Following an independent review of the subclass 457 visa program, the Australian Government has announced that it will be adopting recommendations to alter the program.

What are the changes?

• The sponsorship terms for businesses approved as standard business sponsors will increase from the current three years to five years for established businesses.
• For newly established businesses (those operating for less than 12 months), the sponsorship term will extend from 12 months to 18 months.
• English language requirements for subclass 457 visa applicants will be slightly more relaxed.
• Information sharing between the Department of Immigration and Border Protection (DIBP) and the Australian Tax Office (ATO) will be increased.  Information sharing will include the ATO verifying that subclass 457 visa holders are paid their stipulated salary and verifying information provided by businesses to the DIBP.
• Training benchmarks for standard business sponsors (which currently includes Training Benchmark A of contributing 2% of payroll to an industry training fund or 1% of payroll expenditure spent on training Australian staff) will be replaced with an annual training contribution made by the business sponsor.
• Fraudulent actions by business sponsors will become criminalised and accepting payment to sponsor a subclass 457 visa holder will become a criminal offence.

When will the changes take place?

• The Australian Government has implemented the above changes to the subclass 457 visa program on 18 March 2015.

What next?

• Further changes to the subclass 457 visa program are expected to be introduced throughout 2015.

We will ensure that all our clients are informed of changes to the subclass 457 visa program as they occur.  Please contact Principal Lawyer, Rebecca Berkovic, for advice regarding subclass 457 visa sponsorship.

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.

Purpose of the amended programme

It was announced by the Federal Government today, that recommendations by an independent review of the subclass 457 visa programme will be adopted.  The Government has announced that the changes are intended to:

• Strengthen the integrity of the subclass 457 visa programme;
• Ensure that Australian workers have priority for Australian jobs; and
• Support employers with genuine skill shortages.

Major changes to the subclass 457 visa programme

The most significant changes to the subclass 457 visa programme that will affect business sponsors and overseas workers applying for subclass 457 visas can be summarised as follows:

1. Standard business sponsors will be approved for five years instead of the current three years, whereas newly established companies will be granted sponsorship for 18 months as opposed to the current 12 month period;
2. The current training benchmarks of Training Benchmark A (contribution of 2% of payroll into an industry training fund) or Training Benchmark B (1% of payroll expenditure spent on training Australian staff) will become obsolete. They are intended to be replaced by an annual training contribution to a government training fund by business sponsors. The amount of the contribution is yet to bme announced and will most likely depend on the number of subclass 457 visa holders and possibly the size of the business;
3. English language requirements for subclass 457 visa holders will become less stringent;
4. Sponsors who comply with their sponsorship obligations are intended byto be rewarded by the Department of Immigration and Border Protection (DIBP) by providing them with streamlined processing for subclass 457 nomination and visa applications;
5. There will be an increase in the sharing of information between the DIBP and the Australian Tax Office (ATO) in terms of verifying information provided by standard business sponsors and ensuring that workers on subclass 457 visas are receiving their nominated salary; and
6. The Australian Government will begin criminalising fraudulent actions under the subclass 457 visa programme, including making it unlawful for sponsors to receive payment in return for sponsoring a worker for a 457 visa.

Implementation

The Australian Federal Government has already begun implementation of the review’s recommendations and has announced that it will further introduce the above changes to the subclass 457 visa programme throughout 2015.

We will keep all our clients informed of future developments and changes to the subclass 457 visa programme.

 

 

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.