The new subclass 482 TSS visa has replaced the subclass 457 visa.

This is the 10 Things you need to know about the 482 visa.

*This is a developing story. More details to follow.*

The Prime Minister of Australia has announced the removal of the 457 visa programme. It is expected to be replaced by two new temporary work visas.

When is the 457 visa programme going to be removed?

The plan for complete removal is by March 2018. The definite date has not been announced.

I am currently on a 457 visa! What will happen to my status?

At this time we understand that all existing 457 visa holders wil maintain their visa status. No further 457 visas will be issued.

I have an ongoing 457 visa application! What will happen to it now?

At this time there has not been any information with regards to applications being processed. We will provide details on this matter as soon as it is available.

Welcome to 2017! It was a year full of changes for Australia’s migration policies in 2016. Here is our recap of the significant changes to the migration programme for Australia in 2016 and some of the discussions and ongoing developments for 2017.

The Immigration News in 2016 has been dominated by employer scandals and crackdowns by the Department of Immigration and Border Protection (DIBP).

While it may all sound like doom and gloom, the planning levels for permanent visas continue to be significant. 

The numbers of Australian permanent visas that are granted each year are controlled by planning levels. 

I am going to make comments below about news in relation to a wide range of visas including business, skilled, visitor and family visas.

Government Targets Vulnerable 457 visa holders. Condition 8107 changed by slashing time 457 holders have to find a new employer from 90 to 60 days!

Change to Condition 8107 on 457 Visa:

The Government has changes Migration Regulations by amending condition 8107 to provide that a 457 visa holder can only cease employment with an approved sponsor for 60 days.  The relevant section used to provide that the holder could cease employment for 90 days.

The regulation now provides:

“8107 3(b)  if the holder ceases empl​oyment — the period during which the holder ceases employment must not exceed 60 consecutive days”

The effect of this change is that if a 457 visa holder loses their job, then now only have two months for find a new employer and get a nomination approved to work for that employer.

Processing time for a decision upon a 457 Nomination

Processing standards quoted by DIBP are currently 40 working days until allocation to a case officer, which if you also count the weekends, is about 56 calendar days until first allocation.  

But part of the DIBP integrity push is that they almost always ask for evidence of genuine position for a nomination, which will then start the request further information (RFI) - a cycle which usually takes 28 days at a minimum.

So with one request, the timing to a decision on a nomination is 56 plus 28 = 84 days for a nomination decision with one request.

Sources:

1. Migration Legislation Amendment (2016 Measures No. 4) Regulation 2016, https://www.legislation.gov.au/Details/F2016L01696

Comments by Chris Johnston – Principal Lawyer and Registered Migration Agent at Work Visa Lawyers

This policy will make it practically impossible for most 457 visa holders to find a new position and to stay in Australia if they lose their job.

The timing was already very difficult when only three months (90 days) were allowed.

One of the big problems facing the 457 holder is the time that it takes for DIBP to make a decision on a 457 nomination.  

So even if you find a new employer on the day you lose your 457 job, you will most likely not be able to get the nomination approved in 60 days.  So the 457 holder will be exposed to having their visa cancelled.

There have been a number of policy changes to try and increase the integrity of the 457 program.  Many of these policy changes have been targeting potential abuses by employers. For example the no payment for migration outcome regulations.

This current initiative will actually increase the power of employers and make 457 visa holders more vulnerable to threats.  457 holders will know that the possibility of finding a new sponsor in 60 days and getting then nomination approved is low. So 457 holders may be forced to stay with the current employer.

This information is accurate on 02 November 2016

Do you need help with an Australian visa application?

At Work Visa Lawyers we are experienced in assisting applicants in all matters relating to Australian visa applications. Our areas of expertise include Skilled Migration visas, Business Skills Migration visas, Employer Sponsored Work Visas, Partner and other Family Migration visas as well as the Administrative Appeals Tribunal (AAT) Review, Judicial Review and Ministerial Intervention.

If you require further information regarding your Australia visa options you can contact us through:

(08) 8351 9956 or +61 8 8351 9956

or   This email address is being protected from spambots. You need JavaScript enabled to view it.

The South Australian (SA) State Government has introduced school fees for 457 visa holders starting on 1 January 2017. New 457 visa holders who arrive in South Australia from 1 January 2017 will have to pay school fees for each child attending public schools. You will not be required to pay the school fees if your annual gross household income is $57,000 or lower. 457 visa holders are also charged school fees in Western Australia (WA), New South Wales (NSW) and the Australian Capital Territory (ACT).

Do note that this is only applicable to new 457 visa arrivals in SA from 1 January 2017 onwards. It will be extended to all 457 visa holders on 1 January 2018.

Here are the details about the school fees applicable:

Applicable Fees

$5,100 for each primary school child

$6,100 for each secondary school child

The full amount is applicable to the eldest child, with a 10% discount on the fees for subsequent children in school.

Payments can be made upfront, per semester/term or in regular instalments.

Income Means Testing

Families do not need to pay the full fee if their annual gross income does not exceed the income threshold. The income threshold is calculated as follows:

Family with 1 child - $77,000

Family with 2 children - $87,000

Family with 3 children - $97,000

Each additional child will increase the threshold by $10,000.

