In the past, it has been possible for a visa applicant to sponsor themselves for a Temporary Work (Skilled) (subclass 457) visa through self-sponsorship as a business owner. This avenue for visa applicants has now been closed by the Department of Immigration and Border Protection (DIBP).

What is self-sponsorship?

Self- sponsorship involved the following situation:

• Where a visa applicant set up or ran either an Australian or international company;
• That company then nominated the owner for a subclass 457 visa; and
• A subclass 457 visa was granted to enable the owner to work as an employee in the business.

The idea of self-sponsorship is based on the corporations’ law principle that a company is a separate entity to an individual and therefore the company was a separate legal person to the visa applicant. This principle only applied where the business was a registered company and not a sole trader or partnership.

The visa applicant could be nominated to work as an employee of the business as long as there was legally an employer-employee relationship between the visa applicant and the company.

Change in policy

There has now been a change in the policy of the DIBP to prevent the situation of self-sponsorship into the future.

The DIBP has amended the policy to state that:

“The program is not intended to be used for non-citizens to establish a business in Australia and self-sponsor themselves; there are other visa pathways available for such purposes.”

Basically, it will not be considered a “genuine” position by the DIBP if the director of a company (Australian or international), nominates themselves for a subclass 457 visa any longer.

Further advice

Requirements of the subclass 457 visa are ever-changing and often complicated.

For advice regarding Australian work visas and sponsoring overseas workers, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance or call our office:

Australia: +61 3 9021 0986
London: +44 20 3670 4586