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10 things to know about when applying for a 457 visa – Australia’s most common temporary work visa

10 things to know about when applying for a 457 visa – Australia’s most common temporary work visa

2018 UPDATE

Notice: The 457 visa is no longer being granted and was replaced by the 482 visa. 

Top 10 Facts You Need to Know About the New Australian 482 Visa

Video: Top 10 Facts You Need to Know About the New Australian 482 Visa

 Introduction to the 457 visa

Subclass 457 visa is the most common Temporary Work visa. The duration of the visa is for up to 4 years. You can bring your family with you to Australia. Your family can live, work or study for the duration of your visa.

The first requirement to apply for this visa is a Business who is ready to Sponsor you to work for them. The Business should be able to satisfy the Standard business Sponsor requirements discussed later in the Blog. Secondly, you as an applicant should have the required qualifications, work experience and English proficiency.

10 things to know about when applying for a 457 visa – Australia’s most common temporary work visa

1.    Three stages of the 457 application: Subclass 457 is applied in three stages:

i.        Stage 1 - Sponsorship: The Business has to apply for approval as a ‘Standard Business Sponsor’ to DIBP. The business will need to meet a range of criteria including active operation and Training Benchmarks.

ii.        Stage 2 - Nomination: Once the business is approved as a ‘Standard business Sponsor’, a nomination application is to be lodged to the DIBP which will identify the position that is to be filled and key features of the position.

iii.        Stage 3 - Visa: This is the third and last stage of the 457 application. The applicant applies for a visa and must have the required qualification or skills and English.

2.    Training benchmark A and benchmark B: This is one of the requirements of the business to become a Standard Business Sponsor. The Business has to fulfil either of the two benchmarks at the time of applying for the Sponsorship application (Stage 1):

i.        Benchmark A – Business has paid 2% of the total wages paid to its employees in the last 1 year to an Industry Training fund. This Industry Training Fund should be relevant to the employer’s business.

ii.        Benchmark B – Business spent 1% of the total wages paid to its employees in the last 1 year to train the Australian employees. Australian employees include employees of the Business who are either Australian citizens or Australian Permanent Residents.

3.    Do you have an accepted occupation?

Nominated Occupation must be on the CSOL: The occupation of the applicant should be on the Consolidated Skilled Occupation List. This list can be found on http://www.immi.gov.au/work/pages/skilled-occupations-lists/skilled-occupations-lists.aspx

 

Top 10 occupations for a 457 visa are:

 

·         Cook (ANZSCO: 351411)

·         Cafe or Restaurant Manager (ANZSCO:141111)

·         Developer Programmer (ANZSCO: 261312)

·         Marketing Specialist (ANZSCO: 225113)

·         University Lecturer (ANZSCO: 242111)

·         General Practitioner (ANZSCO: 253111)

·         ICT Business Analyst (ANZSCO: 261111)

·         Accountant (General) (ANZSCO: 221111)

·         Mechanical Engineering Technician (ANZSCO: 312512)

·         Customer Service Manager (ANZSCO: 149212)

 

There are currently 651 occupations on the CSOL. So it is worth checking if yours is on the list.

Do you need help establishing the most appropriate occupation? Call us.

 

4.    Nomination requirements include meeting TSMIT, Market salary and LMT:

 TSMIT (Temporary Skilled Migration Income Threshold): This is the income threshold that is set by the DIBP. Currently the TSMIT is set at $53,900 (please check the figure before you apply as it is subjected to change). Business has to pay a yearly salary of equal to or more than this amount to the applicant to meet the TSMIT requirements.

Market Salary: Market salary is the salary that is being paid to employees with similar occupation in the market. It must be more than TSMIT. Business has to pay a salary equal to or more than the market salary to the applicant.

Please note: The salary to be paid to the applicant should be equal to or more than TSMIT and equal to or more than the market salary for the nominated occupation.

LMT (Labour Market Test) may be required: Business may be required to provide evidences that they tried to fill the nominated position with an Australian employee and that the Business advertised the position in last 1 year but could not get a suitable candidate for the position.

