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.