Category: 457 Visas

New Category Added to the Accredited Sponsor Scheme

Posted by Rebecca Berkovic on

The Minister for Immigration, Citizenship and Multicultural Affairs has recently agreed to a new category of accredited sponsor (category 5), as explained below.

Background

The Accredited Sponsor Scheme provides streamlined processing arrangements for those sponsors who apply to become accredited. Accredited sponsors receive priority processing for Temporary Skill Shortage (TSS) nominations and visa applications, with most applications processed in less than five days as well as priority processing for ENS (Employer Nomination Scheme subclass 186) and RSMS (Regional Sponsored Migration Scheme subclass 187) nomination and visas applications. The scheme has four categories of sponsors which are described below:

  • Category 1: Commonwealth, state and territory government agencies with Australian workers making up at least 75% of the workforce in Australia.
  • Category 2: Australian Trusted Trader with Australian workers making up at least 75% of the workforce in Australia.
  • Category 3: Low volume usage and high percentage of Australian workers (at least 85%).
  • Category 4: High volume usage and medium percentage of Australian workers (at least 75%).

For each of these categories there are a number of conditions that a business must meet to be accredited, such as requirements relating to minimum annual turnover, business structure and employment arrangements.

New Category 5: Major investment in Australia

A new Category 5 has been added to the Accredited Sponsor Scheme. In order to be accredited in this category applicants must:

  • have made a major investment in Australia (of at least AUD50 Million) which has directly generated Australian employment. Options for measuring a “major investment” may include:
  • a lasting contribution to Australia, including: the value of the investment, the company’s pattern of investment, jobs created, export outcomes generated, tax contribution; or
  • innovative business practices or technologies, including: introducing new skills and capabilities, setting up research activities in Australia or collaborating with Australian research institutions; or
  • supporting exports and the expansion of Australian industry within global supply chains, particularly in high value-add areas.
  • not be a sole trader or a partnership.
  • have been a standard business sponsor for at least one year.
  • have nominations approved for at least one primary TSS/457 visa holder in the last year.
  • have had more than 97% of nomination applications approved in the last year.
  • have no adverse monitoring outcomes.
  • have paid all Australian employees in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates.
  • engage all TSS/457 visa holders as employees under a written contract that meets National Employment Standards where they apply.

For advice regarding becoming an accredited sponsor, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.

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.

Labour Agreement Update

Posted by Rebecca Berkovic on

Labour agreements for aged care providers

A number of aged care providers care for older Australians from multicultural backgrounds. In these circumstances specialised services may be required, for example, to care for aged Australians with limited English language proficiency or cultural requirements.

Accordingly, aged care providers can request a company specific labour agreement to sponsor skilled overseas workers for a Temporary Skill Shortage(TSS) subclass 482 visa, or an Employer Nominated Scheme (ENS) subclass 186 visa.

The Minister for Immigration, Citizenship and Multicultural Affairs has recently agreed to allow aged care providers in multicultural communities to seek the following terms and/or concessions to be included in their labour agreement:

  • a pathway to the permanent residency ENS visa, provided nominees having been employed for at least three years on a TSS visa,
  • an age concession allowing ENS visa nominees to be up to 55 years old, and/or
  • a lower English language proficiency requirement equivalent to the short-term stream of the TSS visa (ie International English Language Testing System (IELTS) component scores of at least 4.5 and an overall IELTS score of at least 5.0).

Labour agreements will only be considered where it is demonstrated that Australians cannot fill skill shortages and standard work visa programs cannot be used.

Changes to Minister of Religion Labour Agreements

The Minister of Religion Labour Agreement (MORLA) settings have recently changed.

  • Religious institutions can now seek a MORLA to sponsor overseas workers under the additional occupation of ‘Religious Assistant’.
  • Thresholds for sponsoring the occupation of ‘Minister of Religion’ have been made more flexible. Previously, the nominee was required to work in the most senior position in a specified location. Under new arrangements, the nominee can work in any senior position.

Sponsors will still need to demonstrate they meet all requirements of the program and have made reasonable efforts to fill positions with Australians.

 

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.

Upcoming Changes to the Labour Market Testing (LMT) Requirement

Posted by Rebecca Berkovic on

Since 2013 457 visa sponsors have been required to test the Australian labour market to ensure there is no suitable Australian citizen, permanent resident or “eligible temporary visa holder” available to fill the position. Essentially this requires employers to provide evidence of attempts to recruit Australians, including details and expenses of advertising conducted. However, there are a number of exceptions to this obligation, as outlined below.