So how much do I have to pay if my gross income is above $57,000 but below the threshold?

Since you do not meet the threshold income level, you will only need to pay a percentage of the contribution fees. The percentage is calculated as such:

Family with 1 child – 5% for each $1,000 above $57,000

Family with 2 children – 3.33% for each $1,000 above $57,000

Family with 3 children – 2.5% for each $1,000 above $57,000

Here are some examples provided by the South Australia Department for Education and Child Development:

Example 1

Tomas commences work under a 457 visa arrangement and will be paid a gross income of $67 000 pa. He is accompanied by his wife, who is not in paid work, and their eight-year-old daughter, who is enrolled at the local government primary school. His contribution payable would be calculated as follows:

Step 1: Primary school rate of $5100 is the full contribution rate

Step 2: Gross family income is $67 000

Step 3: Relevant family income threshold at which full fees are payable is $77 000

Step 4: As the gross family income is between $57 000 and $77 000, Tomas will not be required to pay the full contribution rate. His income is $10 000 above the $57 000 limit, so the fee payable will be 10 x 5% x $5100 = $2550.

Example 2

Aisha commences work under a 457 visa arrangement and will be paid a gross income of $61 200 pa. She is accompanied by her husband, who is working part time and earning $20 400 p.a., and their two children. Both children attend government schools; one in secondary school, the other in primary school. The contribution payable would be calculated as follows:

Step 1: The full contribution rate is $6100 + ($5100 x 90%) = $10 690

Step 2: Gross family income, (rounded down to the nearest whole $1,000), is $81 000

Step 3: Relevant family income threshold at which full contribution is payable is $87 000

Step 4: As the gross family income is between $57 000 and $87 000, Aisha will not be required to pay the full contribution fee rate. Her family income is $24 000 above the $57 000 limit, so the fee payable will be 24 x 3.33% x $10 690 = $8 552.

Example 3

Lucinda is a sole parent who commences work under a 457 visa arrangement, and will be paid a gross income of $200 000. She is accompanied by her three children, each of whom attend government schools; one in secondary school, the other two in primary school. The contribution payable would be calculated as follows:

Step 1: The full contribution rate is $6100 + (($5100+ $5100) x 90%) = $15 280.

Step 2: Gross family income is $200 000

Step 3: Relevant family income threshold at which full fees are payable is $97 000

Step 4: As the gross family income is above $97 000, Lucinda will be required to pay the full contribution rate of $15 280.

If you are a permanent resident visa holder there is no need for you to pay the contribution fee. You can contact the Department for Education and Child Development (DECD) if you need further information.

Sources:

1. https://www.decd.sa.gov.au/sites/g/files/net691/f/schoolfees_457visa.pdf
2. http://www.adelaidenow.com.au/news/south-australia/state-government-poised-to-charge-parents-on-457-visas-up-to-6100-per-child-for-public-education/news-story/e0bed470801a9d11614611257fc67f63

Comments by Chris Johnston – Principal Lawyer and Registered Migration Agent at Work Visa Lawyers

This policy will make South Australia an unattractive destination for 457 visa workers with families. Additionally a SA business which genuinely needs a skilled overseas worker to work in SA will have to provide a higher salary package to compensate for the school fees applicable. Costs to the business will be higher if a South Australian business has to sponsor an overseas worker for a 457 visa.

Another note is that the new school fees for 457 visa holders are very complicated. To assess each individual 457 visa holder’s gross income and family composition to calculate the applicable fees will take time and labour. I would guess that the public cost of administering the school fees may be very high to the SA government.

This may cause more applicants to consider the Regional Sponsored Migration Scheme (RSMS) subclass 187 visa instead of the 457 visa if they are to be sponsored by a South Australian business. Many 457 visa holders may also be pushed to apply for permanent residency via the Employer Nomination Scheme subclass 186 visa or the RSMS visa via the Temporary Transition stream. There is now more incentive to consider the permanent RSMS visa over the temporary 457 visa.

This information is accurate on 5 August 2016

Do you need help with an Australian visa application?

At Work Visa Lawyers we are experienced in assisting applicants in all matters relating to Australian visa applications. Our areas of expertise include Skilled Migration visas, Business Skills Migration visas, Employer Sponsored Work Visas, Partner and other Family Migration visas as well as the Administrative Appeals Tribunal (AAT) Review, Judicial Review and Ministerial Intervention.

If you require further information regarding your Australia visa options you can contact us through:

(08) 8351 9956 or +61 8 8351 9956

or   This email address is being protected from spambots. You need JavaScript enabled to view it.

What is the Australia 457 Work Visa?

The Temporary Work (Skilled) visa (subclass 457), popularly referred to as the “457 visa” is the most common temporary work visa for Australia. You can apply for the 457 visa if you are sponsored by a company to work in Australia. Here is an overview of what the 457 visa allows you (and your family – partner and children) to do in Australia:

• Live in Australia for a period of up to 4 years

• Work for the sponsoring company for up to 4 years

• Travel in and out of Australia repeatedly for a period of up to 4 years

• Study in Australia for the period of the visa validity

• You (and your family) must have your own private health insurance for your stay in Australia

While it sounds straightforward, the 457 visa comes with its strict requirements and obligations on both the sponsoring business and the sponsored 457 visa applicant. As such Work Visa Lawyers is pleased to provide an updated “10 Things You Need to Know for the 457 Visa”.

