US Slaps $100K Fee on H-1B Visa – Is Australia Next?

The United States has significantly altered its skilled migration program by introducing a hefty US$100,000 fee for new H-1B visa applications. This has raised questions about whether other countries, including Australia, might implement similar measures in their employer-sponsored visa systems.

What Is the US H-1B Visa and What Has Changed?

The H-1B visa is the primary pathway in the US for skilled foreign workers seeking employment in specialised fields when local candidates are not available. Recently, the US government announced a one-time fee of US$100,000 for new H-1B petitions, which affects only new applicants, excluding current visa holders or renewals.

The reason given for this fee is to reduce reliance on lower-paid foreign workers, protect jobs for US citizens, and fund broader immigration reforms.

Australia’s 482 Visa (Skills in Demand Visa) Explained

Australia’s Subclass 482 Temporary Skill Shortage visa, transitioning into the new Skills in Demand visa, serves a similar function to the H-1B. It allows Australian employers to sponsor skilled overseas workers in occupations facing critical shortages. This visa typically lasts up to four years and can often lead to permanent residency through various pathways.

Although Australia has recently raised visa application fees and income thresholds, the costs still fall far short of the US$100,000 mark.

Comparison: US H-1B vs Australia’s 482/Skills in Demand Visa

Here’s a comparison of the two visa programmes:

• Purpose: Both visas are aimed at filling labour shortages with skilled workers from overseas.
• Cost to Employers: The US now charges US$100,000 for new H-1B applications. In Australia, employers pay application fees along with the Skilling Australians Fund levy, which remains significantly lower.
• Duration: The H-1B is valid for up to three years, with one renewal option. Australia’s Skills in Demand visa allows for stays of up to four years.
• Path to Permanent Residency: Australia provides clearer pathways for permanent residency through employer sponsorship and skilled migration streams.
• Labour Market Protections: Both nations impose minimum salary thresholds and require labour market testing, although Australia’s thresholds have been increased recently.

Will Australia Follow the US with a Massive Fee Increase?

It seems unlikely that Australia will introduce a US$100,000 fee anytime soon. While fees and salary thresholds are rising, the government typically uses a combination of occupation lists, income thresholds, and labour market testing rather than imposing excessively high costs on employers.

However, modest increases and stricter conditions are plausible as Australia looks to balance labour needs with wage growth, housing issues, and migration levels.

Conclusion

The US$100,000 fee for H-1B visas marks a significant shift in the US’s approach to skilled migration. While Australia is tightening its own regulations, it appears that such drastic fee increases are not on the immediate horizon.

What do you think?

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