Current exceptions to the LMT requirement

Evidence of LMT must be provided to the Department of Immigration and Border Protection (Department) unless one of the following exemptions apply:

  • major disaster: the Minister may exempt a sponsor from the requirement to undertake LMT if a major disaster has occurred in Australia and the exemption is necessary or desirable in order to assist disaster relief or recovery.
  • skill level and occupation:  all Australia and New Zealand Standard Classification of Occupations (ANZSCO) skill level 1 and 2 occupations are currently exempt from the LMT requirement unless the occupation’s experience or qualifications are considered “protected” under the legislation. Currently, experience or qualifications in the fields of engineering and nursing are protected, and therefore LMT is required regardless of the skill level of the occupation.
  • Australia’s international trade obligations: LMT is not required where it would conflict with Australia’s international trade obligations. There are a number of circumstances which fall under this exemption, including the country of origin of the visa applicant or whether the visa applicant is employed by an associated entity (of the sponsor’s business) which is located or operates in certain countries. However, even if LMT is not required because of international trade obligations, the Department still expects sponsors to provide an explanation of why LMT is not required.

Changes to LMT exemptions from March 2018

In March 2018 the 457 visa program will be replaced with the Temporary Skills Shortage visa (TSS) at which time LMT will become mandatory for all occupations, unless international trade obligations apply. Employers will therefore need to ensure they conduct LMT within the required timeframes, irrespective of the skill level of the occupation they are seeking to fill, unless the international trade obligation exemption applies.

Changes to the type of evidence of LMT the Department will accept

From 1 October 2017, the Department will no longer accept a summary table of domestic recruitment activities as evidence of LMT. Instead, employers will need to provide copies of actual advertisements placed and details of any fees paid.

For advice regarding working holiday visas, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.

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.

Training 457 sponsorship

A Changed Definition of Training for 457 Sponsorship

Posted by Rebecca Berkovic on

As part of the bundle of legislative and policy reforms introduced to Australian work visas, including the Temporary Work (Skilled)(subclass 457) visa, on 1 July 2017 the Department of Immigration and Border Protection (DIBP) changed the definition of training for 457 sponsorship.

In applying to register as a 457 standard business sponsor, businesses are required to meet the requisite training benchmark. The training requirements include the following:

  1. For a business operating for less than 12 months, an Auditable Training Plan must be provided.
  2. For a business operating for more than 12 months, the options are as follows:
    1. Training Benchmark A: The business must demonstrate that 2% of payroll was placed in an industry training fund; or
    2. Training Benchmark B: The business can show that 1% of payroll expenditure was spent on training Australian staff.

Outline of the Key Training Definitional Changes

The key changes on 1 July 2017 include clarification of the following requirements:

  1. Definition of what constitutes payroll expenditure for a business; and
  2. Clarification of what can and cannot be counted towards training expenditure in order to meet Training Benchmark B.

What constitutes payroll expenditure?

The Federal Government has clarified that from 1 July 2017 payroll has an expansive definition and is considered to be one of the following:

  • The total amount of wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions or eligible termination payments and payments made to relevant contractors or subcontractors; or
  • If the sponsoring business does not pay wages, contractors and subcontractors then the monetary value of director’s salaries, fees and drawn payments; or the profit of the business.

What Constitutes Training for Training Benchmark B?

The Federal Government has clarified that the following constitutes training for the purposes of Training Benchmark B:

  • for Australian employees to undertake a formal course of study, including any reasonable and necessary associated costs (e.g. costs of travelling to training venue) or access an online learning programme;
  • to RTOs to deliver face-to-face training to Australian employees that will contribute towards an Australian Qualification Framework qualification;
  • to purchase an eLearning platform or standalone training software; or
  • to cover the salary of:
    • Australian employees engaged by the business as apprentices or trainees under a formal training contract;
    • Australian employees who have completed an undergraduate or higher degree in a university within the last 365 days;  or
    • a trainer responsible for training Australian employees on a full time basis.

What Does Not Constitute Training for Training Benchmark B?