The 10 Things You NEED to Know to Apply for a 457 Visa

1. The Three Stages of the 457 Visa Application

There are three stages to the 457 visa application, namely:

1. 1. 1. 1. Company applies to be an Approved Business Sponsor

         2. The Approved Business Sponsor Nominates a Position for Sponsorship

         3. The visa applicant applies for the 457 visa to work in the Nominated Position

2. What are Training Benchmarks? How do you meet the requirements?

Training Benchmarks are requirements that need to be fulfilled by the company who is applying to be a business sponsor. The requirements were introduced to ensure local Australian workers are provided training to perform the work required by the company, thus reducing the dependency of the company on overseas workers.

The Training Benchmarks are as follows:

Training Benchmark A - recent expenditure to the equivalent of at least two per cent of the payroll of the business, in payments allocated to an industry training fund that operates in the same industry as the business

Training Benchmark B - recent expenditure to the equivalent of at least one per cent of the payroll of the business, in the provision of training to employees of the business who are Australian citizens or Australian permanent residents.

If the business is new (operating for less than 12 months), an auditable training plan is required instead.

If you are unsure how to demonstrate that you have met the Training Benchmarks, please contact Work Visa Lawyers for a more detailed discussion.

3. Is your occupation SUITABLE for Sponsorship under the 457 visa programme?

Not all occupations are suitable for the 457 visa programme. Only occupations on the Skilled Occupation List and the Consolidated Skilled Occupation List can be nominated for a 457 visa. You can view the occupation lists here.

The most popular occupations for 457 visa sponsorship for the year 2014-2015 to 31 March 2015 are as follows:

1. Developer Programmer

2. Cook

3. Café or Restaurant Manager

4. Marketing Specialist

5. Software Engineer

6. ICT Business Analyst

7. University Lecturer

8. Management Consultant

9. General Practitioner

10. Resident Medical Officer

11. Chef

12. Sales and Marketing Manager

13. Accountant (General)

14. Mechanical Engineering Technician

15. ICT Project Manager

If the occupation to be nominated is not on the Skilled Occupation Lists then a Labour Agreement will be required. You can always speak to Work Visa Lawyers if you need to clarify the occupation or to learn more about Labour Agreements.

4. How does a business qualify to nominate an applicant for the 457 visa?

There are a number of criteria to be fulfilled by the business to become a sponsor for a 457 visa. The requirements include:

• Meeting the Temporary Skilled Migration Income Threshold (TSMIT)

This is the minimum annual salary you must pay for the sponsored 457 visa worker. The TSMIT is currently A$53,900.

You need to note that if the average market salary for the position is lower than the TSMIT, you cannot simply overpay an overseas worker to enable sponsorship under the 457 visa programme.

• Fulfil the Labour Market Testing (LMT) requirements

This requires the business to test local labour markets to demonstrate effort to recruit local workers before deciding to sponsor an overseas worker for the required position.

• Providing Employment Terms that are equivalent to terms offered to an Australian employee

• The sponsored worker must work directly for the business

• The work and position must be genuinely available and relevant to the operations of the business

The requirements are complex and may vary according to different industries. Please contact Work Visa Lawyers if you need a more detailed explanation that is relevant for your business or industry.

5. What are the requirements for a 457 visa applicant?

The applicant needs to be nominated for a position that corresponds to an occupation listed of the Skilled Occupation Lists.

Additionally the applicant will also need to meet skills, registration, English, health and health insurance requirements for the visa application.

Skills

Applicants need to demonstrate that they have the necessary qualification (and work experience, if applicable) to perform the duties required for the nominated occupation. Many trade level positions on the CSOL will require the visa applicant to have successfully completed a TRA 457 skills assessment

Registration and Licensing

If the nominated occupation requires licensing or registration in Australia, the applicant needs to obtain the registration or licence, or demonstrate that they meet the requirements for registration or licensing in Australia.

English

Unless otherwise stated, 457 visa applicants can demonstrate meeting the English requirements for the 457 visa application with the following:

• an International English Language Testing System (IELTS) overall test score of at least 5.0 with a score of at least 4.5 in each of the four test components

• an Occupational English Test (OET) score of at least ‘B’ in each of the four components

• a Test of English as a Foreign Language internet-based test (TOEFL iBT) total score of at least 36 with a score of at least 3 for each of the test components of listening and reading, and a score of at least 12 for each of the test components of writing and speaking

• a Pearson Test of English (PTE) Academic overall test score of at least 36 with a score of at least 30 in each of the four test components

• a Cambridge English: Advanced (CAE) overall test score of at least 154 with a score of at least 147 in each of the four test components

• you are a passport holder from Canada, New Zealand, the Republic of Ireland, the United Kingdom or the United States of America

• you have completed at least five years of full-time study in a secondary or higher education institution where instruction was conducted in English.

You may need a higher English score if it is necessary for your registration or licensing.

An exemption to meet the English requirements is possible if the overseas worker is paid an annual salary that is more than the English language requirement exempt amount. The amount is currently A$96,400.

Health and Health Insurance

The applicant and family members will need to be in good health and also arrange for health insurance for the duration of the stay in Australia.

