The Department of Immigration and Citizenship (DIAC) has released a Discussion Paper entitled Strengthening the Integrity of the Subclass 457 Visa on 2 May 2013. This important Discussion Paper provides insight into the expected legislative and policy changes to be introduced to the subclass 457 visa program in the very near future. Therefore it is vital that Australian businesses that presently, or may in future employ overseas workers are aware of the main features of the Discussion Paper and the implications for sponsoring businesses.

Implications for Businesses

The primary proposed measures which would restrict the subclass 457 visa program and impact upon sponsoring businesses are as follows:

• Businesses would be required to meet training obligations throughout the term of the sponsorship, be subject to potential monitoring of training obligations and be required to keep records of ongoing training;
• Renewing subclass 457 business sponsorship would require evidence of meeting training obligations throughout the term of the sponsorship;
• Businesses would need to elect a set number of people the business is able to nominate for subclass 457 visas at the time of the sponsorship application (note that there may be provision to increase this number during the term of the sponsorship);
• “Program and Project Administrator”, “Specialist Managers” and certain other generalist occupations would require skills assessments and would be limited to relevant industries only;
• Market salary rates would be considered within the regional locality and not the particular workplace; and
• For start-up companies and overseas businesses, the sponsorship length will be limited to a period of 12 months or the term of the employment contract (which can be up to three years), whichever is longer.

NB: Further explanation of the proposed changes to the subclass 457 visa program is outlined in more detail below.

Action for Businesses

If you (or your clients) are considering registering a business/es as a sublass 457 business sponsor, we would recommend applying as soon as possible so that the current, more relaxed application criteria apply. Moreover, if your business (or your client’s business) intends to sponsor an overseas worker for a subclass 457 visa, we recommend commencing the process immediately.

At Hartman Immigration Lawyers, we ensure that all our clients’ subclass 457 sponsorship, nomination and visa applications are prepared and lodged speedily and efficiently.

We provide a thorough assessment of every case to determine the eligibility of businesses (from well-established to start-up companies) to become subclass 457 sponsors, and assess overseas workers’ eligibility for a subclass 457 visa. We provide comprehensive legal submissions to DIAC to optimise our clients’ chances of gaining business sponsorship and visa approval.

You can contact us with inquiries regarding lodging urgent subclass 457 sponsorship, nomination and visa applications.