The Federal Government has clarified that the following cannot be counted towards training expenditure for the purposes of Training Benchmark B:

  • on-the job-training;
  • induction training;
  • staff completing online training courses;
  • purchasing software for use in normal duties;
  • membership fees;
  • purchasing books, journals or magazine subscriptions;
  • attending conferences for purposes other than continuing professional development;
  • hiring a booth at a trades show, conference or expo
  • training only undertaken by persons who are:
    • not Australian citizens or permanent residents;
    • principals in the business or their family members;
  • training that is not relevant to the industry in which the business operates or has a very low skill
  • level having regard to the characteristic and size of the business.

Proposed Future 457 Sponsorship Training Changes

Significant reforms are currently underway to the Australian visa program and when the new Temporary Skills Sponsored (TSS) visa replaces the subclass 457 visa, the Federal Government has announced that the current training provisions will be replaced by a work visa levy to be paid by standard business sponsors per worker.

Need Assistance?

It is crucial to each standard business sponsorship application that the correct evidence is provided to demonstrate meeting training benchmarks.

For advice and assistance with this process, contact us or email our firm at info@hartmanlawyers.com.au.

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.

457 Accredited Sponsorship

What’s New for 457 Accredited Sponsorship?

Posted by Rebecca Berkovic on

Included in the package of reforms for the Australian work and skilled visa programs which came into effect on 1 July 2017, are new arrangements for 457 Accredited Sponsorship. 457 Accredited Sponsorship was introduced by the Department of Immigration and Borer Protection (DIBP) as a means of expediting Temporary Work (Skilled)(subclass 457) nomination and visa applications for ‘low risk’ Australian businesses who were frequent users of the 457 visa program.

457 Accredited Sponsorship enables Australian businesses sponsoring skilled overseas workers to fast-track applications, thereby enabling workers to commence employment at an earlier date.

A New 457 Accredited Sponsorship System

The DIBP announced an expansion of the 457 Accredited Sponsorship system on 1 July 2017. The new requirements are intended to enable ‘low risk’ Australian businesses needing to sponsor overseas workers access to accreditation to fast-track applications urgent to the operation of the Australian business.

The new 457 Accredited Sponsorship system is intended to reduce subclass 457 processing times overall and is a welcome change by Australian businesses required to fill a skills shortage quickly.

The new accreditation characteristics are divided into four distinct categories:

Category 1

Relates to Standard Business Sponsors that are Australian government agencies (Commonwealth, state and territory).

Requirement:

  • Must have Australian workers comprising at least 75% of their workforce in Australia.

Category 2

Relates to Standard Business Sponsors that are approved Australian Trusted Traders.

Requirements:

  • Must have Australian workers comprising at least 75% of their workforce in Australia.
  • Engage all 457 holders as employees under a written contract of employment that includes at least the minimum employment entitlements as required under the National Employment Standards (unless their occupation is exempt from this requirement).
  • Have all Australian employees paid in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates for all occupations in their business.

Category 3

Relates to Standard Business Sponsors categorised as “Low risk” with low volume usage (of the 457 programme) and high percentage of Australian workers (at least 90%).

Requirements:

  • Must be a publicly-listed company or a private company with at least AUD four million annual turnover for the last two years.
  • Have been an active 457 sponsor for at least two years.
  • Must have no adverse monitoring outcomes.
  • Have sponsored at least one primary 457 visa holder in the two years prior to the application for accreditation.
  • Have a non-approval rate of less than 3% for the previous two years.
  • Have Australian workers comprising at least 90% of their workforce in Australia.
  • Must engage all 457 holders as employees under a written contract of employment that includes at least the minimum employment entitlements as required under the National Employment Standards (unless their occupation is exempt from this requirement).
  • Have all Australian employees paid in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates for all occupations in their business.
  • Have provided details of all business activities undertaken by their business to the Department.
  • Must have provided details of all Principals / Directors of their business to the Department.

Category 4

Relates to Standard Business Sponsors categorised as “Low risk” with high volume usage (of the 457 programme) and medium percentage of Australian workers (at least 75%).

Requirements:

The Characteristics are the same as Category 3 with two differences:

  • The business must have sponsored at least ten primary 457 visa holders in the two years prior to the application for accreditation; and
  • Must have Australian workers comprising at least 75% of their workforce in Australia.

To qualify for accredited status, a 457 business sponsor must still meet all the requirements for standard business sponsorship and demonstrate they meet the additional characteristics in one of the four categories listed above.