6. What are the obligations of the 457 business sponsor and visa applicant after the visa is granted?

It is critical that the 457 visa holder and business sponsor adhere to the obligations and conditions of the 457 visa when it is approved. Failure to meet the conditions will result in visa cancellations and/or removal of sponsorship status for the business.

457 visa holder obligations

• You are only allowed to work for the business that sponsored you

• Must start work within 90 days or arrival to Australia

• Must not stop working for the employer for more than 90 consecutive days

• Obtain registration or licences if necessary

• Maintain adequate health insurance for you and your family in Australia

457 business sponsor obligations

To prevent exploitation of overseas workers and to ensure skill shortages are genuinely met the sponsor will need to do the following:

• Cooperate with the Department for checks on compliance

• Ensure employment conditions are fair

• Keep and maintain records of employment for the 457 visa holder

• Ensure that the sponsored 457 visa worker does not perform duties other than what is required for the nominated occupation

• Do not obtain payment from the sponsored worker for the costs of the 457 visa application

• Continue to meet the Training Benchmark requirements

• Pay the travel costs for the sponsored worker to leave Australia when the visa validity expires

As shown there are more to the 457 visa than the initial visa application requirements. You can check with Work Visa Lawyers if you need more information about your obligations or situations such as when employment ceases, or if the business is being monitored by the Department.

7. Can you apply for Permanent Residence after obtaining a 457 visa to work in Australia?

After working for the business sponsor for at least 2 years, you can apply for permanent residency under the 186 Employer Nomination Scheme (ENS) or the 187 Regional Sponsored Migration Scheme (RSMS) pathway. The requirements and process of these visa applications will be discussed in a separate blog.

8. The 457 Visa Programme Integrity Review and the recommended changes

On 10^th September 2014 the Department a final report on the review of the integrity of the 457 visa programme by an independent panel. A total of 22 recommendations were made and some of the recommendations are in fact already in place. More changes are to be expected towards the end of 2015 and beginning of 2016.

To ensure that you are informed on the ongoing changes for the 457 visa programme, check our News section and search “457” for the collection of news relevant to updates for the 457 visa programme. Alternatively you can follow us on Facebook or Twitter to receive the updates.

9. What are the other employer-sponsored Australian work visas?

The consideration for applicants whose occupations are not on the Skilled Occupation Lists would be as follows:

1. Regional Sponsored Migration Scheme (RSMS)

2. Sponsorship by a Labour Agreement

There is an occupation list for the RSMS Direct Entry stream and the list is long. You can check with Work Visa Lawyers to determine the suitability of the occupation for the RSMS Direct Entry.

Labour Agreements are usually a complex process and will require external and professional assistance to get one in place.

10. Do you need help or more details about your situation?

At Work Visa Lawyers we are experienced in assisting applicants in all matters relating to Australian visa applications. Our areas of expertise include Skilled Migration visas, Business Skills Migration visas, Employer Sponsored Work Visas, Partner and other Family Migration visas as well as Migration Review Tribunal, Judicial Review and Ministerial Intervention.

If you require further information regarding your Australia visa options you can contact us through:

(08) 7225 5091 or +61 8 7225 5091

or This email address is being protected from spambots. You need JavaScript enabled to view it.

Watch Registered Migration Agent (MARN 0640686) and Migration Lawyer Chris Johnston provide the latest updates to the Australia migration programme.

Topics covered include:

• Lower English Requirements for Skilled Graduate Visas
• 457 Visa changes include lower English
• Business and Investor Visa News
• Skilled Nomination visas – 190 and 489 program processing almost complete for the financial year
• Increases in Visa Cancellations
• RSMS 187 Policy Change
• WVL Invited to China as Part of South Australian Delegation
• Breaking News – Complying investments for SIV and PIV and Visa application

This is the news that many have been waiting for. The Department of Immigration and Border Protection (DIBP) has amended English requirements for the Subclass 457 (Temporary Work (Skilled)) visas. The change will affect all new applications lodged on or after 18 April 2015, and also existing applications in progress that have not been finalised. Here are the new scores requirement:

Additionally the exemption to the English requirement has now changed to requiring an applicant to have at least 5 years of cumulative full-time study in a secondary and/or higher education institution where the instruction was delivered in English. Previously the studies needed to be completed consecutively for 5 years.

Comments by Chris Johnston – Principal Lawyer and Registered Migration Agent at Work Visa Lawyers

Along with the changes announced for the 476 and 485 visas (read the news here), the 457 visa programme now has lower English requirements as well. There are no changes to the OET test scores requirement, and CAE exams need to be completed on or after 1 January 2015.

While this will allow more applicants to meet the 457 visa requirements, it is important to know that there are other criteria that need to be fulfilled prior to lodging an application, as well as important obligations to fulfil after a 457 visa is granted, for both the applicant and business sponsor. Failing to meet the criteria and obligations thereafter may cause invite monitoring and sanctions from the Department.

Source:

1. http://www.comlaw.gov.au/Details/F2015L00563

This information is accurate on the 21 April 2015

Do you need help with an Employer Sponsored work visa application?

At Work Visa Lawyers we are experienced in assisting applicants for the Employer Sponsored work visa applications, which include business sponsorship application, nomination and visa application. We are also experienced in general skilled migration visas, business skills visas and family visas.

