Member Login

Hair & Beauty Australia Industry Association

457 Visas Change – What does it mean for salon owners?

Posted April 28, 2017

On 18 April 2017, the Australian Government announced that the subclass 457 will be abolished, and be replaced by the new Temporary Skill Shortage (TSS) visa, which will begin in March 2018. Furthermore, changes have also been made to all Skilled Migrant and Employer Sponsored visas eligible list of occupations.

Sydney hair salon owner and HABA Member Luke Smart told he and others in his industry would be happy to hire Australians, if only they would put their hands up for the jobs.


“457 visas have a place, we use them in the hairdressing industry because there is a major shortage,” he said. “Most employers would hire an Australian if there were Australians that applied – it’s the same with nurses etc.”


Hairdressers aren’t at risk of being removed from the list of jobs that skilled migrants can take, but there are plenty of positions (that employers reckon they just can’t get Australian workers to fill) are – like HR managers and IT support staff it would seem.


Hairdressing has previously been on the C- SOL (Consolidated Sponsored Occupational) list, consequently this has previously given overseas migrants the eligibility to apply for a 457 Visa.


The Subclass 457 visas will be ‘replaced’ by a new TSS visa will contain two (2) visa streams with the following summarised criteria:

Option 1 – Short-Term visa stream (up to 2-years in duration) for positions on the Short-term Skilled Occupation list; and
Option 2 – Medium-Term visa stream (up to 4-years in duration) for positions on the Medium and Long Term Strategic Skills List.

However, it has been revealed that for hairdressers specifically, migrants will only be applicable for the Short-Term visa stream.
Both visa streams will have new key requirements, which generally include:

  • new and more targeted occupation lists which better align with skill needs in the Australian labour market
  • at least two years’ work experience in their skilled occupation required by applicants
  • a minimum market salary rate
  • mandatory labour market testing, unless an international obligation applies
  • non-discriminatory workforce test to ensure employers are not actively discriminating against Australian workers
  • strengthened requirement for employers to contribute to training Australian workers
  • Australian Department of Immigration and Border Protection will collect Tax File Numbers and data, which will be matched with the Australian Tax Office’s records, and
  • mandatory penal clearance certificates to be provided.

However, changes to these two visas do affect our broader industry, as they will limit the number of potentially dangerous, unregulated salons in operation currently, and may have a broader impact on the economy of certain states in Australia, like WA and SA, who have previously had high numbers of 457 Visa residents due to the mining and construction industries. It will also potentially increase the cost of your morning coffee or lunch break, with hospitality being one of the hardest hit industries.


The Association will be undertaking an Advisory Roundtable discussion in conjunction with the Council of Small Business of Australia (COSBOA). Stay tuned as we keep you up to date with this matter.


There will also be increased pressure for the industry to increase base wages as the option of overseas staff becomes no longer an option for chains and large operations within the industry. This pressure will be closely watched by Hair and Beauty Australia as salon owner’s representatives within the industry.



Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Copyright © Hair and Beauty Australia | ABN 781 333 722 00