The Benefits of Becoming a 457 Accredited Sponsorship

The DIBP provides benefits to Australian businesses holding 457 Accredited Sponsorship. The benefits provided are as follows:

  • The 457 business sponsorship is valid for six years instead of five;
  • Importantly, priority allocation of all nomination and visa applications is granted; and
  • Additional streamlined processing of certain low-risk nominations is provided.

Existing standard business sponsors holding accredited status will not be impacted by the changes to 457 Accredited Sponsorship introduced on 1 July 2017.

Applying for 457 Accredited Sponsorship

Australian businesses already sponsoring or intending to sponsor overseas employees under the 457 visa program can apply to become a 457 Accredited Sponsor if the business falls into one of the four categories listed above.

For existing Standard Business Sponsors to apply for accredited status, the business will need to lodge a

sponsorship variation application and ask to be considered for Accredited Sponsorship. Additional evidentiary documentation must be provided at the time of application.

Businesses that are not yet registered as Standard Business Sponsors at 1 July 2017 must firstly apply to become a 457 business sponsor before they can be assessed for accredited status.

Need Assistance?

It is our priority to assist in enabling Australian businesses to obtain the workforce they require. We know firsthand that the employment commencement date of a skilled overseas worker can be crucial to the operation of the business and may be critical to fulfilling client contracts.

We therefore encourage businesses meeting the accreditation status criteria to obtain 457 Accredited Sponsorship in order to fast-track 457 nomination and visa application processing.

For assistance with this process, contact our firm at info@hartmanlawyers.com.au and we can advise on your business’ eligibility to obtain 457 Accredited Sponsorship status.

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.

457 visas

Australian Visa Changes from 1 July 2017: 457 Visas

Posted by Rebecca Berkovic on

The Federal Government has introduced a host of additional Australian visa changes which came into effect on 1 July 2017, impacting the Temporary Work (Skilled)(subclass 457) visa program. The entire 457 visa program will be replaced with the Temporary Skills Shortage (TSS) visa from March 2018, however in the interim, companies sponsoring workers on temporary visas are still able to utilise the 457 visa program.

The major 1 July 2017 changes to the 457 visa program are outlined below:

Eligible Occupation Lists

The Department of Immigration and Border Protection (DIBP) has announced that it will update the relevant eligible occupation lists on a six monthly basis.

From 1 July 2017, the following changes to the eligible occupation lists occurred:

Short-term Skilled Occupation List (STSOL) – Additional Occupations

The following occupations were added to the STSOL on 1 July 2017:

  • research and development manager
  • production manager (manufacturing)
  • production manager (mining)
  • music director
  • music professionals (nec)
  • artistic director
  • aeroplane pilot
  • flying instructor
  • helicopter pilot
  • nurse researcher
  • web developer
  • ICT Support and Test Engineers (nec)
  • ICT support technicians (nec)
  • textile, clothing and footwear mechanic
  • butcher or smallgoods maker
  • retail buyer

Medium and Long-term Strategic Skills List (MLTSSL)- Additional Occupations:

The following occupations were added to the MLTSSL on 1 July 2017:

  • chief executive or managing director
  • corporate general manager
  • chief information officer
  • faculty head
  • university lecturer
  • environmental manager
  • musician (instrumental)
  • statistician
  • economist
  • mining engineer (excluding petroleum)
  • petroleum engineer
  • engineering professionals (nec)
  • chemist
  • food technologist
  • environmental consultant
  • environmental research scientist
  • environmental scientists (nec)
  • geophysicist
  • hydrogeologist
  • life scientist (general)
  • biochemist
  • biotechnologist
  • botanist
  • marine biologist
  • microbiologist
  • zoologist
  • physicist
  • life scientists (not elsewhere classified)
  • conservator
  • metallurgist
  • meteorologist
  • natural and physical science professionals (nec)
  • multimedia specialist
  • software and applications programmers (nec)
  • ICT security specialist
  • horse trainer

Removed Occupations:

The following occupations were removed to the MLTSSL on 1 July 2017:

  • Equipment Hire Manager
  • Fleet Manager
  • Picture Framer
  • Property Manager
  • Psychotherapist
  • Real Estate Agent Principal
  • Real Estate Agent
  • Real Estate Agent Representative
  • Ship’s Engineer
  • Ship’s Master
  • Ship’s Officer
  • University Tutor

The validity period for subclass 457 visas based on occupations listed on the STSOL are granted for a two year period and are able to be renewed once. The validity period of the subclass 457 visa based on occupations included on the MLTSSL is for a four year period and acts as a pathway to Australian permanent residency.