If you require further information regarding your Australia visa options you can contact us through:

(08) 7225 5091 or +61 8 7225 5091

or   This email address is being protected from spambots. You need JavaScript enabled to view it.

The Department of Immigration and Border Protection (DIBP) has released a response to the 457 Visa Programme integrity review report today. The majority of the changes announced are expected to be implemented over the next 6 months.

Here is a snapshot of the changes announced:

• English requirements for the 457 visa applicant will be changed to overall 5.0 for the IELTS exam, with no components scoring lesser than 4.5.
• Other English exams to be accepted for the visa application will be announced next month.
• Visa charges are being reviewed and are likely to change.
• Training Benchmarks will be replaced by annual training fund contributions to the Department of Industry (possible implementation in 2016)
• Severe penalties for Business Sponsors who receive payment from visa applicants/holders in return for sponsorship and nomination.
• Validity of Standard Business Sponsorships (SBS) to be lengthened from 3 to 5 years for existing businesses; from 12 to 18 months for new businesses.

More information will be available as the DIBP gets closer to implementing the planned changes.

Comments by Chris Johnston – Principal Lawyer and Registered Migration Agent at Work Visa Lawyers

The 457 visa programme has undergone many changes as the Department tries to strike a balance between helping Australian businesses meet short-term labour needs and protecting Australian workers and their jobs. It is important for both the Business Sponsor and Visa Applicant/Holder to take note of current developments to the 457 programme to ensure sponsorship and visa obligations are complied with to avoid violation and possible sanctions or penalties.

It is noted that the changes are being implemented in the near future and the date of effect for the changes will be crucial in relation to new sponsors, nominees (position) and visa applicants.

 UPDATE

There has been plenty of responses from various parties since the annoucement was made. Here are a few of them:

"Ensuring that visa holders and sponsors are meeting their obligations will boost business and community confidence in the 457 programme."- Kate Carnell, Head of Australian Chamber of Commerce and Industry, on the announced changes

"The labour market testing regime was always flawed and we urge the government to accept the review's recommendation that it be scrapped. The testing amounts to ineffective, time-consuming red tape. Using the scheme is costly for employers and the vast majority don't recruit 457 workers unless they absolutely have to."- Innes Willox, Head of Australian Industry Group, on the Government's decision to keep the labour market testing component

"The government's proposed changes to the 457 visa scheme will improve its operation and reduce business costs, but it has missed the opportunity to do away with redundant regulation."

"It is disappointing that on Repeal Day the government has declined to support the independent review's recommendation to abolish labour market testing. This is a classic case of a regulation that adds to business costs, without improving the integrity of the scheme."- Jennifer Westacott, Chief Executive of Business Council of Australia (BCA)

Scott Barklamb, Executive Director of policy and public affairs for Australian Mines and Metals Association (AMMA) says that foreign workers played a small, but critical, specialist role in the mining industry. He too was disappointed that labour market testing was not abolished.

National Farmers Federation (NFF) president Brett Finlay welcomed the changes and mentioned that while Australian workers were the backbone of the country's agricultural sector, some farm businesses in regional and remote areas struggled to find workers with relevant skills and relied on overseas workers to fill essential roles.

Part of the announcement also mentions the re-establishment of the Ministerial Advisory Council on Skilled Migration (MACSM), which will aid to provide labour market analysis and advice on the composition of the Consolidated Sponsored Occupation List (CSOL).

It appears that many stakeholders welcomed the changes but were concerned about the continuation of labour market testing and the proposed training fund that will replace current Training Benchmarks.

 Source:

1. http://www.immi.gov.au/pub-res/Pages/reviews-and-inquiries/government-response.aspx
2. http://www.sbs.com.au/news/article/2015/03/18/457-visa-changes-announced
3. http://www.theaustralian.com.au/national-affairs/immigration/liberals-tighten-checks-on-457-visas/story-fn9hm1gu-1227267088406
4. http://www.bca.com.au/newsroom/statement-on-the-governments-response-to-457-visa-review

This information is accurate on the 22 March 2015

Do you need help with a 457 business sponsorship or visa application?

At Work Visa Lawyers we are experienced in assisting businesses and individuals in the 457 visa application process. The process is complex with many stages of work involved and we aim to simplify the application process for you and make sure the various criteria for sponsorship and visa are met.

If you require further information regarding your Australia visa options you can contact us through:

(08) 7225 5091 or +61 8 7225 5091

or   This email address is being protected from spambots. You need JavaScript enabled to view it.

The Government has release a review report on the 457 program titled,Robust New Foundations: A Streamlined, Transparent and Responsive System for the 457 Programme.

The Report contains 22 recommendations, which include the following:

• $Labour Market testing requirements be abolished;

• A more flexible and adaptive approach to adding occupations to the 457 list (CSOL list), due to limitations of the current ANZSCO occupations.

• The exemption from the need to demonstrate the market rate should be aligned with the income level above which the top marginal tax rate is paid (currently at $180 000)

• No rises in the TSMIT  of $53,900 in the next two years

• Training Benchmarks - current training benchmarks be replaced by an annual training fund contribution based on each 457 visa holder sponsored, with the contributions scaled according to size of business.