5.    Visa applicant must have required skill and English: The visa applicant should hold skill and work experience in the nominated occupation in some cases. If the nominated occupation is a Trade occupation, applicant may require a Skill assessment from the Trade Recognition Australia (TRA). The nominated occupation may have Registration and Licensing requirements as well.

Visa applicant will need to meet English requirements or an exemption: The visa applicant is required to score 5 bands in each module in IELTS or a score “B” in each of the four components in OET. Applicant may be exempted from this requirement if:

i.        Applicant is to be paid a base salary of more than the English-language-requirement exempt amount which is $96,400 per year at present (it may change in future), or

ii.        Applicant holds a passport from Canada, New Zealand, the Republic of Ireland, the United Kingdom or the United States of America, or

iii.        Applicant has completed at least five years of continuous full-time study in a secondary or higher education institution in English.

6.    Conditions applicable to Business Sponsor and applicant after grant of 457 visa:

There are a large number of requirements for approved 457 Business Sponsor and 457 visa holders to comply with. The conditions include:

  i.        Conditions applicable for business:

     i.    Applicant works in the nominated occupation.

     ii.    Business should retain all the records.

     iii.    Provide training to Australian citizens or permanent residents.

ii.        Conditions applicable for the applicant:

       i.     Primary applicant can only work for the approved sponsor

     ii.    Secondary applicants have no work restrictions

     iii.    There are a limited number of occupations with exemption to work rights

     iv.    Must maintain adequate arrangements for health insurance

     v.    Must inform DIBP if applicant stops working.

The Department of Immigration and Border Protection does undertake monitoring on approved Business Sponsor. We have expertise in helping businesses respond to monitoring requirements.

Do you need help with responding to the Department regarding Business Sponsor Monitoring.  Call us.

7.    457 offers pathway to Australian PR: After working with the approved Sponsor for two years, applicant can apply for a Permanent visa subclass 187 under the Temporary Residence Transition Stream. The Business Sponsor must meet all Sponsorship requirements for the two years the person is on a 457, if they want to be able to use the Temporary Transition pathway.

8.    Government Review and recommendations to change 457 to cut ‘Red tape’

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.

·         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)

For more details on the recommendations, please go to:

http://www.workvisalawyers.com.au/news/entry/457-visa-news-government-report-recommends-changes-including-easing-english-requirements-and-lmt.html

9.    Alternative visas to the 457:

If your occupation is not on the CSOL then your options may include:

1.    RSMS visa – this requires that the position is a Trade or Diploma level on ANZSCO but is not limited to a list.

2.    Labour Agreement – It is possible to apply for a labour agreement to get access to occupation not on CSOL or to varying other 457 condition. The Labour agreement process is usually external and would require professional assistance.

3.    Partner visa - if you have an Australian Partner.

4.    Student visa

This is not the full range of options, but just some of the most common.

10.Do I need help?

The 457 process is complicated and the requirements are regularly changed by the Australian Government. Currently 73% of 457 visa applications are lodged by Registered Migration Agents. This is based on figures for April to June 2014.

In Australia, migration agents must be registered with the Office of the Migration Agents Registration Authority (MARA). If you choose to use a migration agent, you should use a registered migration agent.

Registration gives you protection and helps ensure people working as migration agents are aware of current laws and procedures and give correct advice.

https://www.mara.gov.au/media/337494/MAAR_Apr_Jun_2014_Web.pdf

If you require assistance with a 457 visa process then Work Visa Lawyers has a team of Migration Lawyers and Registered Migration Agents that can assist you.

Sources:

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 28 November 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.

Our contact details are:

 (08) 7225 5091 (if calling from within Australia)

+61 8 7225 5091 (if calling from outside Australia)

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

 

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457 Visa - Review and Planned changes to the work visa program - Minister Michaela Cash speech to MIA

457 Visa - Review and Planned changes to the work visa program - Minister Michaela Cash speech to MIA

 

457 Visa - Review and Planned changes to the work visa program - Minister Michaela Cash speech to MIA  

Minister Michaela Cash comments on review and planned changes to the 457 visa program in speech  to the Migration Institute of Australia conference on 31 October 2014, stating following:

“Extensive review of the 457 programme

As you know, Government regulatory activity can significantly impact business and Australia's reputation for doing business - in either a positive or negative manner.

