What Does the 457 Visa Abolition Mean for Australia's Hospitality Industry?

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The federal government will abolish 457 visas for skilled foreign workers, Prime Minister Malcolm Turnbull has announced.

Turnbull said the new visa scheme would ensure that businesses only bring in foreign workers who are crucial to filling shortages of critical skills.

Maranoa MP, David Littleproud, was commenting about the Coalition Federal Government's decision to abolish the Subclass 457 Visa for foreign workers.

The professions in which 457 visa-holders are most commonly employed - cooks, cafe and restaurant managers, chefs and marketing specialists - remain on the list.

The new visas will be available in two-year and four-year versions, with the longer one being targeted to higher-skilled positions and requiring greater English proficiency.

Mr Turnbull said that unless the government had control of who was allowed into the country, public confidence in immigration would collapse.

There were 95,758 primary 457 visa holders in Australia in September 2016.

"We don't disagree with what Prime Minister Turnbull has said so far, but the Government needs to think carefully about how the work experience requirement would work under a new scheme".

Changes to be announced by Turnbull and Immigration Minister Peter Dutton mean aspiring citizens will have to speak competent English, have at least four years' permanent residency, "and commit to embracing Australian values".

The list of occupations that qualify for the new visa will be sharply reduced.

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"This situation could be made even more problematic for aged care service providers who, when they able to secure the necessary skilled migrant workers, will have to overcome the additional hurdle of the worker being allowed only one onshore visa renewal under the Short Term Stream, after just two years", Mr Rooney said.

"It took some time for me to understand what the changes were and the impact it would have on aspirants like me applying for the 457 work visa", said Upasana Kapoor.

But he expected some businesses would pay more under the changes.

In a Facebook announcement, Mr Turnbull said: "Our reforms will have a simple focus: Australian jobs and Australian values".

Sven Almenning, owner and director of the Speakeasy Group (that operates four bars across Melbourne and Sydney including Boilermaker House, The Roosevelt, and Eau de Vie in both centres), fears the changes could have devastating effects on the hospitality industry but is skeptical of the motivations for the change.

"Any plans to cut back on the tech industry's ability to bring in expertise from overseas before more Australians have been adequately trained in IT will only harm the industry and the future of jobs in this country", McEvoy said in a statement.

"Labor has been saying we should prioritise Australian jobs", she said.

The co-founder of successful technology company Atlassian, Mike Cannon-Brookes, says 457 visas are essential, telling The Australian anything that makes bridging the talent gap more hard is bad for the country.

"What we propose is that under the temporary skills shortage visa short-term stream there will be a two-year visa, with the options of two years, but there won't be permanent residency outcomes at the end of that".

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