• That the English language requirement be amended to an average score. For example, in relation to International English Language Testing System, the 457 applicant should have an average of 5 across the four competencies (or the equivalent for an alternative English language testing provider).

• Genuine position requirement - That before decision-makers refuse a nomination on the basis of the genuine position requirement, the sponsor be invited to provide further information to the decision-maker.

• Sponsorship - That Standard Business Sponsors should be approved for five years and start-up business sponsors for 18 months.

• That greater priority be given to monitoring 457 business sponsors and visa holders.

• Inter-agency cooperation - That there be greater collaboration between the department and the Australian Taxation Office to uphold integrity within the 457 programme and minimise the burden on employers.

• Fair Work Ombudsman- That the Fair Work Ombudsman’s current complementary role in monitoring compliance and referral of findings to the department for action should continue.

• Sanctions - That dedicated resourcing be made available to the department to enable the investigation and prosecution of civil penalty applications and court orders.

Comments by Chris Johnston, Lawyer and Registered Migration Agent, Principal of Work Visa Lawyers:

It is important to note, that this is a Report with recommendations, and that the recommendations have not been implemented.  We will post further news soon after any of the recommendations are implemented and become 457 requirements.

Sources:

Migration Institute of Australia

Australian Government Report:

http://www.immi.gov.au/pub-res/Documents/reviews/streamlined-responsive-457-programme.pdf

News release by Senator the Hon. Michaelia Cash:

www.minister.immi.gov.au/media/mc/2014/mc217716.htm

Warning -This information is accurate on the 13 September 2014.  

DIBP will change visa requirements in an ongoing manner and all current requirements must be established prior to lodging an application. 

Do you Need Help with the 457 process, to be approved as a business sponsor or to get an Australian Visa for an employee?

If you require further information regarding an employer sponsored visa applications , either as an employer or an applicant, we can help you.

Contact us on (08) 7225 5091 or +61 8 7225 5091

or This email address is being protected from spambots. You need JavaScript enabled to view it.

On the 23 November 2013 the new 457 Labour Market Testing Requirements (LMT)  commenced.  The LMT requirements apply to the nomination stage of the 457 process.

The requirement under Legislative Instrument is that the period in which the advertising of the nominated position must have been, is within 12 months.

Exemptions to LMT:

There are exemptions to LMT based on:

·         occupation level

·         International Obligations.

Exemptions Based on Occupation Level:

There are exemptions for occupation that areANZSCO as Skill Level 1 or 2.

Skill Level 1 are occuptions that require an Australian Degree Level qualification or at least five years of relevant experience may substitute for the formal qualification.

Skill Level 1 occupations include:

General Managers; Farmers and Farm Mangers; Accountants; Medical practitioners; Analyst Programmer; Developer Programmer; 

Skill Level 2 are occupations that require an AQF Associate Degree, Advanced Diploma or Diploma qualification or at least three years of relevant experience including:

Customer Service Manager; Café and Restaurant Mangaer.

Major Occupations not exempted from LMT – Engineering and Nursing

While most occupations requiring the level of education stated above are exempted from LMT, if the qualification or experiences are in the field of following groups, LMT must be done prior to lodging Nomination application.

·         Engineering (including shipping engineering)

·         Nursing

Exemptions Based on International Obligations:

There are also exemptions based on Australia’s International Trade Obligations.

These are available where your business currently operates in a World Trade Organisation member country and is seeking to establish a business in Australia, where the nominated occupation is listed below as an “Executive or Senior Manager.

The definition of ‘Executive or Senior Manager’ is given a very wide interpretation, according to the DIBP website includes:

Registered Nurse, Driller, Welder, Automotive Electrician, Motor Mechanic (General), Diesel Motor Mechanic, Motorcycle Mechanic           

See the list on the DIBP website:

http://www.immi.gov.au/Visas/Pages/457.aspx?tab=4%20in%20the%20%E2%80%9CWho%20can%20nominate?%E2%80%9D%20section.

LMT will be necessary for Trade Level Occupations and below, if no exemptions apply:

At a practical level, this means that LMT will be necessary for trade level occupations which are ANZSCO Skill level 3  and for any occupations with ANZSCO skill levels below level 3.  For example Machinery Operators and Drivers which are Skill level 4 includes the occupation of Driller, which is on the ANZSCO.

This means that unless exemptions are available through International Obligations, LMT will be necessary for a number of occupations including: Electrician (general); Plumbers; Bakers; Painters; Drillers.

What level of LMT will the DIBP accept?

Details on the LMT expected can be found on a DIBP Q and A, which included the following:

“Q. What information do I need to provide as evidence of having conducted labour market testing?

A. You must provide information about all advertising or other recruitment efforts undertaken in relation to the nominated occupation in the preceding twelve month period. You must provide information about where those advertisements/recruitment activities took place, the dates they occurred and the geographic target audience of the advertising/recruitment efforts. You must provide information about the outcome of those activities including the number of applications received, the number of applicants hired and the general reasons why the other candidates were unsuccessful.

You can use the Domestic Recruitment Summary Table to summarise this information for the purpose of providing evidence of labour market testing with your nomination. It can be downloaded from the department’s website at http://www.immi.gov.au/Visas/Pages/457.aspx?tab=4

Q. Is advertising in social media channels such as Facebook an acceptable form of labour market testing?

A. Use of social media to advertise a vacant position(s) is acceptable. As with all other forms of advertising or recruitment efforts, you will need to provide information about the process you undertook and the results the advertising produced.