Mandatory Skills Assessments

Currently, for 457 visa applicants in specific occupations of certain nationalities, a skills assessment is required from Trades Recognition Australia (TRA) or VETASSESS. In addition, case officers from the Department of Immigration and Border Protection (DIBP) have the discretion to request a skills assessment from the relevant assessing authority when processing 457 visa applications if they are uncertain whether the applicant meets the definition of the relevant nominated occupation.

From 1 July 2017, additional countries have been added to the list requiring a skills assessment from TRA prior to submitting their subclass 457 visa.

Caveats

From 1 July 2017, caveats on certain occupations introduced on 19 April 2017 have been relaxed in relation to certain occupations. Caveats have placed specific requirements on several nominated occupations in terms of minimum salary, business turnover, number of workers employed by the sponsoring business, employment experience of the visa applicant, nature of the business and/or required location in a regional area.

This is a win for Australian startup businesses requiring the assistance of overseas workers bringing important skills to different industries, since new businesses were unlikely to be able to meet caveats placed on business turnover and employee numbers required previously for certain occupations.

English Language Exemptions

In the past, visa applicants earning over the high income threshold of $96,400 were exempt from providing evidence of English language ability when applying for a subclass 457 visa.

The English Language Salary Exemption Threshold will no longer be available for 457 visa applications lodged on or after 1 July 2017.

Police Clearance Certificates

From 1 July 2017, subclass 457 visa applicants will be required to provide police clearance certificates at the time of application. This change will affect applications lodged on or after 1 July 2017.

Need Assistance?

For specific enquiries regarding applications for Australian work visas, please feel free to contact us at info@hartmanlawyers.com.au.

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.

Australian visa changes

Preparing for 1 July 2017 Australian Visa Changes

Posted by Rebecca Berkovic on

As the 1 July 2017 Australian visa changes rapidly approach, we are bracing for the system, financial and regulation modifications that will occur.

System Changes

The Department of Immigration and Border Protection (DIBP) has announced that the lodgement portal will be closed from 9:00 pm (AEST) on 30 June 2017.

Also, on 1 July 2017 new electronic forms will be introduced for all stages of the 457 visa.

The DIBP has instructed that any partially completed, ‘saved’, or ‘in progress’ 457 forms that are not submitted by 9:00 pm on 30 June 2017 will be lost, and the forms will be set to a status of ‘discontinued’ within the ImmiAccount. Therefore, applicants are strongly advised to ensure that any urgent applications are completed and submitted before this date.

From 1 July 2017, applicants will need to start a new 457 sponsorship, nomination of visa application form to continue the visa application process.

Financial Changes

Australian visa application fees will be increasing on 1 July 2017. The Government has published information of the exact changes that will occur.

The new Australian visa application fees can be accessed here.

Regulation Changes

A number of regulation changes will be introduced on 1 July 2017 affecting eligibility criteria for Australian visas.

The changes that have been announced so far include the following:

  • Skilled visas: The requisite occupation lists are expected to change and the maximum age requirement will be reduced from 50 years to 45 years.
  • Temporary Work (Skilled)(subclass 457) visas: A number of changes are expected to occur including changes to the eligible skilled occupation lists, requirement for mandatory police checks for visa applicants, change in the training requirements and changes to English language exemptions.
  • Employer Nomination Scheme (subclass 186) visa (ENS visa) & Regional Sponsored Migration Scheme visa (subclass 187) visas: The English language requirement will change for the Transitional visa stream from ‘vocational’ to ‘competent’ English, eligible occupation lists will be amended, and the maximum age requirement of 45 at the time of application will apply to Direct Entry stream applicants and a maximum age requirement of 50 at the time of application will continue to apply to Temporary Residence Transition stream applicants.

We will keep our clients and contacts informed of the upcoming 1 July 2017 changes to the Australian visa program.

For more information on Australian work visas, please feel free to contact us at info@hartmanlawyers.com.au

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.

Sponsorship Compliance and 457 Visa Changes

Posted by Rebecca Berkovic on

Following Australian Prime Minister Malcolm Turnbull’s announcement on 18 April 2017 that the Temporary Work (Skilled)(subclass 457) visa will be abolished from March 2018, a host of changes to Australia’s work visa program are now being introduced in stages, including subclass 457 sponsorship compliance.