And migration policy is one of the suite of regulatory levers available to Government to enhance our social and economic wellbeing.

The 457 programme continues to make a valuable contribution to Australia's economy and society.

The Abbott Government's migration programme and immigration policies serve to support employers in addressing skill shortages, grow productivity, create jobs for all Australians and keep Australia secure through well managed border controls and integrity in visa programmes. 

To ensure we remain an economically strong and competitive nation, it is critical that appropriate migration policies are implemented to provide us with a workforce that is capable of ensuring Australia's strong growth and continued economic success into the future.

Australia has one of the most well managed skilled migration programmes amongst developed countries. 

This Government recognises that our skilled migration programme must be run in the national interest.

It recognises the need for Australian business and industry to access a wide range of specialist competencies, skills, futuristic ideas and technology from overseas in order to be competitive and continue to grow in an increasingly global economy. 

The skilled migration programme helps to build economic growth by attracting the best and brightest migrants to address skills shortages, prevent labour force decline and improve our declining worker-to-retiree ratio.

Skilled migration fills genuine skills shortages with skilled migrants who complement, and do not displace, Australian workers.

Where an Australian worker with the right skills is available, this person is the right choice. However, if an Australian worker with the right skills is not available, the process for employing an overseas worker should be streamlined, efficient, transparent and robust.  

It is critical that future changes to the 457 programme are based on evidence and analysis.

This is why I announced an independent review earlier this year to ensure that the programme continues to respond to economic conditions in order to facilitate the entry of globally skilled persons to address skills shortages in the local labour market.

You would be aware that the final report for the independent review, titled, Robust New Foundations, was released by Minister Morrison in September and is currently available on the Department's website.

It is clear from reading the report that the recommendations are formed as a result of extensive consultations and considered discussions with stakeholders.

The panel met with more than 150 stakeholder groups across the country including with representatives from the MIA in early May.

The panel also invited public submissions and received nearly 200 responses from a variety of stakeholders, including a very comprehensive submission from the MIA.

The panel found no evidence to support claims of widespread rorting of the 457 programme, and identified a number of reforms that will improve the 457 programme. The report's 22 recommendations will make it easier for businesses to access skilled workers where there is a genuine need, and ensure a robust integrity framework is in place for the future of the 457 programme. Some of the key reforms from the panel's report were announced as part of the Industry, Innovation and Investment Competitiveness Agenda earlier this month.

These reforms include:

  • simplifying sponsorship requirements for employers to reduce the time and cost involved for business;
  • increasing the sponsorship approval period for start-up businesses for 12 to 18 months;
  • streamlining the processes of sponsorship, nomination and visa applications to reward low risk applicants and re-focus compliance and monitoring activities on high risk applicants;
  • providing greater flexibility in relation English language testing and skill requirements for 457 applicants; and
  • retaining the current Temporary Skilled Migration Income Threshold at $53, 900.

Reforms such as these highlight the Government's work to create conditions for business to prosper by supporting growth and removing unnecessary regulation.

These changes to the programme demonstrate our commitment to evidence based productivity reform and I will be able to provide you with further information on a timeframe for implementation and a fulsome Government response to the report, in the coming months.”

Sources:

Migration Institute of Australia

News release by Senator the Hon. Michaelia Cash:

http://www.minister.immi.gov.au/media/mc/2014/mc218908.htm


Warning -This information is accurate on the 06 November 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.

 

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457 changes announced including greater flexibility for English language and streamlining process for low risk businesses

457 changes announced including greater flexibility for English language and streamlining process for low risk businesses

 

457 visas changes Announced by Australia Government:

 

The Australian Federal Government has announced on 14 October 2014 that the following changes will be made:

“The Government will reform the 457 visa programme for skilled migrants, while maintaining strong safeguards against abuse.

The 457 programme must be a means of filling genuine skills gaps in the local labour market while not placing unnecessary administrative burdens on business.