Q. Do I have conduct paid advertising to meet the labour market testing evidence requirement?

A. No. Paid advertising will not be considered more favourably than free advertising for the purpose of evidencing labour market testing.

Q. Do I have to provide details of the recruitment process such as records of interview or copies of job applications received?

A. No.

Q. Is advertising on my company’s own website an acceptable form of labour market testing?

A. Yes.

Q. My company uses an external recruitment agency. Is this an acceptable form of labour market testing?

A. Yes, however you are still required to provide information about the recruitment efforts undertaken on your behalf and the outcome of those activities.

The Department of Immigration and Border Protection has provided a Domestic Recruitment summary Template, to assist employers with the process of supplying information about the advertising process.

Redundancies and LMT
If an Australian citizen or permanent resident has been retrenched or made redundant in your business, or an associated entity of your business, within the four months prior to lodging your nomination, you must also provide information about those redundancies or retrenchments.”

What the Government has said about the LMT for 457 visas

In a press release on the 15 November 2013, Senator Michaelia Cash, the Assistant Minister for Immigration and Border Protection, gave her summary of the governments new LMT implementation.

The following is stated:

“The government announced today it will adopt a sensible approach to the implementation of new rules requiring employers to test the local labour market before seeking to employ an overseas worker on a subclass 457 visa. …

Guidelines released by the Department of Immigration and Border Protection for labour market testing recognise a broad range of recruitment activity as being an acceptable demonstration of labour market testing, and the time period in which labour market testing evidence will be valid for will be 12 months.”

Commentary by Chris Johnston, Principal Lawyer and RMA at Work Visa Lawyers:

The Labour Market Testing as announced will add an extra layer of effort for many employers, looking to nominated a position for a 457 visa.

There are a number of exemptions, which need to be examined carefully for each potential nominated position, to determine if LMT is required.  Many conventional professions, are exempted through their AZNSCO skill level. However Engineering and Nursing occupations are not exempted and do required LMT.  The trades will be hardest hit.  But even some trade positions will be exempted, depending on where the applicant is coming from – if a World Trade Organisation company, and being sponsored by a business where there is a parent business overseas.

If LMT is required, then the requirements for advertising are relatively broad, compared to what is required for the Direct Entry RSMS 187 visa, by many Regional Certifying Bodies.

The LMT must be within 12 months of the nomination, and the ranges of types of advertising available, include any of the following, paid online or paper, through a recruitment agent, online free adverts and even adverts through a sponsors own website.

Sources:

Migration Act 1958 - Determination of Specified Period in Which Labour Market Testing Must be Undertaken - IMMI 13/136 - F2013L01953

Migration Act 1958 - Specification of Occupations Exempt from Labour Market Testing - IMMI 13/137- F2013L01952

Migration Act 1958 - Legislative Instrument IMMI 13/138 [F2013L01954]

http://www.minister.immi.gov.au/media/mc/2013/mc209591.htm

Warning -This information is accurate on the 23 Nov 2013.  

DIBP will change visa requirements in an ongoing manner and all current requirements must be established prior to lodging an application. 

Do you Need Help with a 457 visa?

If you require further information regarding a 457 application , either as an employer or an applicant, we can help you.

Contact us on (08) 7225 5091 or +61 8 7225 5091

or This email address is being protected from spambots. You need JavaScript enabled to view it.

Here are some of the changes introduced from the 1 July 2013 that are important to 457 visa applicants:

English Requirements now more difficult for many

English levels of Functional English must now be proved for all levels of occupations nominated from the CSOL:

-      an International English Language Testing System (IELTS) test score of at least 5 in each of the four test components of speaking, reading, writing and listening, or

-      a score of at least 'B' in each of the four components of an Occupational English Test (OET).

Prior to 1 July, the requiements only applied to trade level position such as cook, baker and mechanic.  Now the apply to all positions on the CSOL, nominated for a 457. For example, now Civil and Mechanical Engineers, Marketing Specialists and Software Engineers.

TSMIT Up

TSMIT is now $53,900 and all nominations must be paid TSMIT or higher.  Please note, that Market Salary is also a relevant guide for the amount to be paid to the nominated position.

Market Salary Exemption Up

Market Salary – the exemption from Market Salary requirements has been increased from $180,000 to $250,000.

More Discretion to Refuse based on Skills and Qualifications

The Department has strengthen the skills requirements for Subclass 457 visas by requiring the Subclass 457 visa applicant to have the skills, qualifications and employment background that the Minister considers necessary to perform the tasks of the nominated occupation.

In my opinion this will help make the Department feel more comfortable in refusing an application without requesting further information.

Genuine Test – More discretion to refuse

Introduction of a ‘genuineness test’ to be conducted by departmental officers to ensure that the position associated with the nominated occupation is genuinely required to address skills shortages in Australia.

Condition Requiring Licencing Post Grant

457 visa holders must seek to obtain any mandatory registration, licence or membership for their occupation within 28 days.  The licensing requirement will effect occupations such as electricians.

