Australian Visa Overview | 15 Dec 2009

With the significant changes that have been introduced by the government over the past six months for the subclass 457 visa, the attention to detail on this type of application is critical to the success.

Continuing to maintain a 100% track record for success on all applications submitted, our client's are welcoming the advice and confidence that over 20 years of combined experience brings to the Life Relocation Migration Team.

In moving forwards to 2010, Life Relocation have prepared a summary of the critical changes that have occurred over the past few months as a quick guide for our corporate clients and business network.

Snapshot over the past 18 months

On 1 April 2009, the government announced a series of key reforms to the temporary skilled migration program (subclass 457 visa). The key reforms, which have been implemented progressively between April and September, are listed below. The changes include a requirement that overseas workers be paid at market salary rates.

As a result of the recent 457 changes, and the effects of the global economic crisis (GEC), there have been significant reductions in 2009 subclass 457 visa applications.

Visa Statistics

In 2008–09, 101280 subclass 457 visas were granted, which is more than 8 per cent lower than the previous year.

The program has responded quickly to changes in the labour market. In September 2008, application rates were 28 per cent higher than in September 2007.

However in June 2009, the number of subclass 457 applications lodged was 40 per cent lower than those lodged in September 2008 when the GEC began. This reduction in applications was most pronounced in trade occupations, which were 64 percent lower and semi-skilled occupations, which were 97 per cent lower.

The subclass 457 visa continues to be a significant pathway to permanent residence. In the 2008–09 program years, 39170 subclass 457 visa holders were granted permanent residence.

Changes to the program

Minimum salary level

All overseas workers are to be paid at market salary rates, as per below

The implementation of a market based minimum salary for all new and existing 457 visa holders from mid September 2009, to ensure overseas workers are not exploited and local wages and conditions are not undermined (a key recommendation of the Deegan Review).

This is an important area for existing approved sponsors, who employ 457 visa holders as "market rates"  will apply to existing 457 visas holders. Life Relocation can provide a full audit of all exisiting 457 visa holders within your companies to  ensure you are compliant moving forward.

Minimum language requirements

Increasing the existing minimum language requirement from 4.5 IELTS to 5 IELTS for 457 visa applicants in trade occupations and chefs, to address concerns about the exploitation of workers from non-English speaking countries and align the 457 visa English language standard with the permanent sponsored visa for trades' occupations.

Formal Skills Assessment

Progressively introducing formal skills assessment for 457 visa applicants from high risk immigration countries in trade occupations and chefs. The Government will consult with stakeholders in finalising an assessment framework that reflects Australian standards and meets the expectations of Australian workplaces.

Sponsorship requirements

DIAC have introduced a requirement that employers seeking access to the 457 visa program have a strong record of, or demonstrated commitment to, employing local labour and non-discriminatory employment practices. This will help address concerns that some employers may discriminate against local labour in hiring overseas workers.

Additionally, the development of training benchmarks to clarify the existing requirement on employers to demonstrate a commitment to training local labour is further required.

Finally, the extension of the labour agreement pathway to all ASCO 5 - 7 occupations, is there to ensure that employers using the 457 visa program to access these occupations satisfy obligations on local training and employment.

Elimination of the Minimum Validity Period for Subclass 457 Visas

The three-month minimum validity period for subclass 457 visas will be eliminated. Subclass 457 visas will be available for any period up to four years.

Ability to Change Employers

Foreign nationals working in Australia with subclass 457 visas will be able to change employers without necessarily obtaining a new visa, provided the new employer is an approved subclass 457 sponsor and has obtained approval to fill the proposed position with a subclass 457 worker. It will be possible for a subclass 457 visa holder to retain his or her original expiration date when changing employers.

If a subclass 457 worker changes his or her position within the sponsoring employer to the extent that the occupational classification originally designated for the position changes, the employer will need to obtain a new approval to fill the position with a subclass 457 worker. These changes will apply to current and future subclass 457 workers.

New Health Insurance Requirements for Subclass 457 Visa Holders

In addition, sponsors will no longer be required to meet any hospital costs of 457 workers, but the foreign worker must provide the Australian authorities with evidence of “adequate arrangements” for health insurance while they are in Australia. The Australian government has yet to release details of what constitutes “adequate arrangements.” The new health insurance requirement will apply to all future subclass 457 visa sponsorships, but is likely not to apply to those with subclass 457 status as of September 14.

Ability to Obtain Subclass 457 Visa From Within Australia

Lastly, foreign nationals already in Australia, other than holders of transit or special purpose visas, will be permitted to apply for a subclass 457 visa from within Australia. Previously, foreign nationals could apply for a subclass 457 visa while in Australia only in limited circumstances.

This change will be of particular advantage to spouses or domestic partners holding temporary partner visas (subclass 820 or 826) who separate from their sponsoring spouse or partner, because they will be able to change their status to a subclass 457 visa without leaving Australia. The change will also allow foreign nationals to submit their applications from abroad and then travel to Australia on any visa (other than a transit or special purpose visa) while their application is being adjudicated. However, foreign nationals in these circumstances should not start working with the sponsoring employer until the subclass 457 visa is approved.

Life Relocation can provide a full audit of all exisiting 457 visa holders within your companies to  ensure you are compliant moving forward. Please contact our migration team for more details.