An effectively managed skilled migration programme ensures foreign workers supplement rather than substitute Australian workers. A business that is forced to close because it is unable to access the labour that it requires employs no-one.  That is a lose–lose situation for both employers and employees.

Following an independent review of the 457 programme, the Government will:

·         streamline the processing of sponsorship, nomination and visa applications to reward low risk applicants and refocus compliance and monitoring activities on high risk applicants;

·         increase the sponsorship approval period from 12 to 18 months for start-up businesses, to give start-ups more time to make their businesses sustainable;

·         provide greater flexibility in relation to English language testing and skill requirements for 457 applicants, to ensure that the standards required are appropriate for the industries and occupations being sought; and

·         retain the Temporary Skilled Migration Income Threshold at $53 900, ahead of a review within the next two years.

Safeguards will remain in place to ensure that the 457 visa programme is not rorted. It will continue to be a requirement that a foreign worker receives at least the same market rates and conditions that are paid to an Australian doing the same job in the same workplace”

Comment by Chris Johnston, Principal Solicitor with Work Visa Lawyers:

The announced planned changes will be welcomed by businesses and by potential visa applicants.

The area of greatest interest for visa applicants will be in relation to the proposed greater flexibility in relation to English language requirements.

The 457 Report recommended 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).

So this averaging system mentioned in the 457 Report could be the greater flexibility, but we will have to wait until the actual changes are enacted.

The date of the 457 changes has not been provided.  The Federal Government has said that there “will soon make further announcements on the recommendations of reviews”.

Work Visa Lawyers will keep you posted in our news section.

Sources:

Joint media release with Prime Minister Tony Abbott, Minister for Industry Ian McFarlane and Minister for Immigration and Border Protection Scott Morrison.:

http://www.minister.immi.gov.au/media/sm/2014/sm218547.htm

Warning -This information is accurate on the 18 October 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.

 

Continue reading

457 visa news -Government report recommends changes including easing English requirements and LMT

457 visa news -Government report recommends changes including easing English requirements and LMT

 

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.

 

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Nomination Ceilings for new 457 employer sponsorship applications have been abolished

 

The nomination ceiling is the limit of positions that a 457 sponsor is allowed to nominate under the 457 program. 

The PAM3 - Sponsorship applicable to Division 3A of Part 2 of the Act – Sponsorship was amended on 14 February 2014 to remove references to sponsorships ending on the event of the number of approved nominations (the nomination ceiling) being reached.

Policy relating to Reg 2.63(2) now refers only to the end date of approval of the sponsorship as the expiry of the approval.

Sponsorships approved after the 14 February 2014 will be able to keep making nominations, after the requested number of nominations has been reached, as long as the three year sponsorship approval is still valid.

Sponsorship approved before the 14 February changes will still be subject to the sponsorship ceilings, and will cease once the ceiling is reached.

Reaction from Interest Groups:

Various media have reported the change as the opening of a loophole or similar negative event.

http://www.smh.com.au/federal-politics/political-news/rort-fears-as-457-visa-loophole-reopened-20140311-34kgr.html

http://au.news.yahoo.com/a/21937663/shorten-worried-about-flood-of-457-visas/

Commentary by Chris Johnston:

The removal of the Sponsorship ceiling does not mean that 457 visa applications and 457 sponsors will be without appropriate conditions and monitoring.

The nomination ceiling was only one of the many limitations and check that are part of the 457 process.  The 457 is still subject to many criteria designed to protect Australian workers and Australian wage standards.  These include that the salary for the nominated position must be above the TSMIT, which is currently $53,900.00.  Another protection is the requirement that the salary be at the Market Salary paid to equivalent Australian workers.

The Department of Immigration monitors 457 sponsors to make sure that the approved 457 conditions are met by the employer.    If breaches are found then sponsorship bars, sanctions and fines can be imposed.

The 457 ceiling has previously been introduced and then subsequently removed.  So the cycle of changes continues.

Sources:

http://www.immi.gov.au/Visas/Pages/457.aspx

Migration Institute of Australia


Warning -This information is accurate on the 16 March 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 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

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

 

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