All Electronic Lodgement

All applications for standard business sponsorship, approval of nominations and Subclass 457 (Temporary Work (Skilled)) visas to be lodged electronically.  The backup system to this is said to be lodgement by email. My comment, this sounds like it could be a real mess when the system crashes, like it does the last day of the program year almost every year late June.

Workers have more time to find another sponsor after ending employment

Workers have been given more time to find another sponsor after ceasing employment.  This time have been extended from 28 days to 90 days.

Fees Up

457 Sponsorship remains the same at $420

457 Nomination from $85 to $330.

457 Visa applicant – primary applicant now termed base applicant from $455 to $900

457 Visa applicant, secondary applicant over age of 18 from $0 to $900

457 Visa applicant, secondary aged under 18, from $0 to $225

New fee - Subsequent temporary application fee will apply in some circumstances, $700 per applicant.

Refer to this blog for an example of 457 fee costs post 1 July 2013.

http://www.workvisalawyers.com.au/news/entry/explanation-of-new-australian-visa-charges-system-based-on-number-of-applicants-and-the-new-subsequent-temporary-application-charge.html

Source: DIAC website

http://www.immi.gov.au/skilled/changes-457-program.htm

Need Help?

If you require further information regarding a 457 application or your Australian visa options you contact our offices on (08) 7225 5091 or +61 8 7225 5091  

This information isaccurate on the 30 July 2013.  DIAC will changes visa requirements in an ongoing manner and all current requirements must be established prior to lodging an application. 

From the 1 July 2013 there will be some changes to the total cost of applying for a visa for Australia. The major changes are:

• The Visa Application Charge (VAC) for the main applicant has increased for some visas.

• There is now a fee for each dependent applicant.

• If there is the option to lodge your visa over the internet and you choose not to lodge this way, you may be charged a fee of $80.

• There is a new fee called the Subsequent Temporary Application Charge which is $700. You may be charged this fee if you are applying for a temporary residency visa listed in Table 1 AND you have previously applied for one of the temporary visas listed on Table 2.  Refer to tables listed at page 4 of this link.

http://www.immi.gov.au/fees-charges/_pdf/visa-pricing-table.pdf

 If this fee is applicable in your situation, then it needs to be paid by each individual in the visa application. You will not be charged this fee if you are applying for a temporary visa from outside Australia, or if this is the first time you are applying for a temporary visa in Australia. This fee does not apply to bridging visas or permanent visas.

Here are three examples of how the new fees are calculated:

Example 1: Application for a subclass 190 skilled – nominated visa for a family with two adults and two children (under 18 years old).

If an applicant over 18 does not have function English a second instalment fee of $4250 will also be charged.

Example 2: Application for a subclass 457 temporary work visa for a couple who are both over 18 years old. This couple are currently holding 457 visas that they applied for in Australia. 

They are therefore required to pay the subsequent temporary application fee for each application.

Example 3: Application for a subclass 820/801 partner visa for an adult and one child under 18 years old.

Need Help?

If you require further information regarding Australian Visa application charges or your Australian visa options you contact our offices on (08) 7225 5091 or +61 8 7225 5091  

This information is accurate on the 6 July 2013.  DIAC will change visa charges regularly and you will need to check the current charges prior to lodging an application. 

It has been reported that form the 1 July 2013 the 457 visa application fee will increase from $455 to $900. See article:

http://www.abc.net.au/news/2013-05-14/nrn-fedbudget-457costs/4689874

Labor has plans for Radio Adverts  to Promote a Crackdown on 457 Visas.  See article:

http://www.afr.com/p/national/labor_ads_to_promote_work_visa_crackdown_35rbIW85h1LS1vpVSYOs6I

This will be at same time as ATO Investigations of 457 Visas. See article:

http://www.workvisalawyers.com.au/news/entry/student-visa-and-temporary-work-visa-holders-are-you-currently-being-investigated-for-tax-fraud-.html

Further details of 457 changes

Further details on the planned changes for 457 visas have been released by DIAC on their website.

“The measures being brought forward include:

• the introduction of a genuineness criterion under which the department may refuse a nomination if the position does not fit within the scope of the activities of the business
• an increase in market salary exemption threshold from $180 000 to $250 000 to ensure that higher paid salary workers are not able to be undercut through the employment of overseas labour at a cheaper rate
• the removal of English language exemptions for certain positions. Many long-term 457 workers go on to apply for permanent residence, and  this change will ensure that the 457 program requirements are brought into line with the permanent Employer Sponsored program which requires a vocational English ability. This change will benefit visa holders by ensuring that 457 visa holders, who have an ongoing position with their employer and want to apply for permanent residence in the long-run are not disadvantaged because of their language ability. Applicants who are nominated with a salary greater than $92 000 will continue to be exempted from the English language requirement
• enhanced regulatory powers for the department to ensure that the working conditions of sponsored visa holders meet Australian standards and that subclass 457 workers cannot be exploited or used to undercut local workers
• amendments to existing training benchmark provisions to clarify that an employer’s obligation to train Australians is ongoing and binding for the duration of their approved sponsorship, including for newly established business
• amendments to clarify that 457 workers may not be on-hired to an unrelated entity unless they are sponsored under a labour agreement
• amendments which will allow the department to refund a visa application fee in circumstances where an employer nomination has been withdrawn.”