The Australian Federal Government has announced that it will implement sponsorship compliance reforms commencing on 31 December 2017. This includes creating a public database of sponsors sanctioned for failing to meet their sponsorship obligations in accordance with the Migration Regulations 1994 and related legislation.

Meeting Sponsorship Obligations

In order for a business sponsor to prevent breaching their subclass 457 sponsorship obligations and  appearing on a list published by the Department of Immigration and Border Protection (DIBP), the following steps are strongly recommended:

  • Ensure that the business meets the requisite training requirements in each 12 month period of the sponsorship;
  • Ensure that when sponsoring a 457 visa holder the business, or individuals within the business, do not receive a payment or gift for sponsoring the overseas worker;
  • Ensure that the 457 visa holder employee is working in the nominated occupation specified to the Department of Immigration and Border Protection (DIBP);
  • Ensure that the 457 visa holder is paid in accordance with information provided to the DIBP; and
  • Keep records of the 457 visa holder’s employment, such as payslips and leave records.

In addition, as of 31 December 2017 the DIBP will start collecting tax file numbers of 457 visa holders and matching data with Australian Tax Office records to ensure visa holders are being paid their nominated salary.

TSS visa and Sponsorship Compliance

The new Temporary Skills Sponsor (TSS) visa which will replace the 457 visa in March 2018 may be accompanied by reformed sponsorship obligations. For businesses sponsoring overseas workers under the TSS visa, it is important to remain informed of sponsorship obligations.

We will continue to monitor Australian work visa changes and inform our clients and contacts of future sponsorship compliance reforms.

For advice regarding sponsoring workers on a subclass 457 visa and compliance issues, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.

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.

457 visa changes

457 Visa Overhaul – A Snapshot of the Impact to an Australian Business

Posted by Rebecca Berkovic on

Hartman Immigration Lawyers supports any strengthening to the integrity of the Temporary Work (Skilled)(subclass 457) visa program. We also believe in removing exploitation within the system. And we support a replacement of the subclass 457 visa system provided that the new program is tailored to better address skills shortages within the Australian labour market as well as providing flexibility for employers, thereby supporting businesses of all sizes to grow and enabling new technology and innovation to thrive in Australia.

Our concern is that the introduction of the new work visa system in its current state is too restrictive and will have adverse consequences for Australian businesses. Below is an example of how these changes can impact a business and provides an illustration of how these changes may impact upon other business in a similar position to “Company X” below.

Snapshot of potential consequences of the changes – Company X:

Company X is a recently established Australian business manufacturing and selling medical devices and plans to expand into the Brazilian market to sell its Australian product.

The business searches for a technical salesperson within Australia but cannot find an appropriate candidate with the connections, experience and Portuguese language skills to be able to adequately assist the company. However, Company X finds a Brazilian national with the required sales, marketing and language skills to drive Company X’s expansion into Brazil.

Although Company X would prefer to hire an Australian worker to fill the position (all Company X employees are Australian citizens and the company wants to avoid the cost to its business and the sponsorship obligations associated with hiring a worker through the subclass 457 visa program), this company simply cannot find a local employee with the appropriate experience and knowledge.

Accordingly, Company X lodges a subclass 457 sponsorship, nomination and visa application and the sponsorship is approved. Suddenly on 19 April 2017, the relevant occupation of Sales Representative (Medical and Pharmaceutical Products) has been removed and the company withdraws the nomination and visa application, even though the company genuinely needs the visa applicant to expand into the Brazilian market.

Company X then looks at sponsoring the visa applicant as a Sales and Marketing Manager. However, due to the new caveats, the occupation of Sales and Marketing Manager now requires the sponsoring business to have an annual turnover of AUD$1 million and Company X’s turnover is AUD$700,000.

The business cannot sponsor the employee needed to expand the company into the Brazilian market, despite the fact that this expansion may grow Company X’s turnover to the required $1 million threshold as well as create more jobs within Company X for Australian employees.

457 visa program review

The above scenario provides just one example of the consequences of the new work visa system. Whilst we support changes to the 457 visa program which improve its integrity, the new program needs to be reviewed so as to allow Australian businesses the flexibility to respond to genuine skill shortages and provide certainty going forward for employers (and investors).

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.

Australia Work Visas

Changes to Australian Work Visas

Posted by Rebecca Berkovic on

Major changes have been and are in the process of being introduced to Australian work visas and the Employer Sponsored visa program.

