of changes have come into effect for the 482 programme. This includes:
(a) TSMIT Increase
- The Temporary Skilled Migration Income Threshold (TSMIT) has increased from $70,000 to $73,150. This change will affect new nominations lodged from 1 July 2024 onwards, but it will not be applied retrospectively to nominations already approved or lodged prior to this date. This change is aimed at ensuring migrant workers are not underpaid compared to local workers.
(b) Enhancing Labour Market Mobility
- Effective from 1 July 2024, significant changes to visa conditions 8107, 8607, and 8608 will improve the labour market mobility of 482 visa holders to allow those who stop working for their sponsor more time (up to 180 days at a time or a total of 365 days across their entire visa period) to find a new sponsor, apply for a different visa, or arrange to depart Australia. During this time, they can work for other employers (even in occupations not listed on their visa) to ensure they can support themselves while they look for a new sponsor. This flexibility will also allow them to immediately commence working for a new prospective sponsor while waiting for their 482 visa work rights to be transferred to the new sponsor.
(c) Reduction in Work Experience Requirement
- Effective from 23 November 2024, the work experience requirement for the 482 visa will be reduced from two years to one year. This is a significant change intended to make it easier for recent graduates to qualify for the visa and will benefit recent graduates looking to enter the workforce. In turn, this will help businesses address skills shortages more effectively.
Recent changes to the Working Holiday Visa (Subclass 417) also offers advantages for employers to address labour shortages. The 417 visa is a temporary visa for young people to holiday and work in Australia for up to 12 months, with the option to apply for second and third-year visas if eligibility requirements are met.
This visa allows employers to quickly address skills shortages, especially in regional areas, without requiring sponsorship. It also enables easy transitions between employers to support staffing needs.
From 1 July 2024, UK passport holders will no longer need to undertake “specified work” to obtain second or third-year 417 visas. This relaxation of requirements provides employers with greater flexibility in utilising 417 visa holders for a more responsive workforce.
Visa solutions are essential for overcoming immediate workforce challenges and ensuring the hospitality industry’s future success. By embracing migration as a strategic tool, the hospitality sector can navigate skilled worker shortages and emerge stronger.
For more information on how these changes might impact your business, please contact Mullins Lawyers. We are here to help you navigate these changes effectively.