Following the announcement by the Federal Government on 18 April 2017 that significant changes would take place to the Australian work visa program, the amendments came into effect yesterday. Changes to both the temporary work visa stream and permanent Employer Sponsored visas will be introduced in stages as follows:

Temporary Employer Sponsored Visas

19 April 2017 Changes

Temporary Work (Skilled)(subclass 457) visas

Current holders of subclass 457 visas will be able to continue to hold their visa until the expiry date. Pending subclass 457 visa applications will be subject to the new occupation lists and applicants no longer eligible for this visa will need to withdraw their applications.

Subclass 457 applications lodged from 19 April 2017 onwards must have an occupation on the new occupation lists.

New Occupation Lists

The Consolidated Sponsored Occupation List (CSOL) has been replaced by the new Medium and Long Term Strategic Skills List (MLTSSL) and Short Term Skilled Occupation List (STSOL).

As it stands, 216 occupations have been removed from the CSOL, including the more common nominated occupations of Human Resource Adviser, Procurement Manager, Public Relations Manager, Importer or Exporter, Retail Buyer and Web Developer. See enclosed complete removed occupations list.

Occupation Caveats

Caveats have been introduced to 59 occupations on the STSOL. The Department of Immigration and Border Protection (DIBP) has announced that visa applications where the nominated occupation falls within the scope of the ‘caveat’ will not be approved.

A list of the caveats published by the DIBP can be accessed here.

Duration of Visa Grant

Short-Term stream:  For visa applicants granted a subclass 457 visa from 19 April 2017 with an occupation on the STSOL, the visa can only be granted for 2 years with only one further extension allowed for another two years. Australian permanent residency through the subclass 186/187 Employer Sponsored scheme will not be allowed.

Medium-Term stream:  For visa applicants granted a subclass 457 visa with an occupation on the MLTSSL, it can be granted for 4 years. Visa holders will be able to apply for a permanent 186/187 visa after 3 years on a 457 visa if the employer agrees to nominate the visa holder.

1 July 2017 Changes

From 1 July 2017, the following changes announced by the Federal Government that will be introduced to the subclass 457 visa program include:

English salary exemption $96,400 is to be removed.

Training benchmarks for subclass 457 business sponsors are to set to be changed.

Mandatory penal clearance certificates will be required for all subclass 457 visa applicants.

8 March 2018 Changes

Introduction of Temporary Skill Shortage (TSS) visa

The new Temporary Skill Shortage (TSS) visa will replace the subclass 457 visa from March 2018.

Visa applicants for the TSS will require an occupation on the STOSL or MLTSSL and two years’ relevant work experience.

Permanent Employer Sponsored Visas

19 April 2017

Occupation Lists

Eligible occupations for the Employer Nomination Scheme (subclass 186) visa and Regional Sponsored Migration Scheme (subclass 187) visa on the CSOL have been condensed with 216 occupations removed and 24 occupations restricted to regional Australia.

The CSOL has been replaced with a combined STSOL and MLTSSL for eligible occupations.

1 July 2017

Occupation Lists:  The STSOL will be further reviewed based on advice from the Department of Employment. The MLTSSL will be revised based on outcomes from the Department of Education and Training’s 2017-18 Skilled Occupation List review.

English Language Requirement:  A requirement of an International English Language Testing System (IELTS) (or equivalent test) score of 6 in each component will be introduced.

Age:  For the Direct Entry Stream, a maximum age requirement of 45 at the time of application will be introduced.

For the Temporary Residence Transition stream, a maximum age requirement of 50 at the time of application will continue to apply.

March 2018

Occupation Lists:  For the subclass 186 and 187 visas: Only the MLTSSL will apply, with additional occupations available to support regional employers for the RSMS.

Minimum Salary Rate: A minimum market salary rate will be introduced whereby employers must pay the Australian market salary rate as well as meeting the Temporary Skilled Migration Income Threshold.

Age Requirements:  All visa applicants must be under the maximum age requirement of 45 at the time of application.

We will continue to provide our clients and contacts with further details regarding changes to Australian work visas and the Employer Sponsored visa program as they become available.

In the meantime, for advice regarding Australian work visas, please feel free to contact the author by email at rebecca@hartmanlawyers.com.au or by telephone on +61 3 9021 0986 or +61 (0)423 701 747.

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.